Transcript Slide 1

Bureau of Political-Military Affairs
Office of Regional Security and Arms Transfers
http://www.state.gov/t/pm/rsat/
Third Party Transfers
Leann Luong
June 2013
UNCLASSIFIED
• Arms Transfer Decision Process/Policies
• What You Need to Know About
Third-Party Transfers
• New Initiatives
Sue Plant
Leann Luong
[email protected]
Team Lead
Non-NATO EUR
South Central Asia
TPT Policy
Alcohol, Tobacco, & Firearms
[email protected]
NATO
TPT Outreach
National Disclosure Policy
TPT Policy
MID’s POC
Training
Ed Richardson
David An
[email protected]
Near East Asia
[email protected]
East Asia
LaTania Barnes
Jenny Hoang
[email protected]
Global Disposals
and Displays
[email protected]
Western Hemisphere
U.S. Department of State
Law
 Arms Export Control Act
AECA
 Foreign Assistance Act
FAA
Regulations and Policies
 International Traffic in Arms
Regulations (ITAR)/Munitions list
 CAT Policy
 Security Assistance Guidance/Policy
 SAMM
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U.S. Department of State
“No defense article or defense service shall
be sold or leased by the United States
Government…unless- the country agrees
not to transfer title to, or possession of, any
defense article or related training or other
defense service so furnished to it to anyone
not an officer, employee, or agent of that
country...and not to use or permit the use
of such article or related training or
defense service for purposes other than
those for which furnished unless the
consent of the President has first been
obtained.”
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U.S. Department of State
The retransfer, sale, disposal, or change in end use
of any U.S.-origin defense article(s), service,
training, and tech data/access, that was initially
obtained via a USG Security Assistance Program, to
a third party. Examples of TPTs include:
• Transfer of U.S.-origin defense articles, technical data or
software to a contractor(s) for support services (integration,
maintenance, repair, overhaul, training, etc.);
• Transfer or sale of U.S.-origin defense articles to another
foreign government;
• Demilitarization and/or disposal of U.S.-origin defense articles;
• Demilitarization of U.S.-origin defense articles for static
display;
• Access to its U.S.-origin defense articles for demonstrations or
joy rides.
2012 Third Party Transfer Completions:
Type of Transfers
Permanent Government
to Government Transfer
Disposal
18%
50%
22%
5%
U.S. Department of State
Static Display
5%
Other (demo, access, ridealongs, etc.)
Temporary Private Entity
Transfer (integration,
maintenance, repair,
overhaul, etc.)
Government-to-Government
Channels
Retransfer of Defense Articles
Acquired via Direct Commercial
Sale (DCS)
TPT PM/RSAT
Request Retransfer
Approval from PM/DDTC
Ex: FMS, EDA, MAP, IMET,
MOU, drawdown programs
Ex: DCS
Remember:
Origin of
Acquisition is
Key!
FMS

RSAT
DCS 
DDTC
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 An Official Request from the Divesting
Government
 A Completed Standard Questionnaire
 End-Use, Retransfer, and Security
Assurances from the Recipient(s)
 Other Supporting Documentation
(equipment lists, technical data lists,
etc.)
U.S. Department of State
– Varies according to the
complexity of the case and/or
case load
– Average time for completion is
50 days
– Congressional Notification
may add an additional 2-4
months
U.S. Department of State
NATO Members,
Australia, Japan,
Korea, Israel and
New Zealand
15-Day Formal
Notification Period
MDE
$25 Million
Threshold
All Other Articles
$100 Million
Threshold
All Other Countries
30-Day Formal
Notification Period
MDE
$14 Million
Threshold
All Other Articles
$50 Million
Threshold
U.S. Department of State
• Governed by Department policy
• Presumption of denial
• Limited exceptions for entities
with proof of government contract
or for static display / public good
U.S. Department of State
End Use Assurances(EUA) from all
recipients, including any
intermediaries, must be included with
the request
If recipient is a foreign private entity 
EUA are required from the Country
exercising legal jurisdiction over the
P/E recipient
aka the ‘COPE’ (Country Over P/E) EUA
Blanket Assurance Program
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Afghanistan
Albania
Belgium
Bolivia
Canada
Chile
Denmark
Georgia
Hungary
Iraq
Israel
Italy
Jordan
Lebanon
Latvia
Lithuania
Malaysia
Morocco
NATO
New Zealand
Norway
Oman
Portugal
ROK
Sweden
Turkey
Tunisia
U.A.E.
Yemen
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U.S. Department of State
• SME to private entities with no specific
government end user contract.
• Aircraft parts to private entities with no
specific Government end-user contract (i.e.
warehousing or stock).
• USML to private individuals (i.e. private
collection).
• Section 126.1 of the ITAR (prohibited
countries).
U.S. Department of State
• Provide a complete & detailed
questionnaire – the more information,
the better!
• Include ALL private companies that will
have access to USML.
• Divesting government must obtain the
required end-use assurances from
recipients before the TPT can be
processed.
• Allow plenty of time for processing by
giving advance notice if possible.
• Request/Use RSAT case numbers.
• Contact the TPT Team -we’re here to help!
U.S. Department of State
The transfer, sale, disposal or
change in end use of any
U.S.-origin defense article
without prior USG
authorization is a
VIOLATION
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• Electronic transmission of third party transfer requests
via the Security Cooperation Information Portal (SCIP).
• Increase participation in Blanket End Use Assurance
Program.
• Possible extension of the Blanket End Use Assurance
Program to include Country Over Private Entity assurances.
• For “hybrid” cases (defense articles/services supplied via
FMS and DCS, e.g., the C-17) – Coordinate with DDTC and
RSAT.
U.S. Department of State
QUESTIONS?
U.S. Department of State