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List of Tables Table 1: Table 2: Table 3: Table 4: U. S. Manufactures Exports U.S. High Technology Exports U.S. High Tech Exports, Selected Categories Comparison of EC10 and Japan vs. U. S . Manufactures Trade with the Soviet Union and Bloc Countries Table 5: U.S. Parent and Foreign Sales of U.S. Affiliates, 1982 Table 6: U.S. Parent Sales and Total Foreign Sales for Selected Industrial Categories, 1982 Table 7: U.S. Exports Total and For U.S.. Parents to Their Affiliates, 1982 Table 8: Industrial Categories of U.S. Exports to Affiliated and Unaffiliated Enterprises, 1982 Use of Licenses by Type, 1985 Summary of DOC Export License Case Handling Approved Applications to All Countries for Manufactures, FY85 Ranking of Top Ten CCL Categories by Number of Occurrences, FY85 Table 9: Table 10: Table 11: Table 12: Table 13: Case Processing Time Profile Table 14: DOC Processing Time for Small vs. Large Firms, by Destination Table 15: Total Processing Time for Small vs. Large Firms, by Destination Table 16: Total Processing Time by Major CCL Category Table 17: Summary of Analysis of Cases Returned Without Action Table 18: Reexport Applications
Table 19: Analysis of Reexport Licensing Records Table 20: Action on Licenses and Processing Times by Size of Exporter Table 21: Aerospace Industry Table 22: Analytic Instruments Industry Table 23: Semiconductor Equipment Industry Table 24: Use of License Type by Firm Size Table 25: Use of Various License Provisions
Table 1 U. S. Manufactures Exports $ Bill ions ~ 1980 (%) COCOM less Canada* Canada 1985 (%) 48 31 48 30 30 19 42 26 China 1 1 3 2 Bloc _ _ 1 _ 1 Al ~ Other Countries 7 7 4 9 6 ~ 4 2 Total * * * 156 100 162 100 Trade to ECl 0 + Japan is used to approximate COCOM trade. There are 15 countries in COCOM. Not covered in the clef inition are Norway, Portugal, and Turkey . * * May not sum clue to rounding . Source: U. S . Department of Commerce.
Table 2 U.S. High Technology Exports ($ Billions) COCOM less Canada 1980 I%) 1985 (%) 21.3 39 26.7 39 Canada S.5 10 8.1 12 China <1.0 <1 1.7 2 Bloc <1. 0 <1 <1. 0 <1 All Other Countries 27.0 49 31.8 46 Total 54.7 100 68.4 100 Source: U.S. Department of Commerce data on U.S. high technology trade. Table 3 U.S. High Tech Exports, Selected (including Machine Tools) ($ Billions) Categories 1980 1985 Communication Equipment 13 4 Aircraft and Parts IS 18 Computers/Of f ice Equipment 9 15 Scienti f ic Instruments Components Machine Tools 6 S - 7 Total 38 51 Source: U.S. Department of Commerce a
l Table 4 Comparison of EC10 and Japan vs. U.S. Manufactures Trade with the Soviet Union and Bloc Countries ($ Billion) 1980 1981 1982 1983 1984 EC + Japan Exports to the USSR and Bloc 21.9 17.8 17.4 17.7 16.1 (% of Total EC + Japan Exports) 3.5 3.0 3.1 3.2 n/a U.S. Exports to the USSR and Bloc (% of total U.S Exports) . 0.8 0.8 0.9 0.7 0.6 <I. O <1. 0 <1. 0 <1. 0 <1. 0 Sources: U.S. Department of Commerce trade data and The Economic Report of the President, 1986. Trade is for SITC categories 5-8, manufactured goods.
Table 5 U.S. Parent and Foreign Sales of U. S . Affiliates, 1982 ($ Billion) U.S. Parent Sales Foreign Sales of U.S. Affiliates in All Countries Sales of Af filiates in Developed Countries Sales of Affiliates in COCOM Countries Total 2,465 1,026 742 611 Manufacturing 1,018 3S9 287 250 Office Equipment 52 22 21 20 Other Machinery 34 12 11 8 Electrical Equipment 118 27 18 16 Other Trans. 7 2 Instruments 33 3 13 3 12 3 , 11 309 77 65 58 Source: U.S. Department of Commerce, Bureau of Economic Analysis, ~ d: 1982 Benchmark survey Data, (Government Printing Office, and Table I.D.4 Washington, DC) 1985, Table 7
Table 6 U.S. Parent Sales and Total Foreign Sales for Selected Industrial Categories, 1982 ( $ Billion) Office Equipment Total ~ Foreign U.S. Foreign ~ Sales Parent Sales Sales* ~ as a % (~) (2) ~ (2~/~1~+~2~) 1 52 23 1 31 Other Machinery 34 15 ~ 31 Electrical Equip. 118 38 1 24 Other Transport. 72 16 1 18 Instruments 33 15 ~ 31 Total 3 09 107 ~ 2 6 * Foreign sales plus exports to unaffiliated entities Source: Ibid . .
Table 7 U.S. Exports Total and For U.S. Parents to Their Affiliates, 1982 ($ Billion) Total U.S. Merchandise Exports: $212.0 of which - Agriculture 37.0 - Manufacturing 174.0 U.S. Exports by U.S. Parents 163.0 of which - shipped to affiliates 57.0 - majority owned 53.0 - to other 4.0 - shipped to unaffiliated 107.0 Of the $107 billion shipped to unaffiliated parties: Manufacturing exports of which - high tech Of the $57 billion shipped to Manufacturing exports of which - high tech affiliated parties: - went to COCOM countries May not sum due to rounding. Sources: (~) U.S. Department of Commerce, U.S. Trade Performance in 1984 and Outlook, 1985; (2) U.S. Department of Commerce, Bureau of Economic ~ , Analysis I U. S . Direct Investment Abroad: 1982 Benchmark Survey Data / December 1985 / Table II r p. 1. 65.0 30.0 37.0 10.7 6.1
Table 8 Industrial Categories of U.S. Exports to Affiliated and Unaffiliated Enterprises, 1982 ($ Billion) Amount from Column (2) Exports to Exports to which went to Sector Unaffiliated Affiliated COCOM Dest. (1) (2) (3) Computing/ Office Equipment 1.2 2.5 2.0 Other Machinery 3.4 1.2 0.6 Communications 2.7 0.7 0.3 Electronics Components 1.9 3.0 0.5 Other Electronics 6.0 1.0 0.7 Other Transportation 12.7 0.3 0.3 Instruments 1.9 2.0 1.7 Total $29.8 $10.7 $6.1 Source: Ibid; Table II, P.4 .
Table 9 Use of Licenses by Type, 1985 Type of License GDEST IVL DL . Service Project Total*** * ** % of Exports* Unweighted 38% 44 17 <1 1 100 Sample of responses % of Exports** Weighted 41% 23 25 11 100 170 firms, unweighted refers to simple Sample of 170 firms, responses weighted by firm size. * * * May not sum due to rounding. Source: NAS Questionnaire responses . % of Licensed Exports 39 42 19 2 100 average of
Table 10 Summary of Department of Commerce Export License Case Handling (Calendar Quarters) Number of Cases Closed (Thou) ~ Value (Bil) Amount Rejected ($ Mil) Percent of Cases RWAd* Source: *RWAd = 84.30 84.40 85.10 85.20 85.30 85.40 86.10 29.8 27.6 30.3 20.5 17.3 17.9 31.7 31.7 29.9 29.3 18.1 18.4 17.7 19.3 62.0 166.0 83.0 62.0 125.0 269.0 120.0 .~.t 17.0 17.0 17.0 17.0 17.0 16.0 18.0 U.S. Department of Commerce export license Returned Without Action databank.
- Table 11 Approved Applications to All Countries for Manufactures, FY85 (Ranked on $ Value) CCL Percent of Rank CCL* Occurrences** Value Total Value Category ($ Bil) 1. 1565 42110 $26.1 52.1 Electronic Computing Equipment 2. 1460 536 7.8 15.6 Nonmilitary Aircra f t/ · Hel icopters! Engines 3. 4460 1100 3.8 7.6 Nonmilitary Aircraft/ Hel icopters & Engine/ F 4. 1564 12137 3.6 7.3 Electronic Assemblies & Integrated Circuits 5. 1091 513 1.1 2.3 Numerical Control Equipment 6. 1572 2205 1.1 2.2 Recording/ Reproducing Equipment 7. 1355 2631 1.0 2.0 Electronic Device Manufacturing Equipment 8. 1519 1505 0.6 1.2 Single/Multi Channel Transmission Equipment 9. 6399 3917 0.5 1.0 General Industrial Equipment 10. 1485 920 0.5 1.0 Compasses/ Gyroscopes/ Accelero- meters list number * CCL: Commodity control ** Number of license approvals. Source: U.S. Department of Commerce export license databank.
. r I Table 12 Ranking of Top Ten CCL Categories Number of Occurrences, FY85 by % of CCL Number Occurrences Total Definition 1. * 1S65 42110 48 Electronic Computing Equipment 2. * 1564 12137 14 Electronic Assemblies 3. * 6399 3917 5 General Industrial Equipment 4. 1529 3325 4 Measuring/ Testing Equipment 5. * 13S5 2631 3 Electronic Device Manufacturing Equipment 6. 1537 2350 3 Microwave . Equipment 7. * 1S72 2205 3 Recording/ Reproduction Equipment 8. 4S29 2089 2 Equipment, Test, Computerized Electric 9. 6299 1615 2 Equipment, Electrical Power Generating 10. * 1519 1505 2 Transmission Equipment Total 73884** * ** CCL number also appears on list of ten largest categories by value. This represents approximately 85 percent of manufacturing related approved licenses. Source: U.S. Department of Commerce export license databank.
Table 13 Case Processing Time Profile January 5, 1986, to April 5, 1986 Average Processing Times (Days)* Destination Countries All Free Total World COCOM MOW** Bloc PRC Average ~ . All Cases 21 14 36 75 64 27 Nonreferred Cases 16 13 24 29 18 16 Referred Cases 49 31 .57 132 156 73 Other Agency Processing Times State 30 64 18 40 331 31 Defense 6 48 5 31 34 8 Energy 8 3 12 28 71 9 COCOM 42 42 0 114 66 68 CIA 41 41 0 40 59 SNEC 126 0 106 0 0 126 OTHER 0 7 6 41 63 16 All Agency Average 9 7 6 41 63 16 MOU: Processing time defined from date of entry into the system through license issuance. Memorandum of Understanding country destination. Source: U.S. Department of Commerce
Table 14 DOC Processing Time for Small vs. Large Firms, by Destination Based on DOC Processing Time Definition: Average Processing Time, All Firms Large Company Average Processing Time Small Company Average Processing Time Lie cues Average Processing Time (days) % < 4 0 days ~ > 4 0 days Percent o f Total 25 days 26 days 24 days West-West 20 93 87% East-West* 60 72 28 13% Smal l Companies Average Processing Time (days) % < 4 0 days % > 4 0 days Percent of Total * Includes China 20 94 6 73 40 60 92% 1 8% Source: U.S. Department of Commerce export license databank; See also Appendix A.
Table 15 Total Processing Time for Small vs. Large Firms, by Destination Based on Total Processing Time Def inition : Average Processing Time, All Firms 53 days Large Company Average Processing Time 49 days Small Company Average Processing Time 56 days West-West ~ _r . Large Companies Average Processing Time (days) East-West* 35 1 145 % < 40 days 75 1 46 % > 40 days 25 1 54 1 Percent of Total Be% ~ 12% Smal 1 Companies Average Processing Time (days) 46 1 96 1 % < 40 days 70 1 13 % ~ 40 days 30 1 87 Percent of Total * Includes China 91% ~ 9% U.S. Department of Commerce export license databank. See also Appendix A
Table 16 Total Processing Time by Major CCL Category Electron. Comput. Electron. Microw. Equip. Assembl. Equip. Electron. Device Mfg. Equip. Number of Cases 242 49 17 IS Avg. Processing Time 55.5 38.9 82.8 148.9 No. of Small Co. Cases 121 27 10 8 Avg. Processing Time 64.3 38.0 29.9 133.5 Sm. Co. Cases to the East Number 17 0 0 1 Erg. Processing Time 89.2 0 0 110.0 . ~ . Sm. Co. Cases to the West Number 104 27 10 7 Avg. Processing Time 60.2 38.0 29.9 136.9 No. of Large Cases 121 22 7 7 Avg. Processing Time 46.7 40.0 158.4 166.4 Lg. Co. Cases to the East 19 2 1 1 Avg. Processing Time 99.2 29.0 900.0 896.0 Lg. Co. Cases to the West 102 20 6 6 Avg. Processing Time 36.9 42.6 34.8 22.4 No. of Cases to the East 36 2 1 2 Avg. Processing Time 94.4 29.0 900.0 503.0 No. of Cases to the West 206 47 16 13 Avg. Processing Time 48.7 39.4 31.8 94.3 Source: See Appendix A. Electronic Computing Equipment is CCL 1565 Electronic Assemblies is CCL 1S64 Microwave Equipment is CCL 1537 Electronic Device Manufacturing Equipment is CCL 1355
Table 17 Summary of Analysis of Cases Returned Without Action 2. .L 58 percent of RWAs in the sample occurred to licenses filed by small firms; this is not statistically significantly different from the overall small company share of license approvals. Of the RWAs sampled, 52 percent were identified resubmitted; almost half the resubmittals were by larger firms. Distribution of RWAs by destination: COCOM Bloc PRC Other Total 27% 2% 16% 55% 100% 4. Average value of RWAd license: - Small Firms Large Firms Source: See Appendix A $ 893 thousand $ 661 thousand $1,226 thousand
Table 18 Reexport Applications Year Approved Denied FY83 7,041 111 688 FY84 9,699 148 1,57S FY85 12,055 164 1,858 Reexports For FY8S - RWAd Cancelled Total value ($ Bil). -8 7,848 $2.S 8 11,430 $3.6 11 14,088 $7.4 Denied ~ Total* RWAd % Total To COCOM 11 .08 366 2.60 To NonCOCOM** 156 1.11 1512 10.73 Reexports For FY85 Action From To Denied % Total RWAd ~ Total COCOM COCOM 8 .06 271 1.92 NonCOCOM COCOM 3 .02 95 .67 COCOM NonCOCOM 61 .43 576 4.09 NonCOCOM NonCOCOM 9S .67 936 6.64 * Total Applications: 14,088 ** Includes Bloc Destinations Source: See Appendix A. .
Table 19 Analysis of Reexport Licensing Records A. Distribution of Applications by CCL Number CCL* 1. 1565 74 2. 1529 5 3. 1564 4 4. 1355 2 5. 1584 ~ 6. 1533 1 7. 6599 1 8. 1588 1 9. All Other 11 Total 100 COCOM Countries l- Memorandum of Understanding Countries B. Percent of Applications from U.S. Parent Companies or Their Foreign Affiliates 81% 55% Average Processing Time (Days) 23 34 * See Tables 11 and 12 for definition. Source: See Appendix A
Table 20 Action on Individual Validated Licenses and Processing Times by Size of Exporter* Average Large Action on License Applications: Percent Approved Medium Small 91 93 92 88 Percent Approved with Modification 6 3 7 Percent Denied 1 <1 <1 2 Percent RWAd 7 4 5 11 Average Processing Time (Days): - Free World Average 4S 38 40 48 Longest S%** 97 46 68 119 - Communist Countries 136 132 174 132 - China 119 107 13 6 127 * ** Respondents grouped as follows: large-size firms, exports greater than $250 million; medium-size f irons ; exports between $25 to $250 million; small-size firms, exports under $25 million. These cases were the S percent of total applications that took more than the reported number of days to process. Source: NAS Questionnaire Response .
Table 21 Aerospace Industry* Number of firms: (5) (3) (5) Average Large Medium Small 1. Number of Applications 3520 2792 343 385 - Percent Approved 94.3 95.5 91.0 88.6 - Percent Approved with Modified 1.1 0.8 5.0 0.0 - Percent Denied 1.0 1.0 0.6 1.3 - Percent RWAd 3.2 2.6 2.9 7.5 Average Processing Time (Days): - Free World 30.5 27.8 26.7 35.6 Number Reporting 5 3 5 Longest 5%** 43.5 65.0 13.3 48.8 - Communist Countries 106.7 89.2 30.0 180.0 Number Reporting 4 1 2 - China 81.2 110.8 38.3 71.5 Number Reporting 5 3 2 This data is aggregated from the NAS Survey responses according to the trade association membership identified by the respondent. ** These cases were the S percent of total applications that took more than the reported number of days to process. Source: NAS Questionnaire Response.
Table 22 Analytic Instruments Industry* Number of firms: l. Number of Applications Percent Approved Percent Approved with Modified Percent Denied Percent RWAd Average Processing Time (Days): - * ** . (4) (3) (13) Average Large Medium Small 1602 1028 138 436 94.1 95.9 94.9 89.4 0.6 0.0 1.4 1.8 1.3 0.9 0.0 2.8 4.6 3.2 5.1 7.8 Free World Number Reporting Longest 5%** Communist Countries Number Reporting China Number Reporting 3S.O 3 35.5 17.0 120.4 74. 1 15S.0 3 81.7 3 30.0 3 33.3 180.0 2 30.9 11 45.8 83.2 6 60.0 76.2 3 9 This data is aggregated from the NAS Survey responses according to the trade association membership identified by the respondent. These cases were the 5 percent of total applications that took more than the reported number of days to process. Source: NAS Questionnaire Response.
Table 23 Semiconductor Equipment Industry* Number of firers: (3) (3) (42) Average Large Medium . 1. Number of Applications Percent Approved - Small 90.6 94.1 82.6 88.S Percent Approved with Modified 2.0 0.0 0.0 4.l Percent Denied 1.4 1.3 0.0 l.7 Percent RWAd 4.2 4.7 5.5 3.6 2. Average Processing Time (Days): - Free World 55.1 30.0 70. 7 Number Reporting 2 3 Longest** 212.5 15.0 75.0 - Communist Countries 111.9 112.5 1.0 111.7 Number Reporting 2 0 6 China 140.4 77.5 241.7 133.3 Number Reporting 2 3 25 * ** This data is aggregagted from the NAS Survey responses according to the trade association membership identified by the respondent. These cases were the ~ percent of total applications that took more than the reported number of days to process. Source: NAS Questionnaire Response.
Table 2 4 Use of License Type by Firm S ize' ~ Percent of Foreign Sales License Type Large Firms Medium Finns ~ 1~15 General License 40 41 42 Individual val idated License 2 2 31 3 S Distribution License 2 5 2 3 21 Service 11 ~ <1 Pro j ect 1 3 1 Total** 100 100 100 * ** Firm size measured by 1985 export sales. Small firms--under $25 million in annual export sales Medium firms--between $25-$200 million in annual export sales Large firms--over $200 million in annual export-related - saLes May not sum due to rounding . Source: NAS Questionnaire Responses.
Figure 1 Schematic of Coverage of the Export Control System Destination of Trade East-West COCOM Countries Non-COCOM West Countries Trade Requiring ~ Validated Licensed 1 1 1 1 1 1 Trade Under Self-License* Total U.S. Export Trade East-West refers to trade with Bloc countries and PRO *For example, General Destination (GEST) . .
Figure 2 Schematic of U.S. Export Trade Coverage by Purpose of License Destination of Trade East-West COCOM Countries Non-COCOM West Countries . National ~ Foreign ~ Nuclear/ ~ Self-License Security ~ Policy ~ Other ~ (SL) (N-S) ~ (F-P) ~ ~ 1 (Purpose of License) Trade Under Validated License Total U.S. Export Trade
East-West COCOM all other Figure 3 Further Breakdown of Geographic Regions by Purpose of Control Destination o f Trade 1 1 PRO I l l l l Bloc I i I l _ 1. 1, 1 1 1 1 1 1 Canada I l l l MOU I l l Non-COCOM ---1---~ --l------------l non-MOU I l l 1 F-P I Other (Purpose of License) Trade Under Validated License Total U.S. Export Trade SL Trade =
Figure 4 Export Trade Coverage Broken Down by Geographic Regions, Purpose of License With Further Breakdown of National Security Controls by Type of License Destination of Trade PRC East-West COCOM Bloc Canada all other MOU Non-COCOM non-MOU GCOM = IVL = GCOM IVL N-S General License (This self-license). Individual Validated License Bulk Lic. = Bulk License ,~ I, Bulk I Lic. I (Purpose of License) Trade Under Validated License Total U.S. Export Trade could be considered a form of (Distribution, Service, Project) 1 1 1 1 1 1 1, 1_ 1 1 Nuclear/ SL Other ~ Trade 1 1
Figure 5 Full Scope of U.S. Economic Activity Covered by Export Control System Area of World East-West COCOM Non-COCOM 1 1 1 I Direct Export | Through Foreign | Direct | Other I I Affiliate I Export I Foreign ! ! I I Sales I Trade/Sales Under Validated Lic.t Total U.S. Foreign Sales Self-License
5 ~ 1 1 1 1 1 1 1 1 1 Area of the World 1 .1 1 1, 1 1 1 1 1 1 1 1 1 1 1 1 .1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 · 1 ,1 Trade/Sales Under Validated License ~ Total U.S. Foreign Sales Figure 6 Schematic of Economic Cost by Area of World, by Segment Under Validated License / Type of Economic Cost - Administrative Costs - Lost Revenue - R&D Impact - Wages/Profits Lost - Long-term Costs Self- License
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Figure 13 U. S. Business Activity Covered by the Licens ing System, 19 8 S - ( $ billion) Area of World East-West ($2, * COCOM (53S) * Other West ~ $3 2 ~ * *Value of direct Under Validated Lic. ($78) Sel f -Licensed ~ $3 62 ~ Estimated Total U. S . Foreign Manufacturing Sales ($440) Sports .
