Export Compliance Lifecycle

Identify new customer, supplier,

contractor, employee

Screen the entity/person

Classify the goods/technology for

export/disclosure

Conduct export license

determination

Create necessary documentation & export/hire/serve

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Compliance Process

Customer/Supplier Selection

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Ensure your trade partners are not listed in U.S. denied, sanctioned and/or restricted party lists; including but not limited to:

U.S. Dept. of State – Debarred Party List

U.S. Dept. of State – Country Specific and End-Use Specific Sanctioned Party Lists

U.S. Dept. of Commerce – Entity List, Unverified List and Denied Persons List

U.S. Dept. of Treasury – Specially Designated Nationals, FSE Lists

Other Gov. agency issued sanctioned persons lists

Lists are updated Frequently!

U.S. based companies can violate the Export Control Laws by conducting a business with these entities & persons w/o prior U.S. Government authorization

End-User Screening

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• Intermediate and Ultimate Consignees

• End Users

• Pay-to and Pay-from parties

• Freight Forwarders

• New hires

• Employees

• Visitors

• Contractors

• Consultants

• Representatives and Agents

• Potential and existing Customers

• Service Providers

• Recipients of software and technical data

• Financial institutions

• Suppliers

• Vendors

• Subcontractors

- Purchasing

- Procurement

- Trade Compliance

- Customer Service

- Sales

- Trade Compliance

- Shipping

- Receiving

- Traffic/Logistics

- Trade Compliance

- Human Resources

- Security

- Engineering

- Trade Compliance

Automated Screening Software

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End-Use Screening

Ensure your foreign trade partners are not involved in the following activities:

Chemical and Biological Weapon Proliferation

Nuclear Proliferation

Missiles and Unmanned Aerial Vehicles

Military activities in restricted countries

Anti-Boycott Law Violation

Diversion contrary to U.S. Export Control Laws

It is a violation of Export Control Laws to conduct a business with such trade partners without prior U.S. Government authorization

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DFARS ITAR Flowdown

Defense Federal Acquisition Regulation Supplement ("DFARS") 2010 AmendmentFinal Rule requires that a clause “flowdown clause” mandating strict compliance with U.S. export control laws and regulations be included in all DoDsolicitations and contractsSubcontractor: All suppliers, distributors, vendors, etc.Subcontract : All purchase orders, task orders, contracts,..

Example:“The Contractor shall comply with all applicable laws and regulations regarding export-controlled items, including, but not limited to, the requirement for Contractors to register with the Department of State in accordance with the ITAR.”

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DFARS ITAR Flowdown (Cont’d)

How Subcontractors Can be Compliant?

Develop written export policies and procedures (EAR and ITAR) Determine whether the company is required to register with

DDTC Properly classify items, technology and services for licensing

purposes Implement access controls Apply for licenses if necessary Enforce and publish the export policy Record Retention … Record Retention … Record Retention …

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Plant Visits

Technology transfer to or defense service for a foreign employee

IS AN EXPORT

Plant visit by foreign nationals

IS AN EXPORT if technical data is disclosed

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Plant Visits (Cont’d)

Have a Visitor Management Process

Develop a Technology Control Plan

Implement Foreign National Visit Authorization Form

Must be under supervision of the Empowered Official and/or Export Control Manager

Attach your Technology Control Plan to the Form

Attach “ITAR Non Disclosure Agreement” and “TCP Briefing Record” to the Form

Visitors Must Sign the ITAR NDA and the TCP Briefing Record before accessing to Site/Facility

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Plant Visit License Exemptions

Foreign national visits, resulting a disclosure of unclassified technical data, may not require a license if:

Visit has itself authorized pursuant to a license issued by the ODTC, or

Visit was approved in connection with an actual or potential government-to-government program or project by a U.S. government agency having classification jurisdiction, or

Information is directly related to the classified defense article or technical data for which approval was obtained and is not design, development, production or manufacturing date for any other defense article.

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Trade Shows & Exhibitions

Export authorizations for exhibitions and trade shows can take various forms

SEVERAL authorizations may be required!

Consider what is involved:Hardware?

Technical Data?

Defense Services? (Demos)

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Trade Shows & Exhibitions (Cont’d)

Some applicable License Exemptions:22 CFR 123.16 (b)(4)

Models and mock-ups that are non-operable and do not reveal any technical data and do not contain controlled components.

22 CFR 123.16 (b)(5)

Temporary export for public exhibition, trade show, air show or related event if that article was previously licensed (DSP-73) for public exhibition

22 CFR 123.4 (a)(3)

Temporary import (and subsequent export) of U.S. – origin defense items without a license, for a period of up to 4 years, for demonstration or marketing. (Other temporary imports are under DSP-61 license)

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Foreign National Employees

Foreign national employees in the U.S. who will potentially access to U.S.M.L. defense articles or technical data must be licensed (DSP-5) by DDTC

Technical Assistance Agreement may also be required in certain cases

Once Again…

Develop and Implement a Technology Control Plan!

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Foreign National Employees (Cont’d)

Important Things in Licensing Process

Specific purpose (end-use) for which the technical data is required

Logical connection between the person’s need for the technical data and the job description

Nationality of the foreign person matters in speed of license approval

Consistency between the foreign person’s address and U.S. visa issuing country matters

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Technology Control Plan

Often required by the DDTC & Defense Technology Security Administration (DTSA) for approval of a license or agreement

Can be Broad or Program/End-Use Specific

Proof of the intention to maintain appropriate controls to comply with terms of export authorization

Outlines the procedures and requirements for transfer of technical data to U.S. and non-U.S. persons

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Technology Control Plan (Cont’d)

Some of the Elements:Definitions

Scope, Project/Program & End-Use Summary

Roles and Responsibilities

List of Controlled Items

Authorized Persons and Work Locations

Access Control Procedures

Technical Data Transfer Control Procedure

Employee/ Contractor Hire and Transfer Procedure

Training Procedure

Record Retention Procedure

Copies of Licenses, Agreements, and Associated Documentation

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Excellence in ITAR Compliance

Stay Compliant!

Control &

Monitor

ImplementPlan

Questions

Contact

Intredex, Inc.

3259 Progress DriveOrlando, FL 32826

http://www.intredex.com

Phone: 888-397-1777

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