CBC Export Control and Licensing Basics Chemical and Biological Controls Division

Chemical & Biological Controls Division Staff  Elizabeth Scott Sangine – Director  Scott Hubinger, Ph.D. – Senior Chemist  Kimberly Orr, Ph.D., DVM – Senior Biologist/Veternarian  Timir Misra – Engineer  Betty Lee, Ph.D. – MicroBiologist  Eugene Lewis, Ph.D. – Engineer  Joyce Simon – Strategic Trade Analyst  Jerry Ziemba, Ph.D. – Chemical Engineer

CBC Responsibilities  Multilateral Export Controls for CB – Commodities – Equipment – Technology  Australia Group  White House led Initiatives in Chemical and Biological Areas

Work with U.S. Industry  Material Technical Advisory Committee  Commodity Classifications  Commodity Jurisdictions  Advisory Opinions

NONPROLIFERATION OF CBW CWC GENERAL OBLIGATIONS and BWC ARTICLE III: Not to transfer, directly or indirectly, chemical or biological weapons to anyone Not to assist, encourage or induce anyone to engage in any CW or BW-related activity

EXPORT CONTROLS  List Based: CWC precursors and Australia Group controls on : precursors, biological agents, chemical and biological equipment,and related technology  EPCI -Catch- All controls: Items are not specifically listed on the Commerce Control List but the end use is a proliferation concern or the end user is of concern

EXPORT CONTROLS Dual-use items: Export Administration Regulations (Commerce Department) Examples: Triethanolamine CWC Schedule 3 and AG listed Detergents Cosmetics Nitrogen mustard Glass-lined vessels and piping AG listed Manufacture of corrosive materials Manufacture of CW agents and precursors

EPCI Controls: END-USE BASE CONTROL REGIME For items controlled for chemical and biological weapons concerns : An application will be denied if the export would make a material contribution to the design, development, production, stockpiling, or use of chemical or biological weapons.

END-USE BASE EXPORT CONTROL REGIME For items not specifically listed on the Commerce Control List, exports of which are still under Commerce’s jurisdiction Items otherwise eligible for export under “NLR” (no license required) may require a license if the exporter knows or has been informed that these items would be used in activities related to nuclear, chemical or biological weapons, or missiles.

The Licensing Process Receive Application Conduct Interagency Review Escalation Procedure (if necessary) Final Decision Initial Analysis Conduct Technical & Policy Review

66 Verifying the Classification Reasons:  To ensure that the item does, in fact, require a license.  To determine why the item is controlled and by which international regimes.

66 Initial Analysis: Reviewing Lists of Prohibited Parties What are prohibited parties? Prohibited parties are those individuals and/or firms that have violated export control laws. Consequently, they appear on prohibited parties lists.

99 Factor 1: If the item is appropriate for the end-use and end-user. Factor 2: If the item could possibly be used in a WMD. Factor 3: If the item could possibly be used as a component in the research, design, or production of a WMD. Conduct Interagency Review Final Decision Receive Application Escalation Procedure (if necessary) Conduct Technical & Policy Review Initial Analysis

999 Conducting a Technical and Policy Review Item  Item appropriate for end-use and end-users.  Possible use of end item as component in WMD.  Possible use in research, design,or production of WMD. End-user  Adequacy and credibility of assurances by end-user.  End user history of illegal or clandestine activities.  History of licensing approvals/denials. Country  Risk of diversion.  The nonproliferation credentials of the importing country.

Factors Related to the Item 13 Factor 1: Other Considerations of Appropriateness  Is the Quantity appropriate for the end-use/end-user?  Is the Quality appropriate for the end-use/end-user?

Factors Related to the Item 13 Factors Related to the Item Factor 2: Possible Use of Item in WMD A technical judgement about whether the item can be used as an integral element of a weapon of mass destruction or its delivery system.

Factors Related to the Item 13 Factor 3: Possible Use in Research, Design, or Production of WMD  Item must “materially contribute” to the design, development, or production of WMD.  A subjective evaluation about which licensing officers may disagree.

Factors Related to The End-User 20 Factors Related to The End-User Factor 4: Establishing the Legitimacy of the End-User  End-use statements.  Government-to-government assurances.  Independent sources.  Pre –License checks.  Post-shipment verification.

Factors Related to The End-User 20 Factors Related to the End-User Prelicense Checks  Reserved for significant transactions.  Conducted to confirm the identity of the end-user.

Factors Related to The End-User 20 Factor 5: History of Licensing Approvals/Denials Check the licensing database for past approvals/denials of licenses for export to the end user.

Country Factors 23 Country Factors Factor 6: Risk of Diversion  Diversion History of Destination Country (with respect to the specific item.)  Diversion can mean:  diversion to another country for an unauthorized end-use.  diversion to another location and end-use within country.  or simply diversion in place to an unauthorized end-use.

Country Factors 38 The Licensing Process – Interagency Review Initial Analysis Receive Application Conduct Technical & Policy Review Conduct Interagency Review Escalation Procedure (if necessary) Final Decision

38 Licensing Deadlines The President { Day 90 } EARB { Day 85 } ACEP { Day 69 } OC { Day 53 } { Day 39 } Dept. of {Intelligence} Energy Dept. of Defense Dept. of State Interagency Review ( Most licenses signed off) Export Application { Day 9 } Submitted to Dept. of Commerce { Day 1}

38 The Licensing Process - Issuing a License Initial Analysis Receive Application Conduct Technical & Policy Review 35 Conduct Interagency Review Escalation Procedure (if necessary) Final Decision

Types of Licensing Decisions  Return without action (RWA)  Approval  Denial