Arms

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• Arms Strategic Technology Investigations Unit
• William J. ArgueSpecial Agent William.Argue_at_dhs.
  gov617-565-7410

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ProjectShield America

• New Business Practices for a Safer America

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Project Shield America Goals

• Gain cooperation from manufactures, sellers, and
  exporters
• Enhance Public Awareness of export laws
• Provide opportunity for private sector input
• Establish a more formal liaison and continuing
  relationship
• Provide a contact point for future questions and
  concerns

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The Threats

• Al Qaeda and Religious Extremism
• Chemical and Biological Agents
• Weapons of Mass Destruction
• State Sponsored Terrorism
• Proliferation of Violence
• Illegal exports of strategic technology
• Illegal financial transactions

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Global Security

• Pushing the Borders Out From Their Traditional
  Places
• Extending Customs Role Globally

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Export Control Laws and Their Use to Thwart
Terrorism

• Arms Export Control Act
• Export Administration Act
• Trading with the Enemy Act
• International Emergency Economic Powers Act

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Arms Export Control Act (AECA)

• 22 USC 2778
• Product is manufactured or specifically designed
  for military use or has a significant military
  use.
• Examples
• Missile Technology
• Military Aircraft Parts (F-14)
• Tanks
• Regulated by the Department of State,
• Directorate of Defense Trade Controls
• International Trafficking in Arms Regulations
  (ITAR)
• Commodity List - United States Munitions List

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The ITAR Controls

• Defense Articles
• Actual Munitions Items
• Defense Services
• Technical Assistance, Debugging, Repairs,
  Installations
• Technical Data
• Technical specifications for a product, blue
  prints, or other planning designs or data

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Export Administration Act (EAA)

• Controls both the Commodity and the End User or
  End Use
• Dual-Use Items that have both a civilian
• and military application
• Examples
• Pharmaceutical, Bio-Technology (Freeze Dryers)
• Night Vision Technology
• Chemicals (Flame Retardant Chemicals)
• Microwave Amplifiers (Communications vs. Military
  Radar)
• Jet Mill Grinders (Pharmaceutical or Rocket
  Propulsion)
• Regulated by the Department of Commerce
• Bureau of Industry and Security
• Export Administration Regulations (EAR)
• Commodity Control List (CCL)

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International Emergency Economic Powers Act
(IEEPA) Trading with the Enemy Act (TWEA)

• Destination Based Controls
• Transactions involving a prohibited location such
  as Iran, Cuba, Syria
• Transactions include imports, exports, financial
  activity and travel
• Regulated by the Department of Treasury, Office
  of Foreign Assets Control (OFAC)
• treas.gov/ofac
• Foreign Assets Control Regulations

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Deemed Exports and Other International
Communications

• Any transfer of, or communication regarding data,
  products, or services that would be licensable
  for export, also requires a license in order to
  be transferred to a foreign national within the
  United States.
• This includes but is not limited to
• Article or Product Transfer
• Exposure to Research Facilities or Data
• Email Communications
• Phone Conversations
• International Visits

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Onus for Export Control

• Export Control Statutes are complex, and it is
  recommended that Exporters establish Export
  Management Programs
• You cannot make the Consignee responsible!
• Willful Blindness - Its not my problem

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I.C.E.s Approach to Export Enforcement

• INTERDICTION
• INVESTIGATION
• INTELLIGENCE
• INDUSTRY OUTREACH
• PROJECT SHIELD AMERICA

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INVESTIGATIONS

• Industry Cooperation
• Overt Investigations
• Detentions and License Determinations
• Undercover Stings

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Interdiction efforts - Port of Boston

• Outbound Taskforce Program comprised of ICE, CBP,
  DCIS, DSS, OSI, NCIS, FBI, and U.S. Commerce
  Department members to target and examine outbound
  cargo, parcels and individuals
• Mission - To effectively deter, investigate,
  intercept, and prosecute violators involved in
  the illegal movement of U.S. munitions/controlled
  listed items and strategic technology having
  sensitive civil and military applications to
  proscribed destinations around the world, and to
  terrorist organizations which pose a threat to
  the national security of the US and its allies.

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An Average Day in CBP and ICE

• Effects
• 64 Arrests
• 118 Narcotics Seizures
• 4,639 pounds of narcotics
• 116 Other Seizures
• 315,973 in conveyances
• 467,118 in merchandise
• 23,083 in arms and ammo
• 11 Currency Seizures
• 715,652 in Currency

• Examines
• Over 1.1 Million Passengers
• 2,459 Aircraft
• 570,006 Trucks / Containers
• 323,622 Vehicles
• 580 Vessels
• 67,638 Entries

FY 2002
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Container Security Initiative

• Securing the Supply Chain
• Customs Personnel Inspecting at the Point of
  Origin
• Using New Technologies

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Known Proliferation Countries

• Iraq
• Iran
• Libya
• North Korea

• China
• Syria
• Pakistan

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Known Transshipment Countries

• U.A.E.
• Singapore
• Hong Kong
• Cyprus
• Jordan

• Canada
• Sudan
• Yemen
• Thailand
• Malta

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DESIRED CHEMICAL BIOLOGICAL TECHNOLOGY

• FERMENTERS
• CENTRIFUGAL SEPARATOR
• SAFETY HOODS - CLASS II OR III
• REACTOR VESSELS
• HASTELLOY-HIGH NICKEL ALLOYS
• DOUBLE-SEAL PUMPS

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DESIRED NUCLEAR TECHNOLOGY

• MARAGING STEEL
• SPIN-FORMING MACHINERY
• BERYLLIUM
• GRAPHITE COMPONENTS
• RADIATION SHIELDING
• ELECTRON BEAM WELDERS

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DESIRED MISSILE TECHNOLOGY

• NOSE CONE/RE-ENTRY VEHICLE
• CARBON/CARBON
• SKIN
• MARAGING STEEL
• SOLID FUEL MOTOR
• PROPELLANTS
• FINS
• CARBON/CARBON

• GUIDANCE SYSTEM
• GPS/INS
• 3-AXIS GYRO
• 3-AXIS ACCELERATOR
• MOTOR
• KEVLAR
• MARAGING STEEL
• CARBON/CARBON
• CARBON/ PHENOLIC

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Search Engines as Procurement Tool

• The Goal as Indigenous Production
• Surfing the Web
• Unsolicited Emails
• Procurement with Anonymity

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Internet Use as a Terrorist Tool

• Anonymity
• Hotmail, Yahoo, Juno, Gmail
• Ease of Access
• Public Libraries
• Internet Cafes
• Coded Messages
• Strong Encryption

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Knowing Your Customer

• You are in the best position to know if the
  Customer is bona-fide.
• Does the Customer know what hes trying to
  procure?

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Red Flags of Potential Problems

• Products Inconsistent with Customers Needs
• Anomaly of consumption
• Why is this business ordering this type of
  material?
• Illogical Routing
• Avoiding certain ports
• Port shopping
• Less controls
• Corruption in Foreign Government

• Pays Cash
• Most international transactions use pro-forma
  invoices or letters of credit
• Wont Provide End User
• Reluctance to provide end use
• Ultimate consignee
• Strong indicator of diversion

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Red Flags of Potential Problems

• Declines Installation or Service Contracts
• No warranties
• No installation on complex equipment
• Orders Placed from Different Country than End
  User
• Diversion Points
• Avoid Embargo

• Packing Inconsistent with Shipping
• Overly secure packing to deter examination
• Containerized or palletized when not normally
  done
• Customer is Unfamiliar with Product
• Vague understanding of needs
• No Specifics on for what product would be used

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Handling Suspicious Contacts

• Dont Slam the Door
• Keep it Neutral
• Obtain Contact Numbers or Email
• Quickly Contact ICE Special Agents for a
  Controlled and Monitored Response

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Where to Find Help?

• The World Wide Web
• www.export.gov
• bis.doc.gov
• treas.gov/ofac
• pmdtc.org
• Export Assistance Centers
• An Export Consultant
• Training Programs
• Your local ICE Agent

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QUESTIONS ?
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• Arms Strategic Technology Investigations Unit
• William J. Argue
• Special Agent
• 617-565-7410
• William.Argue_at_dhs.gov