Bureau of Export Administration Annual Report 1998

Tags: 1990s Crypto Wars Crypto Wars I Export Controls National Security

Published: 1998

URL: https://www.bis.doc.gov/index.php/documents/policy-guidance/928-bis-annual-report-fy-1998/file

Abstract: The Annual Report issued by the Bureau of Export Administration (BXA) provides the fiscal year highlights of the Bureau’s administration, enforcement and regulation of exports of dual-use commodities, technology and software from the United States and its territories. In 1998, the BXA was tasked with implementing the Clinton Administration’s commercial encryption policy. BXA was tasked with the objective of “promot[ing] growth of electronic commerce and secure communications worldwide while protecting the public safety and national security.” Highlights from the 1998 Report include the finalization of guidelines and implementation of regulations permitting the export of licensed encryption products to banks and financial institutions in 45 countries. The regulation established licensing policies and procedures for companies to obtain approval to export encryption products; created license exceptions for export of very strong encryption of any key length to certain industry sectors; and allowed encryption hardware and software with encryption strength up to 56-bit DES (or its equivalent) to be exported without a license. The Report estimated the regulation impacted encryption exports for the world’s 100 largest banks and roughly 70 percent of the world’s financial institutions.