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White House Press Release

Administration Of Export Controls




                             The White House 

                      Office of the Press Secretary 

    _______________________________________________________________ 

    For Immediate Release                          December 6, 1995 


                             Executive Order 
                                 #12981 
                              - - - - - - - 

                    Administration Of Export Controls 


    	  By the authority vested in me as President by the 
    Constitution and the laws of the United States of America, 
    including but not limited to the International Emergency Economic 
    Powers Act (50 U.S.C. 1701 et. seq.) ("the Act"), and in order to 
    take additional steps with respect to the national emergency 
    described and declared in Executive Order No. 12924 of August 19, 
    1994, and continued on August 15, 1995, I, William J. Clinton, 
    President of the United States of America, find that it is 
    necessary for the procedures set forth below to apply to export 
    license applications submitted under the Act and the Export 
    Administration Regulations (15 C.F.R. Part 730 et. seq.) ("the 
    Regulations") or under any renewal of, or successor to, the Export 
    Administration Act of 1979, as amended (50 U.S.C. App. 2401 
    et. seq.) ("the Export Administration Act"), and the Regulations. 
    Accordingly, it is hereby ordered as follows: 

    	  Section 1.  License Review.  To the extent permitted by 
    law and consistent with Executive Order No. 12924 of August 19, 
    1994, the power, authority, and discretion conferred upon the 
    Secretary of Commerce ("the Secretary") under the Export 
    Administration Act to require, review, and make final 
    determinations with regard to export licenses, documentation, and 
    other forms of information submitted to the Department of Commerce 
    pursuant to the Act and the Regulations or under any renewal of, 
    or successor to, the Export Administration Act and the 
    Regulations, with the power of successive redelegation, shall 
    continue.  The Departments of State, Defense, and Energy, and the 
    Arms Control and Disarmament Agency each shall have the authority 
    to review any export license application submitted to the 
    Department of Commerce pursuant to the Act and the Regulations or 
    under any renewal of, or successor to, the 
    Export Administration Act and the Regulations.  The Secretary may 
    refer license applications to other United States Government 
    departments or agencies for review as appropriate.  In the event 
    that a department or agency determines that certain types of 
    applications need not be referred to it, such department or agency 
    shall notify the Department of Commerce as to the specific types 
    of such applications that it does not wish to review.  All 
    departments or agencies shall promptly respond, on a case-by-case 
    basis, to requests from other departments or agencies for 
    historical information relating to past license applications. 

    	  Sec. 2.  Determinations.  (a)  All license applications 
    submitted under the Act and the Regulations or any renewal of, or 
    successor to, the Export Administration Act and the Regulations, 
    shall be resolved or referred to the President no later than 
    90 calendar days after registration of the completed license 
    application. 

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    	  (b)  The following actions related to processing a license 
    application submitted under the Act and the Regulations or any 
    renewal of, or successor to, the Export Administration Act and the 
    Regulations shall not be counted in calculating the time periods 
    prescribed in this order: 

    	       (1)  Agreement of the Applicant.  Delays upon which the 
    Secretary and the applicant mutually agree. 

    	       (2)  Prelicense Checks.  Prelicense checks through 
    government channels that may be required to establish the identity 
    and reliability of the recipient of items controlled under the Act 
    and the Regulations or any renewal of, or successor to, the Export 
    Administration Act and the Regulations, provided that: 

    	       	    (A)  the need for such prelicense check is 
    established by the Secretary, or by another department or agency 
    if the request for prelicense check is made by such department or 
    agency; 

    	       	    (B)  the Secretary requests the prelicense check 
    within 5 days of the determination that it is necessary; and 

    	       	    (C)  the Secretary completes the analysis of the 
    result of the prelicense check within 5 days. 

    	       (3)  Requests for Government-To-Government Assurances. 
    Requests for government-to-government assurances of suitable 
    end-use of items approved for export under the Act and the 
    Regulations or any renewal of, or successor to, the Export 
    Administration Act and the Regulations, when failure to obtain 
    such assurances would result in rejection of the application, 
    provided that: 

    	       	    (A)  the request for such assurances is sent to the 
    Secretary of State within 5 days of the determination that the 
    assurances are required; 

    	       	    (B)  the Secretary of State initiates the request 
    of the relevant government within 10 days thereafter; and 

    	       	    (C)  the license is issued within 5 days of the 
    Secretary's receipt of the requested assurances. 
    Whenever such prelicense checks and assurances are not 
    requested within the time periods set forth above, they must 
    be accomplished within the time periods established by this 
    section. 

    	       (4)  Multilateral Reviews.  Multilateral review of 
    a license application as provided for under the Act and the 
    Regulations or any renewal of, or successor to, the Export 
    Administration Act and the Regulations, as long as multilateral 
    review is required by the relevant multilateral regime. 

    	       (5)  Consultations.  Consultation with other 
    governments, if such consultation is provided for by a relevant 
    multilateral regime or bilateral arrangement as a precondition for 
    approving a license. 

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    	  Sec. 3.  Initial Processing.  Within 9 days of registration 
    of any license application, the Secretary shall, as appropriate: 

    	  (a)  request additional information from the applicant.  The 
    time required for the applicant to supply the additional 
    information shall not be counted in calculating the time periods 
    prescribed in this section. 

    	  (b)  refer the application and pertinent information to 
    agencies or departments as stipulated in section 1 of this order, 
    and forward to the agencies any relevant information submitted by 
    the applicant that could not be reduced to electronic form. 

    	  (c)  assure that the stated classification on the application 
    is correct; return the application if a license is not required; 
    and, if referral to other departments or agencies is not required, 
    grant the application or notify the applicant of the Secretary's 
    intention to deny the application. 

    	  Sec. 4.  Department or Agency Review.  (a)  Each 
    reviewing department or agency shall specify to the Secretary, 
    within 10 days of receipt of a referral as specified in 
    subsection 3(b), any information not in the application that would 
    be required to make a determination, and the Secretary shall 
    promptly request such information from the applicant.  If, after 
    receipt of the information so specified or other new information, 
    a reviewing department or agency concludes that additional 
    information would be required to make a determination, it shall 
    promptly specify that additional information to the Secretary, and 
    the Secretary shall promptly request such information from the 
    applicant.  The time that may elapse between the date the 
    information is requested by the reviewing department or agency and 
    the date the information is received by the reviewing department 
    or agency shall not be counted in calculating the time periods 
    prescribed in this order.  Such information specified by reviewing 
    departments or agencies is in addition to any information that may 
    be requested by the Department of Commerce on its own initiative 
    during the first 9 days after registration of an application. 

    	  (b)  Within 30 days of receipt of a referral and all required 
    information, a department or agency shall provide the Secretary 
    with a recommendation either to approve or deny the license 
    application.  As appropriate, such recommendation may be with the 
    benefit of consultation and discussions in interagency groups 
    established to provide expertise and coordinate interagency 
    consultation.  A recommendation that the Secretary deny a license 
    shall include a statement of the reasons for such recommendation 
    that are consistent with the provisions of the Act and the 
    Regulations or any renewal of, or successor to, the Export 
    Administration Act and the Regulations and shall cite both the 
    statutory and the regulatory bases for the recommendation to deny. 
    A department or agency that fails to provide a recommendation 
    within 30 days with a statement of reasons and the statutory and 
    regulatory bases shall be deemed to have no objection to the 
    decision of the Secretary. 

    	  Sec. 5.  Interagency Dispute Resolution.  (a)  Committees. 
    (1)(A)  Export Administration Review Board.  The Export 
    Administration Review Board ("the Board"), which was established 
    by Executive Order No. 11533 of June 4, 1970, and continued in 
    Executive Order No. 12002 of July 7, 1977, is hereby continued. 
    The Board shall have as its members, the Secretary, who shall be 
    Chair of the Board, the Secretary of State, the Secretary of 

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    Defense, the Secretary of Energy, and the Director of the Arms 
    Control and Disarmament Agency.  The Chairman of the Joint Chiefs 
    of Staff and the Director of Central Intelligence shall be 
    nonvoting members of the Board.  No alternate Board members shall 
    be designated, but the acting head or deputy head of any member 
    department or agency may serve in lieu of the head of the 
    concerned department or agency.  The Board may invite the heads of 
    other United States Government departments or agencies, other than 
    the departments or agencies represented by the Board members, to 
    participate in the activities of the Board when matters of 
    interest to such departments or agencies are under consideration. 

    	       (B)  The Secretary may, from time to time, refer to the 
    Board such particular export license matters, involving questions 
    of national security or other major policy issues, as the 
    Secretary shall select.  The Secretary shall also refer to the 
    Board any other such export license matter, upon the request of 
    any other member of the Board or the head of any other 
    United States Government department or agency having any interest 
    in such matter.  The Board shall consider the matters so referred 
    to it, giving due consideration to the foreign policy of the 
    United States, the national security, the domestic economy, and 
    concerns about the proliferation of armaments, weapons of mass 
    destruction, missile delivery systems, and advanced conventional 
    weapons and shall make recommendations thereon to the Secretary. 

    	       (2)  Advisory Committee on Export Policy.  An Advisory 
    Committee on Export Policy ("Acep") is established and shall have 
    as its members the Assistant Secretary of Commerce for Export 
    Administration, who shall be Chair of the Acep, and Assistant 
    Secretary-level representatives of the Departments of State, 
    Defense, and Energy, and the Arms Control and Disarmament Agency. 
    Appropriate representatives of the Joint Chiefs of Staff and of 
    the Nonproliferation Center of the Central Intelligence Agency 
    shall be nonvoting members of the Acep.  Representatives of the 
    departments or agencies shall be the appropriate Assistant 
    Secretary or equivalent (or appropriate acting Assistant Secretary 
    or equivalent in lieu of the Assistant Secretary or equivalent) of 
    the concerned department or agency, or appropriate Deputy 
    Assistant Secretary or equivalent (or the appropriate acting 
    Deputy Assistant Secretary or equivalent in lieu of the Deputy 
    Assistant Secretary or equivalent) of the concerned department or 
    agency.  Regardless of the department or agency representative's 
    rank, such representative shall speak and vote at the Acep on 
    behalf of the appropriate Assistant Secretary or equivalent of 
    such department or agency.  The Acep may invite Assistant 
    Secretary-level representatives of other United States Government 
    departments or agencies, other than the departments and agencies 
    represented by the Acep members, to participate in the activities 
    of the Acep when matters of interest to such departments or 
    agencies are under consideration. 

    	       (3)(A)  Operating Committee.  An Operating Committee 
    ("Oc") of the Acep is established.  The Secretary shall appoint 
    its Chair, who shall also serve as Executive Secretary of the 
    Acep.  Its other members shall be representatives of appropriate 
    agencies in the Departments of Commerce, State, Defense, and 
    Energy, and the Arms Control and Disarmament Agency.  The 
    appropriate representatives of the Joint Chiefs of Staff and 
    the Nonproliferation Center of the Central Intelligence Agency 
    shall be nonvoting members of the Oc.  The Oc may invite 
    representatives of other United States Government departments 
    or agencies, other than the departments and agencies represented 
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    by the Oc members, to participate in the activities of the Oc when 
    matters of interest to such departments or agencies are under 
    consideration. 

    	       	    (B)  The Oc shall review all license applications 
    on which the reviewing departments and agencies are not in 
    agreement.  The Chair of the Oc shall consider the recommendations 
    of the reviewing departments and agencies and inform them of his 
    or her decision on any such matters within 14 days after the 
    deadline for receiving department and agency recommendations.  As 
    described below, any reviewing department or agency may appeal the 
    decision of the Chair of the Oc to the Chair of the Acep.  In the 
    absence of a timely appeal, the Chair's decision will be final. 

    	  (b)  Resolution Procedures.  (1)  If any department or agency 
    disagrees with a licensing determination of the Department of 
    Commerce made through the Oc, it may appeal the matter to the Acep 
    for resolution.  A department or agency must 
    appeal a matter within 5 days of such a decision.  Appeals must be 
    in writing from an official appointed by the President by and with 
    the advice and consent of the Senate, or an officer properly 
    acting in such capacity, and must cite both the statutory and the 
    regulatory bases for the appeal.  The Acep shall review all 
    departments' and agencies' information and recommendations, and 
    the Chair of the Acep shall inform the reviewing departments and 
    agencies of the majority vote decision of the Acep within 11 days 
    from the date of receiving notice of the appeal.  Within 5 days of 
    the majority vote decision, any dissenting department or agency 
    may appeal the decision by submitting a letter from the head of 
    the department or agency to the Secretary in his or her capacity 
    as the Chair of the Board.  Such letter shall cite both the 
    statutory and the regulatory bases for the appeal.  Within the 
    same period of time, the Secretary may call a meeting on his or 
    her own initiative to consider a license application.  In the 
    absence of a timely appeal, the majority vote decision of the Acep 
    shall be final. 

    	       (2)  The Board shall review all departments' and 
    agencies' information and recommendations, and such other export 
    control matters as may be appropriate.  The Secretary shall inform 
    the reviewing departments and agencies of the majority vote of the 
    Board within 11 days from the date of receiving notice of appeal. 
    Within 5 days of the decision, any department or agency dissenting 
    from the majority vote decision of the Board may appeal the 
    decision by submitting a letter from the head of the dissenting 
    department or agency to the President.  In the absence of a timely 
    appeal, the majority vote decision of the Board shall be final. 

    	  Sec. 6.  The license review process in this order shall take 
    effect beginning with those license applications registered by the 
    Secretary 60 days after the date of this order and shall continue 
    in effect to the extent not inconsistent with any renewal of the 
    Export Administration Act, or with any successor to that Act. 

    	  Sec. 7.  Judicial Review.  This order is intended only 
    to improve the internal management of the executive branch and is 
    not intended to, and does not, create any rights to administrative 
    or judicial review, or any other right or benefit or trust 
    responsibility, substantive or procedural, enforceable by a party 
    against the United States, its agencies or instrumentalities, its 
    officers or employees, or any other person. 

    	       	    	      	   William J. Clinton 

    The White House, 
        December 5, 1995. 


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