ACCESSION NUMBER:225063
FILE ID:TX-404
DATE:04/23/92
TITLE:COMMERCE DEPARTMENT RELAXES COMPUTER EXPORT RULES (04/23/92)
TEXT:*92042304.TXT
COMMERCE DEPARTMENT RELAXES COMPUTER EXPORT RULES

(Fact sheet issued by White House)  (450)
Following is the text of a fact sheet on changes in the Commerce
Department's rules governing computer exports under the distribution
license procedure, issued by the White House April 23:

(begin text)
The Commerce Department in amending the Export Administration Regulations
(EAR) to expand the types of computers eligible for export under the
Distribution License (DL) procedure.  The rule will be issued in interim
form and comments will be considered and taken into account by the
department in developing the final regulations.

The DL permits exports of items on the Commerce Control List (CCL) to
approved consignees in eligible countries without review of individual
transactions.  It authorizes approved U.S. exporters to export a
pro-approved list of commodities to a pre-approved list of foreign
consignees.

-- The new rule amends the Distribution License (DL) procedure by raising
1omputer eligibility levels for exports to various countries based the
Composite Theoretical Performance (CTP) of the computers measured in
million theoretical operations per second (MTOPS).

-- The rule revises thresholds and countries to determine eligibility for DL
computer exports:

Supercomputers (i.e., computers 195 MTOPS and above) are eligible to
Australia, Belgium, Denmark, France, Germany, Italy, the Netherlands,
Norway, Spain and the United Kingdom.  (Previously, each supercomputer
export required an individual validated license.  Supercomputer exports to
Canada and Japan can be made under General License.)

Computers with a CTP of Ions than 195 MTOPS continue to be eligible for
export to COCOM member nations and other countries that cooperate with
COCOM (listed in Supplements 2 and 8 to Part 773 of the EAR).

The threshold is increased from 41 to 100 MTOPS for DL computer exports to
most other "Free World" countries (listed in Supplement 3 to Part 773 of
the EAR).

The threshold is increased from 23 to 41 MTOPS for DL computer exports to
all countries not listed in Supplements 2, 3, and 8 to Part 773, except
Argentina, Brazil, India, Israel, Pakistan, and the Republic of South
Africa.

-- DL holders are required to maintain a comprehensive internal control
program, including training of company employees, record retention, and
special procedures for processing orders.  Approximately 150 U.S. exporters
presently utilize the DL special licensing procedure.

-- DL exports are not permitted to controlled countries or to countries
strictly controlled or embargoed for foreign policy purposes (e.g., Cuba,
North Korea, Vietnam, Libya, Iran, Iraq, Syria, etc.).  Certain items are
not eligible for the DL, including those controlled for missile and nuclear
non-proliferation reasons, chemical weapons precursors and equipment,
certain biological items and equipment, and some additional entries on the
CCL (listed in Supplement 1 of Part 773).

(end text)
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