Defense Trade Advisory Group Single License Form

1
Defense Trade Advisory GroupSingle License Form

• Plenary Session
• November 9, 2011

2
Working Group 3 Members

• Lisa Bencivenga, Co-Chair, Lisa Bencivenga, LLC
• Joy Speicher, Co-Chair, Space Systems/Loral Inc.
• Gregory Bourn, Finmeccanica North America
• Rebecca Conover, Intel Corporation
• Jeremy Huffman, Huffman Riley Kao
• Spencer Leslie, Tyco International
• Beth Mersch, Northrop Grumman Corporation
• Roger Mustian, Daniel Defense, Inc.
• Tom White, Lockheed Martin Corporation

3
Tasking by the Directorate of Defense Trade
Controls

• DDTC Provided the DTAG with the Draft Single
  License Form Proposal as of 8/31/2011
• Working Group 3 Assignment
• Review and provide comments on the Draft Single
  License Form proposed to replace existing State,
  Treasury, and Commerce License applications to
  determine if the form
• Accommodates all information potentially
  required,
• Flows in a way which is consistent with an easy
  submission in terms of order, and
• Captures the information required to support
  automation for the purposes of reporting, search,
  etc.
• If the draft form is considered insufficient, the
  working group should recommend any changes
  required for consideration by the interagency.

4
DTAG Strategy Approach

• Review Tasking and Proposed Form
• Sought clarification dialog with DDTC
• Analyze USG Proposed Form against current
  licenses (Created License Matrix)
• Identify USG-prepared reports (Created Reporting
  Matrix)
• Test USG Proposed Form DTAG Revised Form
• Provide recommendations and feedback to DDTC

5
DTAG Assumptions

• Electronic decrementing will be addressed outside
  of this review activity.
• Deployment of the Single Form
• Initially, Form will be deployed in each existing
  system independently (e.g., D-Trade2, SNAP-R)
• No changes to data rights employed by each
  independent system (SNAP-R will continue
  requiring CIN PIN DDTC will still require E.O.
  and digital certificates)
• Ultimate goal single form deployed in a single
  electronic system or portal
• US Exports would continue to be used by the USG
  (not industry) for case management adjudication

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Scope of Single Form
7
DTAG Recommendations (Summary)

• Fully supportive of Single Form concept
  recommend a new name for the 21st Century
• Logic-based deployment
• Enhances the Licensing Process
• Re-organize flow for ease of data entry
• Identification of Additions, Revisions, and
  Deletions
• DSP-85 Classified Transactions
• Develop a strategy and handle with care
• Continue Dialog
• Gap analysis of current vs. proposed
• Joint Government/Industry Participation

8
Strategy Analyze USG Proposed License Form vs.
Current License Forms

• DTAG created the License Matrix
• Helped identify common (and unique) data elements
• Highlighted fields on current forms that were not
  included on USG proposed single form
• Working document intended to facilitate further
  analysis by USG
• Flag unusual/rare/uncommon requirements
• Treat as the exception not the rule
• Lead to Suggestions, Additions, Revisions,
  Deletions, and Questions to Proposed Form
• Note DTAG analysis did not include review of
  foreign license forms for comparison

9
USG Proposed Form
Proposed Single Form DTAG Comments Rationale/Comment DSP-5 SNAP-R DSP-73
1. US Applicant Information Revise Applicant may not always be US 5 x 5
2. U.S. Government POC familiar with the transaction Concur   6 x 10b
3 Unique Identifier(s) Concur Auto-populate fields as appropriate. x x x
4 Type of Submission Concur Restructure section add options x x x
5. Description of Transaction Concur Except amendments x x x
6. Hardware, Software, Technology, Services or Other Description Concur Once selected, form pre-populates possible sections. x x x
7. Purpose of Authorization Concur (see comments) This info will drive application customization x x x
8. Transaction Description Including End-Use Statement Concur   x x x
9. Licensing History Concur   x x x
10. Parties to the Transaction Concur   x x x
11. Additional Info to Support License App (depending on selection above) Concur x x x
12. Authorized electronic signature, title of responsible official, date Concur Assume info will populate based on login of applicants when applicable 22 x x
13. Signature of Individual Lodging Authorization, name/title, company, etc. Concur (see comments) Auto-populate based on individual authentication built into the system, or text field with write-in capability. x x x
14 Post Approval Actions Concur x x
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USG Proposed Single Form Application Flow
11
DTAG Single Form Application Flow
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DTAG Proposed Form
New Old Proposed Single Form Rationale DSP-5 SNAP-R DSP-73
1.0 N/A Select State, Commerce, Treasury Assumes single portal deployment      
2.0 4 Type of Submission Restructure section add options x x x
2.1 5 Description of Transaction x x x
2.2 7 Purpose of Authorization This info will drive application customization x x x
3.0 1 Applicant Information Applicant may not always be US 5 x 5
3.1 3 Unique Identifier(s) Auto-populate fields as appropriate. x x x
4.0 6 Hardware, Software, Technology, Services or Other Description Once selected, form pre-populates possible sections. x x x
5.0 8 Transaction Description Including A Comprehensive End-Use Statement   x x x
6.0 9 Licensing History   x x x
7.0 10 Parties to the Transaction   x x x
8.0 11 Addl Info to Support License App   x x x
9.0 12 Authorized electronic signature, title of responsible official, date Info will populate based on applicant login (if possible) 22 x x
9.0 13 Signature of Individual Lodging Authorization, name/title, company, etc. Validate authentication in system x x x
9.1 2 U.S. Government POC familiar with the transaction   6 x 10b
10.0 14. Post-approval actions   x   x
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DTAG Recommendations On Benefits of Reorganized
Workflow

• Ease of licensing and review process with single
  form which benefits both industry and USG
• Enables (facilitates) logic-based deployment
• Increase standardization (saves time money)
• Minimize errors
• Fewer/reduced RWAs corrections
• Reduced inapplicable license application fields

14
DTAG Recommendations On Logic-Based Deployment

• Applicant provides key information (e.g., USG
  agency, type of application, transaction
  description, purpose)
• Auto-fill of applicant info based on login
• Form only shows relevant fields based on
  information provided
• Enable and/or retain Duplicate or Template
  functionality for repeat similar transactions
• Automated logic-based review and staffing of
  applications
• Manual changes can be implemented by licensing
  officer
• Linkage of amendments and changes directly to the
  affected authorization
• Ideally, applicant can retrieve current
  authorization in the system and propose changes
  to the existing form
• System capable of generating reports for both
  industry and government

15
DTAG Recommendations on Logic-Based Deployment

• Without Logic-Based Deployment . . . Broad-brush
  approach (Static form)
• Causes confusion
• Negates the benefits (from prior chart)
• No one wants a manual/guideline to interpret what
  goes in what field when it isnt intuitive
  (costly, not timely)
• Inefficient to ask for info that isnt directly
  relevant

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DTAG Recommendations Modifications to Proposed
Single Form

• Additions
• Amendment-related fields
• Proviso/condition reconsideration
• Financial institutions (for OFAC applications)
• Revisions
• Unclassified vs. classified
• Dual/third country nationals (separate entry from
  foreign parties)
• Deletions
• Manufacturer and Source of Commodity
• LO/CLO CPI Info and Checklist
• Some applicant or party info (phone, email, fax,
  website)
• Note Details are contained in the License Matrix

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DTAG Recommendations Additions Revisions to
Proposed Form

• Amendments (added fields linkage to
  authorization being amended)
• Added fields to identify fields in current
  authorization requiring change/update purpose
  or reason for change
• Dual/Third Country Nationals (revise move)
• In proposed form, this is a role of a foreign
  party, but info require for dual/third nationals
  is different than other foreign parties
• Separate treatment on form can
• Differentiate employee nationality from physical
  location
• Allow multiple countries of nationality without
  repeating employee information

18
DTAG Recommendations Additions Revisions to
Proposed Form

• Disclosure/Compliance Case (revise)
• Unclear what disclosure on a similar item means
• Revised to reflect language used in current forms
  added fields for compliance case number and
  optional upload of DDTC (or USG) Acknowledgement
  letter
• Proviso/Condition Reconsideration (add)
• Separate form field can facilitate
  routing/staffing,
• Link directly to affected authorization, and
• Allow reporting so that industry is not charged
  by DTC for these types of requests.

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DTAG Recommendations Deletions to Proposed Form

• Delete the proposed LO/CLO Certification
  Requirement from the Single License Form
• Involves a very small percentage of applications
• Recommend closer coordination between DoD and
  applicants to which this applies
• Should be in a document attachment
• What is LO/CLO, CPI AT?
• LO/CLO Low Observable / Counter Low Observable
  (aka stealth)
• CPI Critical Program Information
• AT Anti-Tamper (i.e. prevent /delay
  exploitation of critical technologies)

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DTAG Recommendations Deletions to Proposed Form

• Current DOD Practice
• All licenses and agreements must certify if the
  request involves the transfer of LO/CLO systems,
  techniques, technologies, or capabilities
  described in DODI-S-5230.28
• Concerns (justification for deletion)
• DODI-S-5230.28 is a classified SECRET document
• Requirement to certify establishes an unnecessary
  need-to-know for every DDTC registered
  applicant
• Majority of DDTC registered companies do not have
  the necessary security clearances
• CPI assessments are classified / applicants
  (e.g., sub-contractors) would not know if system
  had CPI
• Unknowingly the response to certification
  questions may be classified
• Embedding DoD release policy into a legally
  binding State regulatory document is not
  appropriate

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DTAG Recommendations DSP-85 Classified Licenses

• DSP-85 Licenses
• No classified attachments
• Single form and single system could be deployed
• Risk of contamination is no different than
  current system that allows upload of DSP-5 and
  Agreements
• Add a prominent warning for applicants during the
  process of uploading supporting documents.
• With classified attachments
• It is better to keep this in a separate system
  (currently used)

22
DTAG Recommendations Continue Gap Analysis Using
License Matrix

• Able to identify various gaps by comparing
  proposed data fields vs. current data fields,
  etc.
• Fields Currently Required on License Applications
  but not included on Proposed Single License Form
  (DTAG concurs - not needed)
• Applicant identification as Exporter,
  Manufacturer, or Broker
• Port/date of export/import from/to US
• Others (see License Matrix)
• Recommend Industry and USG continue gap analysis
  with BIS and OFAC authorizations (some
  identified, but not all)

23
DTAG Recommendations Deployment

• Create and publish on the DDTC Website a
  deployment plan and schedule
• Work with Industry in tandem with USG
• Allow Time for Industry to develop interfaces
  required
• Publish the Application Programming Interface
  (API) or other interface specifications allowing
  companies to develop or modify the front-end
  interfaces to the USG system(s)

24
DTAG Recommendations USG Reporting Requirements

• Created a USG-prepared Reports Matrix
• General comments
• Elements required in reports appear to be
  obtained from license applications and other USG
  systems (e.g., AES)
• Recommendation Once single form is finalized,
  confirm that USG can still obtain same
  information needed for reporting

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DTAG Recommendations Name for Single License Form

• Possible Names (with a little humor)
• ERL Export Reform License
• EARL Export Administration Reform License
• SNAPPIER Single New Application Procedure
  Proficiently Implementing Export Reform
• SEL Single Export License
• SLA Single License Application
• . . . . looking for suggestions . . .

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DTAG Recommendations Continue Dialog
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DTAG Conclusions

• DTAG Membership agreement to
• Single Form (for most transactions)
• Deployment Plan Schedule
• Allow time for industry to update its tools and
  train its people (publish API or interface
  specification)
• Deploy in State, then Commerce, then Treasury
• Consider deployment with ATF and other agencies
  once initial deployment is completed
• Eventually, a single portal would be ideal
• Consider a single user authentication methodology
  (e.g., one digital certificate and different user
  rights based on licensing agency)
• Create reporting capabilities in the system for
  both government and applicants