SPIE and OSA urge photonics industry input to ITAR regulation changes

The Optical Society (OSA; Washington, DC) is holding a panel session at CLEO: 2015 entitled "U.S. Export Control - Review of Government Rules and Open Discussion of Possible Changes" in light of proposed revisions to the United States Munitions List (USML) Category XII Fire Control, Range Finder, Optical and Guidance and Control Equipment.

The CLEO panel invites attendees and exhibitors to weigh in before the final government rule changes are issued. The Department of State, Department of Defense and Department of Commerce are systematically reviewing each USML Category and deciding which items should stay on the USML and which items should be removed and placed on the less restrictive Commerce Control List (CCL).

For its part, SPIE (Bellingham, WA) will host a webinar on May 12 (see https://attendee.gotowebinar.com/register/6797597963235453954) on the proposed USML changes that govern the commodities covered by International Traffic in Arms Regulations (ITAR). For the next 60 days, the U.S. Department of Commerce (USDC) is accepting comments on proposed new Category XII rules that govern ITAR (http://www.laserfocusworld.com/articles/2014/09/alfalight-wins-3-7m-laser-contract-for-thaad-laser-initiated-ordnance-system.html). You can input your comments at https://www.federalregister.gov/articles/2015/05/05/2015-10353/revisions-to-the-export-administration-regulations-ear-control-of-fire-control-range-finder-optical.

SPIE lobbyist and a member of the Sensors and Instrumentation Technical Advisory Committee (SITAC) of the Bureau of Industry and Security in the USDC, Jennifer Douris says the rewrite is part of an overarching Export Control Reform (ECR) initiative undertaken by the Administration. Category XII covers many of the optics and photonics commodities and components controlled under ITAR.

The comment process is seen as the best opportunity for exporters, manufacturers, and researchers to influence revisions in regulations that control photonics exports. "Most of the other categories have already been addressed, but the Administration has saved Category XII for last due to its complexity and importance to both industry and the military," Douris said.

The ECR initiative was launched in 2009 with the expressed purpose of building higher walls around fewer items, she explained. "The reasoning behind this was to allow for better protection of what the military would consider to be its 'crown jewels' while recognizing the economic realities that are important to industry. This approach is meant to strengthen our national security, while improving the competitiveness of U.S. businesses."

"I believe that the ECR revisions to Category XII must allow for future growth of the photonics and optics industry while protecting technologies especially designed for the military," said Jim McNally, chair of the SPIE Engineering, Science, and Technology Policy (ESTeP) committee. "Many of the commodities and components controlled by the USML might more appropriately be placed on the Commerce Control List. The reforms will have a direct and lasting impact on industry and our academic community. I urge all parties to participate in the comment period."

SPIE CEO Eugene Arthurs noted that the economic impacts being seen by industry are becoming more serious by the day. "The stakes are high for our industry," Arthurs said. "Outside of a few major contractors, the Department of Defense does not and cannot invest enough R&D funds to sustain and grow businesses. Federal budget actions have kept R&D funding virtually flat, while market opportunity grows rapidly."

Meanwhile, he said, non-U.S. companies with similar products are selling freely, and using the motto "ITAR-Free" to do so. "Many are prudently investing the resulting revenue back into their companies, feeding the potential for rapid growth" Arthurs said. "This scenario comes at the detriment of the U.S. industry's growth and the high-paying jobs that come with it."

SOURCE: SPIE and OSA; http://spie.org/x113271.xml and http://www.cleoconference.org/home/exhibit-displays-and-activities/cleo-market-focus/export-control/