Registration Management Committee
Determining Export
Restrictions
Dave Day and Jeff Long
22-23 July, 2015
Charleston SC
Company Confidential
RMC Auditor Workshop Charleston, SC - 22-23 July 2015
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Registration Management Committee
Content
• ITAR vs. EAR
• A Five Step Process
• Examples
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ITAR – International Traffic in
Arms Regulations
22 CFR Part 120, Sub-Chapter M
§120.1
General authorities, receipt of licenses, and
ineligibility.
(a) Section 38 of the Arms Export Control Act (22 U.S.C. 2778),
as amended, authorizes the President to control the export and
import of defense articles and defense services. The statutory
authority of the President to promulgate regulations with respect
to exports of defense articles and defense services is delegated
to the Secretary of State by Executive Order 13637. This
subchapter implements that authority, as well as other relevant
authorities in the Arms Export Control Act (22 U.S.C. 2751 et
seq.). By virtue of delegations of authority by the Secretary of
State, these regulations are primarily administered by the
Deputy Assistant Secretary of State for Defense Trade Controls,
Bureau of Political-Military Affairs.
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EAR – Export Administration
Regulations
15 CFR Part 730 and forward
§730.1 What these regulations cover.
In this part, references to the Export Administration Regulations
(EAR) are references to 15 CFR chapter VII, subchapter C. The
EAR are issued by the United States Department of Commerce,
Bureau of Industry and Security (BIS) under laws relating to the
control of certain exports, reexports, and activities. In addition,
the EAR implement antiboycott law provisions requiring
regulations to prohibit specified conduct by United States
persons that has the effect of furthering or supporting boycotts
fostered or imposed by a country against a country friendly to
United States. Supplement No. 1 to part 730 lists the control
numbers assigned to information collection requirements under
the EAR by the Office of Management and Budget pursuant to
the Paperwork Reduction Act of 1995.
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The Five Step Process
1. Identity
2. Jurisdiction
3. Classification
4. Authorization
5. Documentation
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1. Identity
• What is being considered for export?
– Tangible
» Hardware
» Data
– Intangible
» Knowledge
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2. Jurisdiction
• Department of State or Department of
Commerce?
– Military Unique  State
– All Else  Commerce!
The key take away here is that
ALL exports are controlled!
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2. Jurisdiction
(continued)
• Jurisdiction may be based on “Where Used.”
This can be difficult for sub-tier supplier to
determine.
• Dual Use falls under Department of
Commerce
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3. Classification (Dept. of State)
Category
I.
II.
III.
IV.
VI.
VII.
Firearms, Close Assault Weapons and Combat Shotguns
Guns and Armament
Ammunition/Ordinance
Launch Vehicles, Guided Missiles, Ballistic Missiles,
Rockets, Torpedoes and Mines
Explosives and Energetic Materials, Propellants,
Incendiary Agents and Their Constituents
Vessels of War and Special Naval Equipment
Tanks and Military Vehicles
IX.
X.
Military Training Equipment
Protective Personnel Equipment
V.
VIII. Aircraft and Associated Equipment
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3. Classification (Dept. of State)
(Continued)
Category (continued)
XI.
XII.
XIII.
XIV.
XV.
Military Electronics
Fire Control, Range Finder, and Guidance and Control
Equipment
Auxiliary Military Equipment
Toxicological Agents, Including Chemical Agents,
Biological Agents, and Associated Equipment
Spacecraft Systems and Associated Equipment
XVI. Nuclear Weapons, Design and Testing Related Items
XVII. Classified Articles, Technical Data and Defense Services
Not Otherwise Enumerated
XVIII. Directed Energy Weapons
XIX.
Reserved Gas Turbine Engines and Associated Equipment
XX.
Submersible Vessels, Oceanographic and Associated
Equipment
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121.1 Category VIII (i)
• Technical data and defense services directly
related to the defense articles enumerated…
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CATEGORY XIX—GAS TURBINE ENGINES
AND ASSOCIATED EQUIPMENT
• This is the latest category
• It lists specific engine models and
components
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ITAR Bottom Line
• If it is listed in the Unites States Munitions
List (USML), it is restricted.
• If it is not listed in the USML, it falls under
the control of the Department of Commerce
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3. Classification
(Dept. of Commerce)
• The Commerce Control List (CCL)
• Category 9 – PROPULSION SYSTEMS, SPACE
VEHICLES AND RELATED EQUIPMENT
A. SYSTEMS, EQUIPMENT AND COMPONENTS
B. TEST, INSPECTION, AND PRODUCTION
EQUIPMENT
C. MATERIALS
D. SOFTWARE
E. TECHNOLOGY
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CCL “Technology”
• 9E001 – Development
• 9E002 – Production
• 9E003 – Other, e.g. Hot Section
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Commerce Reasons for Control
• CB – Chemical and Biological Weapons
• NP – Nuclear Nonproliferation
• NS – National Security
• MT – Missile Technology
• RS – Regional Stability
• FC – Firearms Convention
• CC – Crime Control
• AT – Anti-Terrorism
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4. Authorization
• From the USML classification or the
Commerce Control List and the appropriate
Export Control Classification Number, the
Reason for Control is looked up in the
relevant country chart to determine if DoS
restricts or if DoC requires a license.
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4. Authorization
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5. Documentation
• Anytime you are making a decision on export
control, you should document the decision
process from the four steps above.
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ITAR Example
(22 CFR Ch I 121.1, Category VIII)
• Category VIII—Aircraft and Associated Equipment
• * (a) Aircraft, including but not limited to helicopters, nonexpansive balloons, drones, and lighter-than-air aircraft, which
are specifically designed, modified, or equipped for military
purposes. This includes but is not limited to the following
military purposes: Gunnery, bombing, rocket or missile
launching, electronic and other surveillance, reconnaissance,
refueling, aerial mapping, military liaison, cargo carrying or
dropping, personnel dropping, airborne warning and control,
and military training. (See § 121.3.)
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ITAR Example
(22 CFR Ch I 121.1, Category VIII)
• * (b) Military aircraft engines, except reciprocating engines,
specifically designed or modified for the aircraft in paragraph
(a) of this category, and all specifically designed military hot
section components (i.e., combustion chambers and liners;
high pressure turbine blades, vanes, disks and related cooled
structure; cooled low pressure turbine blades, vanes, disks
and related cooled structure; cooled augmenters; and cooled
nozzles) and digital engine controls (e.g., Full Authority
Digital Engine Controls (FADEC) and Digital Electronic Engine
Controls (DEEC)). However, if such military hot section
components and digital engine controls are manufactured to
engineering drawings dated on or before January 1, 1970,
with no subsequent changes or revisions to such drawings,
they are controlled under Category VIII(h).
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22 CFR Ch I 121.1, Category VIII
• (h) Components, parts, accessories, attachments,
and associated equipment (including ground
support equipment) specifically designed or
modified for the articles in paragraphs (a) through
(d) of this category, excluding aircraft tires and
propellers used with reciprocating engines.
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22 CFR Ch I 121.1, Category VIII
• (i) Technical data (as defined in § 120.10) and
defense services (as defined in § 120.9) directly
related to the defense articles enumerated in
paragraphs (a) through (h) of this category (see §
125.4 for exemptions), except for hot section
technical data associated with commercial aircraft
engines. Technical data directly related to the
manufacture or production of any defense articles
enumerated elsewhere in this category that are
designated as Significant Military Equipment (SME)
shall itself be designated SME.
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Significant Military Equipment (SME)
• (b) Significant military equipment: An asterisk
precedes certain defense articles in the following
list. The asterisk means that the article is deemed
to be “Significant Military Equipment” to the extent
specified in § 120.7 of this subchapter. The
asterisk is placed as a convenience to help identify
such articles. Note that technical data directly
related to the manufacture or production of any
defense articles enumerated in any category that
are designated as Significant Military Equipment
(SME) shall itself be designed SME.
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EAR Excerpts
(15 CFR Part 730 et seq.)
• 9A001 Aero gas turbine engines having any
of the following (see List of Items
Controlled).
• LIST OF ITEMS CONTROLLED
– Unit: Number
– Related Controls: See also 9A101 and 9A991
– Related Definitions: N/A
• Items:
– a. Incorporating any of the technologies
controlled by 9E003.a, 9E003.h, or 9E003.i; or
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EAR Excerpts
(15 CFR Part 730 et seq.)
• 9E003
– a.1. Gas turbine blades, vanes or ‘‘tip
shrouds’’, made from directionally solidified
(DS) or single crystal (SC) alloys and having
(in the 001 Miller Index Direction) a stress
rupture life exceeding 400 hours at 1,273 K
(1,000 °C) at a stress of 200 MPa, based on the
average property values;
– a.2. Multiple domed combustors operating at
average burner outlet temperatures exceeding
1,813 K (1,540 °C) or combustors
incorporating thermally decoupled combustion
liners, non-metallic liners or non-metallic
shells
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EAR Excerpts
(15 CFR Part 730 et seq.)
• 9E001 “Technology” for “development”…
• 9E002 “Technology for “production”…
• 9E003 Other “technology”…
• Etc.
• EAR99 Items subject to the EAR that are not
elsewhere specified in this CCL Category or in
any other category in the CCL are designated
by the number EAR99.
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