# Presentation: 638909

## Addressing Worldwide Threats through Export Controls 

**David Flynn**
**Chairman**
**Operating Committee **
**for Export Policy**

**Notes:**
Speaker Note: The speaker should introduce him or herself, the organization he is from, and his experience as a licensing officer.

After the licensing officer at the Department of Commerce has reviewed the license application against the 8 variables we discussed yesterday, the application is sent out to other agencies for their review and recommendations.  In this module, we will discuss the interagency review process, how it works, and why it is so important. 

## “If a man writes a better book, preaches a better sermon, or makes a better mousetrap than his neighbor, though he builds his house in the woods, the world will make a beaten path to his door.”RW Emerson

*“**If a man writes a better book, preaches a better sermon, or makes a better mousetrap than his neighbor, though he builds his house in the woods, the world will make a beaten path to his door.”***RW Emerson**

**Notes:**
This forum is responsible for resolving more than 90% of all the license applications that cannot be worked out over the electronic referral system.

Cases will normally stay assigned to the OC for no more than 14 days.  This forces the problems surrounding the case (e.g., the level of technology or the legitimacy of the end-user) to be resolved expeditiously.

Final decisions rest with the chairperson of the OC.  Following the statement of decision by the Chair, any agency still dissenting must appeal to the Advisory Committee for Export Policy (ACEP) within 5 days or the Chair’s decision is final and the license decision is forwarded to the exporter.

The OC has effectively resolved a majority of interagency disputes for over 15 years.

## The United States is the world leader in advanced technology

## Bad Actors Around the World

**Bad Actors Around the World**

- Dr Abdul Qadeer Khan is accused in the West of nuclear espionage and at the same time is Pakistan's nuclear hero as architect of the country's nuclear prowess.

**Notes:**
This forum is responsible for resolving more than 90% of all the license applications that cannot be worked out over the electronic referral system.

Cases will normally stay assigned to the OC for no more than 14 days.  This forces the problems surrounding the case (e.g., the level of technology or the legitimacy of the end-user) to be resolved expeditiously.

Final decisions rest with the chairperson of the OC.  Following the statement of decision by the Chair, any agency still dissenting must appeal to the Advisory Committee for Export Policy (ACEP) within 5 days or the Chair’s decision is final and the license decision is forwarded to the exporter.

The OC has effectively resolved a majority of interagency disputes for over 15 years.

## Bad Actors Around the World

**Bad Actors Around the World**

- Al-Qaida leader, Usama bin Ladin, is actively in search of technology and equipment to further their terrorist aims.

**Notes:**
This forum is responsible for resolving more than 90% of all the license applications that cannot be worked out over the electronic referral system.

Cases will normally stay assigned to the OC for no more than 14 days.  This forces the problems surrounding the case (e.g., the level of technology or the legitimacy of the end-user) to be resolved expeditiously.

Final decisions rest with the chairperson of the OC.  Following the statement of decision by the Chair, any agency still dissenting must appeal to the Advisory Committee for Export Policy (ACEP) within 5 days or the Chair’s decision is final and the license decision is forwarded to the exporter.

The OC has effectively resolved a majority of interagency disputes for over 15 years.

## Emerging ConcernsBrazil

**Emerging Concerns****Brazil**

**Sources: Brazil blocks nuclear inspectors**
- Sunday, April 4, 2004 Posted: 1:39 PM EDT (1739 GMT)
** **
**(CNN) -- The Brazilian government and U.N. nuclear inspectors are at odds over inspections of an under-construction, uranium-enrichment facility near Rio de Janeiro, sources close to the International Atomic Energy Agency said Sunday.**
- The sources confirmed a report in The Washington Post that Brazil was refusing to allow IAEA inspectors to see the facility's equipment in order to protect proprietary information.
** **

**Notes:**
The Operating Committee (OC) is the oldest of the interagency dispute resolution forums.  It meets once a week to resolve problematic export license applications.  

The committee consists of technical and policy representatives from the following departments and agencies:  Departments of Commerce, State, Defense, Energy, and the Intelligence Community.

The chairperson of the OC is a Department of Commerce career civil servant.  The chairperson, although a Commerce employee, acts as an independent arbiter who runs the meeting, giving all agencies due time to explain their positions.

## Emerging ConcernsSyria

**Emerging Concerns****Syria**

**Bush signs Syria sanctions bill**
**Saturday, December 13, 2003 Posted: 12:16 AM EST (0516 GMT)**
**WASHINGTON (CNN) -- President Bush has signed legislation that seeks to punish Syria for its alleged ties to terrorism by authorizing economic and diplomatic sanctions against Damascus. **

**Notes:**
The Operating Committee (OC) is the oldest of the interagency dispute resolution forums.  It meets once a week to resolve problematic export license applications.  

The committee consists of technical and policy representatives from the following departments and agencies:  Departments of Commerce, State, Defense, Energy, and the Intelligence Community.

The chairperson of the OC is a Department of Commerce career civil servant.  The chairperson, although a Commerce employee, acts as an independent arbiter who runs the meeting, giving all agencies due time to explain their positions.

## Emerging ConcernsIran

**Emerging Concerns****Iran**

**U.S. has photos of secret Iran nuclear sites**
**From David Ensor****Friday, December 13, 2002 Posted: 8:32 AM EST (1332 GMT)**
** **
**WASHINGTON (CNN) --** **The United States has evidence that Iran has secretly been building large nuclear facilities -- sites that could possibly be used to make nuclear weapons, senior U.S. officials tell CNN.**
** **

**Notes:**
The Operating Committee (OC) is the oldest of the interagency dispute resolution forums.  It meets once a week to resolve problematic export license applications.  

The committee consists of technical and policy representatives from the following departments and agencies:  Departments of Commerce, State, Defense, Energy, and the Intelligence Community.

The chairperson of the OC is a Department of Commerce career civil servant.  The chairperson, although a Commerce employee, acts as an independent arbiter who runs the meeting, giving all agencies due time to explain their positions.

## Slide 9

**Notes:**
The OC meetings follow a set format:

		Prior to the meeting, the chairman 		produces an agenda which is sent to 		representatives of the State Department, 		the Defense Department, the 			Intelligence Community, the Department 		of Energy, and ACDA.

		The chairman opens the meeting and 		minutes are taken to record the 			decisions made for each case.  The 		meeting follows a simple old case/new 		case format and action items or 			questions by various agencies are 		recorded during the discussions of each 		license.

		The Commerce Division Director, or his 		representative, makes a 5- to 10-minute 		presentation to his peers on the 		committee. The details of the case are 		discussed including the technology 		involved, the regulatory sections that are 		applicable, and the nature of the dispute.

		A discussion ensues in which 			representatives from the other agencies 		articulate their positions, with the 		chairperson guiding the discussion to 		see if the case can be resolved to the 		satisfaction of all agencies.  Normally, 		the Commerce Department seeks 		approval with a series of conditions that 		are acceptable to the exporter and other 		agencies.

## Proliferation is Still a Concern

- Nuclear Suppliers Group
- Missile Technology Control Regime
- Australia Group
- Wassenaar Arrangement

## Nuclear

**Nuclear**

**Notes:**
During this presentation, I have provided you with an overview of the interagency review process, the parties involved, and their respective roles.

The majority of all export cases are resolved before reaching the dispute resolution process, which we will discuss next.

As you can see, the U.S. process mimics the scale in this graphic.  The four main agencies balance national security, foreign policy, and economic concerns before rendering a judgement.

Are there any questions?

## Chem – Bio and Missile 

**Chem – Bio and Missile **

**Notes:**
During this presentation, I have provided you with an overview of the interagency review process, the parties involved, and their respective roles.

The majority of all export cases are resolved before reaching the dispute resolution process, which we will discuss next.

As you can see, the U.S. process mimics the scale in this graphic.  The four main agencies balance national security, foreign policy, and economic concerns before rendering a judgement.

Are there any questions?

## Thermal Imaging

**Notes:**
Usually the licensing officer presents this information in a relatively informal discussion.  He may also provide written materials that support his argument.  In addition, the agencies involved may meet informally to discuss the case.  Other options include having the company present its case with more detailed information or providing face-to-face expertise in which industry engineers talk to Government engineers from the agency that recommends denial.

Generally, the way to keep the dispute from being escalated is for Commerce to convince the dissenting agency or agencies that they should approve the case.  To gain this approval, the licensing officer can offer specific conditions for licensing, including prelicense and postshipment checks, visitation, technical limitations on the equipment, etc. to make the sale acceptable.

## Semiconductor Manufacturing

## U.S. – India High Technology Cooperation

**The United States and India are committed to qualitatively transforming their relationship and continuing efforts to stimulate bilateral high-technology commerce under the auspices of the HTCG.**

##  Taken QuestionsOffice of the SpokesmanWashington, DCApril 1, 2004Question Taken at April 1, 2004 Daily Press BriefingPakistan: Major Non-NATO Ally Status

|   | Taken QuestionsOffice of the SpokesmanWashington, DCApril 1, 2004Question Taken at April 1, 2004 Daily Press Briefing
Pakistan: Major Non-NATO Ally Status

Question:   What is the status of the effort to designate Pakistan a major non-NATO ally? What remains to be done? 
Answer:   On March 18, Secretary Powell announced that he would recommend to the President that the United States recognize Pakistan as a “Major Non-NATO Ally” in recognition of its close and continuing cooperation in the Global War on Terrorism. 
We are currently processing the formal request. 
Congress will be notified after the President makes a formal determination that Pakistan will be designated a Major Non-NATO Ally. 
2004/361 [End]Released on April 1, 2004 |
| --- | --- |

-  Taken Questions**Office of the Spokesman**Washington, DCApril 1, 2004_[Question Taken at April 1, 2004 Daily Press Briefing](http://www.state.gov/r/pa/prs/dpb/2004/31043.htm#nato)_**Pakistan: Major Non-NATO Ally Status**
**Question:**   What is the status of the effort to designate Pakistan a major non-NATO ally? What remains to be done?
**Answer:**   On March 18, Secretary Powell announced that he would recommend to the President that the United States recognize Pakistan as a “Major Non-NATO Ally” in recognition of its close and continuing cooperation in the Global War on Terrorism. We are currently processing the formal request. Congress will be notified after the President makes a formal determination that Pakistan will be designated a Major Non-NATO Ally.
**2004/361** [End]Released on April 1, 2004

## China – U.S. Trade Relations

- Agreements for end use visits
- Broader improvement in trade
- Additional nuclear cooperation

**Notes:**
The Department of Energy only receives dual-use license applications for equipment, material, software, or technology controlled for nuclear nonproliferation reasons.  These items are usually found on the Wassenaar and NSG lists.  The Department of Energy staffs the license applications to various DoE labs throughout the country including Los Alamos National Laboratory, Argonne National Laboratory, Lawrence Livermore, Sandia Laboratory, and others depending on the technology involved.  DoE’s cooperative efforts in the peaceful use of nuclear energy is factored into the decision, particularly when the end user country has a strong track record of cooperation.  Once the opinions from the laboratories is obtained, the DoE analyst at Main Energy in Washington, DC provides the coordinated opinion back to Commerce. 

**Libya Welcomes Easing of US Sanctions***Kerry Sheridan**Cairo**24 Apr 2004, 17:03 UTC*

**Notes:**
Dual-use export license applications referred to State by Commerce go to the Bureau of Political and Military Affairs (PM).  PM is responsible for reviewing the applications, for staffing them to other groups internally within State as required, and for returning a recommendation to Commerce.  Munitions license applications, however, are submitted by the applicant directly to State’s Office of Defense Trade Controls, which then staffs them to the Department of Defense via FORDTIS.

The country desk officers at State play a leading role in State’s ultimate position of the country they are responsible for.  State’s vote or final recommendation is always based on whether the transaction supports U.S. foreign policy goals in the region or country.

## Commodities

- Technology

- Deemed Exports

## Interagency Partners

**Interagency Partners**

## Export Enforcement

## Department of Homeland Security

## Nuclear Regulatory Commission

- Radioactive Sources
- Reactor Components
- Nuclear Fuel

## Export Licensing is a Balancing Act

## Foreign Availability

**Foreign Availability**

**Notes:**
During this presentation, I have provided you with an overview of the interagency review process, the parties involved, and their respective roles.

The majority of all export cases are resolved before reaching the dispute resolution process, which we will discuss next.

As you can see, the U.S. process mimics the scale in this graphic.  The four main agencies balance national security, foreign policy, and economic concerns before rendering a judgement.

Are there any questions?

## Adverse Economic Impact

**Adverse Economic Impact**

**Notes:**
During this presentation, I have provided you with an overview of the interagency review process, the parties involved, and their respective roles.

The majority of all export cases are resolved before reaching the dispute resolution process, which we will discuss next.

As you can see, the U.S. process mimics the scale in this graphic.  The four main agencies balance national security, foreign policy, and economic concerns before rendering a judgement.

Are there any questions?

## Uncle Sam Wants You

**Uncle Sam Wants You**

**To Be Vigilant**

**Notes:**
Whenever agencies cannot agree about the disposition of a case, the Commerce licensing officer should attempt to resolve the matter at the working level.  Resolving a case at the working level is the most efficient and best way to meet established timetables for review.  In the United States, if a dispute occurs, the Department of Commerce licensing officer will generally be on the side of the exporter and seek a solution that permits the export to go forward.  Therefore, it is usually the Commerce licensing officer’s strategy to determine a set of conditions that address the concerns of the objecting agencies while allowing the export to proceed.  This is usually done by obtaining additional information and using past precedents.

The information a licensing officer can provide to try and resolve a case at the working level might include:

		Historical evidence indicating that the 		Government has approved similar cases 		in the past (precedent).

		Evidence that foreign competition would 		likely complete the transaction if the 		application for the license were denied.  		This would show that a denial of the 		case would only drive the business to 		another country.

		Evidence that the denial of the case may 		adversely affect U.S. economic viability, 		e.g., the company would go bankrupt.  		This may be detrimental to the U.S. 		industrial base.

## Questions??

**Questions??**

**Notes:**
During this presentation, I have provided you with an overview of the interagency review process, the parties involved, and their respective roles.

The majority of all export cases are resolved before reaching the dispute resolution process, which we will discuss next.

As you can see, the U.S. process mimics the scale in this graphic.  The four main agencies balance national security, foreign policy, and economic concerns before rendering a judgement.

Are there any questions?