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EGlossary
Administrative exception note (AEN) A note appended to certain CoCom
International List categories describing commodities that can be ap-
proved for sale to CoCom-proscribed destinations solely at national
discretion.
Automatic licensing procedure As mandated by the Export Administra-
tion Amendments Act of 1985, a requirement that individual validated
license applications for most exports to CoCom nations must be
approved automatically by Export Administration 15 working days
after filing unless the applicant is notified that more time (not to exceed
15 additional working days) is required. At the end of the 15- (or 30-)
working-day period, the export is deemed to be licensed, even if no
document or communication to that effect has been sent or received.
Bilateral In the context of this report, referring to two-sided negotiations
or agreements between two nations regarding export controls.
CoCom (Coordinating Committee on Multilateral Export Controls) An in-
formal organization that cooperatively restricts strategic exports to
controlled countries. It consists of 16 member nations: Belgium,
Canada, Denmark, France, the Federal Republic of Germany, Greece,
Italy, Japan, Luxembourg, the Netherlands, Norway, Portugal, Spain,
Turkey, the United Kingdom, and the United States.
Commodity Any article, material, or supply except technical data.
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GLOSSAR Y 279
Community of common controls A proposed cooperative arrangement for
trade in controlled commodities among Free World nations that share
an expressed willingness to adhere to common or equivalent national
security export controls. Under such an arrangement, licenses would
be required (from the cooperating nation shipping a controlled com-
modity) only for the export of controlled commodities to nations not a
party to the arrangement.
Consignee In the context of this report, the recipient of a shipment of
commodities or technical data subject to national security export
controls.
Continuous review The process within CoCom by which one-fourth of
the entries on the International List are reviewed each year on an
ongoing basis and particular entries may be reviewed within any
one-year period at the request of a member nation. Changes to list
entries are published annually by member nations.
Country groups Seven groups of foreign countries, established by the
Commerce Department for export control purposes and designated by
the symbols Q. S. T. V, W. Y. and Z (see Figure 4-3 on pp. 84-851.
Canada is not included in any country group and is referred to by name
in the Export Administration Regulations.
Customs-free (bonded) zones Storage and transfer sites in various nations
within which commodities in transit are not, for administrative and
legal purposes, considered to be imports and therefore are not subject
to inspection.
Distribution license A special 2-year license, without dollar value or
quantity limits, authorizing the export of eligible commodities to
approved consignees in specified countries. Distribution license con
signees must be foreign distributors or users of the licensed commodity
in Free World countries.
Diversion Shipment of militarily significant dual use products and tech-
nology to unapproved end users, either directly, through the export of
controlled products without a license (i.e., smuggling), or indirectly,
through transshipment using a complex chain of increasingly untrace
able reexports.
Dual use In the context of this report, describes technology or products
that have both military and commercial applications.
Embargo A legal prohibition on commerce.
End use The purpose or application for which controlled commodities or
technical data will be used by a consignee.
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280 APPENDIX E
End-user check An investigation by officials of the Department of Com-
merce or Department of State to confirm that a consignee is reputable and
is engaged in the business claimed in statements to licensing authorities.
End-use statement A formal declaration by a consignee of the specific
purpose or application for which controlled commodities or technical
data will be used.
Espionage Covert efforts to obtain illicitly-by theft, bribery, or black-
mail protected information or technology that is classified or of
relevance to military systems.
Exception request An application by a CoCom member, in support of an
application by a domestic firm, seeking the approval of all member
nations to permit the export of a commodity subject to CoCom controls
to a proscribed destination.
Extraterritoriality In the context of this report, the assertion by the U.S.
government that its export control regulations govern trade in U.S.-
controlled commodities and technical data of U.S. origin outside the
territorial boundaries of the United States.
Farewell The French intelligence community codename for a high-level
Soviet official who provided France with extensive information on the
scope, organization, and successes of covert Soviet technology acqui-
sition activities in the West.
Favorable consideration A category of items on the CoCom International
List that, by agreement among the members, will be considered
favorably for export to proscribed destinations, on a case-by-case
basis, provided the proposed transactions meet certain conditions
specified in accompanying notes.
Foreign availability According to the Export Administration Act of 1979,
a state existing when a non-CoCom-origin item of comparable quality is
available to adversaries in quantities sufficient to satisfy their military
needs. Foreign availability may apply to items that CoCom-proscribed
nations manufacture domestically or buy freely from uncontrolled
sources.
Foreign national Any person who is not a citizen of the United States
and who has not been lawfully admitted for permanent residence in the
United States under the Immigration and Naturalization Act.
Free World In the context of this report, nations not subject to the
CoCom strategic trade embargo.
General embargo Restrictions maintained through CoCom to prevent ex-
ports of certain munitions, nuclear, and dual use items to proscribed
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GLOSSAR Y 28 ~
destinations. Exceptions to the embargo are granted only for specific
transactions on a case-by-case basis and must be approved unanimously.
General license An export license established by the U.S. Department of
Commerce for which no application is required and for which no
document is granted or issued. General licenses are available for use by
all persons or organizations, except those listed in and prohibited by the
provisions of the Export Administration Regulations Supplement No. 1
to Part 388; the licenses permit exports within the above provisions as
prescribed in the regulations. These general licenses are not applicable
to exports under the licensing jurisdiction of agencies other than the
Department of Commerce.
Globalization The spread of business activities to numerous and diverse
countries around the world.
Goods in transit Goods that are being transported from a vendor's point
of origin to the premises of a foreign consignee.
Import certificateldelivery verification (ICIDV) procedure A procedure
sometimes used by the United States, other CoCom countries, Austria,
and Hong Kong to monitor the movement of exports of militarily
strategic commodities. When the IC/DV procedure is required by an
exporting country for a specific transaction, an importer certifies to the
government of the importing country that he will be importing specific
commodities and will not reexport them except in accordance with the
export control regulations of that country (i.e., the importing country).
The government of the importing country, in turn, certifies to the
exporting country that such representations have been made prior to
the transaction. After the commodities have been shipped, the
importer's government certifies that the controlled items have been
received by the designated consignee.
Individual validated license (IVL) Written approval by the U.S. Depart-
ment of Commerce granting permission, which is valid for 2 years, for
the export of a specified quantity of products or technical data to a
single recipient. Individual validated licenses also are required, under
certain circumstances, as authorization for reexport of U.S.-origin
commodities to new destinations abroad.
International List The CoCom list of dual use commodities and technical
data that are subject to validated licensing requirements when proposed
for export from CoCom countries to other nations.
Keystone equipment Sophisticated devices essential to the successful
operation/completion of manufacturing processes. (Some examples
include process control equipment and specialized machine tools.)
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282 APPENDIX E
Letter of assurance A written statement from the foreign recipient of
restricted technical data under restriction that the data will not be made
available to proscribed nations.
Merchant (firms) Firms that sell their products on the open market, as
opposed to producing only for internal consumption.
Militarily Critical Technologies List (MCTL) A document originally man-
dated by Congress listing technologies that the Department of Defense
considers to have current or future utility in military systems. It briefly
describes arrays of design and manufacturing know-how; keystone
manufacturing, inspection, and test equipment; and goods accompa-
nied by sophisticated operation, application, and maintenance know-
how. Military justification for each entry is included in the classified
version of the list.
Multilateral As used in this report, referring to agreements or negotia-
tions among three or more nations to reach common accord on national
security export controls and procedures.
National discretion A level of CoCom control under which some items on
the International List, as indicated in administrative exception notes,
may be licensed for sale to proscribed nations by one member country
without the approval of the others.
National interest exception A determination by the U.S. Secretary of
Commerce, in accordance with Section 12(c) of the Export Adminis-
tration Act of 1979, permitting the confidential disclosure of informa-
tion obtained by the Commerce Department for consideration of or
concerning export license applications.
National security export controls Procedures designed to regulate the
transfer of technology from one country to another in such a way as to
protect militarily important technologies from acquisition by potential
adversaries (see the Export Administration Act of 1979, as amended).
Nexus Connection or linkage.
President's Export Council A group established by executive order in
1973 and reconstituted in 1979 to provide a forum on current and
emerging problems and issues in U.S. foreign commerce. Its members
include primarily leaders in business, industry, and agriculture and
members of Congress.
Proscribed countries In terms of national security export controls, Alba-
nia, Bulgaria, Cuba, Czechoslovakia, Estonia, the German Democratic
Republic, Hungary, Kampuchea, Laos, Latvia, Lithuania, the Mongo
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GLOSSAR Y 283
lien People's Republic, North Korea, the People's Republic of China,
Poland, Rumania, the USSR, and Vietnam.
Reexport The exportation of commodities or technical data from one
foreign destination to another at any time after initial export from the
country of origin.
Reverse engineering Reproduction of a unique product based solely on
examination and analysis of a sample of the product.
Secrecy orders An order issued, at the request of a defense agency, by
the Patent and Trademark Office of the Department of Commerce,
which prohibits or limits the use of an innovation described in a patent
application and the dissemination of related, underlying technical
information.
Shipper's export declaration (SED) Any declaration required under regu-
lations of the Department of Commerce and other U.S. government
departments or agencies in connection with exports.
Strategic goods and technologies Items designed especially or used prin-
cipally for development, production, or utilization of arms, ammuni-
tion, or military systems; items incorporating unique technological
know-how, the acquisition of which might give significant direct
assistance to the development and production of arms, ammunition, or
military systems; and items in which proscribed nations have a defi-
ciency that hinders this development and production and that they are
not likely to overcome within a reasonable period.
Sunset provision In the context of this report, a clause mandating the
periodic review and automatic termination of a CoCom export restric-
tion unless its continued inclusion on the International List has been
rejustified and agreed upon.
Table of Denial Orders (TDO) A list included in the Export Administra-
tion Regulations of specific individuals or organizations that have been
denied export privileges, in whole or in part. Orders are published in
full in the Federal Register.
Technical data Information of any kind that can be used or adapted for
use in the design, production, manufacture, utilization, or reconstruc-
tion of articles or materials. The data may take a tangible form, such as
a model, prototype, blueprint, or an operating manual (the tangible form
may be stored on recording media); or they may take an intangible form
such as technical know-how. Software is considered technical data.
Technological commodity Mass-produced items that are marketed, dis-
tributed, and/or warehoused in large quantities for use by distributors
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284 APPENDIX E
and customers around the world. Most items that can be purchased
from retail outlets on a cash-and-carry basis are also technological
commodities. Examples of commodities currently subject to national
security export controls are some personal computers and related
peripheral devices, floppy discs, and microchips.
Technology transfer In the context of this report, the acquisition by one
country from another of products, technology, or know-how that
directly or indirectly enables a qualitative or quantitative upgrading of
deployed military systems or the development of effective countermea-
sures to military systems deployed by others.
Third countries Free World nations that are not members of CoCom.
Transshipment The transfer, by a series of separately documented ship-
ments, of controlled products through one or more countries en route to
a final destination that may be a proscribed country. Initially, the final
destination and in later transactions, the country of origin are con-
cealed to avoid export or reexport prohibitions.
Unilateral In the context of this report, referring to actions relating to
national security export controls that are taken by only one nation.
U.S. Control List The list of commodities under the export control
jurisdiction of the Commerce Department's Export Administration.
U.S. Munitions List A list of defense articles and services, which was
developed by the Department of Defense and is now maintained by the
State Department with the advice of DoD. The International Traffic in
Arms Regulations pertain only to items on the list and to directly
related technical data, the export and reexport of which must be
approved in advance by the State Department.
Validated license Written approval issued by the governments of various
nations granting limited permission to export controlled commodities or
technical data, either on a single- or a multiple-transaction basis. In the
case of the United States, validated licenses also are required, under
certain circumstances, for reexport of U.S.-origin commodities to new
destinations abroad.
Representative terms from entire chapter:
export controls
