It is impossible not to feel a profound sense of horror and dread when reading about the ongoing bird flu crisis in China. As of this writing, nine fatalities have been confirmed, more than 600 people have been infected with the virus, and more than 100,000 birds have been slaughtered in live-poultry markets in Shanghai alone. Chinese health officials have already announced efforts to develop a vaccine – in tandem with the Centers for Disease Control and Prevention (CDC) in the United States.
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Last month I attended the Information Systems Technical Advisory Committee (ISTAC) meeting in San Diego. ISTAC consists of representatives from the computer, electronics, and telecommunications industry who, among other things, advise the Department of Commerce on the Export Administration Regulations (EAR) Commerce Control List (CCL) and, in particular, Categories 3 (Electronics), 4 (Computers), 5 Part I (Telecommunications) and 5 Part II (Information Security).
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You don’t have to be a genius to have noticed that penalties are on the rise for anyone caught violating export control laws. Multimillion dollar mega-fines are becoming more routine for infractions, from the $42 million settlement with private security firm Blackwater in 2010 to the $76 million hit taken by United Technologies Corp (UTC) a few month ago. Several cases involving sanctions violations exceed $100 million in penalties.
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In 2009, President Obama ordered a comprehensive review of our export control system, a stable but outdated labyrinth of regulations and rules rooted in the Cold War era. Not surprisingly, he made the case a year later for export control reform, proposing a series of changes he argued would tighten our national security and improve our ability to keep sensitive technology and data out of unfriendly hands. Conversations, negotiations, and hearings ensued—to little effect. read more
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