Eztevez Asks Hill for Funds to Meet Workload

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Nothwithstanding a doubled caseload, antiquated systems, and flat budget for the past ten years, the Commerce Department's Bureau of Industry and Security (BIS) has been keeping pace, Undersecretary for Industry and Security Alan Estevez told a congressional panel Wednesday.

"BIS has been asked to do more in an era of strategic competition where economic statecraft is increasingly central to U.S. interests and strategy. We have risen to every challenge that we have been asked to take on.

"However, to sustain our current pace and effectiveness, there are a few realities that the Committee should consider:

  • BIS’s budget for core export control functions has remained essentially flat since 2010, when adjusted for inflation.
  • BIS’ law enforcement arm, OEE, employs only 150 agents to counter the threat posed by nation state actors, which means an increase in sworn law enforcement officers and analysts is overdue.
  • Total U.S. exports are up approximately 62 percent since 2010, and exports subject to BIS license requirements are up approximately 126 percent since 2014.
  • Our licensing workload has doubled from approximately 20,000 per year in 2012, to over 40,000 per year.
  • Our staff are relying on foundational systems for both license adjudication and enforcement work that were put in service in 2006 and 2008, respectively.
  • License review timelines continue to increase, particularly to the PRC, as licenses become more complex, particularly for exports of electronic components.

"Notwithstanding these challenges, we achieved an all-time high in the number of criminal convictions and months in jail, resolved or imposed the highest number of administrative cases, denial orders, and temporary denial orders, and conducted a record 1,500 end use checks globally in fiscal year 2023." Mr. Estevez told the House Committee on Foreign Affairs.   

The Whilte House's proposed budget earmarks $223 million for BIS, an increase from the $191 million of the past two years.   By comparison, Lockheed Martin's F-35 Lightning II fighter jet costs the government around $109 million a copy.

Sector - Based Sanctions Over Entity List

"In China, I can't tell because of civil military fusion how those chips are going to be applied and we know that they are going to be applied to military applications.

"Establishing a technological cut line,  and saying anything above this cut line should not be allowed in China because I can't tell its use case is way more effective. It's more effective for industry because they can understand where that line is,  and they can then plan out what their business opportunities are.

"And it's more effective from my enforcement perspective. You know, sanctions, export controls, using the entity list is a whack-a- mole game where, to your point, people change and then we have to go after the next one, which we're happy to do.   It's more strategic to go after a sector technological basis. "

 

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