# Presentation: 257629

## US DOE/NNSA - INECPInternationalNonproliferationExport Control ProgramTim HastySavannah River Site

## INECP Presentation Outline

**Overview, Mission, History**
**Proliferation Risk and Assessment-Based Engagement Process**
**Spotlights on Three Main Pillars of INECP Activity**
- Licensing
- Enterprise Outreach
- Enforcement
**INECP Today**

## International NonproliferationExport Control Program

**Strengthen global efforts to prevent proliferation of WMD-related materials, equipment, and technology**

**Proliferation Risk Analysis in the Licensing Process **
- Ensure the license review process competently assesses proliferation risks associated with end-uses and end-users, and ensure technical specialists are being utilized
**Government Outreach and Enterprise Compliance **
- Assist governments to establish outreach programs and promote enterprise compliance at key enterprises and technology holders
**WMD-related Commodity Identification Training and reach-back for Customs**
- Ensure enforcement personnel are sensitized to WMD-related materials and equipment, and have access to technical/analytical resources and support

**MISSION**

**      ****AREAS OF ENGAGEMENT**

## International Nonproliferation Export Control Program (INECP)

**Threat**
- Networks of procurement agents, brokers, and companies systematically maneuver around and through national export control efforts to obtain commodities and technology needed for WMD development and production facilities
**INECP Mission**
- Strengthen global efforts to prevent proliferation of WMD-related materials, equipment, and technology

## Responding to the dynamic threat...INECP evolution over time

**1990’s: **
- INECP helped create export control systems from whole cloth in the Newly Independent States starting in the mid-1990s, focusing on the key nuclear suppliers
*Russia, Ukraine, and Kazakhstan*
- Initial focus was on outreach to nuclear enterprises and the creation of licensing systems

**INECP’s approach is based on identifying, training, and developing a cadre of technical/nonproliferation specialists in each partner country that can sustain that country’s export control system over the long term**

## Responding to the dynamic threat...INECP evolution over time

**2000’s:**
**Systematic threat assessment drove geographic expansion**
*1st phase of geographic expansion took the program to the transit states adjacent to the “big-3” nuclear suppliers:*
- Caucasus, Central Asia, Baltics
*2nd phase (post 9/11), recognizing the threats of procurement networks, non-state actors, weak links in the regime, and secondary suppliers took the program global:*
- Asia Pacific, Middle East, Europe, Americas
**Systematic vulnerability assessment drove topical expansion**
*Recognition that effective export control systems depend not only on licensing and enterprise compliance, but also on the ability of frontline enforcement agencies to interdict illicit trade, led to development of Commodity Identification Training (CIT)*

**INECP’s Country Plans implement these systematic assessments**

## INECP’s Global Proliferation Risk Assessment guides country selection and prioritization

**Risk is based on Threat and Vulnerability**
**Threat** = Supply Threat and Conduit Threat
*Supply Threat = capacity to supply CBNM-related goods*
*Conduit Threat = Geostrategic position and trade flows*
**Vulnerability** = Export Control System defects
*Three elements necessary for export control system effectiveness*
- Licensing
- Enterprise Compliance
- Enforcement
*Defects in any of these system elements create opportunities for proliferators*

## Threat = Supply Threat and Conduit Threat
Supply Threat = capacity to supply CBNM-related goods
Conduit Threat = Geostrategic position and trade flows indicate access to goods and opportunities for diversion

- Supply Threat = capacity to supply CBNM-related goods
- Conduit Threat = Geostrategic position and trade flows indicate access to goods and opportunities for diversion

***Measuring Proliferation THREAT ***

_**Potential Supply Threat**_

_**Potential Conduit Threat**_

## Measuring VULNERABILITY

- Defects in any of these system elements create opportunities for illicit procurement
*Licensing*
*Enterprise Compliance*
*Enforcement*

## The combination of threat and vulnerability guides INECP’s country selection and prioritization

## The combination of threat and vulnerability guides INECP’s country selection and prioritization

## Tailored ENGAGEMENT

**For each country engaged, INECP tailors its approach according to the assessed deficiencies in the three export control system elements **
**The Evaluation and Planning Matrix diagnoses the export control deficiencies that INECP can most effectively target and identifies specific offerings to address those deficiencies**
**This matrix forms the basis for all of INECP’s annually updated Country Plans.**

## Three Pillars of INECP activity

| Major Activity | Who | Why | What |
| --- | --- | --- | --- |
| LICENSING | Licensing Officers and Analysts | Need to conduct competent proliferation risk analysis in the licensing process | End Use and End User Analysis Training (EUEU) |
| COMPLIANCE | Managers of public sector & legacy WMD enterprises, labs, manufacturers, etc. | These major technology holders are targets of opportunity for proliferants | Enterprise Outreach |
| ENFORCEMENT | Customs Officers and other enforcement personnel | Widespread ignorance regarding strategic commodities | Commodity Identification Training (CIT) |

## Spotlight on LICENSING

**End Use/End User (EU/EU) Analysis focuses on strengthening the ability of analysts to uncover suspicious procurement activity and assess proliferation risk.**
**Analysis of Strategic Commodity Transfers (ASCOT) helps analysts better understand multilateral controls, including the commercial and WMD applications of listed commodities. **

## Spotlight on Enterprise Outreach

**Our unique value added**
*Implementing compliance programs at US National Labs*
- Intangible technology control
- Technical understanding of the control lists, commodities, WMD programs, acquisition networks
**Our niche**
- Public sector, tertiary enterprises and legacy WMD sectors (nuclear, missile, chemical, biological)
- INECP’s flexibility has also allowed us to quickly respond to partner government requests for assistance when other agencies cannot

## Spotlight on Commodity Identification Training

**CIT gives inspectors “a trained eye” by familiarizing them with the materials, components, and equipment sought by WMD procurement programs**
**CIT simplifies export control lists by grouping items into technology “bundles” and by aiding recognition through a focus on physical appearance, using pictures and demonstration kits:**
*Equipment*
- Fabricated Parts and Components
- Electronics (Components and Equipment)
- Industrial Equipment
- Systems and Subsystems
*Materials*
- Structural Materials (metals and non-metals)
- Special Materials (Nuclear, Chemical, Biological)
**Indigenization strategy**
- INECP follows a disciplined indigenization approach based on our technical partnerships to establish ongoing training programs and reachback capabilities

**CIT deployment is underway in 25 countries**

- Alloy Analysis with XRF provides capability to determine element composition of alloys and other controlled materials

## CIT Implementation Experience

## INECP Today:

**International Mandates bolster INECP’s timeliness and significance**
- UNSCR 1718 (sanctions on North Korea) benefited by INECP strategic commodity identification training in sensitive destinations surrounding North Korea (e.g., China, Hong Kong, Taiwan, Thailand, South Korea, Japan)
- UNSCR 1696 (calling upon States to “to exercise vigilance and prevent the transfer of an items, materials, goods, and technology that could contribute to Iran’s ...programmes”) benefited by INECP commodity identification and other export control training to potential suppliers and transit points: Cyprus, the European Union, Jordan, etc.
- UNSCR 1540 includes provisions that reinforce INECP’s three pillars:
*Improve Licensing Procedures & Practices: 3.(d) “Establish, develop, review and maintain appropriate effective national export and trans-shipment controls over such items...as well as establishing end-user controls...”**	*
*Promote Industry Compliance: 8.(d) “To develop appropriate ways to work with and inform industry and the public regarding their obligations under such laws;”**	*
*Strengthen Enforcement Capabilities: 3.(c) “Develop and maintain appropriate effective border controls and law enforcement efforts to detect, deter, prevent and combat...the illicit trafficking and brokering in such items...” *

## INECP Today:

**We are THE recognized experts in Strategic Commodity Control **
- CIT fills a critical need, and demand has far exceeded all expectations
- The recognized need for CIT affords INECP ready access to a wide range of countries that would not otherwise accept “export control assistance”
**Confidence in INECP results in Outreach Partnerships**
- Japan, Australia, EU
- Technical Experts Working Groups
**Regional institutions extend INECP’s reach and contacts**
- Cooperative Monitoring Center (CMC)
- Council for Security Cooperation in the Asia Pacific (CSCAP)
- European Commission Joint Research Centre (JRC)