News

USIS Washington File

14 December 1999

Text: Commerce Statement on Delay of Encryption Regulations

(Reinsch cites need for further consultations) (395)

The Clinton administration has postponed the release of new
regulations for the export of U.S. encryption software until January
14.

The administration had planned to issue the new regulations on the
data-scrambling software exports on December 15, but chose to delay
the release to "permit further consultations with affected parties,"
said Under Secretary of Commerce William Reinsch in a statement issued
late December 13. Reinsch heads Commerce's Bureau of Export
Administration, which overseas U.S. export controls.

A draft of the proposed regulations was released November 19, as a
follow-up to a September announcement that U.S. encryption export
policy would be updated to meet the needs of the U.S. industry to be
globally competitive, while providing for national security
protections.

"Given the significant changes since the November 19 draft, we believe
there would be real benefit to another round of review and
consultations," Reinsch said.

The proposed changes, especially in the area of source code and
encryption development toolkits, have gone further than promised in
September, Reinsch added, "and that is another reason for this
review."

Following is the text of Reinsch announcement:

(begin text)
 
Bureau of Export Administration
U. S. Department of Commerce
Washington, D.C.
December 13, 1999
             
Statement of Commerce Under Secretary William A. Reinsch On Delay of
Encryption Regulation

The Administration decided today to delay the release of its pending
regulation on encryption exports no later than January 14, 2000 to
permit further consultation with affected parties. The consultations
we have had with various companies, industry groups and privacy
organizations have been very valuable in helping determine how to
match the pending regulations to industry practices in a manner
consistent with our September 16 announcement.

Given the significant changes since the November 19 draft, we believe
there would be real benefit to another round of review and
consultations before we issue the regulation. In responding to
specific business cases brought to us by industry, especially in the
area of source code and encryption development toolkits, we have gone
further in the regulation than we promised in September, and that is
another reason for this review.

We expect to circulate another draft for comment shortly.

(end text)

(Distributed by the Office of International Information Programs, U.S.
Department of State.)