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NFTC Leads Business Opposition to Deemed Export Proposal
Date: 6/30/2005

More than 100 Companies and Trade Associations File Comments In Opposition

WASHINGTON, DC – Led by the National Foreign Trade Council, more than 100 leading companies, trade associations and academic institutions submitted comments to the Department of Commerce in opposition to a proposal by its Inspector General that would significantly expand the "deemed export" license program to require licenses for employees based on their country of birth rather than their place of residence. NFTC member companies and other associations believe this proposal will have a negative impact on their ability to hire talented individuals and remain competitive in the global economy.

"The tremendous response demonstrates that the business community is unified in its opposition to this proposal. We believe that it will impose major additional costs on companies and accelerate the movement of our innovation base offshore. Accordingly, we urge the Department of Commerce to reject it immediately," said NFTC President Bill Reinsch.

If the proposal were to come into force, it would likely require U.S. companies initially to ask all employees to provide information on their country of birth and then to file for additional export licenses, potentially costing companies hundreds of thousands of dollars and consuming valuable company resources.

"By expanding the program in this fashion, the Inspector General has put forth a proposal that will have little, if any, positive impact on U.S. national security," added Reinsch.

At the deadline for submission of comments, NFTC estimated that more than 100 leading companies and trade associations filed comments in opposition to this proposal. A full list will be available on the Department of Commerce's Bureau of Industry and Security website as early as next week. The comment period for the proposal closed on Monday, June 27.

 


 

The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.