Export Controls: License Screening and Compliance Procedures Need
Strengthening (Testimony, 06/15/94, GAO/T-NSIAD-94-203).

The U.S. export control system is basically run by two agencies.  The
Commerce Department licenses sensitive dual-use items, those with both
civil and military uses, and the State Department licenses munitions
exports.  Both State and Commerce use computers to screen export
applications, but they did not include on the watchlists many ineligible
or questionable individuals and companies.  Missing names included those
on a Justice Department list of fugitives for export violations, parties
for whom pre-licensing checks had revealed derogatory information, and
parties identified by intelligence reports as diverters or
proliferators.  Consequently, State and Commerce issued licenses to some
of these parties.  Although State and Commerce exchange some information
on export policies and questionable license applications via interagency
coordinating committees, the sharing of their watchlists has been
limited.  State is not monitoring manufacturing and distribution
agreements by routinely collecting or reviewing annual sales reports.
State attributes this lack of monitoring to staff shortages.  In
addition, State's agreement files are in disarray.  To fulfill the
statutory requirement that no munitions license be issued to a
foreigner, State relies solely on the application's certification that
the person signing the application is a U.S. person.  State does not
require documentary evidence and does only limited telephone checks of
these certifications.  State even approved some licenses when the
applicants lacked the required certifications.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-NSIAD-94-203
     TITLE:  Export Controls: License Screening and Compliance 
             Procedures Need Strengthening
      DATE:  06/15/94
   SUBJECT:  Export regulation
             International trade regulation
             Licenses
             Systems evaluation
             Computerized information systems
             Interagency relations
             Customs administration
             Law enforcement
             Internal controls
             Management information systems
IDENTIFIER:  Dept. of State Blue Lantern Program
             
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