TABLE 6-7 Department of Commerce Licensing Decisions, 1989

 

Exports

Reexports

Destination

Approved

Denied

Approved

Denied

By volume

Free worlda

59,995

154

6,450

35

CoCom

27,313

23

2,430

3

China

3,862

101

718

4

Eastern bloc

1,709

123

1,958

66

By value (in $ millions)

Free worlda

79,050

191

36,794

159

CoCom

33,895

106b

3,619

    .088

China

3,170

.027

.225

.041

Eastern bloc

1,807

17

234

3

a Department of Commerce designation for all nonproscribed, non-CoCom countries.

b More than 99 percent of this figure represents computers

SOURCE: U.S. Department of Commerce, Bureau of Export Administration.

the controls on reexports of goods with 25 percent U.S.-origin parts or components, thus ignoring U.S. foreign policy reexport controls on locally manufactured goods with lesser U.S. content. In addition, there is an abundance of anecdotal evidence that, when possible, foreign manufacturers avoid U.S. sources in order to escape the encumbrance of U.S. reexport controls.

Another contentious aspect of the licensing debate concerns whether the CoCom countries should practice "national discretion," that is, the export of certain controlled dual use items to proscribed destinations without first getting CoCom approval. (The licensing term for this kind of exception is an administration exception note.) The argument for national discretion is that it reduces the burden of license processing on CoCom and provides a paper trail for shipments that otherwise would not exist. Yet, because nations interpret quite differently the control threshold at which national discretion is employed, national discretion for dual use items undermines the principles of a multilateral regime.

Insufficient Judicial Review

The Export Administration Act generally exempts Commerce Department actions from the judicial review provisions of the Administrative Procedure Act. The Omnibus Trade and Competitiveness Act of 1988 provided limited judicial review only for Commerce Department civil enforcement actions. The question of whether to extend review to nonenforcement situations, such as licensing actions and the issuance of regulations, has been given new significance by the failure of the administration to implement various pro-



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