MICHAEL E. HOFFMAN, Director, Bureau of Export Administration’s Western Region

It was like coming home for Mike Hoffman, 32, when he arrived in Newport Beach to lead the agency’s West Coast operations in May. He left the state after graduating from UC Berkeley to pursue a master’s degree in government at Georgetown University, after which he worked for the U.S. Commerce Department. In 1990, he became director of the agency’s Eastern Regional Office in New Hampshire, where he counseled firms in New York and the New England area on export laws. He spoke recently with Times staff writer Cristina Lee.

What do you want to accomplish during your tenure?

I hope to build on the success our office has had over the last few years, facilitating two-way communication between the exporting community and our headquarters in Washington.

I’m also interested in meeting with senior industry executives in my area of responsibility. We’re looking for some input from industry to make sure we’re embarking on the right direction for the services we provide.

Since I arrived, I have received numerous compliments on the professionalism and “can-do” attitude of the staff here. In fact, last year, they were honored by the U.S. Department of Commerce with a bronze medal for outstanding service.

What new initiatives will you pursue to enhance communication with companies?

We are proceeding along three tracks. First, we are reviewing our seminar program to determine what improvements we can make. We will offer programs on how firms can develop effective export management systems that can ensure firms operate within our regulatory requirements.

We also plan to work closely with the U.S. State Department’s Office of Defense Trade Controls to offer programs on the regulatory requirements of licensing munitions exports.

Second, we are revitalizing our “Visit Industry Program.” That is, our counselors visit companies we regularly deal with, to see the impact of our regulatory requirements. From this, we can recommend regulatory changes or develop specialized counseling programs for them. Also, exporters can have their questions answered immediately. If any firms are interested in participating in this program, they should feel free to call our office.

Third, we are working closely with the trade promotion arm of the Department of Commerce to ensure regional businesses have full access to comprehensive trade counseling services. In Orange County, we are working with specialists from the International Trade Administration.

How have dramatic changes in Eastern Europe and the former Soviet Union affected your bureau?

Our agency now requires only half the licenses it did a year ago and one-fourth of the licenses required just four years ago.

We went through a very significant amount of decontrol of high-tech products last year. For example, from 1986 to 1991, the number of export licenses our agency evaluated nationwide decreased from 120,000 in 1986 to about 33,000 last year.

Throughout Southern California, the number of validated licenses filed will decrease by 33% from 1991 to what we estimate will be filed in 1992. The value of those licenses will decrease by approximately 75%; this is consistent with the trend nationwide. This means that a higher percentage of exports may be made without the requirement to obtain written authorization by the Bureau of Export Administration prior to export.

At the same time, interest in the services provided by our office is at an all-time high. Our regulations are constantly evolving to keep up with the dramatic political changes taking place in the world today.

There has also been a surge in new-to-export firms seeking regulatory guidance. Calls to our office have steadily increased to the point where our specialists handle over 400 calls a day, a fifth of them just from companies in Orange County. In addition, we have scheduled close to 90 seminars throughout the region this year.

Any new developments in export licensing?

We have continued to streamline our licensing procedures. Only a minimum number of exports and re-exports now require validated licenses when products are shipped to or from our allies in the Coordinating Committee for Multilateral Export Controls, or COCOM for short. (COCOM is made up of the 16 leading Western industrial nations. It was formed to curb exports to Eastern Europe and the former Soviet Union of militarily useful high technology.)

Hong Kong and New Zealand have recently been given comparable treatment. Among the Central European countries, Hungary has led the way in establishing an export control safeguard program. As a result, it is now eligible for many licensing benefits. The embargo against Cambodia has been lifted and we review applications for commercial exports of commodities to Vietnam to meet basic human needs.

The U.S. and the COCOM allies agreed to liberalize significantly export controls on telecommunications equipment to the newly independent states of the former Soviet Union. These changes went into effect July 1.

In addition, we have increased the kinds of technology for export under certain special licensing procedures and clarified our supercomputer regulations. In the near future, we will expand our exporters’ ability to ship higher-level computers without a validated license.

What new regulations are expected that could affect Orange County exporters?

The U.S. government will publish soon a list of regions, countries and projects that will require a validated license when the exporter knows or has reason to know that the exported materials will be used in a missile program.

Washington will continue to work with other countries to limit the proliferation of goods and technologies for the development of weapons of mass destruction. COCOM has invited the former republics of the Soviet Union to participate in a new Cooperation Forum on Export Controls. This forum would assist these states to develop export control systems on their own.

On how Orange County exporters differ from their New England cousins. . .

“Actually, there are more similarities than differences. Both communities are concerned with enhancing their exporting opportunities using the resources available.”

On managing the bureau. . .

“I work closely with the exporting community and I am open to suggestions on what additional services our office can provide.”

On his major concerns. . .

“We are faced with the proliferation of weapons of mass destruction. This creates a new and evolving set of responsibilities for the exporting community to know more about who their customers are.”

On his role. . .

“I am committed to provide effective counseling services so that our regulatory system is not considered an impediment to legitimate trade.”