Transcript ITAR/EAR The Short Overview

ITAR/EAR
The Short Overview
The Security Summit
Bob Ketts
22 March 2011
Agenda
• Disclaimer
• ITAR overview
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Basis in law
Registration with State Dept.
What is governed
Types of State Dept. authority to export
• EAR overview
– Licensing
– ECCN – SNAP R
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Compliance programs
Violations/Sanctions
Export reform
Sources of training and help
Summary
Q&A
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
purpose
• 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
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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
EAR
• 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
Commerce
• State Dept. visit of Cubic
Violations/Sanctions
• 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
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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
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“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
Summary
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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
Questions
• Any and all welcome