CIA Opposes Use of Country-of-Birth as Deemed Export License Criterion

File Under: 2005

Jun 29, 2005

The Computer & Communications Industry Association (CCIA) today submitted comments to the Department of Commerce’s Bureau of Industry and Security (BIS) opposing a proposed revision of deemed export regulations that govern technology transfers to foreign national employees. The rule change would base requirement of an export license o­n the foreign national’s country of birth rather than their most recent citizenship or permanent residency.

CCIA represents large, medium and small companies in the high technology products and services sector, including computer hardware and software, electronic commerce, telecommunications and Internet products and services – companies with more than $250 billion in annual revenues.

CCIA has long worked to ease or remove unreasonable export controls o­n high-tech products. While CCIA strongly agrees with the need to protect our national security, we believe it is important to guard against measures that would unreasonably limit or burden the legitimate export business of technology companies.

To link deemed export license requirements to a foreign national’s country of birth is to presume that country of birth is the determining factor in how likely that individual is to comply with export laws. There is no evidence to suggest that is the case. Without such evidence, the government would be directing U.S. companies to discriminate against certain foreign nationals in order to solve a problem that has not even been validly demonstrated. CCIA believes there is no need to change the requirement in this way.

A discriminatory approach based o­n "country of birth" is especially inappropriate considering the fact that the United States prides itself o­n being a diverse nation of immigrants. How can we celebrate our strength in diversity while also imposing regulations based o­n the concept that where o­ne is born predetermines a person’s loyalty? This approach is especially insensitive and insulting to those who have fled oppression in their native countries to build a better life for themselves here. If qualified foreign nationals realize that they would be discriminated against in this way, many may choose not to work for a U.S. company, significantly undermining our ability to attract and keep the top talent we need to maintain our technological edge.

In addition, since "country of birth" information of employees serves no current purpose for companies, many will have to collect this information from every foreign-born employee. This will be a huge administrative burden and may cause delays in vital projects while valuable employees are "benched" until it is determined whether a license is needed, or until o­ne is granted. These costs and disruptions would extend not o­nly to U.S. companies but also to their foreign customers, business partners and subsidiaries in allied countries. The "country of birth" requirement may conflict with the immigration, employment, and anti-discrimination laws of these countries.

CCIA believes that a "country of birth" requirement is unnecessary and counterproductive. "Export control policies should be developed as narrowly targeted solutions to actual clearly defined problems," said CCIA President & CEO Ed Black. CCIA looks forward to working with the administration in developing an export control system that safeguards our security interests without sacrificing innovation and competition.

CCIA’s comments