Confirming an earlier report, a spokesman for the department's Bureau of Export Administration said the government now aimed to issue the rules by Jan. 14, 2000.
In September, the administration announced it would dramatically relax export restrictions on encryption products, which have become an increasingly critical means of securing global communications and electronic commerce on the Internet.
The announced easing of export restrictions reflected the growing importance of encryption in commercial, non-military industries, as well as the growth of non-U.S. companies willing and able to meet market demand for encryption products.
But a draft of the new administration rules issued last month drew widespread criticism from high-tech companies and Internet advocacy groups, who complained the proposal was unworkable in some areas and fell short of the promises announced in September.
Undersecretary of Commerce William Reinsch said the administration needed more time than expected to revise the draft rules after hearing the complaints.
"In view of these substantial changes, we believe there would be real benefit to another round of review and consultations before we issue the regulation," he said. "We expect to circulate another draft for comment shortly." Now and then
Under the current rules, products with powerful encryption cannot be exported without a license except to customers in certain industries like banking and health care.
Under the policy announced in September, products suitable for retail sales, like e-mail programs or database software, would be permitted for export after a single review by the government.
More customized products and sales to governments would face tighter controls and sales would be prohibited to seven countries the United States says are sponsors of terrorism.
Companies and advocacy groups said the November draft of the rules fell short, especially because the draft rules imposed greater limits on software available for download on the Internet or based on freely available source code.
"It's more important that we get it right than that we get it right now," said Alan Davidson, staff counsel at the Center for Democracy and Technology.
"Hopefully, the administration will take the month to make the changes needed so the next draft will be one that actually follows through on the promises made in September."
Software vendors like Microsoft Corp. and Network Associates Inc., hardware makers like IBM Corp. and Cisco Systems Inc., and privacy and Internet advocacy groups have been lobbying for years for easier encryption exports.
Once used only by spies and soldiers, encryption now protects credit card numbers sent over the Internet, cellular telephone calls and even movies recorded on DVD disks.
