CompTIA Newsroom

On April 6, CompTIA joined other industry associations in a letter to the Department of Commerce requesting that any proposed export control restrictions on semiconductors and related technologies be issued as proposed rules soliciting industry input. While the Department has traditionally solicited industry feedback, there is growing concern that the pressure of the global COVID-19 pandemic and trade issues with China will force novel export restrictions as a means to address U.S. global competitiveness.

The most recent example of export controls being used to protect U.S. technology and resources is with certain personal protective equipment (PPE). The President issued a memorandum regarding allocation of certain scarce health and medical resources, and the Federal Emergency Management Agency (FEMA) followed up with a temporary final rule with five broad categories of PPE included. In a joint statement both FEMA and Customs and Border Protection (CBP) declared that CBP will work to detain shipments of the PPE specified in the President’s Memorandum while FEMA will determine whether “to return the PPE for use within the United States; to purchase the PPE on behalf of the United States; or, allow it to be exported.” This coordinated effort will require U.S. industry to obtain approval for exports that meet the criteria specified in the Rule issued by FEMA.

Another potential export restriction with far-reaching consequences would be potential changes to the de minimis threshold which determines whether certain products are subject to the Export Administration Regulations (EAR). For most destinations, non-U.S. made items incorporating controlled U.S. commodities, software, or technology valued at 25% or less are not subject to EAR jurisdiction. Due to the ongoing U.S. – China trade war, the U.S. government is considering lowering that threshold to 10% which would considerably broaden the scope of exports that are subject to the EAR.

While export controls are a policy tool for the U.S. government, short-term measures may do more harm than good, be poorly written, and target products and technology that do not impact national security. Without industry input, proposed rules lack technical nuance and have terminology that is too general to provide clarity on the scope of the control.  The U.S. tech industry can provide valuable perspective on consequences of potential export restrictions, such as the impact on network stability if companies are restricted from providing certain critical security updates and bug fixes, or whether the technology being considered for additional controls is widely commercially available. When implemented this way, the U.S. tech industry can ensure that export controls do not primarily disadvantage U.S. industry over foreign competitors. The U.S. tech industry has already proven to play a pivotal role in our economy and has now risen to the occasion to meet the country’s rapidly growing public health and technology needs. As such, proposed export controls should be contextualized within the broader framework of U.S. interests and when possible, incorporate industry perspective to be more effective.