1. Defense Technology Security Administration
UNCLASSIFIED
Defense Technology Security Administration
DoD Export Review Process and License Preparation Guidance
Rizwan “Riz” Ramakdawala
France 2009
UNCLASSIFIED

2. DTSA Mission
To promote United States National Security interests by protecting critical technology while building partnership capacity
F I N A L 30 Aug 2005

3. DTSA Strategic Goals
Preserve the U.S. defense edge by preventing the proliferation and diversion of technology that could prove detrimental to U.S. national security
Engage U.S. allies and partners to increase interoperability and protect critical technology
Facilitate the health of the U.S. industrial base
Align and utilize resources to support DTSA’s mission
Empower people and make DTSA a great place to work
F I N A L 30 Aug 2005

4. Defense Technology Security Administration
As of 27 March 2009 4

5. Department of Defense Role in Export Controls
Commerce
Export Administration Act
(Dual-Use)
State
Arms Export Control Act
(Munitions)
Refer
Refer
Recommend
Recommend
Defense

6. Department of Defense Role in Export Controls
Defense perspective to the process:
National security review of export license applications
Developing multi-lateral control lists
Unique knowledge of systems and capabilities
Operators and designers of systems
National security dimension to strategic trade
Trade, foreign affairs, defense all part of the equation
Strategic element to defense cost and awareness
Expensive countermeasures
Knowledge of extant technologies

7. DoD Technology Transfer & Export Licensing Community
U.S. Military Services:
U.S. Air Force - International Affairs Division (SAF/IA)
U.S. Army – Deputy Assistant Secretary of the Army, Defense Exports & Cooperation (DASA (DE&C))
U.S. Navy and U.S. Marine Corps - Navy International Programs Office (Navy-IPO)
DoD:
Defense Security Cooperation Agency (DSCA)
Joint Chiefs of Staff (JCS/J5)
Under Secretary for Policy
Under Secretary for Acquisition, Technology and Logistics
National Security Agency (NSA)
Other DOD Agencies (DIA, DISA, DLA, NGA, NRO, etc.)

8. DoD Review of Technology Transfers
Assessing Impact on National Security
Factors Considered:
Policies (region, country & technology)
Level of technology (U.S. systems and countermeasures)
End-user & end-use history
Military operational impact
Inter-operability requirements
Bilateral, multilateral and international agreements
Foreign availability of comparable systems
Classified data transfers

9. Licensing Directorate
UNCLASSIFIED

10. Licensing Directorate Mission
Review licenses and other actions* related to the export of controlled hardware and technology.
Develop and adjudicate DoD positions that address US national security concerns.
Transmit final position to the licensing agency and defend.
Develop, coordinate and provide DoD input to ITAR and EAR changes to licensing departments.
Outreach export briefing support
*Includes Commodity Jurisdiction Requests, Enforcement Support, Advisory Opinions, Retransfer Requests

11. Licensing Directorate
Case Processing
Export Admin
4 License Analysts
Category 1 – 2 – 7 –
8 – 9 – EAR99
All things AERO
Category 0 – 3 – 4 – 5
6 – 9A004
All IC manufacturing
Munitions
Division Chief
Dual-Use
Voluntary Disclosures/
Commodity Jurisdiction
Team Leader
Analyst
Land Warfare
Analyst (4)
Naval Warfare/
Electronics
Analyst (3)
Special Projects
Export Admin (2)
Air Warfare
Space/Missile
Analyst (2)
Gold Team Leader
Red Team Leader

12. What DTSA Provides to the Licensing Process
Warfighter Protection
Technical Expertise
National Security Perspective
Honest Broker
Program Insight

13. DoD Munitions License Review Timeline (Calendar Days)
Reply to DTSA
within 25 days
Case Received
from State/DTC
Created at DTSA No
Referred to
DoD Reviewers
"Prescreen" OR
Yes
14 Day Extension
(if DTSA approved)
Position to
State/DTC
within 2 days
Potential Escalation
by DoD Reviewers
w/in 2 days
Draft Decision by
DTSA w/in 2 days
Escalation
Process
Escalate
Yes No
Position to
State/DTC
Position to
State/DTC

14. Prescreen Process Eligible Licenses DSP-5 DSP-73 DSP-61
Agreement amendments
General Correspondence requests for re-export/re-transfer

15. Prescreen Process (Cont’d)
Precedents:
Same End User Country/Identical Data
Rationale for new license?
Same End User Country/Different Data
What is different?
Different End User Country/Identical Data
Hardware (H/W) in furtherance of an agreement
Where in agreement is H/W identified/referenced?
Minor changes with no impact on technology transferred
US Government/US military end user
Non-US origin hardware/technology
Expansion of scope
Major or minor changes?

16. Prescreen Process (Cont’d)
Placement of explanatory information to aid prescreen process
“Commodity” block of DSP-5, DSP-73, DSP-61
“Specific Purpose” block of DSP-5, DSP-73, DSP-61
Electronic Licenses – “Purpose of Procurement” section
Cover Letter
First paragraph or as soon as possible thereafter

17. DoD Dual-Use License Review Timeline (Calendar Days)
License Draft Final (LDF)
Issue w/in 20 days
Case Received
from Commerce/BIS
Created at DTSA No
Reply to DTSA/LD
within 10 days
Tiger Team Resolution
Referred to
DOD Reviewers
Yes
Yes No
LDF Challenged
by DOD Reviewers
w/in 2 days?
In-House Review
Escalation
Process
Position to Commerce/BIS
w/in 30 days
Yes
DUSD Adjudicate
Agreement Reached No
Position to Commerce/BIS
w/in 30 days
Advisory Committee on Export Policy (ACEP) Review
ILD Issued
Operating Committee (OC)
Review (OCLD Issued)
Yes
Interagency
Agreement? No
Escalate?
Position to Commerce/BIS
within 2 days No
Yes No
Escalate? No
Yes
License Issued
POTUS Review
Export Administration Review Board (EARB)
Escalate?
Yes

18. Statistics – DoD Caseload

19. Statistics – Average Time

20. Outcome of Calendar Year 2008 License Review
Munitions
Dual-Use
Approve
67%
Approve 3%
Objection
>1%
Objection 9%
Other
(RWA, etc) 8%
Other
(RWA, etc) 2%
Approve with Conditions
86%
Approve with Conditions
24%
35,976 Licenses Reviewed
18,178 Licenses Reviewed

21. 2008 USG Licensing Statistics
Department of State: over 85,000 license applications; roughly 40% were referred to DoD for review.
Department of Commerce: ~20,000 license applications; roughly 90% were referred to DoD for review.
Why the difference?
Technology Security risk varies. DoD reviews both the applicable control lists and the license history and has notified the licensing departments, in writing, of those licenses types where DoD staffing is not required

22. Statistical Summary Average case processing days 2008: Munitions: 12
Dual Use: 13
Total Cases CY 2008:
Munitions: 35,976 (51% increase over CY 07)
Dual Use: 18,178 (3% increase over CY 07)
Electronically staffed Munitions cases (currently): 69%
Analyst to License ratio (weekly): Munitions: 1: 14
Dual Use: 1: 16
Percentage of cases prescreened: Munitions: 61%
(last 90 days) Dual Use: 50%

23. Technology Directorate
UNCLASSIFIED 23

24. Defense Technology Security Administration Technology Directorate

25. Technology Directorate Mission
To provide comprehensive, in-depth technical analysis to support the DoD export review process.
To ensure that the DUSD (TSP/NDP)’s technology security objectives are considered in the planning and implementation of major international cooperative programs.
To chair Technical Working Groups in technology specific areas to pinpoint critical U.S. technologies and develop sound export control recommendations for leadership consideration.
To provide technical advice and consultation to U.S. Defense Industry on proposed international exports.

26. Technical Review Process
Technical review template:
What is the item?
What capabilities does it provide?
Are there other applications in addition to stated end-use?
What is the foreign availability?
What is the critical technology we are trying to protect?
Options:
Approve
Approve with provisos
Deny
Return without action
Justification is provided for all recommendations

27. Technical Review Process
Marketing Licenses (DSP-5)
Complete Systems Description
Aircraft, Engines
Build-to-Print (DSP-5)
22 CFR
Complete Technical Data
Temporary Exports (DSP-73)
“Mock-Up” Terminology
No Technical Data
Manufacturing License/Technical Assistance Agreements
Information Regarding End-User Capabilities
Define “the Box”

28. Program Technology Release Roadmap
The key to developing and implementing a program is to address technology release decisions as any other acquisition milestone (e.g., development, testing, production)
The best way to do so is to develop a “Technology Release Roadmap” which defines what technology decisions are required and when they are required to meet program goals
Work backward from the end state, set goals, brief and follow-up!

29. Methodology
In its simplest form, DTSA’s role is to answer the following questions:
The Who, What, When ,Where, How and Why of the export
Decide whether the export is in the National Security interests of the United States
Approve, limit or deny the export accordingly

30. Methodology - Who Who are the recipients of the export?
Do they exist? For how long?
Who owns them?
What is their normal business?
What other work do they do?
What contacts/contracts do they have?
Whom do they employ (third parties)?
What is their track record for protecting US technology?

31. Methodology - What What are we trying to protect and why?
What are the capabilities of the export?
Is it classified?
Is there foreign availability?
Is the export a precedent?
How does the U.S. use it?
How else could it be used?
What is the diversion scenario?
Can export be limited to address diversion concerns?
Different model?
Capability modification?
Are there countermeasures?

32. Methodology - When When is the export required?
Will it support an ongoing operation?
What is the production schedule?
Are there contractual obligations?
What are the impacts of delay?

33. Methodology - Where Where is the export required?
What are the regional impacts?
What is the effect on current capability?
Are there treaty implications?
Are there coalition implications?

34. Methodology - How How will the export take place?
Government to Government?
End item or cooperative project?
Directly to the end user or through intermediaries?
Long or short duration?
Is there a logistics tail (spare parts, follow-on support)?

35. Methodology - Why Why do we want to support/oppose the export?
Has the export been pre-coordinated?
Does it support US coalition building efforts?
Does the export match the end use?
Is the export required by the end user?
Will the export harm US national security?
Does it support US policies?
Does the export contribute to world peace?

36. License Preparation Guidance

37. Applicant’s Role It is incumbent on the applicant to:
- Provide the information DoD needs to conduct a thorough technical review
- “Draw the box” for their export request in the application, so provisos are not imposed constraining the applicant for items they have no intention of exporting

38. Good Habits That Should Be Hard To Break
Focus on the basic elements of every license request:
country, commodity, end-user and end-use
Identify license precedents or case history. Include
copies
Provide clear, concise cover/transmittal letter
Learn the ITAR/EAR, both layout and content
Compliance before and after licensing
Improve knowledge through recurrent training

39. Reducing RWA's/ Avoiding Death by Proviso
Tell us in plain English:
What you are doing
What you are not doing (may be more important)
Avoid jargon, don't rely on program names
Describe the technical data flow between parties
ITAR Technical Data definition – Information which is required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance or modification of defense articles. This includes information in the form of blueprints, drawings, photographs, plans, instructions and documentation.
Review previous license provisos
Cite previous cases, more than one is OK

40. Reducing RWA's/ Avoiding Death by Proviso
Government POC
Verify POC information provided
If none, what Service would be interested
Countries - not all countries are created equal
Temporary Licenses
Tell us how will you maintain control
Note that Government and Industry end-users are treated differently
Be realistic with quantities
List internet web-site to assist tech review
Bottom line, pass the “Grandma check.” Grandma should be
able to determine your intentions by reading your application

41. Foreign National Employment
Include the following information for DTSA review:
Foreign national’s biography/resume
Description of job duties
Company organization chart showing where the foreign national fits into the organization
List of all other foreign nationals working at the company, their job title, and where they fit in the organization
Copy of Non-Disclosure Statement
Copy of Technology Control Plan

42. USXports Impact and Applicant’s Role
We have improved our license review process by the deployment of a database called USXports. This database:
Accommodates electronically submitted licenses
Supports automated staffing
Allows “zero time” referral of cases
Permits rapid review of electronically submitted data
Will do NONE OF THE ABOVE for ITAR licenses if you don’t submit to DTC electronically.
Will NOT support rapid review if you don’t submit in PDF text searchable format.

43. Industry Briefings
DTSA is constantly asked if a company can come in to brief a program.
Wrong Answer: After the license is submitted (Too Late!)
Right Answer: When requested.
Best Answer: Before you start the program!
Gives us the opportunity to tell you our concerns
so you may be able to engineer around them
Provides a heads up to you of USG concerns
Remember, we are not buying your product, conduct brief accordingly

44. Summary Good licenses make short reviews/limit provisos
Electronic licensing will only be as good as the inputs:
See first bullet
PDF text searchable
Industry Briefings – Let us know early when you are starting something new
Technology Release Road Maps
Clearly draw “the box” around every contemplated export

45. DTSA Overview
Questions?