The document summarizes the key concerns of U.S. research universities regarding a March 2004 report by the Department of Commerce Inspector General (IG) on “deemed export” controls, which are regulatory measures governing the transfer of sensitive technology to foreign nationals within the United States. The universities, as represented by the Council on Governmental Relations and the Association of American Universities, express serious apprehension that the IG’s recommendations—particularly the broad interpretation of deemed export rules—would significantly impede the conduct of fundamental research. Of particular concern is the IG’s position that access to or use of EAR-controlled equipment by foreign nationals in the course of fundamental university research would require export licenses, thereby eroding the fundamental research exemption historically relied upon by academic institutions. This shift, universities argue, would necessitate restrictive security measures, impose substantial administrative and financial burdens, and could foster discriminatory practices against foreign students and scholars, all of which would undermine the open and collaborative nature of academic inquiry.
Additionally, the document highlights issues with the IG’s interpretation of exemptions for publicly available technology and educational activities, warning that narrowing these provisions would compel universities to restrict access to courses and laboratories, compromising both academic freedom and the international composition that defines U.S. higher education. The report also criticizes suggestions to base export licensing on all nationalities held by an individual, regardless of current citizenship, as unnecessarily burdensome and potentially discriminatory. Collectively, the universities argue that the IG’s recommendations threaten the nation’s academic leadership, innovation, and global engagement by imposing controls more stringent than those faced by commercial entities, contrary to established national policy directives supporting openness in fundamental research.