14 December 1999
(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.)