Lawmakers in the United States propose legislation to modernize antiquated IT systems regulating exports
The Bureau of Industry and Security (BIS), an agency within the Commerce Department, is set to undergo a significant transformation with the re-introduction of a bill aimed at modernizing its outdated information technology systems. Congressmen Jason Crow and Tom Kean, along with two other Democrats, have introduced the bill in the House of Representatives.
The bill, which seeks to update the BIS's IT systems, has garnered interest from committees responsible for advancing measures. The urgency for IT modernization is underscored by the risks associated with legacy systems, including security vulnerabilities and rising maintenance costs.
If passed, the bill would provide the BIS with $25 million annually for the years 2026 through 2029. This funding would be used to modernize the BIS's IT infrastructure, scaling up the use of data, analytics, decision-making software, supply chain illumination tools, AI adoption, and the addition of new data sharing interfaces.
The modernization of the BIS's IT systems is crucial for aligning with current technological standards, enhancing security, and improving operational efficiency. The modernized systems would enhance BIS's ability to manage and enforce export controls more efficiently, potentially reducing operational costs and improving decision-making. They would also provide better security architecture, reducing the risk of data breaches and ensuring compliance with evolving cybersecurity standards.
Moreover, modernization would align the BIS with broader federal IT strategies, enabling it to better integrate advanced technologies and support national security goals. This could potentially strengthen the United States' export controls and sanctions enforcement abilities, providing the BIS with the necessary funds to respond to current threats faced by the United States and its allies.
The BIS, which maintains the Entity List that imposes extra license requirements on certain foreign parties, has been known for at least a year to have a need for modernization. The failure of the previous bill last year was not due to a lack of interest in helping the BIS modernize its technology. In fact, there is still bipartisan support for the measure.
The re-introduced bill does not address the export controls tightened on quantum kit and chips for China, Iran, and Russia, or the lifting of the ban on export of chip design tools to China. However, its passage and successful execution could mark a significant step towards safeguarding national security and the nation's future.
The BIS has long relied on manual, laborious processes to identify violators, maintain restrictions, and add entity list entries due to outdated technology. The modernization of the BIS's IT systems is a crucial step towards automating these processes, streamlining operations, and ensuring the BIS remains a robust and effective agency in the face of evolving technological challenges.
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