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Arms & Strategic Technology Investigations Unit William J. Argue Special Agent 617-565-7410.

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Presentation on theme: "Arms & Strategic Technology Investigations Unit William J. Argue Special Agent 617-565-7410."— Presentation transcript:

1 Arms & Strategic Technology Investigations Unit William J. Argue Special Agent William.Argue@dhs.gov 617-565-7410

2 Project Shield America New Business Practices for a Safer America

3 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

4 The Threats Al Qaeda and Religious ExtremismAl Qaeda and Religious Extremism Chemical and Biological AgentsChemical and Biological Agents Weapons of Mass DestructionWeapons of Mass Destruction State Sponsored TerrorismState Sponsored Terrorism Proliferation of ViolenceProliferation of Violence Illegal exports of strategic technologyIllegal exports of strategic technology Illegal financial transactionsIllegal financial transactions

5 Global Security Pushing the Borders Out From Their Traditional Places Extending Customs Role Globally

6 Export Control Laws and Their Use to Thwart Terrorism Arms Export Control ActArms Export Control Act Export Administration ActExport Administration Act Trading with the Enemy ActTrading with the Enemy Act International Emergency Economic Powers ActInternational Emergency Economic Powers Act

7 22 USC 2778 22 USC 2778 Product is manufactured or specifically designed for military use or has a significant military use. Product is manufactured or specifically designed for military use or has a significant military use. Examples Examples Missile Technology Missile Technology Military Aircraft Parts (F-14) Military Aircraft Parts (F-14) Tanks Tanks Regulated by the Department of State, Regulated by the Department of State, Directorate of Defense Trade Controls Directorate of Defense Trade Controls International Trafficking in Arms Regulations (ITAR) International Trafficking in Arms Regulations (ITAR) Commodity List - United States Munitions List Commodity List - United States Munitions List Arms Export Control Act (AECA Arms Export Control Act (AECA)

8 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

9 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) Export Administration Act (EAA)

10 International Emergency Economic Powers Act (IEEPA) Trading with the Enemy Act (TWEA) Destination Based Controls Destination Based Controls Transactions involving a prohibited location such as Iran, Cuba, Syria Transactions involving a prohibited location such as Iran, Cuba, Syria Transactions include imports, exports, financial activity and Transactions include imports, exports, financial activity and travel Regulated by the Department of Treasury, Office of Foreign Assets Control (OFAC) Regulated by the Department of Treasury, Office of Foreign Assets Control (OFAC) treas.gov/ofac Foreign Assets Control Regulations Foreign Assets Control Regulations

11 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 TransferArticle or Product Transfer Exposure to Research Facilities or DataExposure to Research Facilities or Data Email CommunicationsEmail Communications Phone ConversationsPhone Conversations International VisitsInternational Visits

12 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

13 I.C.E.’s Approach to Export Enforcement INTERDICTIONINTERDICTION INVESTIGATIONINVESTIGATION INTELLIGENCEINTELLIGENCE INDUSTRY OUTREACHINDUSTRY OUTREACH PROJECT SHIELD AMERICAPROJECT SHIELD AMERICA

14 INVESTIGATIONS Industry CooperationIndustry Cooperation Overt InvestigationsOvert Investigations Detentions and License DeterminationsDetentions and License Determinations Undercover StingsUndercover Stings

15 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.

16 An Average Day in CBP and ICE Examines: Over 1.1 Million Passengers 2,459 Aircraft 570,006 Trucks / Containers 323,622 Vehicles 580 Vessels 67,638 Entries Effects: 64 Arrests64 Arrests 118 Narcotics Seizures 118 Narcotics Seizures 4,639 pounds of narcotics4,639 pounds of narcotics 116 Other Seizures116 Other Seizures $315,973 in conveyances$315,973 in conveyances $467,118 in merchandise$467,118 in merchandise $23,083 in arms and ammo$23,083 in arms and ammo 11 Currency Seizures11 Currency Seizures $715,652 in Currency$715,652 in Currency FY 2002

17 Container Security Initiative Securing the Supply ChainSecuring the Supply Chain Customs Personnel Inspecting at the Point of OriginCustoms Personnel Inspecting at the Point of Origin Using New TechnologiesUsing New Technologies

18 Known Proliferation Countries IraqIraq IranIran LibyaLibya North KoreaNorth Korea China Syria Pakistan

19 Known Transshipment Countries U.A.E.U.A.E. SingaporeSingapore Hong KongHong Kong CyprusCyprus JordanJordan Canada Sudan Yemen Thailand Malta

20 DESIRED CHEMICAL & BIOLOGICAL TECHNOLOGY FERMENTERS FERMENTERS CENTRIFUGAL SEPARATOR CENTRIFUGAL SEPARATOR SAFETY HOODS - CLASS II OR III SAFETY HOODS - CLASS II OR III REACTOR VESSELS REACTOR VESSELS HASTELLOY-HIGH NICKEL ALLOYS HASTELLOY-HIGH NICKEL ALLOYS DOUBLE-SEAL PUMPS DOUBLE-SEAL PUMPS

21 DESIRED NUCLEAR TECHNOLOGY MARAGING STEEL MARAGING STEEL SPIN-FORMING MACHINERY SPIN-FORMING MACHINERY BERYLLIUM BERYLLIUM GRAPHITE COMPONENTS GRAPHITE COMPONENTS RADIATION SHIELDING RADIATION SHIELDING ELECTRON BEAM WELDERS ELECTRON BEAM WELDERS

22 DESIRED MISSILE TECHNOLOGY GUIDANCE SYSTEMGUIDANCE SYSTEM GPS/INSGPS/INS 3-AXIS GYRO3-AXIS GYRO 3-AXIS ACCELERATOR3-AXIS ACCELERATOR MOTORMOTOR KEVLARKEVLAR MARAGING STEELMARAGING STEEL CARBON/CARBONCARBON/CARBON CARBON/ PHENOLICCARBON/ PHENOLIC NOSE CONE/RE-ENTRY VEHICLE NOSE CONE/RE-ENTRY VEHICLE CARBON/CARBON CARBON/CARBON SKIN SKIN MARAGING STEEL MARAGING STEEL SOLID FUEL MOTOR SOLID FUEL MOTOR PROPELLANTS PROPELLANTS FINS FINS CARBON/CARBON CARBON/CARBON

23 Search Engines as Procurement Tool The Goal as Indigenous ProductionThe Goal as Indigenous Production Surfing the WebSurfing the Web Unsolicited EmailsUnsolicited Emails Procurement with AnonymityProcurement with Anonymity

24 Internet Use as a Terrorist Tool AnonymityAnonymity Hotmail, Yahoo, Juno, GmailHotmail, Yahoo, Juno, Gmail Ease of AccessEase of Access Public Libraries Public Libraries Internet Cafes Internet Cafes Coded Messages Coded Messages Strong Encryption Strong Encryption

25 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?

26 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

27 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

28 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

29 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

30 QUESTIONS ?

31 Arms & Strategic Technology Investigations Unit William J. Argue Special Agent 617-565-7410William.Argue@dhs.gov


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