Highlights from Presentations at DTAG’s Nov 9 Meeting

(DDTC is charged with controlling the export and temporary import of defense articles and defense services covered by the U.S. Munitions List (USML). DTAG provides DDTC with a formal channel for regular consultation and coordination with U.S. private sector defense exporters and defense trade specialists on issues involving U.S. laws, policies, and regulations for munitions exports.)

Highlights of the tasks addressed in these three presentations, as well as a summary of the State Department official's remarks, include:

Working Group on USML to CCL Review

The DTAG working group tasked with reviewing the USML to Commerce Control List (CCL) Federal Register notice addressed six questions in its presentation:

1. Does the DTAG believe the procedures and limitations provide adequate national security and foreign policy protection?
2. Do the procedures accomplish the national and economic security objectives of the export control reform initiative by, for example (i) allowing for more interoperability with NATO and other regime partners while maintaining robust export and re-export controls of 600 series items to all other destinations?; and (ii) reducing the incentives of foreign companies to avoid or design out U.S. origin content.
3. Is the definition of “specially designed” understandable and implementable? If not what changes would DTAG propose and why?
4. Given the draft of 0A606, in light of the previously published re-write of USML Category VII, does DTAG see any underlap or overlap between the two rules? If so, what changes are recommended?
5. Are the record keeping requirements less onerous than current record keeping requirements?
6. Are there any other issues that the proposed rule raises that the Government should take into account when preparing the final version?

(See ITT’s Online Archives 11071519 for summary of BIS’ proposed rule which proposed a construct to transfer items that no longer warrant control on the USML to the CCL, consistent with regime commitments, foreign policy, and national security.)

USML to CCL review presentation available here.

Working Group on Single Export License Form

A DTAG working group was tasked with reviewing and providing comments on the draft single export license form being proposed to replace existing State, Treasury, and Commerce license applications in order to determine if the form (i) accommodates all information potentially required; (ii) flows in a way which is consistent with an easy submission in terms of order; and (iii) captures the information required to support automation for the purposes of reporting, search, etc.

During the course of its review, the working group:

• Reviewed the proposed form and sought clarification and dialogue with DDTC;
• Analyzed the proposed form against current licenses and created a license matrix;
• Identified U.S. government-prepared reports and created a reporting matrix;
• Tested U.S. government proposed form and the DTAG revised form; and
• Provided recommendations and feedback to DDTC.

License matrix. The working group’s license matrix identifies common (and unique) license data elements, highlights fields on current forms that were not included on the proposed single license form, and serves as a working document to facilitate further U.S. government analysis.

Single export license working group presentation available here; DTAG license matrix available here.

Working Group on Definition of Public Domain

Another DTAG working group was tasked with developing a definition of “information in the public domain” that (i) precludes multiple or overlapping controls; (ii) adds clarity; (iii) limits misinterpretation or misuse; and (iv) supports enforcement and prosecution. The ultimate objective is to develop a single definition for both the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR).

As part of its review, the working group (i) undertook a detailed comparison of EAR and ITAR definitions and concepts; (ii) looked at definitions from other laws/regulations including Executive orders, foreign export control laws, etc.; (iii) looked at constitutional limitations and application of prior restraint/1st amendment cases; and (iv) reviewed previous DTAG work on “fundamental research.” (See presentation for details on the working group’s proposed definition.)

Definition of public domain working group presentation available here.

Assistant Secretary Shapiro

In remarks to DTAG, Assistant Secretary Shapiro discussed the reasons for the State Department’s advocacy of the U.S. defense industry abroad as (i) U.S. defense sales advance U.S. interests and support global partnerships, (ii) U.S. defense cooperation helps promote stability, (iii) such efforts support U.S. jobs, and (iv) a robust defense industrial base is critical to U.S. national security. Shapiro noted that the U.S. defense industry is also being supported by the President’s Export Control Reform.

Assistant Secretary Shapiro’s remarks available here.

(See ITT’s Online Archives 11111471 for announcement that information from DTAG’s Nov 9 meeting had been posted.

See ITT’s Online Archives 11102632 for announcement of DTAG’s Nov 9 meeting.)