Overview of U.S. Export Controls

• Why Export Controls?
• U.S. Export Control Policy & Primary Regulations (ITAR/EAR/OFAC)
• Key Governing Agencies
• Arms Export Control Act (AECA) & ITAR Compliance Resources

ITAR Regulated Activities

 – with EXERCISES WORKSHOP

• Exports, Defense Services, Reexports, and Retransfers
• Technical Data Releases to Foreign Persons
• Temporary Imports & Other Controlled Activities
• Prohibited Countries & Ineligible Parties

Controlled Items

 – with EXERCISES WORKSHOP

• Items Subject to the ITAR: Hardware, Software, Technical Data, Defense Services
• Jurisdiction: ITAR vs. EAR; Definition of “Defense Article”
• The U.S. Munitions List & “Order of Review”
• “Specially Designed” & Special Classification Issues
• Highly Restricted Items & Significant Military Equipment (SME)
• Commodity Jurisdiction Determinations

Technical Data

 – with EXERCISES WORKSHOP

• Technical Data in the ITAR & Software Directly Related to Defense Articles
• What is Not Considered Technical Data
• Public Domain Information

Registration

• Who Does Registration Apply to? / Exemptions to Registration Requirement
• Registration Requirement & How to Register with DDTC
• Obligations of Registrants / Renewing Registration

Exemptions

 – with EXERCISES WORKSHOP

• What are Exemptions? / Excluded Items & Countries
• U.S. Government Exemptions and Exemptions Requiring DOD Validation
• Foreign Military Sales (FMS) Exemption
• Public Shows; Temporary Imports Exemptions
• Exemptions for Unclassified Hardware
• Technical Data Exemptions / Defense Services Exemptions
• Allies Maintenance Exemption
• Canada, UK & Australia Exemptions

Licenses

 – with EXERCISES WORKSHOP

• Licenses vs. Agreements
• The ITAR Paradox / The Art of the License Application
• DTrade / DSP-5 Applications
• Application Support Documents
• Marketing & Foreign Person Employment Licenses
• Political Contributions, Fees & Commissions
• License Amendments / General Correspondence

Agreements

• Agreement Types; Application Contents & Guidelines
• Sample Agreement Structures: Manufacturing License Agreements and Technical Assistance Agreements
• Signatory vs. Sublicensee; Sublicensing Issues
• Scoping Agreements
• Handling Hardware in Agreements
• Dual/Third Country National Employees and Their Coverage in Agreements
• Deemed Reexport Exemption: General and for NATO +
• Key TAA/MLA Questions for Discussion
• Warehouse & Distribution Agreements
• Agreement Amendment
• Application Processing and Status
• Government Review Process
• Congressional Notification
• Processing Time and Checking License Status
• Expedited Licensing Programs

Export Clearance

• Export Clearance Requirements for Hardware, Technical Data, and Defense Services
• Technical Data / Defense Service Export Under License, Agreement, and Exemption
• Commercial Invoice Requirements: Destination Control Statement
• The Automated Export System (AES): Filing Electronic Export Information (EEI)
• FTR: Parties to Export Transaction
• Who is Responsible for Submitting EEI?
• Standard and Routed Export Transaction Responsibilities
• Working with Agents: Freight Forwarders & Customs Brokers
• AES and ITAR / Proof of Filing Citation and Documentation
• Exemptions Recordkeeping & Agreement Administration

Compliance Programs

– with EXERCISES WORKSHOP

• Building an Effective Compliance Program: Models & Structure
• Licensing vs. Compliance; Who is Responsible?
• Key Elements of a Program
• Written Programs & Procedures / Recordkeeping Requirements
• Technical Data Compliance Challenges / Electronic Export Issues
• Foreign Person Employees
• ICP Tips and Evidence of Effective Compliance

Recent Developments

• Latest Regulatory Changes
• Other Recent Developments in the ITAR

Brokering

• What is Brokering Under the ITAR?
• Brokering Activities and Exclusions
• Who Must Register as a Broker? / Brokering Registration Exemption
• Brokering Activities Requiring Approval / Approval Exemptions
• Prior Approval Process and Annual Reporting

ITAR Enforcement

• Enforcement Methods, Fines & Penalties
• Enforcing Agencies: U.S. Customs & Border Protection
• Civil vs. Criminal Penalties
• How to Approach a Case: How it Begins, Responding to an Agent’s Meeting Request, Subpoenas, How to Handle a Violation
• Voluntary Disclosures to the Government and Considerations
• Disclosure and Civil Enforcement Trends / Terms of Global Settlements
• Case Studies: Recent Enforcement & Audit Actions
  

*Timing and Order of agenda items subject to change

Introduction to the EAR

• U.S. Export Control Policy & Primary Regulations (ITAR/EAR/OFAC)
• Roadmap to Parts of the EAR

Regulated Activities

– with EXERCISES WORKSHOP

• Exports, Reexports, In-country Transfers
• Deemed Exports and Reexports
• Certain Other Activities
• Activities That are Not Regulated by the EAR

Classification

 – with EXERCISES WORKSHOP

• Jurisdiction: EAR vs. ITAR; Which Agency Has Authority?
• How to Classify an Item
• Items Subject to the EAR: Commodities, Technology, and Software
• The Commerce Control List: EAR99, 600-Series, and other ECCNs
• Order of Review / Determining and Reading the ECCN
• “Specially Designed” Definition, Exclusions & Implications
• ECCN Classification Tips
• Requesting an Official Classification

Technology & Software Classifications

 – with EXERCISES WORKSHOP

• Determining ECCN for Technology & Software
• Defining Technology and “Export” for Technology and Software
• Examples of Exports for Technology and Software
• Items Not Subject to the EAR; “Publicly Available”
• Fundamental Research / Educational Information / Patent Applications
• Determining the ECCN for Technology and Software

No License Required (NLR)

 – with EXERCISES WORKSHOP

• Steps to Arrive to NLR Determination
• Using the Commerce Country Chart to Guide in Determination

License Exceptions

 – with EXERCISES WORKSHOP

• Two Types of License Exceptions / Restrictions On All License Exceptions
• ECCN-based License Exceptions (STA, GBS, LVS)
• Situation-based License Exceptions (RPL,TMP, GOV)
• License Exceptions Issues for 600-Series and 9X515
• Wassenaar Reporting
• Technical Data & Software License Exceptions (TSU, TSR, ENC, TMP, STA)

End-Use & End-User Controls

 – with EXERCISES WORKSHOP

• Restricted Parties / Embargoed Countries / Proliferation Activities
• Military End-Use/User (Belarus, Burma, Cambodia, China, Nicaragua, Russia, and Venezuela)
• Red Flags, EAR General Prohibitions & Antiboycott

Licenses

• When and How to Make a License Application to BIS
• SNAP-R / Electronic Filing / Tell The Story of Your Application
• Special Support Documents & Requirements
• Dual and Third Country Nationals / License Review Process
• License Conditions, Approval, and Issuance

Export Clearance

 – with EXERCISES WORKSHOP

• Foreign Trade Regulations (FTR) & Automated Export System (AES)
• Who is Responsible for Compliance?
• FTR: Parties to the Transaction
• Standard and Routed Export Transaction
• When AES is Required / AES Filing Exemptions and When Exemptions Do Not Apply
• Export Documents & Shipping / AES Requirements for CCL Items 
• Staying Compliant with AES / Wait Times 
• Destination Control Statement
• Special Requirements for 600-Series and 9X515

Compliance Programs

• Why Have One? / Compliance Plans
• Resources: Where Can I Go for Help? Does Your Company Already Have Resources? Where to Start?
• Effective Compliance Plans & EMCP Core Elements (BIS)
• Key Consideration After Having all EMCP Core Elements in Place
• Automate Export Compliance, End-User/ End-Use Certifications, and Export Compliance Transaction Checklists
• Keys to Long Term Success

Recent Developments

• Latest Regulatory Changes
• Other Recent Developments in the EAR
• OFAC Sanctions Updates

Reexports: When Do U.S. Rules Apply Outside of the U.S.?

• General Guidelines & Who is Responsible for Reexport Compliance
• Two Questions to Analyze Controls / When U.S. Rules Apply
• Foreign-made Items Incorporating U.S. Parts or Technology: De Minimis and Foreign Direct Product Rules
• Special Rules for 600-Series and 9X515 US Content
• Other Consideration When U.S. Rules Apply to Persons and Activities
• When a Reexport License is Needed and Questions to Assess U.S. Jurisdiction

U.S. Embargo Controls

• Embargoed Country Considerations and Destinations:
  • Cuba
  • Iran
  • North Korea
  • Syria
• Applying for an OFAC License

EAR Export Enforcement

• Enforcement Trends, Fines, and Penalties 
• Subpoenas, Investigations & Voluntary Self Disclosures
• Preventing and Coping with Violations
• Case Studies
  
  

*Timing and Order of agenda items subject to change