For workers and suppliers making U.S. components, the government's optics export reform offers a stated industrial objective rather than a count of new jobs. Commerce's rule published October 12, 2016 says the administration wants to reduce incentives for foreign manufacturers to avoid American content and services. This October 16 retrospective covers the prior week's publication, not a Sunday announcement. [2016-24220]

The mechanism is a change in regulatory jurisdiction for specified fire-control, laser, imaging and guidance equipment. State's complementary rule removes certain items from Category XII of the U.S. Munitions List and describes the equipment remaining there more precisely. Commerce provides controls for transferred items on its Commerce Control List. Both rules take effect December 31, 2016; neither makes all optics freely exportable. [2016-24220][2016-24225]

Commerce also expands controls on certain infrared software and technology, removes some license exceptions and broadens licensing requirements for specified transactions involving military end users or foreign military commodities. For a supplier, the reform therefore cannot be understood solely as fewer restrictions. The product and transaction matter, and movement between agencies is not a general exemption from export licensing. [2016-24220][2016-24225]

Our labor-focused reading is to keep the intended business incentive separate from a demonstrated employment benefit. Commerce presents a stronger industrial base, allied interoperability and more focused enforcement as policy goals. State explains the accompanying boundary changes, not an independent test of those goals. These are complementary documents from the same reform effort; they do not establish that an employer has gained orders, retained jobs or passed any benefit to workers by October 16. [2016-24220][2016-24225]

Source documents

  1. Revisions to the Export Administration Regulations (EAR): Control of Fire Control, Laser, Imaging, and Guidance Equipment the President Determines No Longer Warrant Control Under the United States Munitions List (USML)https://www.govinfo.gov/content/pkg/FR-2016-10-12/html/2016-24220.htm
  2. Amendment to the International Traffic in Arms Regulations: Revision of U.S. Munitions List Category XIIhttps://www.govinfo.gov/content/pkg/FR-2016-10-12/html/2016-24225.htm