One it is only a proposed rule, so it does not help anybody yet. But if DDTC ever implements this proposed change, it will have made a big step in the direction of making life easier for countries who deal with US defense articles. This proposal, if implemented, would, for example, eliminate the requirement that foreign (i.e., non-US) end-users and consignees on Technical Assistance Agreements and Manufacturing License Agreements first identify the nationalities of their dual national and third country national employees in the agreement application and thereafter limit access to US defense articles to only those nationalities approved on the application. Of course, all burdens eliminated by one hand must be replaced by burdens imposed by the other hand—we will look at the details of the proposal below. (more…)
Archive for the ‘ITAR’ Category
DDTC Publishes Proposed Change for Employees of Non-US End-Users and Consignees
Tuesday, September 7th, 2010 by John BlackBIS Says: “BIS Has No Authority to Determine Whether an Item is on the CCL”
Tuesday, September 7th, 2010 by John BlackAs most of you already know, the Commerce Department Bureau of Industry (BIS) does not have the authority to issue an official ruling as to whether an item is on the Commerce Control List or the US Munitions List. The Directorate of Defense Trade Controls in the State Department is the only government agency that has the authority to determine whether an item is on the CCL or the USML. DDTC issues Commodity Jurisdiction Determinations (CJ) (or lesser known GJs) to provide an official determination as to whether something is on the USML or the CCL.
In fact, even if the CCL specifically says it controls an item, the CCL actually might not control that item. For example, ECCN 1A001 paragraph c says it controls parts that are specially designed for missiles. In fact, you will find that those 1A001 items specially designed for missiles are usually in Category IV(h) of the USML.
In the August 2, 2010, Federal Register BIS published a notice clarifying these facts stating that commodity classifications and advisory opinions that BIS issues may not be relied upon as determinations as to whether an item is subject to the Export Administration Regulations (EAR) or on the CCL. (more…)
DDTC Changes Proviso Reconsideration/Clarification Requirements for Licenses
Tuesday, September 7th, 2010 by John BlackDDTC announced on its website the new procedures you have to follow to request a reconsideration or clarification of the provisos on an approved license. Under the new procedures, you have a choice: Either submit a General Correspondence (GC) request or submit a Replacement Authorization license application.
Importantly, this new procedure applies only to licenses, not to agreements. If you want to request proviso reconsideration or clarification for an approved agreement, you have to follow the procedures in the new Electronic Agreements Guidelines. And, as you will see, if you want proviso reconsideration or clarification for a paper agreement, you have to first re-baseline that agreement as an electronic agreement.
For details on how to request proviso reconsideration or clarification for licenses go to:
http://www.pmddtc.state.gov/licensing/documents/gl_proviso.pdf
State Department Issues Clarified Foreign National Deemed Export Licensing Guidance
Monday, January 4th, 2010 by Guest AuthorForeign nationals (other than U.S. permanent residents and protected individuals) must be licensed by the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) before receiving access to technical data controlled for export under the International Traffic in Arms Regulations (ITAR). On March 2, 2009, DDTC posted to its website revised guidelines implementing DDTC policy for the licensing of foreign persons under the ITAR. These revised guidelines updated earlier issued guidelines from September 2008 that provided previously unstated explanations of DDTC policy, and are of critical importance to any ITAR registered corporation that employs, or is considering employing, a foreign national in a position requiring access to ITAR-controlled technical data or defense services. (more…)
Electronic Applications for Agreements Are Here
Saturday, December 19th, 2009 by Danielle McClellanDDTC recently announced that starting October 19, 2009 they will be allowing US applicants to submit agreements electronically via the D-Trade 2 application. D-Trade 2 will be the means for submitting, reviewing, and approving agreement proposals. The system uses the DSP-5 tool to transition agreements and their respective amendments from on phase of the adjudication process to the next.
At this time only new agreements and re-baselined agreements may be submitted using D-Trade 2. Amendment proposals for paper agreements must be submitted via paper. Once an electronic agreement is approved, then electronic amendments to that approval may be submitted. DDTC will continue to accept both paper and electronic agreements but do expect to make electronic submissions mandatory for all applicants by fall 2010. So the rule of thumb is if your agreement was submitted via paper so will the amendments to that agreement.
DDTC has also encourage applicants to thoroughly read and review the Guidelines for Preparing Electronic Agreements (Coordinating Draft-3) dated October 7, 2009 before attempting to submit an electronic agreement.
Web Notice: http://pmddtc.state.gov/licensing/documents/WebNotice_ElectronicAgreements.pdf
DDTC Waives Amendment Requirements for Specified Name Changes and Acquisitions
Thursday, October 22nd, 2009 by John BlackThe Directorate of Defense Trade Controls in the State Department has announced several instances when a company name change (sometimes involving an acquisition) will not require that license and agreement holders follow the burdensome ITAR requirements for amending or replacing outstanding licenses or agreements.
These announcements will save a great deal of work for DDTC and the parties involved in the impacted licenses and agreements.
Here are the most recent announcements: (more…)
Grand Jury Indictments for Conspiracy to Sell to Iran
Thursday, October 22nd, 2009 by Danielle McClellanA grand jury in Miami has recently indicted six individuals and five businesses on charges of conspiring to violate the International Emergency Economic Powers Act (IEEPA), the US Iran Embargo and the Arms Export Control Act. The group is accused of trying to export 13 types of ITAR-controlled aircraft parts from the US to Iran via Dubai, UAE. The parts were for the F-5 Tiger fighter jet, the Bell AH-1 Cobra attack helicopter, the CH-53 helicopter, the F-14 Tomcat fighter jet, and the UH-1 Huey military helicopter.
The six individuals are:
(more…)
State Announces Policy for Non-Lethal Military Assistance to the Government of Sothern Sudan
Thursday, October 15th, 2009 by Danielle McClellanOn October 15 the State Department released that it will be providing non-lethal military assistance to the Government of Southern Sudan. This will include military assistance, education and training and defense services controlled under the ITAR. The federal register notice stated that providing such assistance is in the national interest of the US and may be provided pursuant to section 7070(b)(5).
Federal Register: http://edocket.access.gpo.gov/2009/E9-26432.htm
Study Points at ITAR as Hurting US Defense Industry’s Competitiveness
Thursday, October 15th, 2009 by Danielle McClellanA recent study was published in the book “Fortresses & Icebergs: The Evolution of the Transatlantic Defense Market and the Implications for U.S. National Security Policy” outlining the decline of US defense firms market position in Europe. The study was funded by the Department of Defense and Johns Hopkins in order to get a feel for the transatlantic defense market. The US, UK, France, Germany, Italy, Poland, Romania and Sweden were all examined for market obstacles and restrictions, especially the ITAR in the US.
The book, written by Bialos, Christine Fisher and Stuart Koehl dives into the current state of the defense market and takes the reader through the present and future of the international industry and explains what the US needs to do to keep from drowning. “Fortresses & Icebergs” describes the negative trend that US firms are facing in Europe, increased cooperative buying among European nations and an ITAR backlash are turning the market upside down. In the past European nations bought nearly all of their defense article from the US but the recent study shows that more and more international companies are purchasing their defense articles outside the US. The study also confirmed that the number US firms buying from European firms is growing. This may be because of the Obama Administrations’ need to procure defense articles based on affordability and competition with the dwindling defense budget, a very positive sign for European companies wanting to compete in the US market. (more…)
Man Gets 14 Months in Prison for Transfer of ITAR Technical Data to PRC National in United States
Monday, August 31st, 2009 by Danielle McClellanAround May 2008 we published an article about a physicist and University of Tennessee professor who conspired together and exported technical data to the People’s Republic of China by way of a graduate student. Daniel Max Sherman a physicist for Atmospheric Glow Technologies worked with Reece Roth, the professor, on a military project for the government involving the development of advanced plasma actuators for Air Force drones. The two allowed a Chinese foreign national graduate student to have access to the technical data related to the project causing them to violate the ITAR under the Arms Export Control Act (AECA). (more…)
