Export Controls Overview

• Overview of U.S. Export Controls; What is Subject to Export Controls?
• Primary Regulations (ITAR/EAR/OFAC)
• International Export Regulation 
• Introduction to the International Traffic in Arms Regulations (ITAR) & Defense Trade Policy
• Directorate of Defense Trade Controls (DDTC)
• Arms Export Control Act (AECA)
• Compliance Resources & Information

Controlled Items & Activities

– with EXERCISES WORKSHOP

• Key Analysis Steps for ITAR Compliance / When the ITAR Applies
• ITAR-Controlled Items
  • Defense Articles; Technical Data and What is not Technical Data; Defense Services
  • United States Munitions List (USML) & Identifying ITAR vs. EAR-Controlled Items
  • Order of Review
  • The Meaning of “Specially Designed”
• Controls on Non-U.S. Items Containing U.S. Content
• Controls on Non-U.S. Items Produced Using U.S. Technology
• Commodity Jurisdiction (CJ) Requests, Issues, and Resources
• Highly Restricted Items and Significant Military Equipment (SME)
• ITAR-Controlled Activities: Exports, Reexports & Retransfers
• Name Changes, Mergers & Acquisitions, Brokering / Manufacturing of Defense Articles Outside the U.S.
• Temporary Imports / Permanent Imports
• Activities Not Regulated by the ITAR
• Prohibited Countries & Debarred Parties
  

Licenses

• Types of DDTC Licenses
• Supporting the U.S. Exporter’s Licensing Efforts
• Supporting Documents for Hardware Licenses
• Application Package
• Reexport/Retransfer Approvals for Non-U.S. Companies

Reexport/Retransfer License

• Reexport/Retransfer License Applications
• Foreign Military Sales (FMS) Third Party Transfers

Agreements and U.S. Government Approval

• Types of DDTC Agreements: Manufacturing License Agreements  Technical Assistance Agreements, & Warehouse and Distribution Agreements
• Agreement Structure
• Agreement Application & Agreement Guidelines
• TAA and MLA Issues and Requirements, Handling Hardware in Agreements
• Sublicensing, Sublicensing vs. Signatory
• Dual/Third Country National Employees and Provisions for NATO+
• Australia/Canada/Netherlands 3rd/Dual Nationals
• Foreign Persons Coverage on Agreements
• Information that a Non-US Party Should Provide to US Agreement Applicant
• Warehouse & Distribution Agreements / How Does The US Exporter Get a WDA Approved?

U.S. Government Approval

– with EXERCISES WORKSHOP

• Information Non-US Parties Should Request After Agreement Approval
• Agreement Amendments / Application Processing Issues
• U.S. Government Review Process
• Congressional Notification / Processing Times
• Expedited Licensing Programs
• Checking License Status
• End-Use Checks

Exemptions

– with EXERCISES WORKSHOP

• Exemptions Available to U.S. Exporters
• Foreign Military Sales / Allies Maintenance Exemption
• Tech Data Exemptions for US Exports
• NATO+ Reexport or Retransfer Exemption
• Exemption for Reexports to Dual and Third Country National Employees of Non-U.S. Entities
• Basic Marketing Information Exclusions and Public Domain 
• Country-Based Exemptions: Australia, Canada and the United Kingdom

Special Issues

• Exporting Defense Articles to the U.S.
  • Permanent and Temporary Imports into the U.S. (Including Repairs)
• What to Do If Exemptions are Not Available?
• Return of Items Received From the U.S. Under DSP-73
• Procurement in the U.S.
  

Brokering

• “Who is a Broker?”; Brokering Activities and Exclusions From These Activities
• Registration, What Requires Approval, Exemptions, Exemption Exclusions & Reporting

Political Contributions, Fees & Commissions

– with EXERCISES WORKSHOP

• Threshold and Reporting Requirements
• Defining Applicants, Suppliers & Vendors
• Supplemental Reports

Compliance Programs

• Key Elements, Considerations & Procedural Approaches
• ICP Procedure Priorities for Companies Outside the US
• Compliance Training / Automation / ICP Guidance and Tips
• Risk Assessment & U.S. Government Program Recommendations

Recent Developments

• Latest Regulatory Changes
• Other Recent Developments in the ITAR

ITAR Export Enforcement

• Enforcement Agencies & Methods
• Common ITAR violations
• Fines & Penalties, Possible Outcomes in ITAR Penalty Cases
• Additional, Informal “Sanctions”
• When Violations are Discovered / Voluntary Disclosures
• Trends in Enforcement
• Enforcement Case Studies

*Timing and Order of agenda items subject to change

Introduction to the Export Administration Regulations

• U.S. Export Control Policies & Key Control Concepts
• Comparison to International Regime
• Why Should a Non-U.S. Company Comply?
• What is Subject to Export Controls? Commodities, Software, Technology/Technical Data
• Regulated Activities: Exports, Reexports, Transfers, Deemed Exports and Reexports, U.S. Person Activities
• Primary U.S. Export Control Regulations
  • International Traffic in Arms Regulations (ITAR)
  • Export Administration Regulations (EAR)
  • Office of Foreign Assets Control (OFAC) Sanctions Regulations
• Extraterritoriality of Rules

EAR Controls

• STEP 1: Who Are You? How U.S. Rules Apply to Non-U.S. Companies and Non-U.S. Persons
  • Controls on U.S. Persons & U.S. Subsidiary Activities
    

• STEP 2: Sensitive U.S. Content Always Subject to Controls
  • Introduction to Foreign Direct Products of U.S. Technology
  • 600-Series and 9X515 ECCNs Sensitive Content
  • United States Munitions List (USML) Content

• STEP 3: U.S. Content De Minimis Rules
  • De Minimis Rules for Hardware & Software
  • Rule of Second Incorporation
  • What is a Discrete Product for 2nd Incorporation?
  • De Minimis Rules: Software With or in Hardware
  • Software Bundling & Technology Reports
  • Foreign Direct Product Rules: National Security, 9x515, 600 Series

• STEP 4: Export Control Classification
  • De Minimis Rules for Hardware & Software
  • Rule of Second Incorporation
  • What is a Discrete Product for 2nd Incorporation?
  • De Minimis Rules: Software With or in Hardware
  • Software Bundling & Technology Reports
  • Foreign Direct Product Rules: National Security, 9x515, 600 Series 

• Technology & Software Classification
  • Defining Technology / Reexport of Technology and Source Code
  • Reexport Examples of Technology and Software 
  • Technology and Software Classification
  • Items Not Subject to the EAR, “Published” Software & Technology
  • Determining the ECCN of Technology and Software

• STEP 5: “No License Required” Determination – with EXERCISES WORKSHOP
  • Steps to Arrive to NLR Determination
  • Using the Commerce Country Chart to Guide in Determination
  • NLR with an Example / EAR99 and NLR

• STEP 6: License Exceptions
  • Two Types of License Exceptions
  • Country Groups / Restrictions on License Exceptions
  • ECCN-based License Exceptions (GBS, LVS, STA )
  • Situation-based License Exceptions (RPL, TMP, GOV, APR)
  • Technology & Software License Exceptions (TSU, TSR, ENC, TMP)
  • Foreign Direct Products / Controlled US Content & De Minimis (Reviews from Step 2 and 3)

• STEP 7: End-Use and End-User Controls – with EXERCISES WORKSHOP
  • Restricted Parties; Embargoed Countries; Proliferation Activities
  • Military End-Use/User Rule (Belarus, Burma, Cambodia, China, Nicaragua, Russia, & Venezuela
  • Other Military End-Use/User Restrictions
  • Red Flags, General Prohibitions, Antiboycott
  • Applying for a Bureau of Industry & Security License
  • Reasons for Applying for a License
  • SNAP-R Electronic Filing / Tell the Story of Your Application
  • Support Documents / Dual/Third Country Nationals

Sanctions

– with EXERCISES WORKSHOP

• U.S. Sanctions & Export/Reexport Controls Overview; Specially Designated Nationals
• Office of Foreign Assets Control: Smart Sanctions and Who These Rules Apply to
• Embargoed Country Considerations and Destinations: Cuba, Iran, North Korea & Syria
• Other OFAC Sanctions Programs
• OFAC Licensing & Approval Policies
• Important OFAC Sanctions Concepts

Compliance Programs

• Why Have a Compliance Program?
• Considerations & Procedural Approaches
  • Internal & External Compliance Resources
  • Where to Get Started
• USG Compliance Program Recommendations & BIS Core Elements
  • Management Commitment
  • Risk Assessment
  • Formal Written Compliance Program
  • Ongoing Compliance Training & Awareness
  • Compliance Throughout the Export Cycle
  • Recordkeeping Regulatory Requirements
  • Compliance Monitoring & Audits
  • Handling Violations
  • Corrective Action in Response to Export Violations
• Practical Aspects of Successful Compliance
• Automate Reexport Compliance
• Other Considerations: Foreign National Employees/Visitors, Procurement, Information on Servers, Emails, Hand-Carry Exports
• Keys to Long Term Success

Recent Developments