Northwest Export Controls Conference - Seattle … - 02 - Summer/07-26... · Directorate of Defense...
Transcript of Northwest Export Controls Conference - Seattle … - 02 - Summer/07-26... · Directorate of Defense...
Northwest Export Controls ConferenceSeattle WA – July 26-27, 2017
Tony DearthManaging Director (Acting)
Directorate of Defense Trade Controls (DDTC)Bureau of Political Military Affairs
U.S. Department of State
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Overview
• Mission Statement• Organizational Overview• 2016 Stats• New Administration• What’s Next for DDTC• Contact Information
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9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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Mission Statement
Ensure commercial exports of defense articles and defense services are consistent with U.S. national security and foreign policy objectives.
Assistant Secretaryfor
Political-Military Affairs (PM)Amb Tina Kaidanow (A)
Under Secretary for Arms Controls & International
Security (T)Vacant
Deputy Assistant Secretary for
Defense Trade Controls
Brian Nilsson
Deputy Assistant Secretary for
Regional Security and Security Assistance
Kevin O’Keefe (A)
Deputy Assistant Secretary for
Plans, Programs, and Operations
Maj Gen Mike Rothstein
Assistant Secretary forInternational Security and
Non Proliferation (ISN)Eliot Kang (A)
Assistant Secretary forArms Control Verification and
Compliance (AVC)Anita Friedt (A)
Department of StateYellow Borders are Political Positions
9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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Office of DefenseTrade Controls
Compliance
Arthur Shulman (A)
Deputy Assistant SecretaryOf Defense Trade Controls
Brian Nilsson
Office of DefenseTrade Controls
Licensing
Terry Davis (A)
Office of DefenseTrade Controls
Policy
Ed Peartree
Office of DefenseTrade ControlsManagement
Senior AdvisorsandStaff
Managing Director
Tony Dearth (A)
DDTC OrganizationAll Non-Political Professional Staff
Licenses Submitted toDDTC by Calendar Year
6
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2010 2011 2012 2013 2014 2015 2016
9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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Cases Received
7
67.6%
2.1%
6.1%
0.7%
8.7%
9.5%
5.2%
2013 Total Cases: 78,810
62.8%
2.6%
7.7%
1.0%
7.6%
12.0%
6.3%
2016 Total Cases: 41830
DSP‐5 DSP‐61 DSP‐73 DSP‐85
Amend. AGs GC/BL
Licensing Decisions
48.0%
40.5%
11.1%
0.4%
2013
34.6%
49.1%
15.6%
0.6%
2016
Approve Approve w/Provisos RWA Deny
9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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Overall RWA Statistics
Average Annual Stats
YEAR CASES AVG AGE AVG RWA
2012 86,188 18.6 10.6%
2013 78,387 19.2 11.3%
2014 59,527 21.9 14.5%
2015 44,523 26.58 16.0%
2016 41,830 28.08 15.6%
2017 (May) 16,370 27.68 15.4%
70Median
Commodity Jurisdiction Determinations
9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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USML – 145 (15%)
Other – 2 (0%)
RWA – 152 (15%)
Split – 10 (1%)
CCL – 655 (68%)
Most Prolific USML Categories:1. Cat XII (33)2. Cat XI (28)3. Cat VIII (26)
CJ Decisions FY 2016
Disclosure Trends by FY
12
0
500
1000
1500
2000
2500
Directed806
11071153
13121482 1493
456
2027
1318
1120985
9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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New Administration
• Regulatory Burden Review• E.O. 13771 (Reg Freeze) and 13777 (Task Force)
• State has “Foreign Affairs” exception, Commerce does not
• Review of Arms Transfer Process
• Slow Filling of Political Vacancies
• State Department Reorganization Review• SecState Budget Remarks – 8% personnel reduction
• State Department Hiring and Transfer Freeze• This has an impact on staffing levels
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What’s Next For DDTC
• Category I-III• Going through final clearance process
• 126.4 “By or For the USG” Exemption
• Continue USML List Reviews• Cats VI, VII, XIII, XX under interagency review
• U.S. Persons Working Abroad
• Definitions Part Two• Defense Services, Technical Data, Public Domain
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9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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What’s Next for DDTC
• Program Licenses
• Brokering
• ITAR “Defrag”
• IT System Modernization
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ITAR “Defrag”
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9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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ITAR “Defrag”
• Definitions Exercise – Where are these?• Performance Capability
• Vendor
• Payload
• Applicant
• Dual National
• Blue Lantern
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Why ITAR “Defrag”
• The average life cycle of a federal regulation has a complete rewrite every 15 years. ITAR >30 years old
• Format/content require revalidation and adjustments due to years of narrowly scoped and topic-centric revisions
• The ITAR currently contain numerous inconsistencies, contradictions, gaps, and overlaps resulting in unclear, ambiguous guidance
• Failure to reverse this trend now will only exacerbate the problem, making the publication of future rules more difficult to achieve in a timely manner
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9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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How to ITAR “Defrag”
• Consolidation of like content and ordering into an orderly, linear, readable format
• Examples of consolidation and organization:• Separation of Part 120 into General Information and
Definitions sections
• Reevaluation/migration of definitions into Part 120
• Migration of exemptions, exceptions, and exclusions into a dedicated Part of the ITAR
• Incorporation of Agreements Guidelines and similar related policy
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IT Modernization Changes
• Single interface for all DDTC online services
• Improved availability
• Enhanced security
• Use of USG “Cloud”
• Streamlined DDTC business processes and automated workflow
• Automation for data reuse
9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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Resources
• DDTC’s website: www.pmddtc.state.gov
• Provides extensive information on AECA/ITAR, detailed FAQs, Directorate contact information
• DDTC Response Team, 202-663-1282, [email protected]
• Provides single point of contact for industry questions and status updates
• 2013 stats: 24,000 emails + 26,000 phone calls = 50,000 queries (200/day)
• IT Questions: DDTC Help Desk, 202-663-2838, [email protected]
• Registrants/applicants can call for help with using our IT systems
• Case status: http://elisa.dtsa.mil/
• Applicants can check the status of their cases on line
• Applicants can call licensing officers directly 21
9th Annual Northwest Export Conference Session 2: International Traffic in Arms Regulations Tony Dearth
Exporting and the New Administration - Compliance and Opportunities July 26-27, 2017
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