Arms Exports: Licensing Reviews for Exporting Military Items Can Be Improved
NSIAD-87-211
Published: Sep 09, 1987. Publicly Released: Sep 09, 1987.
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Highlights
In response to a congressional request, GAO reviewed the Department of State's Office of Munition Control's (OMC) arms export licensing activities and procedures and identified actions OMC took to cope with its increased work load.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of State | The Secretary of State should require OMC to use readily available information on parties involved in arms exports to help identify export license applications requiring closer scrutiny. |
Closed – Implemented
State IG reported in March 1992 that DTC has established procedures to routinely screen registration and license applications against databases that contain names of companies and individuals being investigated, indicted or convicted of criminal violations, and names of those ineligible to contract with the U.S. Government.
|
| Department of State | The Secretary of State should require OMC to develop procedures and criteria for requesting that U.S. embassies help verify license application information. |
Closed – Implemented
In September 1990, DTC established procedures for requesting embassy assistance in verifying the foreign end use/end users of U.S. defense exports. DTC also established a list of indications that may signal illegal exports or diversions. DTC provided this information to embassies in June 1991 and to industry in January 1991. In 1991, DTC opened about 300 end-use checks, versus 17 cases in 1990.
|
| Department of State | The Secretary of State should require OMC to ensure exporter compliance with administrative and reporting requirements. |
Closed – Implemented
DTC has developed a checklist for its licensing officers to remind them of the supporting documentation required from the applicants. This checklist will also be incorporated onto the license applications. DTC has updated its database on agreements, and plans to begin audits for compliance in the first quarter of fiscal year 1993.
|
| Office of Munitions Control | To minimize the effect on OMC timeliness, OMC should assess its long-term automation needs with a view toward automating much of the export license review process. In this connection, OMC should also examine the feasibility of adapting for its use the automated review system being developed by the Department of Defense. |
Closed – Implemented
DTC designed a new computer system that automated much of the license application review process. The system consists of new hardware and software, and utilizes the latest in data, voice, and image processing technologies. DTC expanded the system's capabilities since it went online in August 1990 and now considers the system fully operational.
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Topics
Export regulationForeign military arms salesForeign military sales policiesInformation systemsInternational trade regulationLicensesReporting requirementsMunitionsEmbassiesExport licenses