Directorate of Defense Trade Controls

Yolanda Gantlin

Agenda

• Mission• Laws And Regulation• Divisions• USML• Registration• Licenses• Outreach• Definitions

Directorate of Defense Trade Controls

Mission: Advance US national security and foreign policy through licensing of direct commercial sales in defense articles and the development and enforcement of defense trade export control laws, regulations and policies.

Laws and Regulations

• Arms Export Control Act (AECA)

• International Traffic in Arms Regulations (ITAR) 22 CFR Parts 120-130

Purpose Of Controls

• Foreign Policy• National Security• Human Rights• Regional Stability • Proliferation

International Traffic in Arms Regulations (ITAR)

• Implementing Regulations of AECA • U.S. Munitions List

(USML)designates defense articles/services subject to State export jurisdiction licensing policy and procedures

• Compliance and Enforcement • Fines and Penalties

DDTC Divisions

• Licensing(DTCL) - Responsible for ensuring all licensing of USML commodities are authorized in accordance with the ITAR

• Policy(DTCP) - Responsible for Commodity Jurisdiction and regulatory revisions

• Compliance(DTCC) - Responsible for Registration and Enforcement of the Laws

Who Has to Register and Why

Manufacturer/Exporter• Any Person (other than USG Officer or

Employee in official capacity) who engages in the US in the business of either manufacturing or exporting defense articles or furnishing defense services is required to register with DDTC

• Required by AECA Section 38 (b)(1)(A)(I) & ITAR Part 122

Who Has to Register and Why (cont’d)

Broker• Any person (other than USG Officer or

employee in official capacity or employees of foreign governments or international organizations acting in official capacity) subject to U.S. Jurisdiction who engages in the business of brokering defense articles and defense services is required to register with DDTC

• Required by AECA Section 38 (b)(1)(A)(ii) & ITAR Part 129

Exporters Must Be Eligible (ITAR Part 120.1(c))

• U.S. person* - ITAR 120.15

• Registered with DDTC – ITAR 122

• Meet the definition of empowered official – ITAR 120.25

• Directly employed by registrant

• Trained and knowledgeable in defense trade controls at a level commensurate with responsibilities

• Commit the company to ITAR/AECA adherence

• * Foreign governments are permitted to submit license applications (ITAR 120.1 (c) )

Exporters Must Not Be Ineligible (ITAR Part 120.1(c))

• Foreign persons* - ITAR 120.16

• Administrative debarment for civil violation of AECA or ITAR – ITAR 127.7

• Statutory debarment for criminal conviction for violating AECA or ITAR – ITAR 127.7

• Indictment or conviction of violating “enumerated statutes – ITAR 120.27

• Policy of denial, revocation, suspension – ITAR 126.7

• Ineligible to contract with USG

• Ineligible to receive licenses from any USG agency

AECA

AECA Section 38(c)

Any person who willfully violates any provision of

this section or section 39, or any rule or regulation

issued under either section, or who willfully, in a

registration or license application or required

report, make any untrue statement of a material

fact or omits to state a material fact required to be

stated therein or necessary to make the statement

therein not misleading, shall upon conviction be

fined for each violation not more than $1,000,000

or imprisoned not more than ten years or both

Registration Fees

• Validity Period Change (July 2008)– Validity period change from 2 to 1 year

• Fee Structure Changes (September 2008)– Fee Structure changed from $1,750 annually to three

tiers• Tier I: $2,250 (Manufacturer or no final action on

licenses, including all new registrants for the first year)

• Tier II: $2,750 (10 or less licenses with final action)

• Tier III:$2,750 plus either:– $250 for each license with final action above

10; or,– 3% of total value of applications , whichever is

less– Never Lower Than $2,750

Civil Penalties

AECA Section 38(e)

• The civil penalty for each violation involving controls imposed on the export of defense articles and defense services under this section may not exceed $500,000

License Types

• DSP-5 Permanent Export • DSP-73 Temporary Export• DSP-61 Temporary Import• DSP-85 Permanent/Temporary Export,

Temporary Import• DSP-6/74/62/84 Amendments

Department of State• Foreign Policy – Country Desk Office (e.g., EAP,

NEA)• Regional Stability – PM/RSAT• Human Rights Policy – DRL

Department of Defense (DOD)• National Security• Technical Review• Regime Compliance (MTEC)Check DOD status at http://elisa.osd.mil

Referral Process

Other U.S. Government Agencies• NASA – Space-related applications• Department of Energy – Nuclear-related

applications

• Referral points have 15 days to reply

• DOD has no time limit for review

Referral Process (cont’d)

• Licensing Officer reviews case with recommendation of other agencies and determines final disposition of cases:

• Approve

• Approve with provisos

• Return Without Action (RWA)

• Deny

Final review and issuance

Registration Information

• General Questions - 202-663-1282 and DDTCResponseTeam@state.gov

• Advisory Opinion May be Sent to DDTC Regarding Export or Registration (ITAR Part 126.9)

• Learn more about U.S. Defense Trade Controls Registration, Licensing, and other ITAR regulatory matters by visiting the DDTC website at: www.pmddtc.state.gov

United States Department of State

Directorate of Defense Trade Controls

DDTC Response Team: 202-663-1282

www.pmddtc.state.govNEW

Definitions

• U.S. Person• Foreign Person• Defense Article• Technical Data• Public Domain• Defense Service• Significant Military Equipment• Export• Retransfer/Re-export• Temporary Import