Summary: In 1996, the executive branch streamlined its export controls for high performance computers by removing licensing requirements for most exports to civilian end-users while focusing control on military and proliferation-related end-users. This streamlined process made exporters responsible for determining if they needed to apply for an export license because they were selling a computer to a military or proliferation-related end-user. In 1997, however, several high performance computers were exported to Russian nuclear weapons laboratories and to a military end-user in China without a license. As a result, Congress required exporters to notify the Commerce Department of any proposed exports of high performance computers to countries that pose a concern because of military and proliferation reasons to determine if these exports need a license. GAO found that most of the 938 proposed exports of high performance computers to what were believed to be civilian end-users in countries of concern have generally been allowed to continue without export licenses. Post-shipment verifications confirm the physical location of the high performance computers and, to the extent practical, verify if these are being used as intended. However, there are limitations to determining end-use. The Commerce Department has completed verifications on 104 high performance computer exports, or about 27 percent of those verifications required on the 390 high performance computers exported during fiscal year 1998. Commerce said that all 104 post-shipment verifications were favorable, meaning that the computer had been seen during an on-site visit and that nothing was inconsistent with the license or the license exception. However, verification done by Commerce, but not yet completed, detected the possible diversion of two computers to a military end-user, in apparent violation of U.S. export control regulations. The Commerce Department has launched an investigation of these diversions. Of the 286 high performance computer exports that have yet to be verified, nearly two-thirds involve exports to China.
