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
2Required 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
3What 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)
4I 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.
5What 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.
6Penalties
- 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
7Technical 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.
8EC-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).
9Export
- 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
10Nadcap 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. -
11Nadcap 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.
12Nadcap 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.
13Recognizing 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.
14Applicable 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.
15Overview 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.
17Affirmation 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.
18U.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
19INTRODUCTION
- 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.
20U.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.
21U.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
22U.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
23Reasons 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)
24The 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
25ITAR 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.
26ITAR 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.
27ITAR 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.
28ITAR 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.
29ITAR 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
30ITAR 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.
31ITAR 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
32Anti 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.
33The 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
34The (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
35EAR 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)
36EAR 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
37EAR 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)
38Nadcap Procedure NIP 7-07
- All auditors must review the NIP 7 07 posted in
eAuditNet under User Documents.