Business Groups Seek More Time to Address New Tech Export Curbs

(Bloomberg) -- Washington's biggest business groups are asking the Trump administration for more time to review impending new limits on exports of sensitive technology such as semiconductors in hopes of getting the Commerce Department to narrow the impact of the restrictions.

A coalition of 27 trade groups including the U.S. Chamber of Commerce and Business Roundtable are concerned that the department could move more quickly than planned and issue the new limits within a week and give industry just 30 days to respond, according to three people familiar with the groups' discussions.

The groups are pressing the department to expand the time frame to accept feedback from companies on the curbs to 90 days, according to a letter sent to Commerce Secretary Wilbur Ross dated Thursday that was obtained by Bloomberg.

The export limits have been expected after the department proposed a rule to curb international sales of “emerging” technology. It represents the next step in efforts to ensure the U.S. maintains its technological lead over China amid President Donald Trump's trade tensions with the world's most populous country. The U.S. last year proposed curbs on the export of technologies that have national security implications.

Congress last year passed a law ordering Commerce to update its export-control regime and identify categories of so-called emerging and foundational technology that would be subject to restrictions. For years the U.S.'s export control system has targeted the sale of items like fissile material, communications equipment and lasers to rogue regimes and strategic rivals.

The 14 categories of emerging technologies listed in the department's proposed rule last November included areas like biotechnology, advanced surveillance systems and robotics. Now the department is poised to issue a proposal that will define categories of foundational technology. That rule is expected to affect the semiconductor industry in particular.

A Commerce Department spokeswoman didn't immediately respond to a request for comment on the letter.

For more: U.S. Plan to Limit High-Tech Exports Forges on Amid Trade Truce

The Commerce Department is still weighing the scope of the emerging tech rule and is expected to narrow the original framework in response to industry comments. Technology companies are worried the proposals could crimp sales overseas and imperil research and development. Industry groups secured a three week extension in the comment period for the proposed curbs on emerging technology, which are still under consideration.

The letter was also signed by groups including the Information Technology Industry Association, the Semiconductor Industry Association, the National Association of Manufacturers and the National Venture Capital Association.

--With assistance from Jenny Leonard and David McLaughlin.

To contact the reporter on this story: Ben Brody in Washington at btenerellabr@bloomberg.net

To contact the editors responsible for this story: Sara Forden at sforden@bloomberg.net, Margaret Collins

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