On March 20, 2009, the Bureau of Industry and Security (BIS) published a request for public comments on the utilization rate of BIS licenses. Comments must be received no later than May 4, 2009.

In the notice, BIS states:


BIS requests information to help it determine specifically:

    ·    Whether software and technology export licenses also are not used or are underused;
    ·    The reasons that export licenses sometimes are not used or are underused; and
    ·    Whether characteristics of the export licensing process (e.g., ease or difficulty of use, processing times, degree of communication between the government and the applicant, license conditions, etc.) contribute to the practice of not using or under-using export licenses.

    The scope of this inquiry is limited to export licenses. It does not encompass reexports, deemed exports or deemed reexports.

    The following kinds of information would be useful to BIS's assessment:
    ·    Whether exporters seek an export license prior to receipt of a purchase order or letter of intent, and examples of typical business cases for seeking a license absent such documentation;
    ·    Detailed information concerning instances when exporters have obtained an export license from BIS but then did not use it or used it for less than the quantity or value authorized, including information on whether the export licensing process impacted the transaction, whether sales were lost due to the licensing process and the dollar amount of any such lost sales that are directly attributable to the licensing process;
    ·    Specific information about whether licenses for the export of software or technology are not used or are under used;
    ·    Whether an extension of the validity period of export licenses issued by BIS would increase the probability of the utilization of licenses; and
    ·    Process improvements that BIS could make to enhance the utilization of export licenses (e.g., expedited treatment for applications under specific circumstances).

  On March 12, 2009, the Customs and Border Protection (CBP) proposed changes to the Customs Regulations with regard to to exclude from the dutiable value of repairs, alterations, or processing performed abroad on articles exported from the United States and returned under subheading 9802.00.40, 9802.00.50, or 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS), the value of U.S.-origin parts used in the foreign repairs, alterations, or processing. The proposed changes would provide an incentive to use U.S.-origin parts in the foreign repairs, alterations, or processing of articles entered under the above-referenced HTSUS provisions.

  Comments on the proposed change must be received on or before May 12, 2009.

  Subheadings 9802.00.40 and 9802.00.50, HTSUS, provide a partial
duty exemption for articles returned to the United States after having been exported to be advanced in value or improved in condition by repairs or alterations. Subheading 9802.00.40 encompasses articles repaired or altered abroad pursuant to a warranty, while subheading 9802.00.50 encompasses articles repaired or altered abroad other than
pursuant to a warranty. Articles entitled to classification under these tariff provisions are assessed duty based upon the value of the repairs or alterations.

    Subheading 9802.00.60, HTSUS, provides a partial duty exemption for articles of metal manufactured in the United States that are exported for further processing and then returned to the United States for further processing. Articles entitled to classification under this tariff provision are assessed duty based upon the value of the processing performed outside the United States.

    Currently, under both U.S. Note 3(a), subheading II, Chapter 98 and section 10.9 of the Customs Regulations, include in the cost or value of the repairs performed abroad the domestic value of any articles furnished for the repairs or alterations. The proposed changes would remove the domestic articles from such a calculation.