ITAR/EAR The Short Overview

Download Report

Transcript ITAR/EAR The Short Overview

The Short Overview
The Security Summit
Bob Ketts
22 March 2011
• Disclaimer
• ITAR overview
Basis in law
Registration with State Dept.
What is governed
Types of State Dept. authority to export
• EAR overview
– Licensing
Compliance programs
Export reform
Sources of training and help
ITAR - basics
• International Traffic in Arms Regulation - The
regulatory implementation of the Arms Export
Control Act
– Administered by U.S. Dept of State
– Importance to US foreign policy
– Defense Technology Security Administration (“DTSA”)
• Registration with State Dept. - Any person who
engages in the US in the business of either
manufacturing or exporting defense articles or
furnishing defense services is required to register
with DDTC.
ITAR – basics (cont’d.)
• What is covered
– Defense articles – Hardware designed/developed for a defense
• US Munitions List (“USML”) in ITAR -21 categories of defense articles
• Significant Military Equipment (“SME”)
– Technical Data – Information used to describe defense articles
– Defense Services – Usually training or maintenance performed
for benefit of a non-US person
• US Person
– US citizen
– Permanent resident of US
– Granted special asylum by US
ITAR – basics (cont’d.)
• Types of State Dept authority to export
– License
Technical data license (DSP-5)
Permanent export license (DSP-5)
Temporary export license (DSP-73)
Temporary import license (DP-61)
– Agreement
• Technical Assistance Agreement (“TAA”)
• Manufacturing License Agreement (“MLA”)
• Warehouse Distribution Agreement (“WDA”)
– Exemption to ITAR
• Mock up
• Repair of item of US origin
• Export Administration Regulation administered
by the Bureau of Industry and Security, U.S.
Department of Commerce
• Export Classification Control Number (“ECCN”)
– Significantly different approach from State
• Positive identification of item and assignment of ECCN
– Basis for determining if license is required
– Most articles do not require license
– SNAP R – Means of getting USDOC to validate ECCN
Compliance Programs
• Required for both ITAR and EAR
– Culture of Export Compliance
– Written organization
– Training
– Technology Control Plan
– Subject to review by US Depts. of State and
• State Dept. visit of Cubic
• Suspected violations must be reported to either
State or Commerce
– Voluntary (self) disclosure
– State and Commerce different approach
• Sanctions
– Civil/Criminal Fines
– Imprisonment
– Debarment
• Consent agreements
– BAES $400M
– ITT $100M
Export Reform
• Defense Trade Advisory Group
• Administration seeking to establish five singles
Single list vice USML and CCL
Single agency vice State, Commerce and Justice
Single regulation vice ITAR and EAR
Single enforcement vice 22 agencies
Single IT system vice 1 paper system and 2 electronic that don’t talk to
one another
• Important features of new system
“Bright line” separating defense and commercial items
Tiered list of items
Positive identification
Align USML and CCL
• “Higher fences around fewer things”
Sources of Training and Help
• DDTC and BIS websites
• BIS training classes
• DDTC Response Team 202-663-1282 or
[email protected]
• Society for International Affairs (“SIA”)
– Spring conference various locations (May – Long Beach)
– Fall (Nov.) conf in Washington, DC
• San Diego Trade Compliance Group
• ITAR boot camp
• Strategic Shipping, UK
Ignorance is no excuse
USG expects culture of export compliance
Personal commitment of top company officers
Help is available but have to work for it
• Any and all welcome