Bipartisan Bills for BIS Transparency

Senators Jim Banks (R-Ind.) and Mark Warner (D-Va.) have introduced the Maintaining American Superiority by Improving Export Control Transparency Act, a bipartisan measure aimed at enhancing congressional oversight of U.S. export controls. The bill seeks to ensure that the Bureau of Industry and Security (BIS) effectively safeguards American technology while maintaining necessary confidentiality.

Mr. Banks emphasized the urgency of the legislation:: "Our export controls too often fail to prevent sensitive American technology from being sold to firms tied to the Chinese military. My bill with Senator Warner protects American tech from China and puts our national security first.”

Mr. Warner underscored the importance of transparency in export control decisions,: " Congress should have more insight into the Commerce Department’s licensing process so that we can better understand who is accessing sensitive U.S. technology. I am glad to work with Senator Banks on this good governance legislation.”

The Bill

The Maintaining American Superiority by Improving Export Control Transparency Act mandates that BIS submit an annual report to Congress detailing:

• Every export license application, including information on the applicant, recipient, item description, sale value, and the final decision.

• A summary of all export control enforcement activities conducted in the past year.

Background

Export controls are a critical component of U.S. national security, designed to prevent adversaries from obtaining sensitive defense goods and technologies. The BIS, housed within the Department of Commerce, is responsible for implementing these controls and restricting blacklisted entities’ access to key technologies. However, critics argue that BIS lacks sufficient transparency, making congressional oversight challenging.

According to Sen. Banks' office, data suggests BIS approved a significant volume of sensitive technology exports to China, despite existing restrictions:

• In 2020, BIS approved 98% of U.S. software and technology export license applications to China. [This statistic may reflect that few exporters will apply for a license they expect to see denied].

• Between November 2020 and April 2021, BIS authorized $100 billion in exports to blacklisted Chinese firms, including Huawei and SMIC, despite a stated presumption of denial policy.

The Senate bill follows a similar measure in the House of Representatives. The  Maintaining American Superiority by Improving Export Control Transparency Act, sponsored by Rep. Ronny Jackson  (R-TX) was reintroduced March 5.

For the full text of the Senate bill, click here. The House bill can be found here.