1. Regulatory Environment
U.S. Department of State – Defense Article
International Traffic in Arms Regulations (ITAR)
United States Munitions List (USML)
U.S. Department of Commerce – Dual Use Commercial Items
Export Administration Regulations (EAR)
Commerce Control List (CCL)

2. What is an Export According to the ITAR, an Export is…
Sending or taking a defense article out of the U.S
Transferring ownership of USML items
Disclosing or transferring tech data
Performing a defense service
Sale, transfer, or proposal to sell or transfer articles or services in certain countries

3. What is an Export According to the ITAR, an Export is…
Export occur in multiple ways
Faxes/ s
Collaborative environments
Casual conversation
Travel / trade shows
Meetings / site tours
Translation services

4. U.S. Person vs. Foreign Person Foreign Persons also include Overseas Locations
A U.S. citizen
Lawful permanent resident alien
Form I-551 (green card)
U.S. Government entity
Any corporation, business association, partnership, society or any other entity, organization or group that is incorporated to do business in the U.S.
Foreign national
Foreign corporation / business not organized in the U.S.
International government / agencies
Representative of a Foreign Interest (RFI)
U.S. Person
Foreign Person

5. U.S. Controlled Technical Data
Information that is required for design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles…engineering “know-how”
Blueprints • technical drawings • photographs
Plans • instructions • proposals
Specifications • statements of work
Test procedures / results
“How-to” information
ITAR requires a record of ALL exports

6. U.S. Controlled Technical Data
Software directly related to defense articles
Classified information relating to defense articles and defense services
ITAR requires a record of ALL exports

7. Public Domain What is Not Technical Data
Publicly available information
Newsstands • unrestricted subscriptions
2nd class mail • libraries
Publicly released by USG
DOD Statement A
Basic marketing information on function or purpose
General scientific, mathematic, and engineering principles, or fundamental research
Schedules • parts lists • top-level drawings

8. Defense Article / Service & SME
Any item or technical data listed on the USML
See 22 CFR 121 (ITAR)
Defense Service
Furnishing assistance (incl. training) to a foreign person, whether in the U.S. or abroad in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, processing, or demilitarization, destruction, processing, or use of defense articles
Furnishing technical data to a foreign person

9. Defense Article / Service & SME
Significant Military Equipment (SME)
Special export controls
Capacity for substantial military use and / or capability

10. Commercial items are CONTROLLED
Commercial items are subject to the Export Administration Regulations (EAR) from the Department of Commerce (DoC)
According to the EAR
A commercial export is the actual shipment or transmission of items subject to the EAR out of the U.S.
The release of technology or software subject to the EAR to a foreign nation in the U.S.
Commercial items are CONTROLLED

11. Commercial Items
The Bureau of Industry and Security (BIS) is responsible for implementing and enforcing the EAR
BIS maintains the Commerce Control List (CCL) within the EAR and includes items subject to the export licensing authority of BIS
E.g. commodities, software, technology

12. Commercial Items
Dual use items are those which have both commercial and military or proliferation application
May require a commodity jurisdiction from the DoC to determine which agency ultimately controls them
Exporting a commercial item may require a DoC export license or exception

13. Cycle Time Varies (2-4 Months)
Application Process
SSEALS Request Initiated
Export Prepares Package
Corporate Export Office Reviews
Staffed to DoS & Agencies
Approval from DOS
Cycle Time Varies (2-4 Months)
Be Smart; Apply Early!

14. Authorizations All Authorizations are Subject to Limitations and Provisos
Technical Assistance Agreement (TAA)
Similar to a contract; authorizes the performance of defense services or the disclosure of technical data to a foreign person
Manufacturing License Agreement (MLA)
Similar to a contract; grants a foreign person the authorization to manufacture defense articles abroad
Licenses
Permit the export or temporary import of a specific defense article or technical data

15. Authorizations All Authorizations are Subject to Limitations and Provisos
ITAR exemptions
Certain pre-defined conditions which allow relief from obtaining an export license or other written approval from the DDTC to export defense articles or defense services
Applicable on a case-by-case basis
Each use requires meeting a unique set of specific criteria

16. Authorization Considerations
All exports to foreign persons must be authorized
Third-country • dual nationals
Subcontractors • sub-licensees
All authorizations are country, product, and purpose specific
There is no blank check
Limitations and provisos are cumulative
They do not go away without an official request for relief

17. Authorization Considerations
Prior approval / notification depends on many variables
All classified authorization is always transferred government to government and is limited to specific information
There is no overall classification for authorization
Subcontractor vs. sub-licensee – See next slide

18. Authorization Considerations In-Country Sub-Contractors vs
Authorization Considerations In-Country Sub-Contractors vs. In-Country Sub-Licensees
Sub-Licensee
Sub-licensing arrangements occur when the foreign party of an MLA or TAA provides technical data to another foreign party in order to fulfill the requirements of the agreement

19. Authorization Considerations In-Country Sub-Contractors vs
Authorization Considerations In-Country Sub-Contractors vs. In-Country Sub-Licensees
All sub-licensees
Must be approved by the DoS
Must execute a Non-Disclosure Agreement (NDA) which incorporates all the provisions of the basic agreement which refer to the USG and DoS
Sub-licensing authorizes a foreign-to-foreign transfer
LMC cannot provide information to a sub- licensee

20. Authorization Considerations In-Country Sub-Contractors vs
Authorization Considerations In-Country Sub-Contractors vs. In-Country Sub-Licensees
Sub-Contractors (
Contracting by a prime contractor of specific support to a third party to aid in the execution of a program or project
ITAR data is not transferred to an in-country subcontractor
Do not need to be approved by the DoS

21. Violations It is Unlawful to…
Export, attempt to export, re-export, or provide
Defense article / service, or tech data without prior authorization from DOS
Transmit tech data electronically or hand- carry
Commercial or dual-use item with an appropriate license or authorization from the DOC

22. Violations It is Unlawful to…
Violate any terms or conditions of licenses or approvals
Make a false statement, misrepresent, omit material facts

23. Cost of Ignoring Regulations
Individuals may be
Fined up to $1M
Imprisoned up to 10 years
Company may be
Denied export privileges
Fined $1M for EACH occurrence
Denied the privilege of doing business with the USG
Incur substantial negative publicity