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International Update
Quarterly Report Highlighting AeA Activities
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March 2007
Viji Rangaswami, Majority Deputy Chief
of Staff for the House Ways and Means Trade Subcommittee, Discusses Trade
Issues with AeA IPAC
On Friday, March 2, 2007, Viji Rangaswami, Democratic Deputy Chief of
Staff for the House Ways and Means Trade Subcommittee, met with
members of the AeA International Policy Advisory Committee (IPAC) on the
key trade issues before Congress and the plans for the subcommittee in the
coming months. She shared her views on Doha, the Free Trade Agreements
(Peru, Colombia, Panama, Korea), China legislation, Trade Promotion
Authority (TPA) and Trade Adjustment Assistance (TAA). Prior to her
arrival, members discussed company views on the major trade issues and
advised on AeA strategy. They also received updates on AeA meetings with
trade staff of new House members as well as our involvement on the
Steering Committee of Trade for America, a broad business coalition in
support of TPA.
Minutes
from the meeting are available on the AeA website. 
For more information contact Rob Mulligan,
Senior Vice President, International at 202.682.4452.
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Jeri Jensen and Arrow Augerot, USTR,
Brief International Policy Advisory Committee on Malaysia and Korea Free
Trade Agreements (FTA)
At the January 5, 2007, meeting of the AeA International Policy Advisory
Committee, Jeri Jensen, Deputy Assistant US Trade Representative for
Southeast Asia and Pacific, brought members up to date on the US-Malaysia FTA negotiations. She noted that several sensitive issues remain to be
addressed including whether Malaysia will be willing to change their
government procurement policies. Arrow Augerot, Deputy Assistant US Trade
Representative for Korea, provided a similar update on the US – Korea FTA
negotiations. Again she was cautiously optimistic while noting that
several very difficult issues remained to be resolved within the deadline
of March 31. The Committee also heard from AeA staff regarding work being
done on Information Technology Agreement (ITA) issues, EU environment
developments and the lobbying activities of the High Tech Shippers’
Coalition.
Minutes
from the meeting are available on the AeA website.
For more information contact Rob Mulligan,
Senior Vice President International at 202.682.4452.
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AeA Board of Directors Includes Trade
Policy in Top Priorities for 2007
With the expiration of Trade Promotion Authority (TPA) on July 1, 2007 and
several Free Trade Agreements awaiting Congressional action, the AeA Board
of Directors wants the association to be actively involved in the debates over the
direction of trade policy in Congress this year. While Democrats have
serious concerns about the trade policies of President Bush, the Chairmen
of the Senate Finance Committee and the House Ways and Means Committee
have indicated a willingness to engage the Administration on changes in US
trade policy that could rebuild bipartisan support for TPA and trade
agreements. At the AeA Board Meeting held on January 29-31, 2007, the
Directors agreed to include trade among
AeA’s top five priorities for its
2007 policy agenda.
For more information contact Rob Mulligan,
Senior Vice President, International at 202.682.4452 or Michaela Muranova,
Director of International Environment and Trade Policy at 202.682.4445.
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AeA Chairman Meets with US Ambassador to
EU and European Commission Officials on AeA Priorities during Annual
Brussels Trip
On December 6-7, 2006, AeA Chairman Tim Guertin (CEO Varian Medical
Systems) and Bill Archey, AeA CEO and President, met in Brussels with:
- C. Boyden Gray, US Ambassador to the EU;
- Andris Kesteris, Head of Cabinet for
European Commissioner for Energy Piebalgs;
- Matthew Baldwin, Head of Unit
at DG Trade; and
- Frank Wetzel, Counsellor for the German Permanent
Representation to the EU.
The meetings provided an opportunity to
discuss AeA’s priority issues related to European regulatory activity,
trade, and US-EU relations. AeA Europe has been leading US high-tech
industry advocacy on a range of environmental issues (e.g., RoHS and WEEE)
with energy efficiency emerging as an area of growing interest to member
companies. The Brussels meetings raised awareness of the work that AeA
Europe has been doing to represent member company views on EU regulations
and reinforced the role that our office can play in providing expertise on
technology matters. They also laid the groundwork for several follow up
meetings on energy efficiency, environment, and trade issues. For a more
detailed report on the meetings and issues covered, see the
Report on the AeA Chairman Meetings on our website.
For more information contact Rob Mulligan,
Senior Vice President International at 202.682.4452.
Members of the AeA
Europe Executive Committee meet with AeA Chairman Tim Guertin,
President & CEO, Varian Medical Systems, and William T. Archey, President
& CEO, AeA, during the annual Chairman's Trip held December 6-7 in
Brussels, Belgium.
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AeA Europe Producing Energy Efficiency
Report
As the EU considers possible new regulations aimed at improving energy
efficiency, AeA Europe is working with a core group of member companies
and a consulting firm to write a report highlighting the high-tech
sector’s contribution to saving energy and suggesting tools for enhancing
the sector’s potential. This is part of an ongoing strategy to educate
policymakers on the positive impact of technology in reducing energy
consumption and to avoid burdensome regulations that could undermine
high-tech innovation in the field.
For more information contact James Lovegrove, Managing Director of AeA Europe, at 011-32-2-502-7015.
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AeA Hosts Department of Commerce Deemed
Export Advisory Committee (DEAC) Meetings
AeA hosted the
Deemed Export Advisory Committee (DEAC) meeting at the association’s Santa Clara office on Monday and
Tuesday, January 22-23, 2007. The DEAC is a Federal Advisory Committee
which advises the Secretary of Commerce on deemed export licensing policy.
The Advisory Committee addresses the complex issues surrounding sensitive
technology transfers which involve the release of closely monitored
dual-use technology to foreign nationals in the United States, known as
“deemed exports.” This committee also addresses evolving export policies
to strike a balance between protecting national security and ensuring that
the United States continues to build upon its position as a leading
innovator of technology.
Representatives from academia and industry,
including AeA members AMD, Intel and QUALCOMM provided presentations for
the DEAC. Presenters and meeting attendees openly discussed the effect on
the competitiveness of US firms in adhering to the current deemed export
regulations.
Members of the Advisory group include
(among others):
- Norman Augustine, Retired Chairman &
CEO, Lockheed Martin Corporation (Chairman of the DEAC);
- Albert Carnesale, PhD, Former
Chancellor, UCLA; and
- Michael Splinter, CEO, Applied
Materials.
The agenda and presentations from the DEAC
meetings can be viewed on the AeA
Deemed Export webpage.
For more information contact Ken
Montgomery, Director, International Trade Regulation, at 202.682.4433.
Pictured are Dr. Ruth David, President & CEO, Analytic Services, Inc; Gen.
John Gordon, former-Deputy Director, CIA; Dr. Eva Pell, Sr. VP and Dean of
the Graduate School, Pennsylvania State University; Dr. William Wuif,
President, National Academy of Engineering, University of Virginia; and
Mr. Arthur Bienenstock, Stanford University (L-R).
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Christopher A. Padilla, Assistant
Secretary of Commerce for Export Administration, Outlines Export
Administration Goals at AeA Program
On Tuesday, November 14, 2006 twenty-five AeA Export Controls Committee
members and government affairs representatives gathered at AeA in
Washington, DC and via teleconference to hear from the newly appointed
Assistant Secretary, Chris Padilla. William T. Archey, AeA President and
CEO, introduced Mr. Padilla who formerly worked for technology companies
AT&T, Lucent Technologies, and Eastman Kodak in addition to holding
government posts at the Department of State and USTR.
Mr. Padilla outlined six goals for Export
Administration. They include: implementing new rules with respect to
China, supporting the efforts of the Deemed Export Advisory Committee (DEAC)
during its one year charter, implementing the Validated End User (VEU)
concept for China and possibly other countries including India, focusing
on countries of diversion, US – India policy, and the future direction
of the US export control system. He also stated that US export
controls need to be more targeted and focused to be effective.
For more information contact Ken
Montgomery, Director, International Trade Regulation, at 202.682.4433.
Pictured are William T. Archey, President & CEO, AeA; Mr. Padilla; AeA's
East Coast Chair of the
Export Controls Committee Bob Rarog, Sun Microsystems; and Rob
Mulligan, Senior Vice President International, AeA (L-R).
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AeA Members Speak to World Trade
Organization on Concerns over Information Technology Agreement Product
Coverage
On January 18, 2007, several representatives from AeA
member companies and
AeA Senior Vice President International, Rob Mulligan, participated in a
program at the World Trade Organization in Geneva, Switzerland raising
concerns about the loss of duty free treatment for several IT products
covered by the Information Technology Agreement (ITA). The program,
organized jointly by high-tech industry from the US, Europe and Japan,
included a morning workshop with panel presentations by industry speakers
and a product demonstration in the afternoon.
Speakers from each industry group presented
in three panels during the workshop focusing on the importance of
maintaining the integrity of the ITA by ensuring that products covered
under the agreement remain covered even if they incorporate technological
advances. Specifically, decisions by some governments to remove products
from ITA duty free coverage, such as set top boxes, LCD monitors, digital
still image video cameras and multifunction printers or fax machines, are
not consistent with their commitments under the agreement or the intent of
the negotiators. AeA member company speakers from
Agilent,
Apple,
Cisco,
HP,
Microsoft, and
Xerox were among those urging the ITA Committee to
address these concerns to prevent obsolescence of the ITA.
For more information contact Rob Mulligan,
Senior Vice President International at 202.682.4452.
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AeA Continues its Leadership on China
RoHS Advocacy and Education
Continuing AeA’s already successful efforts to keep members informed of
“China RoHS” requirements, in December of 2006, we provided members with
unofficial English translations of the Ministry of Information Industry (MII)
approved and finalized Labeling, Testing and Maximum Concentration Value
industry standards. In mid-January, AeA sent out a
document with questions raised at the October 26, 2006 AeA China RoHS program in Santa Clara and
answers compiled by our staff, with references to the MII documents.
Please visit the AeA China RoHS page to
access AeA's English translations of (1) China RoHS regulation (2) Full
list of Electronic Information Products subject to "China RoHS" (3)
Supporting Industry Standards (MCV, Labeling & Test Methods) (4) Packaging
Recycling Marks standard (5) the website to download "China RoHS" labeling
graphics and (6) AeA Questions and Answers document from the October 26,
2006 Santa Clara conference. Some AeA member companies are linking their
supplier websites and internal company websites to the AeA “China RoHS”
webpage in an effort to educate the global supply chain. Feel free to link
your company’s webpage to AeA’s comprehensive English language “China RoHS”
information.
For more information, please contact Michaela Muranova, Director of International Environment and Trade Policy
at 202.682.4445.
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AeA Advocates for Global Harmonization
of RoHS Requirements at US-China Forum in Beijing
Becky Linder, representing AeA, highlighted the US high-tech industry’s
support for harmonization of global RoHS type requirements at the January
30, 2007, US-China Joint Committee on Commerce & Trade (JCCT) Standards and
Conformity Assessment Workshop in Beijing, China. Speaking with key
Chinese government officials involved in the China RoHS regulatory
process, US government officials and leading industry representatives, she
stressed the need for global technology companies to access the global
marketplace with one product rather than face country by country product
specifications. AeA heard from the leading Chinese government China RoHS
regulation drafter about the latest Catalogue developments, industry
standards negotiations and marking and labeling requirement updates. China RoHS marking, labeling and information disclosure requirements are
scheduled to take effect March 1, 2007. To learn more visit
www.aeanet.org/chinarohs.
For more information contact Michaela Muranova, Director of International Environment and Trade Policy at
202.682.4445.
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Tara Ord, Legislative Assistant to
Senator Michael Enzi, Addresses AeA Export Controls Committee at Quarterly
Meeting
On Wednesday, December 6th, 2006, 29 members of the AeA Export Controls Committee gathered in Washington, DC to hear from congressional and
government officials. Tara Ord, Legislative Assistant to Sen. Enzi (R-WY),
discussed the new landscape in the Senate and 110th Congress with respect
to export controls. This issue is closely tied to US competitiveness and
Ms. Ord stated that it may be beneficial to hold a briefing on export
controls for House and Senate staffers.
The committee also heard from Randy Pratt,
Director, Information Technology Controls Division, BIS. AeA had lobbied
for the formation of an IT Controls division at BIS many years ago. Ms.
Pratt provided attendees with the current priorities for her division
which include a review of the regulations for ease of compliance and
understanding as well as identifying costs to industry. The encryption
review process was also discussed with committee members.
Also at the committee meeting, Richard Pettler, Partner, Fragomen, Del Rey, Bernsen & Loewy gave a presentation
and led a discussion on deemed exports. The PowerPoint presentation and
reference materials can be found on the
AeA website.
For more information contact Ken
Montgomery, Director, International Trade Regulation, at 202.682.4433.
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AeA Export Controls Committee Submits
Detailed Comment Letter on Proposed China Exports Regulation
The AeA Export Controls Committee submitted one of the most comprehensive
industry comment letters on the proposed China regulation to BIS on
December 1, 2006. The letter addresses the potential impact of the
proposed rule on the US export control system, screening management and
compliance risk, the validated end user (VEU) authorization concept,
military end-use and the knowledge standard, revision of end user
certification requirements and ECCN specific comments. Committee members
are hopeful that input provided for high technology products, including
foreign availability, will be considered during modifications to the
proposed rule. BIS received over 60 comment letters on the rule. After BIS
revision, the rule is now in the interagency review process.
For more information contact Ken
Montgomery, Director, International Trade Regulation, at 202.682.4433.
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AeA Customs Committee Hears from CBP and
USTR Officials at Quarterly Meeting
On Thursday, December 7, 2006, approximately 27 members of theAeA
Customs Committee heard updates from the US Customs and Border Protection (CBP)
and the US Trade Representatives Office (USTR). Hewlett-Packard hosted
the meeting in Washington, DC.
David Beck, Director, Office of Tariff
Affairs and Trade Agreements, USITC and Scott Baker, Nomenclature Analyst,
USITC, provided an update on the implementation of the 2007 version of the
Harmonized Tariff Schedule of the US (HTSUS). The USITC officials also
addressed specific questions and concerns on the high tech chapters 84, 85,
and 90.
Jason Bernstein, Director of Tariff
Affairs, USTR, informed the committee of the current efforts of the U.S.
and other countries to preserve the benefits of the WTO Information
Technology Agreement (ITA). Industry will be supporting USTR with ITA
maintenance issues, product demonstrations and outreach to other countries
in order to address preservation and benefits of the agreement. Meeting
minutes can be found on the AeA website.
For more information contact Ken
Montgomery, Director, International Trade Regulation, at 202.682.4433.
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High Tech Shippers Coalition Meets with
House and Senate Staff on Air Cargo Security Legislation
Members of the High Tech Shippers Coalition of which AeA serves as the
secretariat met with House and Senate Homeland Security and Government
Affairs staff as well as Senate Finance staff several times leading up to
the drafting of 9/11 bill air cargo security legislation (H.R. 1, S. 509).
The HTSC position is that an effective,
comprehensive security system must employ a variety of measures throughout
the cargo supply chain, including:
- increased deployment of non-intrusive
inspection equipment;
- advanced screening of shipment data for
risk targeting;
- canines;
- physical inspection;
- voluntary shipper security programs
(e.g., certified shipper, seals); and
- increased research and development for
non-intrusive inspection equipment and methods.
H.R. 1 was approved in the House 299-128 on
January 9, 2007. The Senate bill, S. 509, is currently awaiting action by
the Senate Committee on Commerce, Science and Transportation. The HTSC
believes the language in S. 509 more clearly defines a comprehensive air
cargo security system.
For more information contact Ken
Montgomery, Director, International Trade
Regulation, at 202.682.4433.
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AeA India Work Group Seeking India
Government Support on ITA Issues
In a conference call of the
AeA India Work Group on February 15, 2007, the
members discussed concerns over the position of the Indian government on
the European Commission’s approach to coverage of IT products under the
Information Technology Agreement. Following up on the action items from
the call, Rob Mulligan, AeA Senior Vice President International, exchanged
views with the Manufacturers’ Association for Information Technology (MAIT)
in India, raised our concerns at the industry sessions of the US-India
High Technology Cooperation Group, and participated in a meeting with
Banashri B. Harrison, Minister (Commerce) at the India Embassy in
Washington, DC. The India high-tech industry supports the US industry
views on the ITA issues and the India government appears open to further
discussion on the issues.
For more information contact Rob Mulligan,
Senior Vice President International at 202.682.4452.
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AeA Helps US Department of Commerce
Develop Energy Efficiency Dialogue with Chinese Government
AeA is working closely with US Department of Commerce officials, member
companies, USITO and other stakeholders to design an agenda for a 2007 US
China Joint Committee on Commerce and Trade (JCCT) Energy Efficiency
event. The program, which is tentatively scheduled for July in China, will
address several key AeA objectives including: (1) learning how various
Chinese agencies/ministries regulate energy efficiency and the tech sector
(or plan to regulate), (2) identifying opportunities for industry
engagement in China’s development of standards, regulations and
legislation; (3) providing opportunities to educate about the ICTs role as
an energy efficiency innovator, and, (4) educating PRC officials about
successful public/private partnership, voluntary standards and other
initiatives that create an environment for energy efficiency gains. We
will provide more information when plans for the program are confirmed.
For more information contact Michaela Muranova, Director of International Environment and Trade Policy at
202.682.4445.
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AeA Keeping Members Informed on Europe,
China and India
To keep our members informed about AeA’s regulatory activities in Europe,
our AeA Europe office prepares its monthly publication called “Europe in a
Page." The newsletter endeavors to condense the previous month's high-tech
news with its focus mainly on AeA Europe policy priorities, specifically
Environment, Health and Safety (EHS), Security and Standards &
Certification (S&C). Please click on the following link to review the “Europe
in a Page.”
As a parent association of the US
Information Technology Office (USITO) in Beijing, AeA distributes USITO’s
updates on the Chinese market through its publication: China Weekly
Summary. This publication includes relevant information on government
policy, regulations and trends in key IT markets, which will help you gain
the knowledge you need to stay informed of all the latest high-tech issues
in China.
The AeA India High Tech News Report is
distributed to members of the AeA India Work Group and made available to
all AeA members on the website every two weeks. Each edition provides a
Market Trend Report on IT industry developments in India as well as
summaries of news reports on IT business and regulatory activity in India
from local newspapers and publications.
For more information, please contact Michaela Muranova, Director of International Environment and Trade Policy
at 202.682.4445.
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Upcoming Events:
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March 23, 2007,
Shanghai, China: 3rd Annual Customs, Export Control and
Logistics Seminar. Host: AeA and SEMI
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AeA Interest: AeA
tax, legal, customs, export compliance and logistics professionals
responsible for customs and export compliance functions in the U.S.
and China. Chinese company customers and suppliers.
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March 29, 2007, Santa
Clara, CA:
AeA International Environment Committee Meeting.
Host: AeA
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AeA Interest:
AeA members hear from expert speakers on environment issues in Europe,
China, and the US, discuss their global business concerns related to
environment and develop AeA action plan.
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April 17, 2007, Santa
Clara, CA: Q1 AeA Export Controls Committee Meeting – Host:
TBD
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April 18, 2007, Santa
Clara, CA: Q1 AeA Customs Committee Meeting – Host: TBD
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April 23, 2007,
Chicago, IL: AeA
International Environmental Compliance Seminar. Host: Motorola
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April 25, 2007,
Portland, OR:
AeA International Environmental Compliance Seminar. Host: AeA
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April 27, 2007, Boston,
MA: AeA
International Environment Compliance Seminar.
Host: Sun Microsystems (TBC)
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April 26, 2007,
Atlanta, GA: “Keeping Your Company Trade Compliant” – Host:
Alston & Bird, LLP
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AeA Interest:
Customs and export compliance panels of industry and government
experts address the best practices in trade compliance. Excellent
education and networking opportunity for professionals in customs,
export compliance, logistics, legal and regulatory compliance
functions.
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May 9, 2007,
Chelmsford, MA: “Keeping Your Company Trade Compliant” –
Host: Cadence Design Systems
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AeA Interest:
Customs and export compliance panels of industry and government
experts address the best practices in trade compliance. Excellent
education and networking opportunity for professionals in customs,
export compliance, logistics, legal and regulatory compliance
functions.
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May 24, 2007,
Schaumburg, IL: “Keeping Your Company Trade Compliant” –
Host: Motorola, Inc.
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AeA Interest:
Customs and export compliance panels of industry and government
experts address the best practices in trade compliance. Excellent
education and networking opportunity for professionals in customs,
export compliance, logistics, legal and regulatory compliance
functions.
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June 13, 2007,
Washington, DC: Q2 AeA Export Controls Committee Meeting –
Host: AeA
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June 14, 2007,
Washington, DC: Q2 AeA Customs Committee Meeting – Host: AeA
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This page was last updated on
03/15/07.
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