Transcript Presentation title slide - 42 pt Times New Roman, White

Arms & Strategic Technology
Investigations Unit
William J. Argue
Special Agent
[email protected]
617-565-7410
Project
Shield America
New Business Practices for a
Safer America
Project Shield America Goals
•Gain cooperation from manufactures, sellers, and exporters
•Enhance Public Awareness of export laws
•Provide opportunity for private sector input
•Establish a more formal liaison and continuing relationship
•Provide a contact point for future questions and concerns
The Threats
• Al Qaeda and Religious Extremism
• Chemical and Biological Agents
• Weapons of Mass Destruction
• State Sponsored Terrorism
• Proliferation of Violence
• Illegal exports of strategic technology
• Illegal financial transactions
Global Security
• Pushing the Borders Out
From Their Traditional
Places
• Extending Customs Role
Globally
Export Control Laws and Their Use
to Thwart Terrorism
• Arms Export Control Act
• Export Administration Act
• Trading with the Enemy Act
• International Emergency
Economic Powers Act
Arms Export Control Act (AECA)
•22 USC 2778
•Product is manufactured or specifically designed for military use or has a
significant military use.
•Examples
•Missile Technology
•Military Aircraft Parts (F-14)
•Tanks
•Regulated by the Department of State,
•Directorate of Defense Trade Controls
•International Trafficking in Arms Regulations (ITAR)
•Commodity List - United States Munitions List
The ITAR Controls:
• Defense Articles
• Actual Munitions Items
• Defense Services
• Technical Assistance, Debugging, Repairs,
Installations
• Technical Data
• Technical specifications for a product, blue
prints, or other planning designs or data
Export Administration Act (EAA)
•Controls both the Commodity and the End User or End Use
•Dual-Use – Items that have both a civilian
and military application
•Examples
•Pharmaceutical, Bio-Technology (Freeze Dryers)
•Night Vision Technology
•Chemicals (Flame Retardant Chemicals)
•Microwave Amplifiers (Communications vs. Military Radar)
•Jet Mill Grinders (Pharmaceutical or Rocket Propulsion)
•Regulated by the Department of Commerce
•Bureau of Industry and Security
•Export Administration Regulations (EAR)
•Commodity Control List (CCL)
International Emergency Economic
Powers Act (IEEPA)
Trading with the Enemy Act (TWEA)
•Destination Based Controls
•Transactions involving a prohibited location such
as Iran, Cuba, Syria
• Transactions include imports, exports, financial
activity and travel
•Regulated by the Department of Treasury,
Office of Foreign Assets Control (OFAC)
• treas.gov/ofac
•Foreign Assets Control Regulations
Deemed Exports and Other
International Communications
Any transfer of, or communication regarding data, products, or
services that would be licensable for export, also requires a license
in order to be transferred to a foreign national within the United
States.
This includes but is not limited to:
•Article or Product Transfer
•Exposure to Research Facilities or Data
•Email Communications
•Phone Conversations
•International Visits
Onus for Export Control
• Export Control Statutes are complex, and it
is recommended that Exporters establish
Export Management Programs
• You cannot make the Consignee responsible!
• Willful Blindness - It’s not my problem
I.C.E.’s Approach to Export Enforcement
•INTERDICTION
•INVESTIGATION
•INTELLIGENCE
•INDUSTRY OUTREACH
•PROJECT SHIELD AMERICA
INVESTIGATIONS
•Industry Cooperation
•Overt Investigations
•Detentions and
License
Determinations
•Undercover Stings
Interdiction efforts - Port of Boston
•Outbound Taskforce Program comprised of ICE, CBP,
DCIS, DSS, OSI, NCIS, FBI, and U.S. Commerce
Department members to target and examine outbound
cargo, parcels and individuals
•Mission - To effectively deter, investigate, intercept,
and prosecute violators involved in the illegal movement of
U.S. munitions/controlled listed items and strategic
technology having sensitive civil and military applications
to proscribed destinations around the world, and to
terrorist organizations which pose a threat to the national
security of the US and its allies.
An Average Day in CBP and ICE
Examines:
Effects:
•Over 1.1 Million
Passengers
•64 Arrests
• 118 Narcotics Seizures
•4,639 pounds of narcotics
•2,459 Aircraft
•116 Other Seizures
•570,006 Trucks /
Containers
•$315,973 in conveyances
•323,622 Vehicles
•$467,118 in merchandise
•580 Vessels
•$23,083 in arms and ammo
•11 Currency Seizures
•67,638 Entries
•$715,652 in Currency
FY 2002
Known Proliferation Countries
• Iraq
• China
• Iran
• Syria
• Libya
• Pakistan
• North Korea
Known Transshipment Countries
• U.A.E.
• Canada
• Singapore
• Sudan
• Hong Kong
• Yemen
• Cyprus
• Thailand
• Jordan
• Malta
DESIRED CHEMICAL &
BIOLOGICAL TECHNOLOGY
•FERMENTERS
•CENTRIFUGAL
•SAFETY
SEPARATOR
HOODS - CLASS II OR III
•REACTOR
VESSELS
•HASTELLOY-HIGH
•DOUBLE-SEAL
NICKEL ALLOYS
PUMPS
DESIRED NUCLEAR TECHNOLOGY
•MARAGING
STEEL
•SPIN-FORMING
MACHINERY
•BERYLLIUM
•GRAPHITE
COMPONENTS
•RADIATION
SHIELDING
•ELECTRON
BEAM
WELDERS
DESIRED MISSILE
TECHNOLOGY
•GUIDANCE SYSTEM
•GPS/INS
•3-AXIS GYRO
•3-AXIS
ACCELERATOR
•MOTOR
•KEVLAR
•MARAGING STEEL
•CARBON/CARBON
•CARBON/ PHENOLIC
•NOSE
CONE/RE-ENTRY
VEHICLE
•CARBON/CARBON
•SKIN
•MARAGING STEEL
•SOLID
FUEL MOTOR
•PROPELLANTS
•FINS
•CARBON/CARBON
Search Engines as
Procurement Tool
• The Goal as Indigenous
Production
• Surfing the Web
• Unsolicited Emails
• Procurement with
Anonymity
Internet Use as a Terrorist Tool
•Anonymity
•Hotmail, Yahoo, Juno, Gmail
•Ease of Access
• Public Libraries
• Internet Cafes
• Coded Messages
• Strong Encryption
Knowing Your Customer
• You are in the best position to know if the
Customer is bona-fide.
• Does the Customer know what he’s trying to
procure?
Red Flags of Potential Problems
Pays Cash
Most international transactions use
pro-forma invoices or letters of credit
Won’t Provide End User
Reluctance to provide end use
Ultimate consignee
Strong indicator of diversion
Products Inconsistent with Customer’s
Needs
Anomaly of consumption
Why is this business ordering this type of
material?
Illogical Routing
Avoiding certain ports
Port shopping
Less controls
Corruption in Foreign Government
Red Flags of Potential Problems
Packing Inconsistent with Shipping
Overly secure packing to deter
examination
Containerized or palletized when not
normally done
Customer is Unfamiliar with Product
Vague understanding of needs
No Specifics on for what product
would be used
Declines Installation or Service
Contracts
No warranties
No installation on complex equipment
Orders Placed from Different Country
than End User
Diversion Points
Avoid Embargo
Handling Suspicious Contacts
• Don’t Slam the Door
• Keep it Neutral
• Obtain Contact Numbers or Email
• Quickly Contact ICE Special Agents for a Controlled and
Monitored Response
Where to Find Help?
• The World Wide Web
• www.export.gov
• bis.doc.gov
• treas.gov/ofac
• pmdtc.org
• Export Assistance Centers
• An Export Consultant
• Training Programs
• Your local ICE Agent
QUESTIONS ?
Arms & Strategic Technology
Investigations Unit
William J. Argue
Special Agent
617-565-7410
[email protected]