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July 11, 2000
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June 1, 1955
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Approved For Release 2001/03/02 : SiAk-R 6400014A00 LE ING PAMPHLET ON UNITED STATES WORT conTricts STATI NTL THX11 PAMPHLET HAS BEEN PREPARED FOR THE EDAC FOR USE Ell FOREIGN 'WORT COITROL MISSIONS vlsrato THE UNITED SUM UNDER THE TERM OF TITLE III OF THE BATTLE ACT. IT IS INTENDED TO PROVIDE A BRIEF SMEARY OF THE WORT CONTROL SYS= IN THE UNITED STATES. *DOC Exempt Letter On File* Prepared byl Strategic Controls I/vision Office of Export SupTay /brass of Foreign CODITh3r00 Department of Commerce Jane 12 1955 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 TABLE OF CONTENTS I. II. III. INTRODUCTION i LAWS RELATING TO UNITED STATES EXPORT CONTROLS BASIC PROGRAMS IN UNITED STATES EXPORT CONTROLS ? 1 1 2 A. Short-Supply Controls 2 B. Security Controls 4 IV. THE ADMINISTRATIVE ORGANIZATION FOR EXERCISE OF EXPORT CONTROLS 5 A. Agencies Concerned with United States Export Contra . . 5 B. Basic Authorities 5 C. The Advisory-Committee on Export Polday D. Bureau of Foreign Commerce 7 E. United States Customs Service -Treasary Department 8 V. BASIC PROVISIONS OF UNITED STATES EXPORT CONTROL REGULATIONS . 8 A. PUblished Regulations 8 B. axoeptions to Export Controls Administered by the Bureau of Foreign Commerce C. General Prohibition Against Exportations . . . ? ? ? ? 9 D. Country Groups 9 E. Positive List of Commodities 10 F. General License G. Validated Licenses 13 H. Validated License - Individual Type 13 I. Validated Licenses - Project Type 15 J. Exportation of Technical Data 16 VI. CLEARANCE OF EXPORTATIONS BY THE COLLECTOR OF CUSTOMS. ? ? ? . 17 VII. SPECIAL AIDS TO THE LICENSING OFFICER 3.8 VIII, INVESTIGATION AND ENFORZEKENT ACTIVITY 20 IX. DESTINATION CONTROL 22 APPENDIX--WORKLOAD AND STAFF 24 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved ForRelease2001/03/02 : CIAADP64-00014A000100120002-7 :ni,z9co ttr, it ON TIN,151,1SI VJ(301\114,3 I. g mycnow Th a pamphlet sets farth, in summary form the nature and scope of United States export controls. The pamphlet has been especially prepared to assist officials oftriendly foreign countries to achieve an understanding of the basic elements of the United States System for controlling exports. It should be regarded as an outline of genera/ information which can serve as a founda- tion for more inteasive study of the various aspects of United States export controls. SOcifically, the pamphlet is intended as an introduction to United States export controls for officials of foreign technical delegations expecte' ing to make a study of the United States export control system. Since the United States export control program really comprises eeveral different programs administered jointly, it has been necessary to break the program down into a number of major components for discussion in this pamphlet, The title headings in the table of contents indicate-major subjects covered by the panpkbite The presentation of material in the pamphlet is as follows; First: Basic legal and organic authorities. Seconds Administrative organization for export contract administered by the Bureau of Foreign Commerce. Thirds' Regulations, methods and procedures in export controls administered by the Bureau of Foreign amerce. The order inwhich the various segments of the export control program are presentedlaisno significance as to any order of importance of the various proexame.e.akotnelly, all of these programs are considered as equal in importance and in prepticeseevery effort Is made to fashion from all of these related programs a Single instrument of United States national policy in the field of export controls. II. 1441.441414Q-REURAT4IPs EXPaRT POTBM2 The basic United Staten law relating to export control is the ',Export Control AOtaaf:1949P. Virtually all of the controls over usual commercial exportatiope are exercised under this law. If the Export Control Act of 1949 did noteexiet, there would be no specific authority to control exports of commodities except atomic energy equipment and materiale, gold and narootiot,Hend arms, ammunition and implements of war. The Export Control Act of 1949acontinuod similar legislation which had been in force continually since Jely2,1911). In administering the Export Control Act there are, of course a great number of other Federal 'wets which must be taken into account. Two laws which are of specific interest are the administrative Procedures Act and the Federal Reports Act. The Administrative Procedures Act requires that regu- lations issued under the Export Control Act (as well as all other regula- tory laws) must be formally announced and promulgated for the entire public to see and may not be changed except through official public notice. The Federal Reports Act provides that all regulations reouir infer tionor /Well areacieitteseerniamioebbimemago lgogg red Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 eleortete in coeuectiee rith export licenaesf, must be reviewed and approved by the Uereatl a the Budget. In thie connection the. Bureau of tee Budget: which Is n thn Evecutive Office of tne President* is conoerned to see thet all requests for. information from busineee are reasonabl and that there is no duplication of. information which business is requiredto furnieh various departmeete of the Federal Government. III. D4SIC PROGRAMS -IN WITED STALES EXPORT CONTROLS rff ...10.11.6,1184 :111MIPA glo,.311.1,12.24kW.0.1.44,11,1.110,} The basic pregrame edministered in connection with the bated States export controls stem from the language of the Eeport Control Apt.iteelf. It is of interest here to quote the language of Section 2 of the Export Control Act of 29491 rho gongrees hereby declares that it is the policy of the United States to use export controls to the extent necessary :ee) to protect the domestic economy from the excessive drain scarce materials and to reduce the inflationary impact of ebnormal foreign demand; (b) to further the foreign policy et' the United States and to aid in fulfilling its international neepoesibilities; and (e) to exercise the necessary vigilanoe ever exPorte from the standpoint of their significance to the aetional security". There have :evolved from this expression of policy by Congress three pri0011141 Programs whiCh ere parried forward in administration of United States expert: confrolseeThese programs can be described briefle in the following terms: 3, TO conserve the supply of materials which are scarce in the United States ("Short Supply Controls"). ' 2,.To restrict the exportation of strategic materials from the United-Stetes to Soviet Bloc nations, either directly or through a third country ("Security Controls")0 TO enlist the aid of friendly foreign governments in withholding strategic materials of whatever origin from SeViet Bloc nations (Parallel Action"). A0 010trellURRILSOURM In carrying forward the program of "Shortesupply controls" the United States acknowledges that requirements of friendly foreign ?-ountries represent an important claim on U.S. materials which are in short supply. Therefore, in the determination of short supply export quotas, such factors as the essentiality of foreign requirements, traditional dependence upon the ILS, for supplies, and U.S, foreign policy considerations are taken into account and weighed against the impact of a given level of exports upon the domestic economy, The importance of fulfilling foreign requirements sus well illus.- treAd during the Korean mobilisation period. At that time, when several hundred commodities - both finished jorqdupts Approved For Release 2001/03/02 : CIA-RDP64-00014Audre0M002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 eeterials, includiree such basic materiale as aluninum, coppers steel e wee setremeete scarce. The S. was comPollee to laetitute a eyetem dceestic distribetion eoetrole to enable 0,a, proaecers of defense' defeeseesuanorting, and esseatel eevilian endensa /tome to obtain adequate supplies of needed eaterials. The U.S. export program was closely tied in with teis domestic allocation system. Export quotas, consonant eeth the overeaIl supply-demand situation, were established sul such quartitiec were (reeerved for export) ithin the delostic allacation feamesork. Thee friendly foreign countriec TATTO assured that tha pre-determined quantities would in fact ts available. Export orders were accorded priority 'atin tithin the quota reserved for export, an the same basis ae aemestia.ordars. and essential foreign requirements were thus Liven prefer:fence over lees eseential domestic U.S. uses... after the conclusion of the Korean emergency, the domestie dise eibution eantrole were gradually discontinued as the individuel eenmodity.eituations permitted. Shortesupply export controls T-ere abandoaed almort as quickly for it was the general objective ? thcilJeS. Government to retain export coutrole for reaioas of eaort.eUgly only where eeeded as a counterpart of domestic e[Ostribution eontrols or in unusual cense. The result of this eetiolawee that within a very short time after the end of lemma' eacalietribut:,on control only a handgrl oT comeedities remained reubjeet te-exeert quotas,, The typee of expoat quotas establiehed a" A6efollows3 e:e qepeadAuota2: Ho regular exports areeallowed. Such quotes arc eltablished.for commodities in criticRAly short-supply in the re?and for which essential nseds of friendly foreign counteles alr U.S. eupplies are judged not aufficientle- important in terms ? Imoad.national ietewest to ontwagh the aeitical supple' eltuation. Az a general rule, no exports are approved. However, elea justified hy extraordinary or specie' considerations aelividual exceptions may be granted. Even at the height of the Korean wer emereoneyf, closed quotas were established for ally about a half do sea special items. AvvadjadjarALonwp A quantitative qeota is a specific quarterly celantity,- publicly announced, which is distribeted between special eeelects and normal exports. It ie established for commodities which are clearly in short supply In the U.S., (b) for which friendly, foreeign ccentries are dependent on the U,S. for assene ttal supplies, and (o) for which adeqeate data on supply and eequirements are available so as to permit a stand determinae tic a of tha specific quantities which may be approved for expert, a quantitative quota any in some instances be accompanied by aepplemental limitations with respect to distribution, endeuees etc a Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Aepteeleatel,yeeeeeetea &Torte are authaeazed under a reserictive enota only erhere CO i,taistl Spectia3 conditicns relating to sod... .eee 7 destinatigli.if, eoneurrence or tiliOt age.:tcyt ete, 9:Le0 Vat axaaArictivo evoe'es al,!(J U0 SCi tr, a) wheo iseeee le a ee:eifees shark- teee of essential supplies in the US e arie (b) friendly aoreign countries are dependent upon the 1J.Sa, foe essential ge;pplkesi id (c) where the foreign demand Lev not be stable enough to: ,2 arrant other types of quotas. eat.eeelelesateea41 Na quantitativelimitetieee on neports are psadunder t ea-end quota procedure:, Eetablished.fw :ammo:lit/es whach are, or 'potentielle are in short'. anaplY ,..#1 tate U.Sua or (b) for which lacense conteol is consIdered ?-.,Jevasery to guard egainet unneual areatetsetogeevent ..leeitable distribution:, to avoid diversion to noneeesential specnaatiee end 1:11178 etc. ,:kdinarily experts ere freel:e ef:.censed under openaead quotas. Under this oonteolp appllOae one are: ueual:ly approved as receivedp and review le :eeimarilze, for secur1.ty reascriss, while at the Rae tire ign.vide; in. opticrt,ure.ty o aesess the nature and jeectable magn1.tude .feiture. aeeign, demand. clf.":StekE,S;9n-traViA The United Statee provereintr seetrel.ty ecKport controls has been forceacceitlavouely mince March 11, 1948, 'The eeeurity trade eontrol.e ars designed to help prevent agg?eseion and nes, and o. helia !take cartaan ehet I:La.-origin goods do not contrileate aaterieelly 'to, the war potentaal of unfriend3.7 countries. The itia1action takon la 1943 had as its narrow) the 902tb1 1.1 exports to &stern Europe of industrial supplies or'equip- eent? having any potortiel military value, Msteriale were ,elassified, in order cf their strategic importance. It then a-m/1mi? the policy of tho U.S. to embergo the shipment to the ;oviat Bloc of items of exategic importance There is tie aojections, couraev to trade with the European Soviet Bice in .elak-strategio items. There is:, hover, a mbergo o the 31z1pmdat; of strategic and non-strategic goods of U.S. etc/gin ea.ther .directiy or indireotly to China. additions Vie United Statee since 1949 ba e increasiney . aenseilted eith a nueaar ca friendly ceuntries for the pureese . .obtelning their cooperation in restricting the growth of the a,oviete war potential throagh sixoller PiXpOrt 43ontro3.09Ir fa:eproiching these governments; it was rocogaieod that each had ao face this problem in the light of its own trade and political eelations Ilith the Soviet Bloc as vrell 14,3 its interest in the 7,3111,110/0.. SPOU'ityr, Agreemeat aubeequently reached on interatical. control over the flow of strategic gooes to the Soviet aloe. However:, the United States Government hav always taken. the posl.tione along with other member governments, that inter-., nationally agreed controla on trade with the Soviet Bloc are to be regarded as a minima level of control and that indivee dual countries might wish to exercise a. higher degree of 01112" App rovjalio+9418aTee45176V6/11. Mtibtk at 0 cal 3Atieitib t!O 0 0 2 -7 Approved For Release 2001/03/02 :9,!.A7,RDP64-00014A000100120002-7 be the United States Government polioy to exercise controls on certain commoditree which have not been aexeed for embargo zentrol internationaliy and rn approleiete cases the United States may wish to request aseurances from other friendly countries that such items not be exported by such countries to the SovietBloc. In general, such requests for assuranoes would be limited to items for which the United States consti- tutes an important source of supply of the item for the friendly country in question. Assurances saint shipment of such items to the Soviet Bloo are tho only meant, by which the- United States may satisfy itself that United States-origin eoods of a, strategic character are not in fact making posaible ohipment of significant quantities of like items to the Soviet Dice by friendly countriee, The responsibility of obtaining "parallel action from foreign governments rests with the O(52rector of the Foreign Operations Administration and the Depart- ment of State, However, under the export control authority, is necessary that this and other programs operate in a con- eistent coordinated effort to carry forward the principles of eational security. Ivo NIEAPMIET,EiiatllUtignVgM.KZ.E.BPSTLaL,N:CaiLaZMk. Ae Aeg,PAeftn-C.CSAPZPiaetOV--gIai2JZMElelqBSr.R,1 As indicated above, there are three principal programs carried eat in administering the Export Control Act of 1949. Adminise trative reoponsibility for all mattere rOated to United 3tatea export controls is lodged with the Bureau of Fereign Commerce In the Departmsat of Commerce. Howevee, international trade is a complex business and the export control progeems are a matter of official concern to several departmente end agencies of the United States federal government. While the Bureau of Foreign Commerce has administrative responsibility for all operational matters under the Export Control programa, other executive de- partments and independent agencies conceened with our foreign and domestic exeort control probaems may e however, recommend changes in the policies undee which the Bureau of Foreign Sommaroa eperates, B. Ata,PetettletkcInkia The Paport Control Act of 1949 authorisee the lEggiftpl of the Thlited States to control United State-is eeeorts. By Executive Order the rEesiMerk has delegated thie authority to the gjece.tea ee,:.....cseepeesitre In turn, the Seeretery of Oommerce has delegated to the Zrestrzeetetleeeper....emeereigedgejlemzel authority and responsibility for administrative opeeations related to export control subject to policy direction from the Advisory Committee Expert Policy, Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 co Si1941aritey,S0 Atte,fe9nAll9rt PoitSt Th3 Export Control Aet of 1949 directs that the official respone sitle for administering export control shall seek leormation and advice from the several executive departments and independent agencies concerned with aspects of our domestic and foreign policies and operations having an important bearing on exports", The Secretary of Commerce has established an "Advisory Committee on Export Policy" as the fermi channel for obtaining the "infor- mation and advice which by law he is obligated to seek in administering export control, The Advisory Committee on Export Policy is the central body in the United States Government for developing and recommending to the Secretary of Commerce the operating policies which govern the administration of export controls. The results of committee considerations are embodied in "Program Determinations", issued oa behalf of the Secretary of Commerce, which are binding as directives to the Bureau of Foreign Commerce in the administration of export controls. The Advisory Committee on Export Policy comprises representatives from all government departments with a continuing interest in the international trade and foreign policy of the United States. The following agencies are regularly represented on this committees Atomic Energy Commission Department of Agriculture Department of Defense Foreign Operations Administration Department of Interior Iglitual Defense Assistance Control Administration (Battle Act Administrator) Department of State Bureau of Foreign Commerce Office of Defense Mobilisation Treasury Department Business and Defense Services Administration In addition, any department may be represented on a special basis upon invitation, or on the department's own initiative, for any subject in which such department may have a special interest, The Advisory Committee on Export Policy is comprised of department representatives at the sub-cabinet level, This committee, which is concerned with major changes or new departures in basic operate ing policies, normOly meets about once a month. The continuing work of the Advisory Committee is carried forward in the field of short supply by its Operating Committee., The Bureau of Foreign Commerce is responsible for recommending to the Operating Committee such short supply controls as appear necessary, Subject to final appeal to the President, the Secretary of Commerce exercises ultimate responsibility for short supply determinations for exports under the Export Control Act, Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 The review and establishment of policies roleting to security eon' tie, however, are tha interrelated responsibility of both the -Amatory of Commerce, due te nis export control responsibilities enesuant to the Expert Control Act, and the Director of the Foreign Operations Administratiore? pursuant to his responsibilities under the Mutual Defense Assistance Control Act of 1951 (the soecolled Battle Act). The review of the United States -strategic commodity lists, as well as other security problems, are, therefore, carried Mii'. jointly through the Joint Operating Commatte rhich makes recom- mendations to the Secretary of Coemerce and Director of FCA with reeeect to United States controle and controls which might be advocated by the United States in internatieneldievussiona, . Do AMMW,SLEMAtaB-90PMX",0! Me Bureau of Foreign Commerce is that part or the Department of Oemeeroe, which is responsitae for administrative matters connected ,74-11i% export control such as publication of regulations, review of line applications and iseuance of validated licenses. It is also responsible for technioal direction to the Customs Service of the Treadury Department export contras whnen funotion in conneo- tion with export controls is to make certain that shipments cf goods .from the United States are made under proper licenses and iron physical inspections, that the goods chipped are those antho- rizod by the licenses. There are three main parts of the Bureau of Foreign Commerce concerned .with export -controls (a) Economic Affairs; (b) intelligenoe and Service; (o) Export Suppler. The Export Control function, centered in eight divisione under the Director of the Office of Exposit Supply, comprise (a) four divisions concerned with liceneing of commodities for export; (b) OE , division concerned nith the licensing of projects and technical data; (c) an Investigations Staff dealing with matters relating to violations or suspected violations of Export Ccntrol Regulation; (d) a Strategic Controls Division concerned exclusively with erobleme of security controls, and efforts to secure parallel actions on the part of foreign governments, and (e) an Operations Division performing a number of service ftnotions incieding developments of nagulations? infereation and servioe to exportets, a program e ree Ilew of action on license applications and clerical work incident to handling license applications. The Commercial Intelligence Division of the Office of Intelligence am :A Services maintains a complete file of commercial infarmation regarding foreign firms, and the various Economic Affairs Divisions are concerned with economic develoements in specific foreign coun- tsies or areas? The legal staff of the Bureau of Foreign Commerce is concerned -with (a) the legal sufficiency of export regulations, procedures and interpretations; and (b) the prosecution of administrative cases against alleged violators for denial of export privileges and liaison with the Justice Department in connection with criminal etrosecue Approve/4 boa &al elam20113103110ale QI,A -BO FiebekranddliQ 00100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 E0 20,24: '!9,11.4%.1.0 Near_ Utifin.....L.TsmigazI2.1 The United States Customs Service in its surveillance over exports ? is responsible for enforcing export control regulations far the Bureau of Foreign Commerce at the point of exportation. Personnel in the Bureau of Customs must see that each exportation is lawful under the export control regulations and that exportations made under a license issued by the Bureau of ForsignCOmmerce comply strictly with the authorization in the licensee itself. The respon- sibility and work of the Bureau of Customs covers examination and inspection of cargo, as well as inspection and clearance of doeuments relating to each exportation. V* ,LtELC-AQ.IEP...?T,EE.,E.EMSPLZZ..1MELIALTM A. bliglabILBMILAWAreq United States export control regulation are published by the Bureau of Foreign Commerce and are set down in the "Comprehensive Expert Schedule", whech is a loose leaf volume containing all current regulations issued under the authority of the Export Control Act. This publication is kept current by "Current Export Bulletins" isrued one or two times a month to incorporate changes. About one-fourth of the Comprehensive Export Schedule is devoted to 1tet of specific commodities (the Positive List) subject to " export eontrol regulations. The changes announced in Current Export Bulletins relate to ohanges in this hat of commodities as well as procedural changes initiated feom time to time. B. qe.O.PettflaPe.........AESidtoecedrej,..0:84Legadied.92.71FelekZetekkliur.2ELS1 eeZtalFolitae9,2P3?TheeUlt Oeited States export control regulations aa set forth in the Com- prehensive Export Schedule do not apply to the following types of shipments: a) Exportations for coneumption in exportations feom the U.S. through Canada to other countries are subject to both U.S. and Canadian export control regulations. b) Exportations for the direct use of United States armed forces abroad, o) Exportations subject to licensing by another United States agency such ass (1) arms, ammunition, and ime plements of war and technical data related thereto; helium; licensed by the Department of State; (2) commodities and data subject to the Atomic Energy Aot licensed by the Atomic Energy Commiesion; (3) gold and narcotics licensed by the Treasuyy Department; (4) vessels, other than vessels of war licensed by the U.S. Maritime Commission, which is also a part of the Department of Commerce. Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CI4-RDP64-00014A000100120002-7 c. d) Shipments to territories, possessions and dependencies o the United States, 0) Mipments moving in transit through the United Statee without unloading, CA number of limitations and special conditions must be met on such shipments), GemeRLEEMMIlen_AmbaLanatkatAgag The United States export control regulatious provide, except under tha foregoing conditions, that exportation "from the United States of all commodities and all technical data .e.. is hereby prohibited 00 unless the Bureau of Foreign Commerce has authorized the exportation by either issuing a *validated license" or establish- ing a "general license" permitting such exportations. A validated license is a a1 lic issued to the experter by the Bureau of Foreign Commerce and La based upon a signed application submitted kr_alLeaceee A "general license" is an authority granted by the Bureau of Foreign Commerce which permits exportation of some commodities under specified conditions without a validated license from the Bartere of Foreign Commerce. 1,4it,..14.139-elltnei.,0911322.telaatLitteceonl.-22geMill ligeeet". The authority to export in such an instance is contained in the published regulations of the Bureau. of Foreign Commerce which specify the conditions under which each general license may be used,. The remaining paragraphs in this motion relate to the various types of "general licenses" established by the Bureau of Foreign Commerce.. At a precedent to an understanding of general licenses, it is neoessary to explain the terms "coentry groups" and "poe- tics commodities" as they are used in the United States export control regulations, D, geaasutia4tema There are two main groups of countries defined in United States export control regulations identified as Group NI" and Group "0". (Within Group la" there is a grouped' countries identified as Sub-Group "A" countries), The letter symbols themselves have flo significance and are simply random letters used as brief codes to identify the group of countries in each category. The country groups can be deecribed as follows: Group Group 11R" All countries in the Western Hemisphere (except the United States and Canada), All countries in Europe, Asia, Australia, and Africa, and islands in the Eastern Hemisphere, including those listed under Sub-Group "A", Approved For Release 2001/03/02: CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : ciA7pp64-00014A000100120002-7 Sub-Croup "A" Al]. countries in the Soviet Bloc of nations including Communist China, North Korea and ehe Communist controlled areas of IndoeChina CEeng Kong and Macao ars not defined as within Sub-Group A. However, because of the tree. ditional role of theca areas as entrepct ports for trade moving into Chiefs, limitations are eleced on many general licenses to these areas.) Ee &!AlIageLIA-$4-9PAn94#4.1 The Positive List of commodities 13 a current list published in the Comprehensive Export Schedule showing the commodities which Aey require a validated license from the Bureau of Foreign eemmerem. The Positive List ?lonely follows commodity descripe -ions ueed ia "Schedule B" Statistical Classification of Cosmetic and Foreign commodities exported from the United Statee" erhich is the commodity classification system used in gathering axport statistics in the United States. The system of claspie tication set up in Schedule B has been Used for many years in olassifyingl United. States exports and although not originally designed asa densification system for use .in connection with export -control ha e been adopted to that use. In the adminis- tration.of-United States export controls, the commodity classifications used have always been directly related to Schedule B classifications, since this is the commodity clasele fication'ayelem with which the exporter mutt be familiar at all times regardless of whether export controls are in force. Mare is attached as Appendix Ap a sample page from the eositive List of commodities). The entries on the Positive List of eommodities are set forth under the following headings: 1, 221MEIMMA-2t-POPMESE-E00147.9 1,114mber This is the code number assigned to a commodity in "Schedule B Statistical Classificatioa of Domestic and Fcmeign Commodities Exported from the United States". 2, 22113.241,E This is a description of eacivcommodity subject to United States export controls. The term used in these descriptions follow, to the maximum extent possible, commodity descriptions in "Schedule B Statistical Classification of Domestic and Foreign Commodities Exported from the United States". 3, BO This is the unit of measure designated for the particular commodity, euch as pound, ton, square Approved FoTirAttotpi kitybp.A6Agmemsome9,2tAtideficeinno02-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Proc9sainfle]t941 and Ra1.00-211221W.S.W2211211112tt This column shows the "Processing Code" assigned to each ? commodity. In some instances this code bears a numerical suffix. This processing code is a device which permits ready identification of commodities on license applications for routing within BFC. For example, item coded "TEXT" can readily be identified and immediately routed to the Bureau of Foreign Commerce licensing division concerned with controls of textiles. The related commedity group number suffix in this column is a device ',emitting exporters to list related commodities on a single license application, a practice not otherwise permitted. 5. GLV Dolleka_bimit This entry sets for each commodity a dealer limit level below which exportations maybe made under a general license. 4. - In this column a symbol is used to indicate whether a license in required only for wR" countries or for "R" and "0" countries, as indicated in Section D above. (A, validated license is required for all cormarcial shipnents to Hong Kong, Macao and Sub-(roup A countries unless exportable under a particular applicable general license). 7. Conmodi.k.i,_ista This column IA used to signal for each commodity certain special requirements of the export control regulations as, for example, whether an Import Certificate is required In connection with a license application for a certain commodity, F. General License There are a. number of different kinds of "general licenees" estAblished ender the export control regulations in the Comprehensiee Export Schedule. The following paragraphs in this section contain brief explanations of some of the general licensee most frequently used in export trade. 1. General License GRO This general license permits exportations to any country in the world, except Hong Kong, Macao and Sub-Group Al of any commodity Which is not listed on the Positive List, 2. General License GO This general license permits shipment to anyliestern HemisOhere country of any =meaty shown on the PceitiveList Where the "validated license recruited"..(Necet page is page 12) Approved For ei ease 2001/03/02 : CIANU1564-60014A000100120002-7 Approved For Release 2001/03/02 : CIA7RDp64-00014A000100120002-7 column on the Positive List indicates that a license is required only to 'IR" destinations, 3. iiPagraLUMERATE This genarel license permits exportation of most commodities eoving through the United States to any third country* except ang Kong, Macao er a Sub-Group A coentry, Crhere are a eaeker of speoiZic oommodities to which this general license IT not applicable, In addition, there are several detailed Jleitatione on tte use). ninALLIAW48I-GM: general licence permits shipment of commodities to any ?testination? exceet Hong Kong, Macao or a Sub-Group A 'ouatry, small value shipments of commodfties in the ,ositive Lint, The Positive List Indicates the limited ?enleo for eaah comeodity. Some commodities have a rZero" ThErrit whica means that general licence GLV cannot be used :or any sueh commedity. Other GLV limits are set variably tzom $5,00 to $2,500, depending on the natnee of the ,oemmdity. (There aru a number of limitations on the use e' this general licenne which are deeised to prohibit its kbeee). eelMNAlfeiglanglegae- This general license authorizes the export to Hong Kong of e specified group AC eonrodities. Unless specifically 'Afeeted in the Comerehensive Export Schedule, or authorized eneee the genallicense, all commodities whether on the eovitive.List or not :require a validated license for export to Hong. Kong, Alips-MNAJ4191WIR -veal Licenses a0* GRO* and, to some teetent, GIN are used ely in commercial exportations. In addition, there have eI7 pat up a number of special purpose general licenses 'Zee exportations; personal baggage; gift shipments to Sub- amp A destinations; certain publications; tools of trade; ateres? supplies* equipment and crews effects for ships and plenes; trade sae:pies to Hong Kong; shipments to United States representatives abroad; commodities for exhibit at ereee fates. ME: These general licenses are not unlimited. The Collector of Customs is authorized to restrict most of those licensee to "usual and reasonable kinds of quantWes3 of materials moving under those general licensee. Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 G. viAldattLitaiegam There are two major types of validated licenses issued by the Bureau ce7 Foreign Commerce, namely nindividual' anA nerojects" licenses. Individual licenses relate to exportatons moving through the normal channels of international trade from an exporter in the United States to a consignee abroad, Project licenses are issued to cover all requirements in connection with a specifid,project abroad. The handling of applications and issuance of individual and project type licenses are discussed separatelybelow. - ielieelseteel elAceneteeejeeneltdeeellyeeel Samples of the various forms used to apply for an export license are attached. 1. goiglajimeg There are five steps through which all license applications: .Thee steps, with a brief explanation of the type of work done at each step, are described beloe.. 2. 4.91014.9.44MONOgnaeR The license application (IT-419) is examined to see that it hay been properly filed in duplicate and is accompanied by an acknowledgement card (ITe116). It is further examined to determine whether any party named in the application has been suspended Deem participation in experts as a result of having been administratively suspended for t' convicted of, a violation of U.3, Export Control Regulations, and to see whether the consignee is subject to special scrutiny (detailed information is available free the Commercial Intelligence Division which maintains current information on. both foreign and domestic firma). All papers in connection with each application are given a case number. One copy of the acknowe lodgement card is returned to the applicant which advises him of the cape number assigned to the application, The duplicate copy is filed in PFC. The application is forwarded to the appropriate licensing division. 3. higtallag-Wlsom Every licensing action takea,by the Bureau of Foreign Commerce is authorized by a licensing officer in one Of the licensing divisions of the Bureau of Foreign Commerce. Licensing divisions are organized to handle large commodity groups and each licensing officer is assigned specific commodities. For example, all applications for ball bearings would be handled by a single licensing officer in the Producers' Equipment Division. The licensing officer may take any one of three actions with respect to the application. He may approve it, reject it, or return it to the applicant without action* Applications may be returned to the applicant without action to obtain further i 4 tptc s Approveisliga6MAIsmseh,iO4 ig ? II, AA r e06002-7 documents, to advise the applicant that the shipment may move Approved For Release 2001/03/02 :-CIA-RDP64-00014A000100120002-7 under a general license where no validated license is required, etc, In taking action on any application the licensing officer responsible for (1) all technical commodity considerations :Ixt connection with the transaction eovered by the application; A seeing that all applicable regulations are complied with; 0) obtaining information from the Commercial Intelligence Division regarding parties named in the application either in the United States or abroad; and (4) obtaining advice from her government departments, such as the Department of Defense, elpartment of State, etc., where required.e-Along taken by the licensing officer must conform with eogulations set forth in the Comprehensive Export Schedule, eAministrative instructions contained in the Export Control Manual (the Export Control Manual is a bcd,v0f instructions fer use of employees of the Bureau of Foreign Commerce) and pelicies and determinations laid down by the Secretary of Commerce through bis Advisory Committee on EXport Policy, 4. 41xlma_1422nAlag-42U2ad here is established in the Operations Division of the Bureau cf Foreign Commerce a Raviem and Analysis Section. Officers in this sectionare responsible for reviewing licensing actions te be sure that laws, regulations, policies and instructions &TS being 'uniformly applied by the licensing officer. Prove ticallyeall licensing actions are subject to this review which takes place before the licensing action is officially released 051' the Bureau of Foreign Codmerce. 5. Aftereapplioations have been acted upon by the licensing officer (and ,reviewed) they are cleared through a clerical unit and the lieoneing action is formally issued to the exporter. If the application has been approved, an export license is typed on special forgery-proof paper. Tyiomriters used for this purpose are Medeeueewith specially designed type and the license docue mente Whene4sued? bears an official stamp of the Department of Ceamereite.insere against fraudulent licenses, From this pointeetWexport license is mailed to the applicant and the applieatione And related documents, with the record of official action taken, are deposited in the official files of the Dereaueof Foreign Commerce. 6, Eat After official action has been taken in connection with an appli- cation, all papers are deposited in these official files and mey be removed only by authorised employees. Whenever material is removed from the official files for reference, a facsimile of the material is made on microfilm equipment, Thus, if an application is lost, destroyed or altered, an official copy can be produced from the microfilm. Records maintained in this section include files of: Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 (a) License applications and related documents showing he official record of all actions taken by the Bureau of Foreign Commerce (b) Acknowledgement cards, which provide a reference to all applications filed and licenses issued for any named United States exporter. (0) Licenses, including both a carbon copy of the license whee issued and the original license, after use, bearing the endorsement by the Collector of Customs or shipments made under the license. Thais files are maintained for a minimum of five years. I. YAltdaekILLIOROPZ2tattqUERI Validated licenses of the project type represent a special type of license, Whereas the individual type of validated license is issued to permit the exportation of a specific shipment of commodities under an export order, a project type license authorizes the exe pertation of all comecdities necessary to the completion of a project nbroad. Examples of the types of enterprise which might qualify for a project type license ares (a) Maintenance and operation of a coppee mine in Chilee (b) Erection of a penicillin plant in India. (c) Petroleum exploration and development operations in Venezuela. (d) Modernization of Natican National Railways The processes for issuance of a project type validated license are quite different than these for an individual type license. The prime cipal steps in connection with a project license are: (a) An application is filed. This application includes: A summary description of the proposed venture. 2 An appraisal of the project is essential values, including the economic advantages to the United States or to ether nation e of the free world. 3) Estimates of total requirements for commodities from the United States, and estimates of commo- dities to be procurred elsewhere than in the United Statso 4) Detailed estimates of commodities required from the United States during the first year following approval of a project license application. Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 (b) The project license is reviewed by the Project and Technical rata Division, and after appropriate review in the comeodft,y dielsiors 1117 apyo's-ed by the Project and Technical Data Division. (c) The licensee may erport commodities in accordance with applications filed with and approve e by the Bureau of Foreign Commerce. Applications under a project type license represent firm current requirements for commoe dities to support the approved project and are cleared through the Bureau of Foreign Commerce under adminiee trative proceduree a great deal simpler and faster than those which goveen applications for commercial-type validated licensee. (rhe procedures for export clearances under projeet type licensee are likewise much simpler than those required under commercial type licenses. See Seetion VI (5)? below)? Jo .7:9,R41.-4e94.-ktg Meport regelations covering the expectation of technical data are designed to prevent the acquisition by the Soviet Bloc of U.S. origin technical data or products manufactured from such data, when gueh data, or products would contribute to the Soviet war potentiale ? Mere aee three distinct types of control over technical data. The following is a brief general outline of this regulation: Ia AP-2W1,222.ML,:-..02ner-allige-an A, generel LipepgnSIDP - Authorizes the exportation to all destinations, of unclassified data in published fora if such data are available without restriction to all persons by subscription or without cost. 30 29122ea Lismegjang - Authorizes the export of unclasei- Lied technical data not generally available in published form to any destination except those in SubeGroup A pro- vided such data does not relate to those commodities listed in Supplement 1, Part 385 of the Comprehensive Export Schedule, This supplement-- lists 53 Schedule B commodities under which a validated license is required for the export of technical data to any destination. 10 gmeell_Liefraap GTDE Authorizes the dissemination of ecientifie information not directly and significantly related to design, production and utilization in induee trial processes. 2. yalldated Licenst The following types of technical data require a validated license: 1. Technical data assigned a security classification. App robed ireohrfietitatiftE2QAMAN opal gon 00120002-7 meet the requirements of the above General License provisions., Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 There are two types of validated licenses for the export of technical data: 1. Specific Technical Data (STD)* This, as the name implies, authorizes the export of specific technical data to a elesignated foreign consignee (s) within a validity period of 6 months; 2. n..'oject Technical DOW1(PTD), This authorizes the export e.,? designated types or classes of technical data required or a perticulee project or program* 3. BalANUVLIIPSKAMM Beeause of the changing nature of technical data in advanced develops mote in technolow, requests for official opinion from the Bureau of Forel= Commerce be exporters are solicited prior to the export under Geneeal License of shipments which might effect the common security and defense of the U.S. vm.Z.FREANLQUKKPanAUP4LP'UngWcTall7.0?19,m$ Before an export is made from the United States, the exporter must preeent a "Shippeels'Export Declaration" fAee to the Collector of Customs at the port from which he intends to export, This document is used by the Bureau of thev Census in gathering export statistics, It is aleo declared to be an official - document for export control purposes. This means that any falsification of information on the Shipper's Export Declaration is subject not only to the penalties of, the Bureau of the Census, but also to the penalties of the Export Control Act,. (Under the Export Control Act, an offender may be placed in jail for one year and fined $10,000 for each offense), The following steps are taken by the examiner in the office of the Collector of Customs with respect to each proposed exportations 1. The Shipper's Export Declaration is checked to assure that it is signed by the exporter named therein or his formally authorized ageet? 2. The 'hipper 'a Export Declaration is examined to be sure that it is complete and accurate in all respects, All names shown on the Shipper's EXpert Declaration are checked against a list of firms which have been denied licensing privileges. This list is pdblished in the Comprehensive Export Schedule, If the export privileges of any party have been suspended, the exportation is prohibited. 30 If the shipment is made under a general license, this fact must be recorded on the Export Declaration by the exporter with a notation as to which type of general license is claimed (for example, general license GRO, GO GLV, etc.), 4. Oa expottatIons moving under a general license, the'Shipperle Export Declaration is ovemined in the light of all applicable regulations of the Bureau of Foreign Commerce to assure that the prone de xportatien AMR' TeRdileaSe ZUU1/03i02T6MNEAVACRIAMillet1120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 ? 3E; 5. On shipments under a validated license - individual type, the license document must be turned over to the Collector of Customs before an Export Declaration may be filed under. such license. oxy ,.1hipperls Export Declaration presented for -clearance under a validated license must bear the license number.. The examiner in the Collector of Customs Office must examine each such declara-. tion against the appropriate license whichOisin the Collector's hands to be sure that the proposed eepartation is properly OS:thin the terms of the applicable license as to coMmedity, quantity, destination, ceneignee, etc. An appropriate 'entry is made on the license document to show quantities &lipped under each Export Declaration cleaeed by the examiner in the Collector of Customs office? 6. On a validated license of the project type, the Bureau of Foreign Commerce offidially notifies every Collector of-Customs of project acenses which have _been issued. Export Declarations covering proposed exportations under the project type validated license must bear i reference to the license number of the approved case. Such declarations are cheeked by the examiner in the Office of the Collector. of Cestoms against the official liet of project tyye . valielated-lioenses. 70 If the Eeport:Declaration is in order and all applicable require-. ments hava been met, it is *authenticeted" by ;the examiner in the Office efotWColleetar of Customs. This authentication is in the form of e apeCial official stamp bearing a serial number. Ome copy of the authenticated declaration is returned to the exporter to permit hi* to deliver it to the export carrier in exchange for the hill of 1edine4 Teo coplea are retained by the Collector of Customs, 86 One (mpg.. efothe Export Declaration is sent from the customs dean- ment examiner ie the Customs House to the Customs inspector at the dock where loading aboard a vessel will be aceOnTaished. In S nspecting cargo, contents of packages are compared with informa... tion 30t forth in the Export Declaration. Discrepancies found may be cause. -4'or'inVe8tigatioa or action to punieltan offender, 9. After exportation, a'copy of the ship's manifest is compared in detail with Export Declarations covering the ship's cargo. This helpe to assure that all documents in conneetion with the trans- ction are. in agreement. Discrepanciee noted May call for a. apeeielJeyeetigation to determine whether export control regula- time have'beep violated. VII. umajapammiagns,utiaoruggi One of the most impartaat single functions in the Dated States export oontrol system le the position of the licensing officer, He is the commodity expert, qualified by many years of experience in the commodity field in which he must Operate.. While it is not possible in this pamphlet to deesribie the licensing officer's work in complete detail, it may be well to point out the kinds of decisions which the licensing officer must make and to list some of the types of information and devices available to him in making his Judgment Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 -:.01A=RDP64-00014A000100120002-7 eommodieies for tae purpose oe licensing may oe woken uown into sacuriey control items, short supply items, or both. In licenning commodities controlled for vemerity reasons, the licensing officer must examine the answers to such questions as the following: n) Are effective controls maintained by the country of ultimate destination in the came commodity? b) What are the licensing policies laid down for this commodity 1sx program determinations from the Advisory Committee on ecport Policy? Siece the. number of items subject to short pply controls has decreased markedly; the problem of ahot supply items for export is no longer a major eoneideration in licensing pods for export. There ere, however,- a few' lteme which remain ill short supply and in taking action on applications to export these. items, the. licensing officer must take the following matters into account: a) What isethe total quota for this commodity, i.e., whet is the maximum amount which may be licensed for export in a specific period?. ? b) How is .the total Trete broken down among the several foreign couetries which require this commodity? c) What:United States exporters have traditionally supplied this commodity to specific markets? 0) or what and uses may exportation be authorised? C, That -are the requirements for the commodity in each foreign country to which exportation will be authmeised? f) If a license is granted, will the exporter be able to obtain thecommodity in the United States market? In some oases a commodity may be subject to export control for both short supply and security reasons which means that applications for aey such commodity must be subjected to a double course of inquiry. In every license application there is, of course, the requirement that the applica- tion itself and all related doeumenta must be in good order before final action is taken. In arriving at his deoision with respect to any license application, the licensing officer hee at his command the application submitted by the exporter, supplemented in specific cases by documents and information which he rAy require. The following are examples of the types of documents and information which ars either required by regulations or mAy be requested by the licensing officer: Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : GlArliDP64-00014A000100120002-7 (a) An ultimate consignee statement, i.e., a statement signed I e the coaeignep abroed in which he makes representations to the United States exporter and the Bureeu of Foreign Comoros regarding the use and distribetioe of commodities proposed for exportation from the United States. (b) An import certificate supplied under the IC/DV system. (c) Information obtained through the United States Foreign Service in respcnee to a cabled request from the Bureau of Foreign Commerce for an "export transaction check". cae A Swiss Blue Import Certificate in the case of exportae tions proposed to Switzerland. A summary of trade information regarding the United States exporter QT foreign consignee dere loped from information in the files of the Commercial Intelligence Division in the Bureau of Foreign Commerce. Detailed information regarding the transaction in answer to a request to the United States exporter. AOC& From time to time security problems arise, or cases are presented for processing, which require policy intererree tation or review at a higher level than the licensing officer or the licensing division. director. Such problems or cases are referred for study end recommendae tion to the "BFC Working Group", which Is made up of representatives or the various parts of BFC. .1111-41raff9, The United States Government feels that in order to assure compliance vith its export control regulations, there must be a continuous effort to impose meaningful sanctions against United States exporters or foreign importers wee wilfully violate such regulatione. There is in the Bureau of Foreign Commerce an Investigation Staff which la exclusively concerned with the examination of possible violations or leeiplent violations of United States export control regulations. The Investigation Staff comprises approximately Ireeployees in the Washington office of the Bureau of Yweign Commerce and Wemployees in a New York office of the lorestigation Staff. These employees are constantly gathering and sifting information obtained from such sources as: the United States exporterp the United States Foreign Service, United States qevernment Intelligence agencies, licensing officers in the Bureau of Pareign Commerce, Collectors of Oustors, etc. Eech bit of original infore metion regarding a potential violation or export control regulations may be called a "lemd". Each such lead is examined and any lead which appears to relate to a significant violation may develop into a full-fledged in- vestigation that might require an investigator to travel to a number of points in the United States and, where necessary abroad. Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 201A-RDP64-00014A000100120002-7 As an aid to the Investigation Staff. a commettee has been established which services two principle functions: (1) to advise the prestigation Staff aelto the real importance of various irregularities Under invese tigation so that the manpower of tho Staff eieebe devoted to investige- tions which appear to be moat pronioing. In this capacity the Copettee acts aseeejurY which developes BFC opinion on the flavor of various essetlieMethe'Coemittee advises the Director and Deputy Director of the OfficeeefeTeXport Supply in their capacity kis supervisore of the Invettigatieneetaff their developing idaan as to fruitful areas of activity for the Staff; as to method? o investigation of various 0 elm eseeeeeee appeopridteness of propoaed consent orders; :Leto the desirability .of prosecution of miner offenders, etc. In arder,:teedeteeTNine what person or fir e is reeponsible for the vio- lstieseWAtieften nedeseary to trace the actual movement of the goods from the United States ler mewls of export licenses, export declaratipnee bills of lading, ship" maelfests, landing eeetificates, customs ene tries ebrOS4i foreign bills of lading letters of credit, and so on. 'erforma14olele4ete Slowed from exportere, freight forwarders, ocean and eireearrieese foreign oustoms officers customs brokers, banke, andifremeStapeeted individuals themselves. Then theeintestigators complete their inquiries, their reports are turned dverete the Office of the General Counsel of the Department of Conmereeeefor: legal review. If the Department atterney determines that there is reseonable grounds, to bolieVeethet a person has violated United States export control regulatien344 an important respect, a formal compliance aotion is institutedeagaint the alleged violator. Tdis compliance action moves throegletheefollowing steps: (a) a charging letter is sent to the ellegedirielitter describing the apemrent violation and requesting thatimelinseer:the ohargeo; (b) unless the offender admita the charges, aeformal hearing of the charge is arranged before a *comp1ianoce eommissiOnern:who is an official of the Bureau of Foreign Commerce theeproceedings before the compliance oommissioner the prosee oution'Whandled by the General Counsel's office. The accused MAY be aed.Useally is represented by a lawyer of his own choice. The proceedings include. a hearing of evidence of the alleged violation and the-evidenoe of the alleged offender submitted in defense or refutatioed)ethe Compliance Commissioner, in light of information presentectet the formal hearing, makes a finding of whether there has been a Violation of the regulations. If the Compliance Commissioner makes a:fielding or no violation no further action 'is taken by the Bureau OfFeign Commerce and no sanctions are imposed; (e) if the Coepliance Comeissioner makes a fin6ing of violation he also reeome mends to the Director of the OES the compliance action he deeie slettOleee The Director then acts on this recommendation and mgy suspend theeviolator from the privilege of participating in United States exports for a specified length of time. Depending upon the gravity of the offense, the duration of this suspendion may run from a few days upward to a maximum of nthe duration of United States export controls*. Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIAADP64-00014A000100120002-7 (f) It should be noted that the administrative proceedings described above have been applied not only to United States exporters and for- warders" but also tc dew' to foreign companies and individuals, in importers and freight forverders, the right to deal in ex-, ports from the United States, In addition to the administrative sanctions imposed in the complialce procekdings described above, criminal penalties may be imposed for aggravated violations of United States export controls. In any suoh instance the entire case, with all related evidence, is referred to the United States Department of Justice for criminal prosecution of tee offender, Fires and prison sentences have been imposed hv United States Courts for such criminal violations, Ie an effort to keep exporters constantly aware of eompliance actions, e islet of all current suspension orders is maintained and distributed by the Comprehennive Export Schedules. Press releases are issued and eaeouncements are published, in the Federal Register, ?thew actions which may be taken, short of formal compliance action, inoinde detention and seiamee of shipments, recall of shipments, and srareing issuance of letters. DE0 ZUTZATZLONISL lost of the disoussion 14 this pamphlet has been restricted to regula- tions and procedures as they relate to, the authorisation to export goods fron the United States, Al]. of the ofrcrb expended to control exports to the point of departure from the United States would be lost unless steps were also taken to control the moment of the United States origin commodities after they have left the United States shores, For this recon, United States export control regulations are made applicable to United States origin commodities even after shipment has taken place. These United States export control regulations are generally referred to as the "destination control" regulations and comprise three principal provisions, They ares (a) Reexportatioe from the country of ultimate destination shown on United States export control documents (export license or Shipper's Export Declaration) is prohibited unless the shipment could move forward directly from the U.S. under a general license. () All ships, planes or other carriers are prohibited from raking delivery of United States origin goods to any . destination other than the destination specified on United States expert oontrol documents? Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA:4RDP64-00014A000100120002-7 ) for all commodities requiring a validated license and all 2esitivo List nommoditios shipped under general license to egy doseineelon exeopt Latin Anerlea, the bills of lading flee cowileTe Trolleos nust boar ef the following fecatementss hese commodities licensed by the United States for eltimate deetiration (name of country). Diversion eontrary to Milted States law prohibited40 or ilThese eommodities licensed by United. States for eltimate destiration (name of coentry) and for qistribution or resale in (name of other approved eountries as &own on validated limeamo)0 Diver iion contraey to UhLted States ire, prohibitedno erthf_s requirement all interested parties, including foreign importers, custems hrokers, freight ftrwarders? banks, etc., are put on notice as to te conditions urder rbith the exportation has been licensed by Statee. Theam destination centreol provisions of the export control regulations ere eonsidered vitally necessary to the effeetivenese of United States oxpo7t controls. Violations of aqv of tiAese regulations are regarded jumt as seriously as obteining an export license under false repreoentae tion6 or illegal description of merehandiee proposed for exportationo ecepliance orders have been entered against persons who divert, transship or e.;.!expert goods contrary to these specific provisions of the United Stats export control regulations and the notice on the bills of lading end invoices. Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7 41OAD AND STAFF 1..n order that the reatiff,,:' may- have one txpereciation of the voaiarse work and, approatriaitc: staff required In :tonne(ition with expt,rt the ham tw)(11 set forth below sore salient statistteit; statistics ;3`64111(Litlif, alone cannot be tikken as a. precise Irl:p.Isure :t!?' Work hit 1,r-oNrit.1$7, sows teals rOr uorripax.tty the task of astabaster- Satos C.xport control with simil;,-r work done in othor --,tuntriets? The Deriartinent. of Coe ezplinrs a staff of app4-oxi- .1Ntely 361 in Gormo:naLoa lerith export oontro, work, The etaff ,ILsixibitted as Advisory- Go:mutWe on Export 14 Burem.ot Ioteign COnneri:n 324 :-;affo,t,v 49 Other or tcnat unite -In the :010-eau I;broltqa Gormeroe 75 D?payinglien. or t;orxerc 'ieln otlioes 23 ale:--g the sovvi mont21:: endinE, Marsh 1955 the number of 1;_oerp.;e .1.ppi1eatior1i nuxii:tri..altal type -valtdatsci licenses received In thE itarnau ot! c-co_nb-,ree :.-Lverarer/ Sppre.iititlately 4-100 per Walt, re,roived in ths alp:Au Foreign Commereii?, 95% di.13140.301e Utht two weeks,... The balance of oases take 0. loner *Arne for Ole.orsacol,, zi..t.rtine: in rare inetances to several morti-4 on sops;ciall,y- crit3es iniz, inquirieE abroad. There were 411 T 0 1 OC 1 type validatt'd comes airrent ly in t bre* the errl of irshmari 195r.. ollectors of' Cuutozvg ;:lear an airere t-f '76,000 ppr'b;Exrt ar:Ic7.arations -per vi*-ek Thore are a.Go)lecn-,,,rs of Gust tvreyportst-aorh,, v, as many "pc,A-1", piJ2 about 200 t,sibport sit - The Collector a of, C. ? .tine taft inc-1ld,er,.3 214 roople encaged e.A.k-quscive1,- 1,1. import cloThvgyi Torxrki... As of' Deoembec...11.):, j. tiutre wero su.spenst-?on oi-f-d reaztF-7nt2inp Against viol-e.-i..sors EL%port control regtaations? As of Pebruarr 2E., 1955 toe Rei.tilm. List oczapri,eod a list cf approx- .1mat.:Ay 1312 q-lxiniccd.ty entries subject to ralidated ..License refrairrinentc. Approved For Release 2001/03/02 : CIA-RDP64-00014A000100120002-7