# Presentation: 552833

## Dual Use Licensing Policy Issues and Regulatory Update

**Dual Use Licensing Policy Issues and Regulatory Update**
**Presented by:**
**Steve Clagett**
**Director, Nuclear and Missile Technology Division**
**Alex Lopes**
**Senior Engineer, Nuclear and Missile Technology Division**
**Office of Non-proliferation and Treaty Compliance**
**Bureau of Industry and Security**
**June 3, 2003**

## Dual Use Licensing

**Policy Issues**
**North Korea Nuclear Revelations**
**India Initiatives**
**Regulatory Changes**
**ECCN 2A291.e:  Radiation Detectors for “Special Nuclear Material” **
**Helpful Hints**

## North Korea Background

**Oct 93-****	****Agreed framework negotiated**
**$5B package including two LWRs and 500 ktons of heavy fuel oil annually to freeze nuclear activities**
**Oct 02-****	****North Korea admits to secret ****	****	****	****	****nuclear arms program**
**Dec 02-****	****North Korea announces intention ****	****	****	****to reactivate nuclear facilities**
**Jan 03-****	****IAEA personnel directed to leave**

## North Korea Export Control Issues

**Existing Policy:  Eligible for “No License Required” export of EAR99 with EPCI controls**
**Decisions for existing and future export licenses for KEDO/Agreed Framework**
**Nuclear Suppliers Group “Watch List” of non-controlled items**
**Do unilateral xx999 regulatory controls need to be enhanced?**

**Notes:**
Policy that existed before recent DPRK nuclear revelations allowed EAR 99 items to be exported NLR if there were no EPCI concerns.  
In March of 2000, xx999 North Korea controls were instituted.  These controls were for items of proliferation concern that are not controlled by any export control regime.  Items of this nature were reviewed case-by-case.
Los Alamos NL developed watch list of non-regime controlled items that could contribute to development of a gas-centrifuge enrichment system or plutonium processing system.  Watch List was introduced art Dec 2002 meeting of the NSG.  Many watch list items are under xx999 controls some are not (examples of items not under xx999 include: aluminum piping, ascorbic acid, ring magnets).
NSG agreed to use list to heighten member awareness and for outreach to trans-shipment states
Agreed Framework:  Heavy Fuel Oil and Canning Operations related licenses were suspended.
Pending KEDO licenses are currently HWA’d.  Disposition is still under interagency policy review.
Active KEDO licenses not shipped on still under interagency policy review.

The Dilemma and Issues for Consideration: North Korea perception of policy changes  as sanctions and an “act of war”
Effect on KEDO partners

## INDIA:  Dual Use Export Control 

**Policies and Procedures**

**Notes:**
Purpose:  This briefing module provides a summary of dual use licensing requirements and policies for U.S. exports to India for BIS’s domestic seminar program. 

## Recent Developments with India

**February 2003: U.S. and India signed Statement of Principles on bilateral high technology trade.**

**Recent Developments with India**

## General Licensing Policy for India

**Many commodities controlled for National Security (NS) concerns may be exported using license exception GBS.  **
**Computer, technology and software items are also eligible for license exceptions. **
** **
**Items controlled for Nuclear, Missile, or Chem/ Bio reasons are reviewed on a case-by-case basis.**

**General Licensing Policy for India**

**Notes:**
Items controlled only for National Security (NS) reasons (conventional arms-related) are eligible for license exception GBS (Shipments to Country Group B Countries).

Technology and Software items that require a license for export to India for NS reasons are eligible for license exception TSR.

Computers having a performance level less than 190,000 MTOPS are eligible for export to India under license exception CTP (Computers).

## The Entity List for India

**“****Presumption of approval” for EAR99 items intended for export to remaining entities; case-by-case review for all other items    **
**Many license applications for commodities that do not require a license for an unlisted end user continue to be processed  **

**The Entity List for India**

## Recent Regulatory Change

**Radiation detectors and monitors specially designed for detecting or measuring “special nuclear material” or for nuclear reactors was transferred from the USML to the CCL in October 2002**
**New ECCN 2A292.e is applicable to systems such as Nuclear Material Identification System (NMIS) and Multiple Aspect Measuring System (MAMS)**
**ECCN 2D290 and 2E290 is associated software and technology**
**Specially designed radiation detectors are different from commercially available detectors classified under ECCN 1A999 **

## Recent Interagency Coordination Change

**DOE now reviews export license applications for commodities controlled for missile technology reasons**

## Helpful Hints

**If export license application is part of formal government to government or lab to lab agreement, include that information in the application**
**For applications with extensive list of commodities, consider submitting separate licenses for non-sensitive (i.e. EAR 99) and sensitive (i.e. NP controlled) items**
**Include POC with knowledge of commodity and its end use**

## NMT Contact Information

**Steve Clagett**
**(202) 482-1641**
- _[sclagett@bis.doc.](mailto:sclagett@bis.doc.gov)__[gov](mailto:sclagett@bis.doc.gov)_
**Alex Lopes**
**(202) 482-4875**
- _[alopes@bis.doc.gov](mailto:alopes@bis.doc.gov)_
**Fax:  (202) 482-4145**