Department of State Bureau of Political Military Affairs Bruce M. Carswell Jr. Directorate of Defens

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Department of StateBureau of Political Military
AffairsBruce M. Carswell Jr.Directorate of
Defense Trade Controls
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AGENDA

• US Export Organization Structure
• DDTC Responsibilities
• Agreements
• Review Process

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U.S. Exports Organizational Structure
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Licensing Compliance U.S. Responsible Agencies

• Department of State
• Department of Commerce
• Department of Homeland Security (Customs)
• Department of Justice (BATF)
• Department of Defense
• DTSA, Armed Services, DSS

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Department of State Bureau of Political
Military Affairs (PM)

• Regional Stability
• Diplomacy is More Cost Effective Than Military
  Action
• PM is the Principal Link Between the Department
  of State and the Department of Defense

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Bureau of Political Military Affairs
Responsibilities

• Diplomatic Support for the War on Terrorism
• Security Assistance Programs
• World-Wide Humanitarian Mine Action
• Critical Infrastructure Protection
• International Crime Courts/Article 98
• Consequence Management
• U.S. Export Controls

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PM Directorate of Defense Trade Controls (DDTC)

• Mission Statement
• Advance National Strategic Objectives and
• U.S. Foreign Policy Goals through timely
• enforcement of defense trade controls and
• the formulation of defense trade policy.

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Directorate of Defense Trade Controls
Responsibilities
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DTC Responsibilities

• Ensure Compliance With the ITAR and Take Into
  Consideration National Security and Foreign
  Policy Concerns
• Provide Guidance and Information to the Licensing
  Community

Facilitate U.S. Defense Trade World-Wide, While
Safeguarding National Security Concerns
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Purpose of Arms Sales

• Per The Foreign Assistance Act (FAA) The
• Arms Export Control Act (AECA) Defense
• Articles and Services Shall Be Furnished or
• Sold Solely For
• Internal Security
• Legitimate Self-Defense
• To Permit Recipient Country to Participate in
  Regional or Collective Arrangements Consistent
  With the Charter of the UN
• In Less Developed Friendly Countries for Public
  Works

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What DDTC Controls

• Policy for Designating/Determining Defense
  Articles on the USML
• Specifically Designed, Developed, Configured,
  Adapted, or Modified for Military Application
• AND HAS
• Significant Military or Intelligence
  Applicability Such That ITAR Control is Warranted

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U.S. Export Control Concerns

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

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Licensing Directorate
T2C Naval Vessels, Military Vehicles __

_______________________
_________________ __ T3D Space
Missiles __

________________________________________
__ T4M Military Electronics __

_________________________
_______________ __ T5Z Aircraft (Helos)
Engines __

________________________________________
__ T6F Small Arms _____________________________
______________ __
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Defense Trade Agreements
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What is an Export?

• Sending or Taking a Defense Article or Technical
  Data Out of the United States
• Disclosing, by Any Means, or Transferring a
  Defense Article or Technical Data to a Foreign
  Person in the United States or Abroad.
• Performing a Defense Service on Behalf of, or for
  the Benefit of, a Foreign Person in the United
  States or Abroad.

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What is Technical Data?

• Information which is required for the design,
  development, production, manufacture, assembly,
  operation, repair, testing, maintenance or
  modification of defense articles. This includes
  information in the form of blueprints, drawings,
  photographs, plans, instructions and
  documentation.
• This DOES NOT include information concerning
  general scientific, mathematical or engineering
  principles commonly taught in schools, colleges
  and universities or information in the public
  domain.

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What is a Defense Service?

• Furnishing of Assistance (Including Training) to
  Foreign Persons
• Encompasses design, development, engineering,
  manufacture, production, assembly, testing,
  repair, modification, operation,
  demilitarization, destruction, processing,
  installation, integration, training, or use of
  defense articles
• Furnishing to Foreign Persons Any Technical Data
  Controlled Under the USML
• Military Training of Foreign Units and Forces

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DDTC Export Mechanisms

• License
• Exports Hardware or Technical Data
• Agreement
• Exports Technical Data, Defense Services with
  Possible Hardware

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Types of Agreements

• Technical Assistance Agreement (TAA)
• Discloses Technical Data and Provides Technical
  Assistance
• Can Include Low-Level Assembly of Defense
  Articles
• No Manufacturing or Production Rights Are
  Provided
• Manufacturing License Agreement (MLA)
• Authorizes Manufacture of Defense Articles Abroad
• Automatically Includes Technical Assistance
• Must Provide Manufacture Know-How Result in
  Production

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Activities Requiring Agreements

• Marketing Products to Foreign Parties
• Support Sales to Foreign Parties
• Providing Overseas Maintenance or Training
  Support
• Technical Studies or Evaluations with Foreign
  Parties
• Release of Manufacturing Data and/or Rights
• Efforts to Import Technology from Abroad
• Supporting a Foreign Military Sales Case
• Supporting USG-Sponsored Contracts
• Exemptions Exist for Some of the Above
  Examples

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DTC Guidelines

• Guidelines for Agreements, Oct 03
• Contains Formats and Policies (updated now and
  again for regulatory changes)
• Guidelines for Licenses
• Contains Submission Information
• Located on DTC Home Page
• www.pmddtc.state.gov

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U.S. Exports Review Process Policies
Guidelines
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What is Reviewed?

• Applicant Eligibility
• End Use and End Users
• Retransfer Requests
• Commodity and Quantity
• Value of Exports
• Proper Procedures and Precautions are Followed
• Shipping Details
• Congressional Thresholds/Interests

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How is It Assessed?

• Risk Assessment
• Conducted Against
• National Security Issues
• Foreign Policy Issues
• Regional Stability
• Human Rights
• Multilateral Control Regimes
• Arms Proliferation Concerns

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National of a Third Country (includes dual
nationals)

• The Countries these Employees are Nationals of
  Need to be Listed and Approved
• Non-Disclosure Agreements (NDAs) must be Executed
• Globalization and the future of the national of
  a third country Australia and Canada

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Congressional Oversight

• The Arms Export Control Act
• Requires that DDTC
• Provide Annual and Quarterly Reports of
  Authorizations to Congress
• Obtain Congressional Approval of Certain Proposed
  Exports
• Notify Congress of Unauthorized Transfers

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Contact Information

• Bruce M. Carswell Jr.
• Directorate of Defense Trade Controls
• PM/DTCL, SA-1 Room 1200
• 2401 E Street, NW
• Washington, DC 20522-0112
• Phone [phone]
• Fax [phone]
• E-mail carswellbm_at_state.gov