U.S. Department of State 95/06/08 Fact Sheet: US Exports: Foreign Policy Controls Bureau of Public Affairs Fact Sheet: U.S. Exports: Foreign Policy Controls Exports are vital to the U.S. economy. They provide jobs and enable the country to import goods to meet domestic demand. The U.S. imposes certain controls, however, to ensure that exports are consistent with U.S. foreign policy requirements. Most controls apply to sensitive dual-use equipment and technology that could support activities contrary to U.S. national security and foreign policy interests. They affect less than 5% of the value of current exports. The controls relate to specific foreign policy concerns worldwide and/or to specific countries of concern under the authority of the 1979 Export Administration Act (EAA). Foreign Policy Export Controls Counter-Terrorism Controls. Using EAA Section 6(j) authority, the Secretary of State has designated Cuba, Iran, Iraq, North Korea, Libya, Sudan, and Syria as countries that repeatedly have provided support for international terrorism. Broad, country-specific export controls are in place for these countries. Crime Control Equipment. These controls regulate the export of crime control and detection instruments, equipment, and related technology to all countries, except to NATO member countries or to Japan, Australia, and New Zealand. Generally, licenses are issued unless the U.S. has human rights concerns about the government of the importing country or about the ultimate consignee. Regional Stability. Exports of equipment used to manufacture military arms and equipment and some military transportation equipment are reviewed to ensure that such exports would not contribute to the destabilization of the region or country of destination. Anti-Apartheid. The U.S. prohibits the export to South Africa of all military and police equipment and all items covered by the UN mandatory arms embargo. Missile Technology. The U.S. cooperates with other countries in the peaceful uses and exploration of space but seeks to halt the development of unmanned delivery systems for weapons of mass destruction. Worldwide, the U.S. controls the export of munitions and commercial, dual-use equipment and technology that could be used to develop such systems. Chemical/Biological Weapons. The U.S. works with other countries to halt the proliferation of chemical and biological weapons (CBW). To this end, the U.S. controls the export to all destinations of a broad range of microorganisms and toxins. Exports of 54 precursor chemicals are controlled worldwide, except to Australia Group countries. Exports of certain dual-use equipment that may be relevant to chemical or biological weapons programs are controlled to specific regions and states. All commodities subject to CBW controls are prohibited to countries that provide support for international terrorism, including Cuba, Iran, Iraq, North Korea, Libya, Sudan, and Syria. Nuclear Controls. The U.S. assists other countries in using atomic energy for peaceful purposes, but also seeks to halt the spread of nuclear weapons. Exports of nuclear items are controlled under the 1954 Atomic Energy Act, as amended by the 1978 Nuclear Non-Proliferation Act. Nuclear transfers (e.g., reactors, nuclear fuel, and other products) require either rigorous bilateral Agreements for Cooperation with the recipient country to ensure that IAEA safeguards and adequate physical protection are observed or separate government assurances regarding safeguards, no nuclear explosive use, and retransfers. Commerce- licensed, nuclear-related, dual-use commodities may require various other conditions. These can include recipient government assurances, end-user statements, post installation checks, or other license conditions. Short Supply. Controls occasionally are necessary to protect the domestic economy from an excessive drain on scarce materials. Congress has legislated restrictions on the export of crude oil, unprocessed Western red cedar logs, and horses for export by sea (to prevent unauthorized slaughter abroad). Supercomputers. The U.S. requires the licensing of supercomputer exports worldwide, except to Canada and Japan. U.S. Treasury Department Transaction Controls The U.S. Treasury Department controls U.S. trade and financial transactions with Cuba, Iraq, North Korea, Libya, Vietnam, and Serbia/Montenegro. It also controls transactions with Haiti and regulates imports from Iran. Certain exceptions to these controls are granted under general or specific licenses issued by the Treasury Department's Office of Foreign Assets Control. Contact the licensing office at (202) 622-2480. Guidance for Exporters For regulatory advice on foreign policy export controls, consult the U.S. Export Administration Regulations (15 CFR 730-799, revised annually). Copies are available from the U.S. Government Printing Office (tel. 202-783-3238, stock no. 903-014-00000-8) and the U.S. Department of Commerce's Exporter Counseling Division (tel. 202-482- 4811). For additional information, consult the annual foreign policy report to the Congress, which also is available from the Bureau of Export Administration, Department of Commerce. For information on the Treasury Department's trade and financial controls on Cuba, Haiti, Iran, Iraq, North Korea, Libya, Serbia/Montenegro, and Vietnam, call the Treasury Department's Office of Foreign Assets Control at 202-622-2520 and the U.S. Department of Commerce's Office of Exporter Services, Export Counseling Division at 202-483-4811. June 8, 1995 (###)