The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) today revised its rules regarding the export of most mass market electronic products that contain encryption functions and other encryption products.
“This revised rule enhances our national security and cuts red tape by eliminating the review of readily available encryption items, like cell phones and household appliances, and allows the Government to focus its resources on more sensitive encryption items,” Assistant Secretary of Commerce for Export Administration Kevin Wolf said.
The new rule ends the U.S. government’s 30-day technical review requirement to export most mass market and other types of encryption products. “Mass market” electronic products containing encryption include cell phones, laptops, and disk drives. Exporters and manufacturers of the encryption products may now self-classify the products and then export them without a license if they register on-line with BIS. BIS also requires that they submit an annual self-classification report. This rule is expected to decrease technical reviews by approximately 70 percent and semi-annual reporting by up to 85 percent.
The rule also extends the scope of License Exception ENC authorizations to most encryption technology exports, following a technical review. In addition, it adds a decontrol note for items that perform “ancillary” cryptography, which covers items such as games, robotics, business process automation, and other products that contain encryption capabilities but do not have communication, computing, networking or information security as a primary function.
“This rule is the first step in the President’s effort to fundamentally reform U.S. encryption export controls,” Assistant Secretary Wolf said. “The Administration will continue to review the encryption rules to further enhance national security and ensure the continued competitiveness of U.S. encryption products. This effort will include a review of the current controls on publicly available encryption software, integrated circuits with encryption functionality, high-speed routers, and other types of restricted encryption products.”
Summary: http://www.bis.doc.gov/news/2010/encryption_rule_summary.pdf
New Complete Rule:
http://www.bis.doc.gov/news/2010/fr_06252010.pdf
Sunday, June 27, 2010
Thursday, June 17, 2010
Monday, June 14, 2010
Ocean Cargo: Steady TEU gains in the coming months
The call for increased throughput at United States retail container ports continues, according to a report by the National Retail Federation.
The report is calling for 15 percent volume growth in June and double-digit increases in the following months, due to gradual economic improvement. Retail container volumes saw declining volumes for 28 months through November 2009. But since that time, the losses stemmed somewhat with sequential gains in December and January, followed by a decline in February. March volumes—came in at 1.07 million TEU (Twenty-foot Equivalent Units), which was up 7 percent from February’s 1.01 million TEU and 12 percent year-over-year. April volumes at 1.15 million TEU—the month in which the most recent data is available—were up 7 percent from March and 16 percent year-over-year.
Annual volumes have been up for 5 consecutive months, according to the report. The ports surveyed in the report include: Los Angeles/Long Beach, Oakland, Tacoma, Seattle, New York/New Jersey, Hampton Roads, Charleston, and Savannah.
Improving volumes are reflective of the continuing demand for import container space, which is causing carriers to bring back services as well as increase the size of ships, which should improve supply chain management operations, according to Ben Hackett of NRF. “The first half of this year has been—and will be—relatively strong,” said Hackett “But we have not significantly increased our forecast despite the strength of TEU growth as a whole. The second half of the year is forecasted to be slightly weaker in terms of growth rates. This is not negative growth; it just won’t be as strong as the first half.”
Hackett added that year-over-year comparisons will likely tighten up as well, with the West Coast and East Coast slated to grow 13.5 percent and 13.7 percent, respectively through the rest of the year. These estimates represent a bit of a “pull back” in the second half of the year, according to Hackett.
Going forward, Hackett is anticipating year-over-year increases in the coming months. May is estimated at 1.16 million TEU, a 12 percent increase. June is calling for 1.16 million TEU, a 15 percent annual hike. July is predicted to hit 1.23 million TEU, an 11 percent annual bump. August is calling for 1.27 million TEU, a 10 percent annual gain, and September is projected to hit 1.31 million TEU, a 15 percent gain. And October, traditionally the busiest month of the year, is pegged at 1.34 million TEU, a 12 percent gain.
“Cargo import numbers are up but retailers are looking closely at other economic indicators to make sure they are sourcing the appropriate amount of merchandise based on consumer demand,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a statement. “Job creation remains a key factor that’s going to affect consumer spending and retail sales.”
The report is calling for 15 percent volume growth in June and double-digit increases in the following months, due to gradual economic improvement. Retail container volumes saw declining volumes for 28 months through November 2009. But since that time, the losses stemmed somewhat with sequential gains in December and January, followed by a decline in February. March volumes—came in at 1.07 million TEU (Twenty-foot Equivalent Units), which was up 7 percent from February’s 1.01 million TEU and 12 percent year-over-year. April volumes at 1.15 million TEU—the month in which the most recent data is available—were up 7 percent from March and 16 percent year-over-year.
Annual volumes have been up for 5 consecutive months, according to the report. The ports surveyed in the report include: Los Angeles/Long Beach, Oakland, Tacoma, Seattle, New York/New Jersey, Hampton Roads, Charleston, and Savannah.
Improving volumes are reflective of the continuing demand for import container space, which is causing carriers to bring back services as well as increase the size of ships, which should improve supply chain management operations, according to Ben Hackett of NRF. “The first half of this year has been—and will be—relatively strong,” said Hackett “But we have not significantly increased our forecast despite the strength of TEU growth as a whole. The second half of the year is forecasted to be slightly weaker in terms of growth rates. This is not negative growth; it just won’t be as strong as the first half.”
Hackett added that year-over-year comparisons will likely tighten up as well, with the West Coast and East Coast slated to grow 13.5 percent and 13.7 percent, respectively through the rest of the year. These estimates represent a bit of a “pull back” in the second half of the year, according to Hackett.
Going forward, Hackett is anticipating year-over-year increases in the coming months. May is estimated at 1.16 million TEU, a 12 percent increase. June is calling for 1.16 million TEU, a 15 percent annual hike. July is predicted to hit 1.23 million TEU, an 11 percent annual bump. August is calling for 1.27 million TEU, a 10 percent annual gain, and September is projected to hit 1.31 million TEU, a 15 percent gain. And October, traditionally the busiest month of the year, is pegged at 1.34 million TEU, a 12 percent gain.
“Cargo import numbers are up but retailers are looking closely at other economic indicators to make sure they are sourcing the appropriate amount of merchandise based on consumer demand,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a statement. “Job creation remains a key factor that’s going to affect consumer spending and retail sales.”
Friday, June 4, 2010
Is Encryption Reform Coming?
The Commerce Department plans to introduce a rule within weeks will greatly reduce reporting and review requirements both for many forms of encryption software and hardware, although a significant category of mostly networking-related items will not benefit from the change, according to a Bureau of Industry and Security (BIS) official.
The rule will ease review and reporting requirements, ultimately resulting in as much as 85 percent of encryption items being free of both licenses and 30-day reviews, according to private-sector experts.
Encryption export control lawyers say the change constitutes a win for exporters because it eases the procedures for exporting and covers a significant number of items.
Additionally, because the rule creates yet another exemption category to the complex encryption regulations, some sources said that more still needs to be done to simplify the regulations which are considered the most opaque in the world of export controls.
Under the rule change, most of the items that are “ENC unrestricted” will also no longer be subject to the notification and review requirements.
Instead, companies exporting these “ENC unrestricted” products will have to register once with Commerce and then provide a yearly report to Commerce simply on which products it has self-classified as ENC unrestricted.
Other items known as “ENC restricted,” such as high speed routers, would still face the old requirements however. This includes network infrastructure, source code, and telecommunication switches which will still be subject to the old rules.
Stay tuned for updates!
The rule will ease review and reporting requirements, ultimately resulting in as much as 85 percent of encryption items being free of both licenses and 30-day reviews, according to private-sector experts.
Encryption export control lawyers say the change constitutes a win for exporters because it eases the procedures for exporting and covers a significant number of items.
Additionally, because the rule creates yet another exemption category to the complex encryption regulations, some sources said that more still needs to be done to simplify the regulations which are considered the most opaque in the world of export controls.
Under the rule change, most of the items that are “ENC unrestricted” will also no longer be subject to the notification and review requirements.
Instead, companies exporting these “ENC unrestricted” products will have to register once with Commerce and then provide a yearly report to Commerce simply on which products it has self-classified as ENC unrestricted.
Other items known as “ENC restricted,” such as high speed routers, would still face the old requirements however. This includes network infrastructure, source code, and telecommunication switches which will still be subject to the old rules.
Stay tuned for updates!
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