International Traffic in Arms Regulations Export Administration Regulations Nadcap Export Control Tr - PowerPoint PPT Presentation

1 / 38
About This Presentation
Title:

International Traffic in Arms Regulations Export Administration Regulations Nadcap Export Control Tr

Description:

The term used by PRI when dealing with Export Control is EC-LR/Restricted. ... aural or verbal (telling someone information about a controlled part) ... – PowerPoint PPT presentation

Number of Views:119
Avg rating:3.0/5.0
Slides: 39
Provided by: paula51
Category:

less

Transcript and Presenter's Notes

Title: International Traffic in Arms Regulations Export Administration Regulations Nadcap Export Control Tr


1
International Traffic in Arms
Regulations/Export Administration
RegulationsNadcapExport Control Trainingfor
Auditors
2
Required Training for All Nadcap Auditors
  • The following presentation is required reading
    for all Nadcap Auditors. This information is
    provided here to keep you abreast of Federal
    regulations that may impact your audits. It is
    essential that you be aware of this law to assure
    compliance.
  • Please review the following information, print
    out the training affirmation page of the
    presentation and sign and return to PRI.
  • Following review of this information, should you
    have additional questions, contact Ericha
    McLaughlin - ericham_at_sae.org

3
What is ITAR EAR?
  • International Traffic in Arms Regulations
  • Code of Federal Regulations Parts 120 130
  • EAR
  • Export Administration Regulations
  • Full text of the Federal Law available at
  • (http//pmdtc.org/reference.htm)

4
I am an Auditor -- Not an Arms Trafficker!
  • How Does this Impact Me?
  • We have two classifications of personnel
    (auditors PRI Staff) in the system
    Unrestricted and Restricted. Unrestricted people
    are U.S. citizens or green card holders
    (permanent resident aliens). Restricted persons
    are those who are not US citizens or green card
    holders. This designation applies to all PRI
    Staff, auditors consultants. All personnel
    directly employed or associated with PRI must
    know their status in the system.
  • All auditors shall follow the requirements in NIP
    7-07 and all issued auditor advisories.

5
What is the Impact to Me?
  • The technical data of many Nadcap participating
    prime contractors, is maintained by suppliers
    under these laws and regulations.
  • As you audit their parts, you must be aware of
    the requirements of this law should you encounter
    any ITAR/EAR hardware.
  • The law provides for penalties including fines,
    jail, and civil penalties under U.S. criminal
    statutes for those violating the regulations.

6
Penalties
  • 1. Administrative (vs. Criminal)
  • 2. Fines
  • 3. Debarment from exporting activities
  • 4. Imprisonment
  • Penalties can be applied to both companies and
    individuals
  • Maximum Penalties
  • EAR
  • Civil penalties may be the greater of 250,000 or
    twice the value of the transactions.
  • Criminal violations may be up to 1,000,000
    and/or 20 years imprisonment.
  • ITAR
  • Civil penalties up to 500,000 per violation
  • Criminal fines up to 1,000,000 per violation
    and/or 10 years imprisonment

7
Technical Data is an Exportable Commodity
  • Technical data is included as an export under the
    ITAR regulations (http//pmdtc.org/reference.htm)
  • Information 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, process
    specifications, photographs, plans, instructions,
    and documentation.

8
EC-LR/Restricted
  • The term used by PRI when dealing with Export
    Control is EC-LR/Restricted. The definition for
    this term is All Defense Articles and Technical
    Data controlled by the ITAR any dual-use or
    civil items or Technology controlled by the EAR
    under any ECCN except EAR99.
  • EC-LR/Restricted Item a term which includes
    parts, materials, software, other technical
    information or technology which requires licenses
    or has any other restriction by the laws and
    regulations (ITAR/EAR).

9
Export
  • The definition of Export includes
  • Sending restricted product to non US source
  • Disclosing (including oral or visual disclosure)
    or transferring technical data to a foreign
    person whether in the U.S. or abroad or
  • Performing a defense service on behalf of, or for
    the benefit of, a foreign person, whether in the
    U.S., or abroad

10
Nadcap Internal Procedure 7-07
  • NIP 7-07 has been issued to address Nadcap
    requirements with regard to ITAR and EAR.
  • As defined in NIP 7-07, it is the Suppliers
    responsibility to identify any auditable material
    that is restricted under ITAR and EAR.
  • The Auditor shall not be held liable for any
    unauthorized transfer of Restricted Data, unless
    such Auditor knew or should have known of the
    restricted nature of the data.

11
Nadcap Auditor Responsibilities
  • Nadcap Auditors shall be thoroughly familiar with
    the requirements of NIP 7-07.
  • Nadcap Auditors shall comply with the
    requirements NIP 7-07.
  • Nadcap Auditors shall be aware of the ITAR/EAR
    regulations and understand the impact of these
    regulations.
  • Nadcap Auditors shall know their status as
    restricted or unrestricted and the roles and
    responsibilities of that status.

12
Nadcap Auditor Responsibilities (Continued)
  • Auditable material restricted by ITAR/EAR shall
    not be posted on eAuditNet or removed from the
    supplier facility by the Auditor. Contact the
    Staff Engineer for direction if objective
    evidence is necessary to support audit.

13
Recognizing ITAR/EAR Material
  • May be identified as
  • ITAR/EAR Control
  • Export Control
  • Identification may be on
  • Face of drawing
  • First sheet of specification or embedded in text
  • Purchase Order
  • May not be identified as such, but is on
  • the covered Munitions List
  • NOTE Nadcap auditors are not to scan data
    presented to you for audit for these designations
    - knowing the EC status is the responsibility of
    the supplier.

14
Applicable at Non-U.S. Suppliers
  • Suppliers located outside of the U.S. may be
    licensed under this legislation and may be
    processing ITAR/EAR material.
  • NOTE there currently are NO licenses available
    which authorize Nadcap auditors to audit
    EC-LR/Restricted items (if a license is
    required).
  • As Auditors for PRI and Nadcap, Restricted
    Auditors must be especially vigilant to comply
    with this U.S. law and avoid review of any
    ITAR/EAR material.

15
Overview of ITAR/EAR
  • An overview of the ITAR/EAR Law follows.
    http//www.pmddtc.state.gov/regulations_laws/itar_
    official.html /
  • The US State Department website includes
    overviews of all definitions as well as
    information on the US Munitions List.
  • Following review of this information and NIP 7-07
    at the end of this presentation please print out
    the following page, sign and return via fax to
    the Auditor Staffing Training Dept., 1
    614-635-2836.

16
  • Definitions
  • Unrestricted people are U.S. citizens or green
    card holders (permanent resident aliens).
  • Restricted persons are those who are not US
    citizens or green card holders. This designation
    applies to all PRI Staff, auditors consultants.
  • All personnel directly employed or associated
    with PRI must know their status in the system.

17
Affirmation of ITAR/EAR Training
  • Name___________________________
  • I have read the ITAR/EAR Overview and NIP 7-07
    and I understand my role and responsibilities
    under this law. I understand that I am
    considered a
  • Restricted or Unrestricted Auditor
  • Circle the
    Appropriate
  • and will act in accordance with the
    requirements.
  • I understand that penalties for violation
    include fines, jail, civil penalties under U.S.
    criminal statutes.
  • If, during the course of a Nadcap Audit, I
    should knowingly come into contact with ITAR/EAR
    material, I shall act in accordance with NIP
    7-07.
  • Signature_________________________________________
    _____
  • Date_____________________________________________
    ____
  • Please fax to 1 724-635-2836 Auditor Staffing
    Training Dept.

18
U.S. EXPORT CONTROL LAWS AND REGULATIONS
  • This material is intended only as an overview
    tool and does not provide all substantive
    information needed to make a responsible export
    decision. Please contact your Center Export
    Administrator or Counsel for assistance in
    interpreting and applying U.S. export control
    laws and regulations to your specific export or
    import requirement.
  • Bob Tucker
  • Director, Assessments and Technology Division,
  • Office of External Relations
  • and NASA Export Administrator

19
INTRODUCTION
  • Just What Is An Export Anyway?
  • A Simplified Definition
  • The transfer of anything to a FOREIGN PERSON by
    any means, anywhere, anytime, or the knowledge
    that what you are transferring to a U.S.
    PERSON, will be further transferred to a
    FOREIGN PERSON.

20
U.S. Export Laws and Regulations
  • ITAR stands for International Traffic in Arms
    Regulations. These are regulations administered
    by the US State Department and focus on defense
    articles hardware, information and systems with
    military uses.
  • EAR stands for Export Administration Regulations.
    These regulations are administered by the US
    Commerce Department and focus on commercial and
    dual use (both military and commercial)
    products, information, technology, and equipment.

21
U.S. GOVERNMENT PLAYERS
  • STATE
  • COMMERCE
  • Bureau of Export Affairs
  • DEFENSE
  • Defense Threat Reduction
  • Joint Chiefs of Staff (JCS)
  • Others
  • Arms Control Disarmament Agency
  • TREASURY
  • Customs
  • Office of Foreign Assets Control
  • WHITE HOUSE
  • Office of Science Technology Policy
  • National Security Council
  • U.S. Trade Representative
  • IC
  • TRANSPORTATION
  • Federal Aviation Administration
  • JUSTICE
  • Federal Bureau of Investigation
  • ENERGY

22
U.S. Export Laws and Regulations
  • Examples of Other U.S. Government Players, Laws
    Regulations
  • Drug Enforcement Administration (21 CFR 1311)
  • Food and Drug Administration (21 USC 301)
  • Department of Interior (50 CFR 17.21,22,31,32)
  • Department of Treasury (31 CFR 500)
  • Department of Energy (10 CFR 205.300, 10 CFR 110
    810)
  • Others

23
Reasons Certain Exports are Controlled
  • National Security (NS)
  • Foreign Policy (FP)
  • Proliferation (MT, NP, CB)
  • Short Supply (SS)
  • Anti-Terrorism (AT)
  • Crime Control (CC)
  • High Performance Computer (XP)
  • Regional Stability (RS)
  • UN Sanctions (UN)

24
The United States Munitions List (USML)
  • I - Firearms
  • II - Artillery Projectors
  • III - Ammunition
  • IV - Launch Vehicles, etc.
  • V - Explosives, Propellants, Incendiary Agents
    and Their Constituents
  • VI - Vessels of War and Special Naval Equipment
  • VII - Tanks and Military Vehicles
  • VIII - Aircraft and Associated Equipment
  • IX - Military Training Equipment
  • X - Protective Personnel Equipment
  • XI - Military Electronics
  • XII - Fire Control, Range Finder, Optical and
    Guidance and Control Equipment
  • XIII - Auxilary Military Equipment
  • XIV - Toxicological Agents and Equipment and
    Radiological Equipment
  • XV - Spacecraft Systems and Associated Equipment
  • XVI - Nuclear Weapons Design and Related
    Equipment
  • XVII - Classified Articles, Technical Data and
    Defense Services Not Otherwise Enumerated
  • XVIII - Reserved
  • XIX - Reserved
  • XX - Submersible Vessels, Oceanographic and
    Associated Equipment
  • XXI - Miscellaneous Articles

25
ITAR DEFINITIONS- Defense Article
  • Important ITAR Definitions
  • Defense Article - any item on the USML,
    including technical data.
  • EC-LR/Restricted Item a term which includes
    parts, materials, software, other technical
    information or technology which requires licenses
    or has any other restriction by the laws and
    regulations (ITAR/EAR).
  • Denied Parties/Watch List A list of countries
    and programs that have been denied any export
    privileges. PRI is to have no involvement with
    any country or program on the lists under any
    circumstance.

26
ITAR DEFINITIONS - Technical Data
  • Important ITAR Definitions
  • Technical Data - information which is required
    for the design, development, production,
    manufacture, assembly, operation, repair,
    testing, maintenance, or modification of defense
    articles classified information related to
    defense articles information covered by an
    invention secrecy order software directly
    related to defense articles.

27
ITAR DEFINITIONS - Technical Data
  • Important ITAR Definitions
  • Technical Data (contd) - does not include
    information concerning general scientific,
    mathematical or engineering principles commonly
    taught in schools, colleges and universities or
    information in the public domain. It also does
    not include basic marketing information on
    function or purpose or general system
    descriptions of defense articles.

28
ITAR DEFINITIONS - U.S. Person
  • Important ITAR Definitions
  • U.S. Person - a natural person who is a lawful
    permanent resident as defined in 8 U.S.C.
    1101(a)(20) or who is a protected individual as
    defined by 8 U.S.C. 1324b(a)(3). It also means
    any corporation, business association,
    partnership, society, trust, or any other entity,
    organization or group that is incorporated to do
    business in the U.S. It also includes any
    governmental (federal, state or local), entity.

29
ITAR DEFINITIONS - Foreign Person, Export
  • Important ITAR Definitions
  • Foreign Person - opposite of U.S. Person.
  • Export - sending or taking a defense article
    out of the U.S. in any manner, except by mere
    travel outside of the U.S. by a person whose
    personal knowledge includes technical data or
    transferring registration, control, or ownership
    to a foreign person of any aircraft, vessel, or
    satellite covered by the USML, whether in the
    U.S. or abroad or

30
ITAR DENIED Parties/RESTRICTED Countries
  • There are numerous denied parties/watch lists
    that are maintained by Department of State and
    Department of Commerce, OFAC, etc.
  • OFAC- Office of Foreign Assets Controls U.S.
    Department of Treasury agency which administers
    sanctions against targeted foreign governments,
    individuals, entities and practices. U.S.
    economic force used to enact foreign policy
    goals. Includes blocked assets, trade
    restrictions and financial transactions.
    Jurisdiction applies to all U.S. persons and
    citizens.
  • Sanction lists are designed to keep you away from
    these countries, companies, individuals and/or
    practices. PRI Staff should refrain from dealing
    with individuals from any of the countries listed
    below or any of the practices. If approached by
    any individuals or entities on this list, the
    staff member should report it to management
    immediately.

31
ITAR Denied Parties/Restricted Countries LIST
  • Balkans
  • Belarus
  • Burma
  • Coite dIvorie
  • Cuba
  • Diamond Trading
  • Iran
  • Iraq
  • Liberia
  • Narcotics Trafficking
  • Non Proliferation
  • North Korea
  • Sudan
  • Syria
  • Terrorism
  • Iran
  • Zimbabwe

Indicates comprehensive program
32
Anti Boycott Regulations
  • If individuals or companies make any mention in
    relationship to refusing to do business with part
    of the EAR that does not allow US
    persons/companies to go along with any boycotts
    with Israel. This could take the form of
    questions about PRI Personnel working on the
    audit (Auditor/Staff Engineers). If you have any
    conversations with any companies regarding this
    issue, you must report it to your supervisor
    immediately.

33
The Export Administration Regulations (EAR)
  • Administered by the Department of Commerce
    (Bureau of Export Administration)
  • The Commerce Control List (CCL)
  • Divided into ten (10) categories (0 to 9)
  • Complete listing of items controlled by the EAR
  • Example Category 9- Propulsion Systems, Space
    Vehicles and Related Equipment

34
The (New) Export Administration Regulations (EAR)
  • 15 CFR 730-774
  • Category 0 - Nuclear Materials, Facilities and
    Equipment and Misc.
  • Category 1 - Materials, Chemicals, Microorganisms
    and Toxins
  • Category 2 - Materials Processing
  • Category 3 - Electronics
  • Category 4 - Computers
  • Category 5 (Part 1) Telecommunications
  • Category 5 (Part 2)- Information Security
  • Category 6 - Sensors and Lasers
  • Category 7 Navigation and Avionics
  • Category 8 - Marine
  • Category 9 - Propulsion Systems, Space Vehicles
    and Related Equipment

35
EAR DEFINITIONS
  • Important EAR Definitions
  • Export- Any item sent from the United States to a
    foreign destination (company or person) is an
    export. All items and articles leaving the
    United States are exports and, therefore, are
    subject to controls and restrictions.
  • Items include hardware (parts, materials, sub
    assemblies), information (drawings,
    specifications, test data, calculations) and
    technologies (e.g.. Composites)
  • Exports can be
  • physical (sending a part to a foreign country or
    person)
  • aural or verbal (telling someone information
    about a controlled part)
  • visual (a foreign person sees controlled
    information even if they see it on your laptop
    in a public place)

36
EAR Definitions Contd.
  • Items Subject to the EAR - items listed on the
    Commerce Control List (CCL) and those items
    designated as EAR 99
  • Controlled Technology - specific information
    required for the development, production, or
    use of a product which is itself controlled.
    The information takes the form of technical
    data or technical assistance.
  • Technical Data - May take forms such as
    blueprints, plans, diagrams, models, formulae,
    tables, engineering designs and specifications,
    manuals and instructions written or recorded on
    other media or devices such as disk, tape, or
    read-only memories.
  • Technical Assistance - may involve transfer of
    technical data

37
EAR DEFINITIONS Contd.
  • Important EAR Definitions
  • Reexport - shipment from one foreign country to
    another foreign country
  • Publicly Available Information - information that
    is generally accessible to the interested public
    in any form and, therefore, not subject to the
    EAR
  • Publicly Available Technology and Software - that
    technology and software that are already
    published or will be published arise during, or
    result from fundamental research are
    educational or are included in certain patent
    applications (see 15 CFR 734)

38
Nadcap Procedure NIP 7-07
  • All auditors must review the NIP 7 07 posted in
    eAuditNet under User Documents.
Write a Comment
User Comments (0)
About PowerShow.com