Analysis of the Effects of U.S. National Security Controls on U.S.-Headquartered Industrial Firms (1986) / Chapter Skim
Currently Skimming:
IV. Analysis of Firm Questionnaire on Export Controls
IV. Analysis of Firm Questionnaire on Export Controls
Pages 45-56
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 45... ...
are the two industrial categories most covered by the licensing system.51 Certain equipment might be picked up in CCL 1565, for example, because it has an embedded microprocessor, but the equipment is not inherently "electronic." Machine tools would be one 50Questionnaire responses cited in this section are cross referenced to Appendix C which has a complete listing of responses. Questionnaire responses reported in this chapter refer to a firm size split according to reported 1985 foreign sales.
|
From page 46... ...
high technology foreign sales estimated for 1985, the firms responding to the Academy survey accounted for roughly $36 billion or about 28 percent. Thus, the survey respondents represent a significant proportion of U.S.
|
From page 47... ...
does the firm have an export control specialist, and (2) has the firm lost foreign business principally due to U.S.
|
From page 48... ...
See also the AEA survey results, Appendix D, which indicate that the degree to which a firm sees the license system as a major problem is heavily influenced by experience with processing times. 54There is anecdotal evidence that indicates firms request a license be RWAd if they have reason to believe it will be denied.
|
From page 49... ...
56Processing times reported here are from time of submission until return of the processed license. Commerce processing times only cover from date of entry into the record-keeping system at the Commerce Department until final approval or completion of processing.
|
From page 50... ...
Tables 21, 22, and 23 show action taken and average processing times for the survey responses of three of the participating trade associations. The responses from firms 57Note DOC data indicates about double this rate.
|
From page 51... ...
Larger exporters utilize bulk licenses for 60 percent of their foreign sales requiring validated licenses. There were over 600 Distribution Licenses (DLs)
|
From page 52... ...
firms expended $300 million in 1985 for administrative costs associated with compliance.59 In addition, another $6 to $9 million annually was spent to procure outside service support. The surveyed firms S8DL compliance cost estimates for smaller firms were judged to be unreliable.
|
From page 53... ...
About 30 percent of the respondents indicated they were using this type of license.60 Lastly, nearly half of all firms, and 80 percent of large and medium-sized exporters, have utilized a General Technical Data Restricted license to transfer technical data abroad. 6OThe low rate of utilization was evident in the data presented in Chapter IIT which indicated a large portion (17 percent)
|
From page 54... ...
This shift is taking place, in part, due to the new Distribution License requirements.61 The surveyed firms report a significant number of incidents where free-world customers have refused to consummate business deals with them. While one-quarter of all survey respondents indicate such an occurrence in the past 12 months, an even larger proportion of larger firms report such an occurrence: Size of Firm Overall Average Large Medium Small 26% 36% 25% 24% (% of Firms Reporting)
|
From page 55... ...
Again, there was a much higher rate of incidence reported among large and medium-sized firms relative to small firms: Size of Firm Overall Average Large Medium Small 38% 50% 65% 32% (% of Firms Reporting) Source: NAS Questionnaire Among all firms, over 257 separate instances of a shift in preference were cited.
|
From page 56... ...
To illustrate, 45 percent of the respondents indicated they had direct knowledge that foreign countries were interpreting the COCOM regulations less stringently than the U.S. This difference is directly influencing the willingness of U.S.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.