Alliance for Network Security Welcomes the Administration’s Response to the European Union’s License Free Zone for Encryption Products

 July 17, 2000

Washington, DC – The Alliance for Network Security (ANS), a coalition of networking companies that includes 3Com Corporation, Cisco Systems, Hewlett-Packard, Intel, Lucent Technologies, Microsoft, NetScreen Technologies, Network Associates, Novell, RedCreek Communications and Sun Microsystems, congratulated White House Chief of Staff John Podesta on his announcement today that the Administration has decided to relax the export controls on encryption products in response to the European Union’s new license free zone initiative.

The announcement removes the requirement to obtain licenses for exports of strong cryptography trade between and among twenty five countries, including Australia, Austria*, Belgium*, Canada, Czech Republic, Denmark*, Finland*, France*, Germany*, Greece*, Hungary, Ireland*, Italy*, Japan, Luxembourg*, the Netherlands*, Norway, New Zealand, Poland, Portugal*, Spain*, Sweden*, Switzerland, the United Kingdom* and the United States. (EU member countries are marked with an asterisk*.) It also allows American companies to commence exporting a product promptly upon filing with the Commerce Department of a request for a technical review, without having to wait for 30 days after filing, as in the past.

American exporters still have to file pre-export technical review paperwork as well as post-export reports of sales. However, the new policy goes a long way toward creating parity between American companies and their foreign competitors. Clarification of these and other details await implementing regulations, which are expected to be released, soon.

“We are pleased that the Administration responded quickly and favorably to the EU’s recent decision to create a license free zone,” said Roszel Thomsen, counsel for the Alliance for Network Security. “American companies should now be recognized as being reliable suppliers, since they will not require export licenses to ship products to their customers in the EU and other qualifying countries. There are a number of details that need to be worked out. For example, the technical review and reporting requirements remain onerous. We will work with the Administration for further relaxation, in the final regulations.”