Export Compliance ITAR 1 of 3

U.S. Commercial Service

Track II: ITAR and Export ComplianceAPTAC National Conference

March 31, 2009Reno, NV

Special Thanks to the Nevada District Export Council

Moderator:Moderator:Bill Cline, USCS Director, Reno, NVBill Cline, USCS Director, Reno, NV

Your Presenters:Your Presenters:Paul Litton, International Corporate CompliancePaul Litton, International Corporate ComplianceJerry Gamroth, InfraredJerry Gamroth, Infrared

A quick word about theU.S. Commercial Service

--more later--

Our mission:

To promote the export of goods & services from the United States, particularly by small- and medium-sized businesses

To represent U.S. business interests internationally

To help U.S. businesses find qualified international partners

The U.S. Commercial Service is part of the U.S. Department of Commerce, an agency of the United States government.

• Trade specialists in over 100 U.S. cities• 160+ offices in US Embassies and Consulates in 75 countries worldwide• Sector-specific teams• Regional teams• Local advising councils, District Export Councils—DECs

Our Global Network

Goals for Today

• Basic understanding of export compliance• Overview of the various players involved• Essential nomenclature • Basic references/websites for follow-up• Where to go for help

Let’s Jump Right In !!

Congratulations!.....

“…By accepting this contract, you’ve just agreed to comply with a whole bunch of stuff you have no idea what it is, what it means and how it will or won’t impact your business.”

NO WORRIES!! We’re here to remove the blue smoke and mirrors.

Getting Startedhttp://pmddtc.state.gov/documents/ddtc_getting_started.pdf

Rationale for Regulating Defense Exports The U.S. Government views the sale, export, and re-transfer of defense articles and defense services as an integral part of safeguarding U.S. national security and furthering U.S. foreign policy objectives. Authorizations to transfer defense articles and provide defense services, if applied judiciously, can help meet the legitimate needs of friendly countries, deter aggression, foster regional stability, and promote the peaceful resolution of disputes. The U.S., however, is cognizant of the potentially adverse consequences of indiscriminate arms transfers and, therefore, strictly regulates exports and re-exports of defense items and technologies to protect its national interests and those interests in peace and security of the broader international community.

Legal Basis22CFR122

§ 122.1 Registration requirements.

(a) Any person who engages in the United States in the business of either manufacturing or exporting defense articles or furnishing defense services is required to register with the Directorate of Defense Trade Controls. For the purpose of this subchapter, engaging in the business of manufacturing or exporting defense articles or furnishing defense services requires only one occasionof manufacturing or exporting a defense article or furnishing a defense service. Manufacturers who do not engage in exporting must nevertheless register.

Whether or not you actually export, ITAR requires that

“U.S. persons”engaged in the

manufacturing and / or exporting of defense goods and services MUST register

with the DDTC.

So, how do you that – register, that is?

What’s the process?What’s the cost?How much time does it takes?How long is the registration valid?What files and record keeping are required?And, if I want to export—what do I do next?

But, More than ITAR . . .

• Are you surprised to hear there’s more than the State Department’s DDTC and ITAR?

• Dual-Use Items are controlled by the US Department of Commerce’s Bureau of Industry and Security BIS

4 things determine if an item is export controlled

• What you sell (EAR, CCL, ECCN, USML)• Where it is going (Commerce Country Chart)• Who will receive your item (lists)• What it’s end use will be

How determine which agency controls what?

This may well be your AHA! moment for today

Today’s Speakers

• Mr. Jerry Gamroth – Infrared• Mr. Paul Litton – International Corporate Compliance

What Our Network Can Do for You

Five Main Areas of Assistance

1) Trade Counseling2) Market Research3) Customer Location/Qualification4) Business Programs5) Advocacy and Compliance

1) Trade Counseling

Our trade specialists in the U.S. work directly with our team of experts overseas in getting you all the information and advice that you need.

We can help you:Determine the best markets for your products & services Evaluate international competitors Identify and help you comply with legal and regulatory issues Learn about cultural issues and business protocol

2) Market Researchwww.export.gov

• Country Commercial Guides (CCGs)- Prepared annually by US Embassy Staff, CCGs contain information on the business and economic situation of foreign countries and the political climate as it affects U.S. business and foreign investments.

• Industry Reports - In-depth analysis of specific industry sectors and sub-sectors within a given market.

- Brief updates within a foreign country highlighting specific market opportunities, trade events, or changes in market conditions.

• On-line Market Research- http://www.export.gov/mrktresearch/index.asp

• Customized Market Research– Negotiated fee service

3) Finding/Qualifying Business Partners

• Gold Key Service • Platinum Key• Customized Contact List• International Partner Search• International Company Profile• Single Company Promotions• Commercial News USA• FUSE

4) Business Programs

• Trade Shows – Domestic and Overseas• Trade Missions• Catalog Shows• Local Seminars• Video Conferences• Webinars

5) Advocacy-Market Access

(trade complaints)

Advocacy

• Bid Tenders• Unfair Competition

Market Access Compliance

• Used in Cases of Violation of Trade Agreements

Call on Your Local CS Office for Assistance

http://www.buyusa.gov/home/us.html

Enter location or zip code

Got It ?!

You’ve Just Heard About…

• BIS• EAR• CCL• ECCN• ITAR• USML• PMDDTC

• Compliance Plans / Manuals• CJ – Commodity Jurisdiction• SEDs and AES• OFAC• SNAP-R• D-Trade

THANK YOU

Bill ClineU.S. Commercial Service

1 E 1st St, 16th FlReno, NV 89509

Tel: 775.784.5203Fax: 775.784.5343

[email protected]://www.buyusa.gov/nevada