Intredex - Offering Comprehensive Trade Compliance Solutions

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ITAR ComplianceInteracting with
Customers, Suppliers, Visitors Employees
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Export Compliance Lifecycle
Compliance Process
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Customer/Supplier Selection

• Ensure your trade partners are not listed in U.S.
  denied, sanctioned and/or restricted party lists
  including but not limited to
• U.S. Dept. of State Debarred Party List
• U.S. Dept. of State Country Specific and
  End-Use Specific Sanctioned Party Lists
• U.S. Dept. of Commerce Entity List, Unverified
  List and Denied Persons List
• U.S. Dept. of Treasury Specially Designated
  Nationals, FSE Lists
• Other Gov. agency issued sanctioned persons lists
• Lists are updated Frequently!
• U.S. based companies can violate the Export
  Control Laws by conducting a business with these
  entities persons w/o prior U.S. Government
  authorization

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End-User Screening
Automated Screening Software
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End-Use Screening

• Ensure your foreign trade partners are not
  involved in the following activities
• Chemical and Biological Weapon Proliferation
• Nuclear Proliferation
• Missiles and Unmanned Aerial Vehicles
• Military activities in restricted countries
• Anti-Boycott Law Violation
• Diversion contrary to U.S. Export Control Laws
• It is a violation of Export Control Laws to
  conduct a business with such trade partners
  without prior U.S. Government authorization

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DFARS ITAR Flowdown

• Defense Federal Acquisition Regulation
  Supplement ("DFARS") 2010 Amendment
• Final Rule requires that a clause flowdown
  clause mandating strict compliance with U.S.
  export control laws and regulations be included
  in all DoD solicitations and contracts
• Subcontractor All suppliers, distributors,
  vendors, etc.
• Subcontract All purchase orders, task orders,
  contracts,..
• Example
• The Contractor shall comply with all
  applicable laws and regulations regarding
  export-controlled items, including, but not
  limited to, the requirement for Contractors to
  register with the Department of State in
  accordance with the ITAR.

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DFARS ITAR Flowdown (Contd)

• How Subcontractors Can be Compliant?
• Develop written export policies and procedures
  (EAR and ITAR)
• Determine whether the company is required to
  register with DDTC
• Properly classify items, technology and services
  for licensing purposes
• Implement access controls
• Apply for licenses if necessary
• Enforce and publish the export policy
• Record Retention
• Record Retention
• Record Retention

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Plant Visits

• Technology transfer to or defense service for a
  foreign employee
• IS AN EXPORT
• Plant visit by foreign nationals
• IS AN EXPORT if technical data is disclosed

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Plant Visits (Contd)

• Have a Visitor Management Process
• Develop a Technology Control Plan
• Implement Foreign National Visit Authorization
  Form
• Must be under supervision of the Empowered
  Official and/or Export Control Manager
• Attach your Technology Control Plan to the Form
• Attach ITAR Non Disclosure Agreement and TCP
  Briefing Record to the Form
• Visitors Must Sign the ITAR NDA and the TCP
  Briefing Record before accessing to Site/Facility

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Plant Visit License Exemptions

• Foreign national visits, resulting a disclosure
  of unclassified technical data, may not require
  a license if
• Visit has itself authorized pursuant to a license
  issued by the ODTC, or
• Visit was approved in connection with an actual
  or potential government-to-government program or
  project by a U.S. government agency having
  classification jurisdiction, or
• Information is directly related to the classified
  defense article or technical data for which
  approval was obtained and is not design,
  development, production or manufacturing date for
  any other defense article.

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Trade Shows Exhibitions

• Export authorizations for exhibitions and trade
  shows can take various forms
• SEVERAL authorizations may be required!
• Consider what is involved
• Hardware?
• Technical Data?
• Defense Services? (Demos)

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Trade Shows Exhibitions (Contd)

• Some applicable License Exemptions
• 22 CFR 123.16 (b)(4)
• Models and mock-ups that are non-operable and do
  not reveal any technical data and do not contain
  controlled components.
• 22 CFR 123.16 (b)(5)
• Temporary export for public exhibition, trade
  show, air show or related event if that article
  was previously licensed (DSP-73) for public
  exhibition
• 22 CFR 123.4 (a)(3)
• Temporary import (and subsequent export) of U.S.
  origin defense items without a license, for a
  period of up to 4 years, for demonstration or
  marketing. (Other temporary imports are under
  DSP-61 license)

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Foreign National Employees

• Foreign national employees in the U.S. who will
  potentially access to U.S.M.L. defense articles
  or technical data must be licensed (DSP-5) by
  DDTC
• Technical Assistance Agreement may also be
  required in certain cases
• Once Again
• Develop and Implement a Technology
  Control Plan!

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Foreign National Employees (Contd)

• Important Things in Licensing Process
• Specific purpose (end-use) for which the
  technical data is required
• Logical connection between the persons need for
  the technical data and the job description
• Nationality of the foreign person matters in
  speed of license approval
• Consistency between the foreign persons address
  and U.S. visa issuing country matters

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Technology Control Plan

• Often required by the DDTC Defense Technology
  Security Administration (DTSA) for approval of a
  license or agreement
• Can be Broad or Program/End-Use Specific
• Proof of the intention to maintain appropriate
  controls to comply with terms of export
  authorization
• Outlines the procedures and requirements for
  transfer of technical data to U.S. and non-U.S.
  persons

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Technology Control Plan (Contd)

• Some of the Elements
• Definitions
• Scope, Project/Program End-Use Summary
• Roles and Responsibilities
• List of Controlled Items
• Authorized Persons and Work Locations
• Access Control Procedures
• Technical Data Transfer Control Procedure
• Employee/ Contractor Hire and Transfer Procedure
• Training Procedure
• Record Retention Procedure
• Copies of Licenses, Agreements, and Associated
  Documentation

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Excellence in ITAR Compliance
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Questions

• Contact
• Intredex, Inc.
• 3259 Progress Drive
• Orlando, FL 32826
• http//www.intredex.com
• Phone [phone]