ITAR Exemption Crib Sheet

A Guide to the Fine Print in the International Traffic in Arms Regulations

Country-Related ITAR Part
Herewith, an index of exemp- . :
tions to the standard licensing Shipments between U.S. possessions ; 123.12
procedures in the International Domestic air shipments via foreign countries 123.13
Traffic in Arms Regulations. Canada (126.5) 123.16(b)(8)
Exemptions in italics were U.S. subsidiaries abroad 123.16(b)(9)
introduced or modified in the Canadian /Mexican border 123.19
ITAR revision of July, 1993. Canadian exemptions 126.5
, Hardware ITAR Part
These exemptions do not apply
to destinations proscribed Temporary imports 123.4
under §126.1 of the ITAR, Re-exports/retransfers 123.9
exports for which Congres- Movements of vessels or aircraft outside U.S. 123.11
sional notification is required, Defense articles in support of Agreements 123.16(b)(1}
and Missile Technology Components & parts valued under $500 123.16(b)(2)
Control Regime articles. Packing cases 123,16(b)(3)
These exemptions may not be Models & mockups 123.1 6(b)(4)
used by persons who are Temporary exports to public trade shows 123.16(b)(5)
generally ineligible as described Firearms & ammunition for personal use (123.17) 123.16(b)(6)
in §120.1 (c) of the ITAR. Firearms for personal use of U.S. Forces (123.18) 123.16(bM7)
Technical Data ITAR Part
Basic operation & maintenance training 124.3
Technical data, including classified data 125.4(b)(1)
Technical data for approved MLA/TAA 125.4(b)(2)

Contracts between exporter and U.S.G. agencies —_125.4(b)(3)
Copies previously authorized to same recipient 125.4(b)(4)
Basic operations, maintenance & training information 125.4(b)(5)
Firearms & ammo not in excess of caliber 50 125.4(b)6)
Original source of import 125.4(b)(7)
Unclassified technical data directly related to
previously-authorized classified tech data 125.4(b)(8)

Personal use of U.S. person employed abroad 125.4(b)(9)
U.S. institutions of higher learning 125.4(b)(10)
Pursuant to arrangements with DoD, DOE, or NASA 125.4(b)(11)
Exempt under §126 125.4(b)(12)
* Approved for public release 125.4(b)(13)
Other ITAR Part
Training & military service 124.2
Plant visits 125.5
Shipments by or for U.S. Government agencies 126.4
Foreign-owned military aircraft & naval vessels 126.6
Foreign Military Sales (FMS) Program 126.6

Page 20 : Detense Trade News, Volume 5, Number 3, July and October 1994



Sign Up for
State Department Export Licensing Training

The State Department's Office of Defense Trade Controls (DTC) can design a seminar on export
licensing policies and procedures with your specific needs in mind. We hold our seminars at our
office in Arlington, Virginia, minutes from the District of Columbia. We normally hold half-day
seminars , combining participants from different firms, with attendance limited to 25. We
encourage small companies to apply. Dates for upcoming seminars include November 15, 1994
and January 18, 1995. To sign up, please mail this application to DTC (Attn: Training Seminars
Coordinator) or fax it to (703) 875-6647.

TO: Training Seminars Coordinator, Office of Defense Trade Controls
FAX: (703) 875-6647

FROM:

(Company Name)
We would like to send attendees to a seminar including training on these topics:

Completion of Applications Registration Requirements

Country Licensing Policies Congressional Requirements

Proscribed Country Requirements Agreement Requirements
U.S. Customs EXODUS Program ——_Commodity Jurisdiction Requests
Processing of Requests — __Licensing Foreign Nationals

Other subject areas we would like covered

Number wishing to attend:

Primary U.S. Munitions List categories of defense articles, services, and/or technical data with
which our firm deals: 1. 2. 3. 4.

Our attendees would /would not be interested in briefing DTC about our products and services.

DTC Registration Code
Address _
City , State, ZIP
Point of Contact for Training
Phone ( ) Fax (



Defense Trade News, Volume 5, No.3

© &) Feedback

Please circle or fill in your responses, add any
comments, and mail to DTC (Attn: DTN
Feedback) or fax to (703) 875-6647.

1. Your organization is a...

. Manufacturer

. Exporter

. Consulting or law firm

. Freight Forwarder

U.S. Embassy or Consulate

U.S. Customs element

U.S. DOD/Military element

. Other U.S. Government element

. Foreign government element

10. Other (please explain in Comments)

BOmNaAuURWNE

2. How many people will read this issue?

1. 1 person
2. 2-5 people

3. 6-10 people
4. 11+ people

3-17. Please rate the usefulness of each article
ona scale of 1 (worst) to 5 (best). Rate as "0"
any articles you did not read.

3. MiG Policy__

4. Landmine Control__

5. Firearms Policy___

6. Blue Lantern__

7. Access Denied__

8. “U.S. Person’”__

9. Firearms Procedures___
10. Cyberspace, Part II___
11. Hardware Exemption__
12. ITAR Exemptions__

13. Country Policy Briefs__
14. Personnel Updates__
15. DTAG Developments__
16. Commodity Jurisdiction__
17. Systems Update _

18-32, Rate readability (style and physical
presentation) on a scale of 1 (worst) to 5
(best); rate as “0” articles you did not read.

18. MiG Policy__

19. Landmine Control__
20. Firearms Policy__

21. Blue Lantern__

22. Access. Denied__

23. “U.S. Person”___

24. Firearms Procedures___
25. Cyberspace, Part I
26. Hardware Exemption__
27. ITAR Exemptions__
28. Country Policy Briefs___
29. Personnel Updates___
30. DTAG Developments__
31. Commodity Jurisdiction__
32. Systems Update__

33-35. Please circle the numbers of the three
topics you would most like to see covered.

. Defense trade policy

. Non-defense trade policy
Country-specific trade issues

. Trade legislation

. Licensing procedures

Regulatory and legal issues

. Licensing case studies

- Compliance case studies

. Other (please explain in Comments)

WPHONAGEHON

Comments:

We welcome lengthier comments,
suggestions, and criticism.

Defense Trade News, Volume 5. Number 3, July and October 1994

Page 33



Firearms Exports: Enhanced Procedures
Regulatory Changes on Import Certification and Assault Weapons

In line with the Administration’s decision to
tighten controls on firearms exports (see page
6), the Office of Defense Trade Controls has
implemented the following requirements.
These requirements apply to applications for
DSP-5 (permanent export) licenses and for
distribution agreements for the export of fire-
arms and ammunition.

Documentary Requirements

« A copy ofa firm purchase order from the
foreign end user specifying quantity, dollar
value, and end use of the article must accom-
pany each application. U.S. company in-
voices/pro forma are not acceptable, and En-
glish translations must be provided for for-
eign-language documents.

¢ A DSP-83 Nontransfer and Use Certificate
must accompany any application for fifty or
more handguns and/or rifles, or 100,000 or
more rounds of ammunition. The DSP-83
must bear original signatures of all foreign
parties identified on the DSP-5 and the U.S.
applicant.

¢ Import authorization, comprised of an
import permit issued by the foreign govern-
ment authorizing the import of specified
items, must accompany each application. An
import authorization document normally
contains an official signature, the government
seal and the validity period for the transac-
tion. This is not to be confused with a busi-
ness license issued by the foreign government
to firearms dealers or with an authorization to
own or carry a firearm.

Restricted Weapons

* The export of assault weapons (as de-
fined in recent legislation) that are prohib-
ited firearms under U.S. law, will be de-
nied for export to commercial end-users.
Assault weapons, combat shotguns and
silencers/sound suppressors will only be
considered for a foreign governmental
entity or the national police. Documenta-
tion to support such export must include a
purchase order, an original signed DSP-83
and an import permit specifying the cali-
ber of firearm and signed by an authorized
government official.

¢ Applications for firearms of .50 caliber,
or other firearms qualifing as sniper rifles,
will only be considered if they are accom-
panied by a purchase order, an original
signed DSP-83 and an import permit speci-
fying the caliber of firearm and signed by
an authorized government official. These
firearms may be considered for sale to in-
dividual purchasers subject to the above
documentary requirements as well as an
end-use check.

For more details, contact the Licensing
Division of the Office of Defense Trade
Controls. @

Page 14

Defense Trade News, Volume 5, Number 3, July and October 1994



U.S. DEPARTMENT OF STATE|

SUIVEdY AUVLMINETWOLLNOd 40 nvaune

DTAG Developments

The Defense Trade Advisory Group was estab-
lished in 1992 to advise the Bureau of Political-
Military Affairs on the support and regulation of
defense trade. Members for the 1994-96 term:

Policy Working Group

Chairman — William Schneider, Jr.
International Planning Services

Vice-Chair — Ramona Hazera
Northrop -Grumman

Burton P.C. Bacheller
McDonnell-Douglas Corporation

Samuel Baker
American Defense Preparedness Association

Dr. James Blackwell
Science Applications International

Edward C. Bursk, Jr.
Raytheon Overseas Limited

Tyrus Cobb

Business Executives for National Security, Inc.

Vincent DeCain
The NOMOS Corporation

Jacob Goodwin
Bulova Technologies, Inc.

Ruth L. Greenstein
Institute for Defense Analyses

Joel L. Johnson
Aerospace Industries Association

Norman Jorstad
Institute for Defense Analyses

Dr. Robert Martin
Motorola Military & Aerospace Electronics

Boyd J. McKelvain
General Electric Company

Michael M. McMillan
E-Systems

Jack N. Merritt (Gen., USA, Retired)
Association of the U.S. Army

Willard H. Mitchell
Teledyne Industries International

James R. Nelson
Martin Marietta Corporation

Dr. Janne E. Nolan
The Brookings Institution

Edward O’Connor
GMA, Inc.

Alan Platt
Gibson, Dunn, and Crutcher

Bob Ramsey
Lockheed Corporation

Henry Sechler
General Dynamics Corporation

Ronald M. Singer
GE Aircraft Engines

Dr. Willis D. Smith
The Boeing Company

__Defense Trade News, Volume 5, Number 3, July and October 1994



Tape Edge Before Mailing

Training Seminars

. PM/DTC, SA-6, Room 200
Office of Defense Trade Controls
Bureau of Political Military Affairs
U.S. Department of State

Washington, D.C. 20522-0602


AS

Establishment of a More Permanent Inter-
national Control Mechanism. The export
moratoria are only temporary measures.
The U.S. is engaged ina fast-track policy
review to develop a proposal for a more
permanent multilateral anti-personnel
landmine control regime. It is taking a rigor-
ous, systematic look at a broad range of
options. The Administration is dedicated to

building the international consensus neces-
sary to bring about an effective control regime
in the shortest possible time.

For further information see Hidden Killers: The
Global Problem With Uncleared Landmines, U.S.
Department of State, July 1993, available from
the Bureau of Political-Military Affairs at
(202) 647-6968. Ad

Antipersonne! Landmine Facts

* There are more than 85 million uncleared landmines in 62 countries around the
world. More than 65 million mines were laid in the last 15 years.

* Landmines cause more than 150 deaths or injuries worldwide each week. Most of
these are innocent civilian casualties.

¢ The United Nations estimates that there are 9-10 million landmines in Afghanistan,
9 million in Angola, 4-7 million in Cambodia, 5-10 million in [raq, 5-7 million in Ku-
wait, and 2-4 million in the former Yugoslavia.

¢ It costs between $150 and $1,000 to remove one landmine.

* The U.S. allocated more than $9 million to demining projects in FY 1993; more than
$12 million will be spent in FY 1994.

* There are more than 30,000 amputees in Cambodia and more than 20,000 in An-
gola, according to International Committee of the Red Cross (ICRC) estimates. Most
are victims of mines.

* In 1991, the ICRC made almost 8000 artificial limbs and 11,000 orthopedic appli-

ances for mine victims in 14 countries.

Upgrading Soviet Systems: the “MiG Policy” Question

State Department to Consider American Participation in Indian MiG Upgrades

Towards Case-by-Case Review: India

Recently, the State Department instituted a
policy of considering, on a case-by-case basis,
USS. firms’ applications for licences to partici-
pate in the Indian Government's program to
upgrade its MiG-21 aircraft.

Applications will be subject to rigorous inter-
agency review to ensure approval is consistent

with U.S. foreign policy, national security,
technological security, and arms control and
regional security interests. Moreover,
licenses will be considered only for exports
of articles or services in support of upgrades
determined to have defensive applications
only.

No decision has been made to apply this
policy to upgrades in countries other than
India, or to systems other than the MiG-21. @

Defense Trade News, Volume 5, Number 3, July and October 1994

Page 5



The following Licensing Officers handle all Manufacturing License and Technical Assistance

Agreements:
| COMPANIES LICENSING OFFICER EXT.
| B,D,H,J,K,L,N,O,P,Q,R ~ TMAS Robert S. Kovac (RSK) | 55199
G(includes GM Hughes), I,M,U | MAJ Mike Lucas (JML) 55653
A,C,E,F,S,T,V,W,X, Y,Z LCDR Glenn Smith (GES) 57045
The following officers handle compliance issues:
COMPANIES __ [OFFICER EXT.
B,D,E,J,O Eva Tyler # 57051
A,C,G,P John Pisa-Relli 56628
H,R,T,X, Y,Z Martha Wright 55080
J,K,L,M,N Nancy Meyer 55659
F,Q,8,U,V,W Ruth Jackson * 55085
The following officer handles Commodity Jurisdiction requests:
COMPANIES OFFICER EXT.
All Tom Denner 57041
Page 32 . _ Defense Trade News, Volume 5, Number 3, July and October 1994

S. O.P.0.21994-397-488:61



DEPARTMENTS

Country Policy Briefs

Peru

Effective June 8, 1994, it is the policy of the
U.S. Government to deny all requests for
licenses and other approvals to export or
otherwise transfer lethal items to Peru. Other
defense articles and services for Peru will be
reviewed on a case-by-case basis [Vol.59, Fed-
eral Register, page 32481 (June 23, 1994)].

Rwanda

On May 26, 1994, the President prohibited the
sale or supply to Rwanda from the territory of
the United States by any person, or by any
U.S. person in any foreign country or other
location, or using any U.S.-supplied vessel or
aircraft, of arms and related material of all
types. This includes weapons and ammuni-
tion, military vehicles and equipment, para-
military police equipment, and spare parts
regardless of origin.

This prohibition does not apply to activities
related to the United Nations Assistance
Mission for Rwanda or the United Nations
Observer Mission Uganda-Rwanda [Vol. 59,
Federal Register, page 28583 (June 2, 1994)].

South Africa

Effective June 8, 1994, it is the policy of the
U.S. Government to review, on a case-by-case
basis, all requests for licenses and approvals
authorizing the export or other transfer to
South Africa of items on the U.S. Munitions
List. This includes manufacturing licenses,
technical assistance agreements, technical
data, and commercial military exports.

This policy implements United Nations Secu-
rity Council Resolution 919, which terminated
the mandatory U.N. Security Council arms
embargo on South Africa imposed in 1977.
The termination of the embargo followed

the first all-race multiparty election and the
establishment of a democratic South African
government [Vol. 59, Federal Register, page
31667 (June 20, 1994)].

Munitions Exports Involving
Armaments Corporation of South
Africa, Ltd. (ARMSCOR) and Related
Entities and Individuals

Effective June 8, 1994, it is the policy of

the Department of State to deny all export
license applications and other requests for
approval involving, directly or indirectly:
the Armaments Corporation of South Africa,
Ltd. (a.k.a. ARMSCOR), an agency of the
South African Government; the Denel Group
(Pty.) Ltd. (a.k.a. Denel), a wholly-owned
company of the South African Government;
Kentron (Pty.) Ltd. (Kentron); Fuchs Electron-
ics (Pty.) Ltd. (Fuchs); William Randy
Metelerkamp; Vern Davis; Brian Scott

(a.k.a. “Graham Craighness”); Bert Quinn;
Johan Lombard; Jaco Budricks; Gerrit
Pretorius (a.k.a. “Bull”); and any divisions,
subsidiaries, associated companies, affiliated
persons, or successor entities [Vol. 59, Federal
Register, page 33811 (June 30, 1994)].

Defense Trade News, Volume 5, Number 3, July and October 1994

Page 21



Se

COMMODITY RULING COMMODITY RULING
Laser Training Device Remote Multiplexer /Demultiplexer ccL**
Designed and Developed for Military Rifle USML ita)
Weapons Training USML IX(a) , a)
Machine Cun USML Ita) Rubidium, Atomic Frequency Standard CCL IAF
Magnetic Controls, Contactors, and Relays cc Security Module CCL5A ILA
a ; , ” Security Module
Marketing Literature, Surveillance System, Basic ce Providing Data Encryption USML xii)
; Seismic Intrusion Detection System, Wireless USML Xi(a)
Metering System, Electronic, Electrical Utility ceL Shotgun, 12 Gauge USML Ka)
Mobile Data Networking System , . sci we
with Encryption Capebility USML xU()Q) Signal Conditioner/Data Collection System eck
Modem CCL3A96G Software Products, Server CCLSDI3A
Monitor, Overtemperature cel Software, Communications ceL
Monitoring System cel Software, Encryption CCL 40966
: avi ervption Us 5
Monitoring System, Oit Debris cei Software, Employing DES for Data Encryption USML XINi@y()
Navigation System, Aircraft Software, Image Processing and Satellite Imaging CCL
Not Modified to Use a GPS Receiver ccL** Software, with Encryption CCL SDI3A
Modified to Use a GPS Receiver USML XV(b) Starters, AC and DC cc
Overspeed Trip Device ec Static Control Systems Analyzer CCL 3A9%6G
Pocketscope, Night Vision USML XII(c) Static Dissipative Table and Floor Mats CCL OA96G
Potassium Titanyl Phosphate Crystals Ste DC Neutraliz. CCL 3A966
Not Specifically Designed for Military Use CCL 6A%G ady State DC Neutralizer 3
Specifically Designed for Military Use USML XII() Switch, General Purpose CCL 3A96G
Power Module ccL* Tape Deck, Ruggedized ccL**
Processor, Single Module USML XI(¢) Technical Data Related to the Design, Manufacture,
ae — Manufacturing Process, Production, Development,
Publication, Regarding Telecommunications Overhaul, and Repair of Engine Hot Section
Infrastructure CCL OA981 Components USML VIG)
Quad 2-Imput Cate CCL 3A96G Terminal Docking Units
Radio Frequency Amplifier USML XI(d) Non-TEMPEST cc”
Radio Shock Mount CCL 5A966 TEMPEST USML XI(b)
Reusable Heel Grounder CCLOA96G Wheel, Landing Gear oct
Receiver, GPS cc Wrist Strap Assemblies CCL OA96G
Wrist Strap Workstation Monitor CCL 3A96G
Defense Trade News, Volume 5, Number 3, July and October 1994 _Page 27



Personnel Updates

In Memoriam
Clyde Bryant (1926-1994)

Clyde G. Bryant Jr., chief of the Compliance
and Enforcement Branch of the Office of
Defense Trade Controls, died June 10 after

a heart attack. Survivors include his wife
Elizabeth, three children, and a grandchild.

A native of Birmingham, Alabama and a
graduate of Birmingham-Southern College,
Mr. Bryant began his State Department career
in 1958 as an economist in the Bureau of Ad-
ministration. In 1967 he transfered to State’s
Office of Munitions Control, the forerunner of
the Office of Defense Trade Controls. Mr.
Bryant earned a reputation in law enforce-
ment, legal, and government circles for ex-
traordinary legal expertise and tenacity in the
pursuit of wrongdoers. Administration, Con-
gressional, diplomatic, and corporate leaders
have praised his lifetime contribution to U.S.
national security. To honor his memory, the
Bureau of Political-Military Affairs has cre-
ated an annual award, the Clyde G. Bryant Jr.
Award, for excellence and achievement dem-
onstrated in the performance by an employee
in the Office of Defense Trade Controls.

Those who worked with Clyde Bryant know
that his professionalism, devotion to duty and
country, and concern for the rights of the
accused were manifestations of a warm and
compassionate spirit. He will be sorely
missed by family, friends, colleagues, and
country.

In

Karen Hopkinson has been detailed to the
Office of Defense Trade Controls as the first
National Security Agency representative for
encryption technology issues. She has
worked at NSA since 1982, in the areas of
encryption, data security, and technology
transfer.

Major John M. Lucas, US Army, reported to
DTC July 29. MAJ Lucas recently served as
Material Officer 191st Ord Bn in Miesau, Ger-
many. He currently serves as a Defense
Trade Analyst.

Out

Foreign Service Officer Philip S. Kosnett
completed a one-year tour as Special Assis-
tant to the Director of the Office of Defense
Trade Controls and Executive Editor of
Defense Trade News and Export Policy
Bulletin. He has assumed new duties in the
Office of the Secretary of State.

Compliance Officer Robert Huffman
departed DTC for law school at the Univer-
sity of Virginia.

Navy LCDR Paul James completed a
two-year exchange tour as an agreements
officer in DTC and was reassigned as Execu-
tive Officer of the destroyer USS Cushing,
based at Pearl Harbor.

USAF Major Gary Oncale completed a
two-year exchange tour at DTC, where he ran
the Commodity Jurisdiction program. He
will retire from the Air Force in August.

DTC Has Not Moved...

«-but it does have a new address. Due to
security upgradesat the State Department
Annex housing the Office of Defense Trade
Controls, the public access and courier
delivery address has changed from 1701
N. Fort Myer Drive to 1700 Lynn Street.
The mailing address is unchanged. See
the inside rear cover of this issue for a list
of addresses and phone/ fax numbers.

Defense Trade News, Yolume 5, Number 3, July and October 1994

Page 23





(e) Transmittal Letter. Requests for approval
of the arrangement must be made by letter.
The original letter and seven copies of the
proposed arrangement shall be subrnitted to
the Office of Defense Trade Controls. The
letter shall contain the following:

(1) A statement giving the applicant’s

Defense Trade Controls registration number.

(2) A statement identifying the country
or countries to comprise the distribution
territory.

(3) A statement identifying the defense
articles to be distributed under the arrange-
ment.

(4) A statement identifying any U.S.
Government contract under which the
equipment may have been generated,
improved, developed or supplied to the
U.S. Government, and whether the equip-
ment was derived from any bid or other
proposal to the U.S. Government.

(5) A statement that no classified defense
articles or classified technical data are
involved.

(6) A statement identifying any patent
application which discloses any of the subject
matter of the equipment or related technical
data covered by an invention secrecy order
issued by the U.S. Patent and Trademark
Office.

(7) A statement that the applicant will
not permit any exports to take place until the
arrangement and the export license have
been approved by the Department of State.

Questions, comments, and suggestions on
these new procedures should be directed to
the Licensing Division of the Office of
Defense Trade Controls. @

Page 18

Defense Trade News, Volume 5, Number 3, July and October 1994



LT

A post-licensing verification is an effort

to confirm that the commodity or service
exported from the U.S. was, in fact, received
by the ultimate consignee named on the
export license, and that the goods or services
are being used in accordance with the terms
and provisions of that specific license.

Varying Scope

Depending upon the nature of the given
export problem, the scope of an inquiry might
range from simple oral or written contact
seeking to verify the bona fides of a proposed
transaction to physical inspection of the
exported item. The applicant fora license or
other State Department written approval of a
proposed transaction is responsible for the
accuracy and completeness of all information
appearing on the application and in its sup-
porting documentation. Applicants must
ascertain and then identify the specific end-
use and end-user on applications submitted
to DTC.

Solid Results

End-use checks are a key component of the
State Department's effort to prevent illegal
defense exports and technology transfers.
The “Blue Lantern” program has been highly
successful in this regard. It has uncovered
flagrant violations of the AECA and the ITAR
and prevented others before they could occur.
Some cases have resulted in denial, suspen-
sion, or revocation of export licenses, and in
the prosecution of individuals for violations
of the AECA and the ITAR.

“Blue Lantern” has been lauded by other
governments and by U.S. firms. Most partici-
pants in the defense export process are fully
committed to the resolution of problems and
doubts regarding the end use of defense
articles, technical data, or defense services.

Warning Signs for Exporters

To aid applicants and exporters in performing
this duty, DTC has developed standards to
use when analyzing a proposed export trans-
action in order to identify a possibly high-risk
export. If a proposed transaction appears
risky, the applicant should be especially
cautious and exert every effort to verify the
information presented regarding end-user
and end-use.

The appended list of “warning flags” of
suspicious transactions (an update of a simi-
lar list printed in past issues of this bulletin) is
provided as a means of furthering public
awareness. We recommend that firms use it
as an aid in their own efforts to combat the
illegal export of U.S. defense goods and
technology.

If your firm encounters any of these indica-
tions or any other suspicious circumstances,
please contact the Compliance Division of
the Office of Defense Trade Controls or the
Special Agent in Charge at your local U.S.
Customs District Office. @

Page 10

Defense Trade News, Volume 5, Number 3, July and October 1994



CATEGORY ‘COMMODITIES ‘COMPANIES LICENSING OFFFICER | EXT.
Category VI: All (a)-(g) ‘All Companies ‘Carolyn Love (CAL) 36638
Vessels of War and Special
Naval Equipment
Category VE: All (a}-() CRTUV Daniel Buzby (DIB) # 57048
‘Tanks and Military Vehicles All 1,KLM Dan Cook (DLC) # $8674
All ABDERG ‘Martin O'Mara (MJO) $7040
All HN,OP,.QS,W.XYZ ‘Sandy Snyder (SAS) * 22357
Category VIII @),(©)(g) [helicopters, non- AL Carol Basden (CBB) # 35678
Aircraft, {Spacecraft} and expansive balloons and drones,
Associated Equipment cartridge actuated devices and
ground effect machines]
@,(0).(g) [same as above] MZ Sue Clark (SMC)* $7043
(b) [aircraft engines] Atl Companies | Carol Basden (CBB) # $5678
(a),(d),(f} [fixed wing aircraft, AL Carolyn Lancaster (CLL) # | 56616
launching and recovering
‘equipment, developmental
aircraft]
(2),(d),(f) {same as above] M-Z Terry Hunter (NTH) * $6637
(¢} {inertial navigation systems] | All Companies Suzanne Palmer (SMP) # | 55657
Category IX: All (aye) ‘All Companies Carolyn Love (CAL) 36638
Military Training Equipment
Category X: All (a)-(e) ‘All Companies Sue Clark (SMC) * 57043
Protective Personnel Equipment
Category XT Al @-O) EAIKN Daniel Buzhy (DIB) # 37048
Military [and Space] Electronics All LR Calvin Chin (CC) * 57047
All A0V Carolyn Love (CAL) $6638
all FUP.QS.U,X.Y.Z Dan Cook (DLC) # 35674
All BD,GM Martin ©’ Mara (MJO) 57040
All CWT Sandy Snyder (SAS) * 22357
Category X11. All except (d) BLN,V Daniel Buzby (DJB) # 57048
Fire Control, Range Finder, All except (d) C,G,K.M,T.U,W,X,¥.Z Calvin Chin (CC) * $7047
Optical and Guidance and All except (d) HOS Martin O’Mara (MJO) 57040
Controi Equipment All except (d) ADEFIIP,QR Dan Cook (DLC) # 58674
(@) [inertial platforms and Ail Companies Suzanne Palmer (SMP) # | 55657
sensors, astrocompasses, star
trackers, accelerometers and
—n gyros]
Category Xiil: (b) [Encryption] ‘All Companies, Karen Hopkinson (KEH) | 56647
Auxiliary Military Equipment All except (b) C,DJKL Calvin Chin (CC) * 57047
[Ge)and (c)-(¢) include cameras, self | All except (b) A.B.E\F.GH,M.N,O,P,Q,R,S,T,U, | Sendy Snyder (SAS) * 22357
contained diving and underwater VWXYZ
breathing apparatus, carbon/earbon
billets and preforms, concealment and
deception equipment, energy
conversion devices, chemiluminescent
‘compounds and solid state devices,
devices embodying particle beam and
electromugnetic pulse technology,
metal embrittling agents, measurement
equipment]
Category XIV: All HH ‘All Companies ‘Sue Clark (SMC) * 57043
Toxicological Agents and
Equipment and Radiological
Equipment
Category XV: ‘AU (ay-fe) AL Ken Peoples (KMP) * 36619
Spacecraft Systems and @He) MZ Terry Davis (TLD) 55662
Associated Equipment J
Category XVI: Ail @H) ‘All Companies Sue Clark (SMC) * 37043 |
Nuclear Weapons Design and
Test Equipment _| 7 _
Category XVII: Classified Articles, Technical Data, and Distribution Agreements are handled by
Classified Articles, Technical . . . 4 + + ae,

Data and Defense Services Not the Licensing Officer who is responsible for the particular equipment in its
Otherwise Enumerated unclassified form. Defense services are handled by designated Agreement LOs.
Category XX All @@) AZ Carolyn Love (CAL) 36638

Submersible Vessels,
Oceanographic and Associated

Equipment

All of the above mentioned Licensing Officers handle Licenses and Distribution Agreements.

Defense Trade News, Volume 5, Number 3, July and October 1994

Page 31





SE
OPERATIONS

DTC’s Customer Service Plan

Commitment to Our Customers

In accordance with the Administration's National
Performance Review, all Federal agencies that
provide significant services directly to the public
are required to publish a customer service plan.
The plan below explains DTC's mission, services
DTC provides, and DTC's commitment to quality.
As a part of our continuing effort to provide qual-
ity service, DTC will periodically survey the com-
munity it serves.

Our Mission

The Office of Defense Trade Controls, in ac-
cordance with Sections 38-40 of the Arms Ex-
port Control Act (AECA or 22 U.S.C. 2778)
and the International Traffic in Arms Regula-
tions (ITAR), controls the permanent and
temporary export and temporary import of
defense articles and defense services by tak-
ing final action on license applications and
other requests for approval for defense trade
exports and retransfers, and handling matters
related to defense trade compliance, enforce-
ment and reporting.

Service to Customers

In order to promote world peace, further U.S.
foreign policy and national security interests,
and facilitate legitimate export of commodi-
ties and services covered by the U.S. Muni-
tions List and to facilitate the best customer
service possible DTC is committed to:

* Providing timely, professional,
knowledgeable, and courteous service to
customers seeking guidance on registration,
making applications for a defense export
license or other approvals, requesting the
status of specific licensing cases, or seeking
guidance regarding compliance with export
law and regulations.

¢ Taking initia! action on all license
applications (approve, disapprove, return
without action, or coordinate with other
offices) within 10 working days of receipt.

* Informing each registered individual and
company with timely information on the sta-
tus of their license application. For persons
who do not have electronic access to the DTC
(system) timely telephone responses are pro-
vided. Telephone inquiries are responded to
by a responsible officer within 24 hours of
receipt.

* Providing timely and authoritative guid-
ance to the U.S. defense industry regarding
export policies, procedures, and practices,
based on interpretation of the International
Traffic in Arms Regulations (ITAR), the Arms
Export Control Act (AECA) and other perti-
nent laws, national interests, and multina-
tional agreements or arrangements. This in-
cludes the presentation of and participation in
organized seminars, in-house training, and
other public outreach efforts, such as the De-
fense Trade News.

Enhancing automated data processing to
facilitate the electronic handling of requests
for licenses and other approvals and to in-
crease responsiveness to U.S. government
requests for assistance.

* Ensuring proper compliance with U.S.
regulations, effective investigative and
prosecutorial enforcement actions, as well as
administrative procedural follow-up against
violators of the AECA and the ITAR.

* Surveying customer satisfaction periodi-
cally to solicit suggestions for improving DTC
services.

Defense Trade News, Volume 5, Number 3, July and October 1994

Page 7



Firearms Exports

U.S., Other Governments Cooperate to Combat Diversions

A Growing Trade in Firearms

Over the past year, State’s Office of Defense
Trade Controls (DTC) has experienced an
increase in the number of applications for the
export of firearms and ammunition. Other
firearms-exporting nations report the same
trend. A further increase is expected with
the removal of certain countries (e.g., South
Africa and former East Bloc nations) from
the International Traffic in Arms Regulations
(ITAR) list of prohibited destinations.

The State Department has a responsibility to
authorize exports of lethal equipment only to
valid end-users, and must confirm that the
export is not going to the international arms
market or to end-users whose activities
conflict with U.S. foreign policy or national
security goals and world peace.

A factor complicating the regulation of the
global firearms trade is that, unlike most
items controlled under the U.S. Munitions
List and comparable international control
lists, firearms are frequently licensed for
commercial resale. Thus actual end-users
are not always identified.

Inter-Governmental Cooperation

An international consensus is emerging on
the need for closer government-to-govern-
ment cooperation to combat abuses in the
global firearms trade. Many governments are
increasingly concerned over the quantity of
arms entering their countries, with the possi-
bility of diversion to terrorists, narco-traffick-
indls. The United States
recently joined other governments in conven-
ing, in Bogota, Colombia, a conference on the
control of arms and explosives, to explore
means of combatting this problem.

The U.S. and other nations are studying
several cooperative initiatives, including
adoption of a standardized international
import certificate for firearms, firearms
components, and ammunition; development
of a computerized system to track movements
of firearms between countries; and imposition
of limitations on large-scale international
firearms transfers.

Some governments have requested that

the United States demand more extensive
supporting documentation for firearms
export license applications — in particular,
import authorization documents. Almost all
countries require government authorization
of firearms imports. Some governments issue
import permits specifying the type, quantity,
or value of firearms being imported. Others
issue open import permits for an unspecified
quantity of firearms and ammunition, valid
for a specific time period.

Tighter U.S. Controls

In furtherance of U.S. foreign policy and
national security goals, including support
for international efforts to combat arms
diversions, the State Department has tight-
ened requirements on import documentation
for firearms license applications (see page 14
for details). ®

Page 6

Defense Trade is, Volume 5, Number 3, July and October 1994



A

Agreement Notes, Part |: Using the Hardware Exemption

A New Alternative to Licenses for Agreement-Related Hardware

The July 22, 1993 revision of the International
Traffic in Arms Regulations (ITAR) created a
new exemption [22 CFR § 123.16(b)(1)] which
permits U.S. firms to ship hardware against a
Manufacturing License, Technical Assistance,
or Distribution Agreement without obtaining
a separate license. For companies which wish
to use the exemption, there are a few points to
keep in mind.

Detailed Information

First, the information to be incorporated into
an Agreement is the same as that required for
a DSP-5 license application — e.g., item
nomenclature, commodity, cost, quantity,
freight forwarders.

The level of detail is also the same; reference
to “detailed parts” or “finished parts” is
insufficient. End items must be specified by
name, national stock number (if applicable),
value and quantity — unless they are truly
minor, such as nuts and bolts. Likewise, the
certification required by 22 CFR § 126.13 must
detail any freight forwarders.

Coherent Format

Second, the information must be incorporated
into a single section of, or referenced adden-
dum to, the Agreement. The information on
the shipment(s) should be provided on
consecutive pages; scattering the information
throughout the Agreement will not do, and
will only slow processing.

Consistency

Third, the information on shipments must not
differ from that detailed in the Agreement.
Quantities, part numbers, value, and other
changes must be provided in amendments to
the Agreement before the exemption can

be used.

It is important to note that once a company
has begun shipments using the exemption,
all subsequent shipments in support of the
Agreement must use the exemption and not
separate licenses.

No Commerce-Controlled Material

Finally, the items applicants can export using
this exemption are only those defense articles
on the U.S. Munitions List. Commerce-
controlled items cannot be included in ship-
ments made under an Agreement.

Don’t Get Discouraged

The purpose of this article is not to discourage
use of the hardware exemption. The exemp-
tion is ideally suited for shipments of tools to
start-up an operation under a Manufacturing
Agreement, provide a defense article for
testing, and other such one-time activities.

In those cases, the information required is
readily obtainable and the shipments occur
almost immediately upon approval of an
Agreement.

In the case of a multi-year Agreement, how-
ever, it will be difficult to anticipate the level
of detail required to take advantage of the
exemption. Changes to accommodate unan-
ticipated shipments will require submission
of amendments, which may be more time-
consuming than using separate licenses from
the onset. This is especially true for compa-
nies using the ELLIE system to submit license
applications electronically.

Let DTC Help

In-depth procedures for the use of the exemp-
tion are being developed. In the interim,
applicants should consult the Agreements
Officers in the Licensing Division of the
Office of Defense Trade Controls before
submitting applications using the hardware
exemption. @

Detense Trade News, Volume 5, Number 3, July and October 1994

Page 19



LS SR

Blue Lantern on Guard

A Primer on State's Program of End-Use and End-User Checks

The Office of Defense Trade Controls (DTC)
is the Department of State unit charged with
the administration and implementation of
Section 38 of the Arms Export Control Act
(AECA) and the International Traffic in Arms
Regulations (ITAR). Violations of these laws
and regulations are prejudicial to the national
security, foreign policy, and commercial
interests of the United States. As recent
history makes clear, illicit trade in defense
technology, goods, and services can pose a
major threat to the U.S. and friendly foreign
countries.

As one means of regulating U.S. commercial
defense exports, and encouraging compliance
with the AECA and ITAR, DTC sometimes
initiates pre- and post-licensing end-use
checks, asking U.S. diplomatic posts to verify
the bona fides of export transactions con-
ducted under the State Department's licens-
ing control. Since 1991, this program has been
known as “Blue Lantern.”

Global Reach

“Blue Lantern” is a global program, with no
company, recipient country, or commodity
category singled out for review. End-use
checks have been conducted for a number
of years, with several hundred now being
conducted annually. Furthermore, DTC is
constantly seeking ways to perform such
checks in as timely and thorough a manner
as possible.

Designated personnel at U.S. diplomatic and
consular posts are tasked to make end-use
inquiries on behalf of the U.S. government.
They usually work directly with the host

government. Where possible and consistent
with guidelines established by the host
government, these U.S. officials also contact
foreign private individuals and entities
directly. .

Critical Criteria

DTC uses a number of criteria to identify
licenses warranting an end-use or end-user
check, and to determine whether a pre or
Post-licensing check is required. Some of
these criteria cannot be addressed here, but
appended to this article is a list of factors that
might cause DTC to initiate an end-use check.
While DTC’s enforcement functions are
performed by its Compliance Division (com-
prised of State and U.S. Customs personnel),
“Blue Lantern” checks can be requested by
either Compliance Specialists or Licensing
Division officers.

Although such verifications take time, the
program is essential to safeguarding U.S.
foreign policy and national security interests.
It is DTC’s policy not to notify companies
whose applications are selected for end-use
verification.

Checks Before and After Export

A pre-licensing end-use check is an effort to
determine the reliability of an overseas party
or person as a suitable recipient of U.S.
defense articles and services. The pre-license
check also ensures that the overseas party
listed on the license application has in fact
ordered the commodity or service in question,
that the proposed disposition of the commod-
ity or service is consistent with that indicated
on the license application, and that the ulti-
mate consignee understands its responsibili-
ties under the law in receiving U.S. defense
exports.

Defense Trade News, Volume 5, Number 3, July and October 1994

Page 9



a

Anna A. Stout
American League for Exports and Security
Assistance, Inc.

Maxwell R. Thurman (Gen., USA, Retired)
Association of the U.S. Army

Donald A. Weadon, Jr.
Dickstein, Shapiro, and Morin

Regulatory Working Group

Chairman — Jerome E. Eiler
Northrop - Grumman

Giovanna M. Cinelli
Gardner, Carton & Douglas

Richard Colton
Science Applications International

Debi Davis
Martin Marietta Corporation

Patrick J. Donovan
Honeywell, Inc.

Richard C. Gogolkiewicz
General Dynamics Corporation

Robert Lee
Varian Associates, Inc.

Judith Morehouse
The Boeing Company

Joyce E. Poetzl
McDonnell Douglas

Stuart M. Quigg
Q International

Victoria E. Ralston
Lockheed Corporation

George V. Rao
Allied Signal Aerospace Company

Thomas W. Reed
Rockwell International Corporation

Richard F. Sandifer, Jr.
Ingalls Shipbuilding

Kevin Shannon
Electronic Industries Association

Stephen D. Story
Federal Express Technical Working Group

Technical Working Group

Chairman —David M. (Mike) Richey
Litton Industries

Philip C. Gast
Burdeshaw Associates, Limited

Harry Halamandaris
Teledyne Industries, Inc.

John J. Kopecky
Pratt & Whitney

James Matchett
GE Aircraft Engines

Douglas E. McCormac
TRW Components International Inc.

Robert E. Oliver
Delco Electronics

Dr. J.H. Yang
Westinghouse Electric Corporation

The next DTAG plenary meeting is scheduled
for Thursday, October 6, 1994. Consult the

June 30, 1994 Federal Register notice for more

details.

DTAG-related questions can be directed
to Linda Lum of the DTAG Secretariat at
(202) 647-4231. @

Defense Trade News, Volume 5, Number 3, July and October 1994

Page 25



Bib AM2ZF — pecld (2/97 > Ihe

United States Department of State ° Bureau of Political-Military Affairs

Defense Trade News

and Export Policy Bulletin

Volume 5, Number 3 e Washington, D.C. ® July and October 1994
Policy °

U.S. Initiatives for Demining and Landmine Control 4

Beyond the Export Moratorium

Upgrading Soviet Systems: the "MiG Policy" Question 5

State Depariment to Consider American Participation in indian MiG Upgrades

Firearms Exports 6
U.S., Other Governments Cooperate to Combat Diversions

Operations

DTC's Customer Service Plan 7
Commitment to Our Customers
Blue Lantern on Guard 9
A Primer on State's Program of End-Use and End-User Checks
Indications of Suspicious Transactions 1
A Checklist for Exporters
Access Denied 12
A Guide to Proscribed and Restricted Export Destinations
Redefining "U.S. Person" 13
Regulatory Revision Clarifies Licensing Eligibility
Firearms Exports: Enhanced Procedures 14
Regulatory Changes on import Certification and Assault Weapons
Licensing Cyberspace, Part Il 15
New Procedures for Encryption Exports
Agreement Notes, Part I: Using the Hardware Exemption 19
A New Alternative to Licenses for Agreement-Related Hardware
ITAR Exemption Crib Sheet 20
Fine Print in the International Traffic in Arms Regulations

Departments
Country Policy Briefs 21
Personnel Updates 23
Defense Trade Advisory Group Developments 24
Commodity Jurisdiction Determinations 26
Systems Update 28
Licensing Officer Assignments 30

Feedback, ELLIE, and Training Forms 33


a

Access Denied

A Guide to Proscribed and Restricted Export Destinations

As of June 26, 1994, exports of U.S. Munitions
List items to the following countries were subject
to other than ordinary U.S. export policy interests
or concerns (often involving proscriptions or re-
strictions). For details, consult the Federal Regis-
ter notice cited.

Armenia
59 Federal Register 15624, April 4, 1994.

Angola
59 Federal Register 15624, April 4, 1994.

Azerbaijan
59 Federal Register 15624, April 4, 1994.

Burma
58 Federal Register 33293, June 16, 1993.
59 Federal Register 15624, April 4, 1994.

Belarus
59 Federal Register 15624, April 4, 1994.

China
54 Federal Register 24539, June 7, 1989.
59 Federal Register 15624, April 4, 1994.

Cuba
59 Federal Register 15624, April 4, 1994.

Cyprus
57 Federal Register 60265, December 18, 1992.

Georgia
59 Federal Register 15624, April 4, 1994.

Guatemala
58 Federal Register 38597, July 19,1993.

Haiti
56 Federal Register 50968, October 9, 1991
59 Federal Register 15624, April 4, 1994.

Tran

49 Federal Register 2836, January 23, 1984.
59 Federal Register 15624, April 4, 1994.

Traq

55 Federal Register 31808, August 3, 1990.

55 Federal Register 37793, September 13, 1990.
59 Federal Register 15624, April 4, 1994.

Kazakhstan
59 Federal Register 15624, April 4, 1994.

Korea, Democratic People’s Republic of
{North Korea”]
59 Federal Register 15624, April 4, 1994.

Kyrgyzstan
59 Federal Register 15624, April 4, 1994.

Liberia
57 Federal Register 60265, December 18, 1992.
59 Federal Register 15624, April 4, 1994.

Libya
59 Federal Register 15624, April 4, 1994.

Moldova
59 Federal Register 15624, April 4, 1994.

Mongolia
59 Federal Register 15624, April 4, 1994.

Nigeria
58 Federal Register 40845, July 30, 1993.

Peru
59 Federal Register 32481, June 23, 1994.

Rwanda
59 Federal Register 28583, June 2, 1994.

Russia
58 Federal Register 39280, July 22, 1993.

Somalia
57 Federal Register 59851, December 16, 1992.
59 Federal Register 15624, April 4, 1994.

South Africa
58 Federal Register 39280, July 22, 1993.
59 Federal Register 31667, June 20, 1994.

Page 12

Defense Trade News, Volume 5, Number 3, July and October 1994



Indications of Suspicious Transactions

A Checklist for Exporters

Customer Flags

Customer or purchasing agent is reluctant to
provide foreign end-use or foreign end-user
information.

Customer is willing to pay cash for a large
value order or item.

Little or no customer business background is
available.

Customer appears to lack familiarity with the
commodity’s performance and design charac-
teristics or uses.

Customer or purchasing agent refuses instal-
lation or service contracts that are normally
accepted in similar transactions.

End-User Flags

Requested equipment does not match the
known requirements or inventory of foreign
end-user.

Requests for spare parts exceed projected
needs or are for systems not in the foreign
end-user’s inventory.

End-use involves private use of significant
amounts or types of military hardware.

Performance /design requirements are incom-
patible with the foreign end-user’s resources
or environment, or with the foreign
consignee’s line of business.

Stated end-use is incompatible with the cus-
tomary or known applications for the equip-
ment being purchased.

Stated end-use is incompatible with the for-
eign consignee’s line of business.

Stated end-use is incompatible with the tech-
nical capability of the foreign end-user or con-

signee.

Foreign intermediate consignee’s location or
business is incompatible with purported for-
eign end-user’s nature of business or location.

Information on foreign intermediate con-
signee or foreign end-user is suspicious or
inadequate.

Parties respond evasively to questions regard-
ing any of the above, as well as to whether
equipment is for domestic use, export, or
re-export.

Shipment Flags

The proposed export involves a private inter-
mediary, particularly in sales involving major
weapon systems.

Freight forwarders are designated as foreign
consignees or end-users.

Transaction involves vague delivery dates or
delivery locations inconsistent with the type
of commodity or established practices.

Transaction involves suspiciously roundabout
shipping routes.

Packaging or packing requirements are incon-
sistent with shipping mode or destination.

Post office box addresses are used for foreign
consignee, intermediate consignee, or foreign
end-user. @

Detense Trade News, Volume §, Number 3. July and October 1994

Page 11



Ss

DEFENSE TRADE NEWS BULK RATE 7
United States Department of State | POSTAGE & FEES PAID
Washington, D.C. 20522-0602 US Department of State

Permit No. G-130

OFFICIAL BUSINESS.

PENALTY FOR PRIVATE USE $300

Address Correction Requested

awoor

SMAN apes asuajag BES JO JUeUedag SN

661 42q0190 pue Anr

€ ‘ON ‘S “IOA




ee
Licensing Officer Assignments

The Office of Defense Trade Controls periodically reassigns accounts among licensing officers to ensure
breadth of expertise. As of June, licensing responsibilities were assigned as follows:

There are currently two License Processing Teams, Team A and Team B. Those on Team A

are marked below with an asterisk (*) and those on Team B with a num!
a team, licensing officers serve as backu
backed up during annual leav:

ers will back up each other. Eventually, all licensing officers will be assigned to a team.

ber sign (#). Within
ps for each other. Those not yet ona team will be
e periods by Sam Capino (x57396) for commodity jurisdiction
requests, all license applications, and distribution agreements. Agreement licensing offic-

CATEGORY COMMODITIES [COMPANIES [LICENSING OFFFICER ] EXT.
Category I: All (@)-(a) 3KLM ‘Carol Basden (CBB) # 55678
Firearms All E.NQV,WX,Y,Z ‘Sue Clark (SMC) * 57043
All ABEL Terry Davis (TLD) $5662
All GH Terry Hunter (NTH) * 56637
All DRU Carolyn Lancaster (CLL) # | 56616
All exe) Suzanne Palmer (SMP)# | $5657
All PST Ken Peoples (KMP)* 56619
Category HI: All (a)-(d) ‘All Companies Sue Clark (SMC) * 57043
Artillery Projectors
Category III: Alll (a)-(e) TKLM Carol Basden (CBB) # $5678
Ammunition All ENQV,W.XY.Z Sue Clark (SMC) * 57043
All ABP Terry Davis (TLD) 55662
All GH Terry Hunter (NTH) * 56637
All DRU Carolyn Lancaster (CLL) # | 56616
All co Suzanne Palmer (SMP)# | 55657
All PST Ken Peoples (KMP) * 56619
Category IV ‘Mines and Bombs in (a) All Companies ‘Sue Clark (SMC) * 37043
Launch Vebicies, Guided Torpedoes in (a) All Companies Suzanne Palmer (SMP)# | 55657
Missiles, Ballistic Missiles, All Else in (a}-(g) rockets, AL Ken Peoples (KMP)* 56619
Rockets, Torpedoes, Bombs, ‘grenades, depth charges, missile
and Mines launchers, demolition blocks,
blasting caps, missile and anti-
missile systems, excavating
devices and ablative materials]
All Else in (a)-(g)[same as above} | M-Z Terry Davis (TLD) 55662
Category V: All @y) All Companies ‘Suzanne Palmer (SMP) # | 55657
Explosives, Propellants,
Incendiary Agents, and Their
Constituents

Page 0

Defense Trade News, Volume 5, Number 3, July and October 1994



Commitment to Quality

The Office of Defense Trade Controls recognizes its responsibility to the American public and other
governmental offices to provide the finest service possible at all times. As part of DTC’s quest for
improvement, the office uses an analytical approach, with statistical methods and other
problemsolving tools, to accomplish its licensing and compliance missions.

Page & _ Defense Trade News, Volume 5, Number 3, July and October 1994



a

This action also precludes the use in connec-
tion with such entities of any exemptions
from license or other approval included in
the International Traffic in Arms Regulations
(ITAR).

On October 31, 1991, a federal grand jury in
the Eastern District of Pennsylvania returned
an indictment charging the above cited
persons, except Denel, with conspiracy to
violate and with violation of the Arms Export
Control Act (AECA). The Department of State
therefore has reasonable cause to believe that
during the period 1978 through 1989,
ARMSCOR and the other cited entities
engaged in an ongoing conspiracy to export,
and did export, defense articles and defense
services to the Republic of South Africa and to
Traq without the requisite Department of State
licenses or approvals.

From 1978 through 1989, what is now Denel
was an integral part of ARMSCOR. Denel
reportedly came into being in 1992, in the
separation and restructuring of ARMSCOR.

Denel is a wholly owned company of the
South African Government, operating as a
commercial organization. Inasmuch as it is a
successor to ARMSCOR, Denel is also liable
for AECA- and ITAR-related violations.

Exceptions may be made to this policy ona
case-by-case basis. However, exceptions
would be granted only after a full review of
all circumstances, with particular attention to
the following factors: whether an exception is
warranted by overriding foreign policy or
national security interests; whether an excep-
tion would further law enforcement concerns;
and whether other compelling circumstances
exist which are consistent with the foreign
policy or national security interests of the
United States, and which do not conflict with
law enforcement concerns.

For further information, contact the Compli-
ance Division of the Office of Defense
Trade Controls. @

applications, e.g.:

ABC Company

A Subsidiary of XYZ, Inc.
1234 Elm Street -
Anytown, CA 99999

Subsidiaries — Don’t Forget Your Parents

Subsidiaries sometimes submit applications to the Office of Defense Trade Controls
(DTC) using a parent company’s registration code but not the parent company’sname.
This delays processing while DTC verifies the subsidiary’s status. To avoid this
problem, subsidiaries should identify the parent company in the Applicant box of

Page 22

Defense Trade News, Volume 5, Number 3, July and October 1994



Log onto ELLIE
State’s Electronic License Entry System

The State Department's Office of Defense Trade Controls (DTC) now offers on-line
electronic license submission via ELLIE, the Electronic License Entry System. Since its
inception in late 1993, ELLIE has processed over 2000 applications.. Having successfully
completed the pilot stage of the project, DTC has gradually increased the number of
companies participating in the ELLIE program to over 300.

ELLIE is a free service. To use ELLIE, you must have access to DTC’s Remote On-line
Bulletin Board (ROBB). Access to ROBB and ELLIE requires a PC, a modem, and commu-
nications software, which your firm may already possess.

To sign up for ELLIE, please mail this application to DTC (Attn: Computer Support
Staff) or fax it to (703) 875-5663.

TO: Director, Computer Support Staff, Office of Defense Trade Controls
FAX: (703) 875-5663

FROM:
(Company Name)

We would like to sign up to submit license applications electronically via ELLIE.

We.do/do not already use ROBB.
Our firm submits approximately. license applications to DTC per year.

DTC Registration Code
Address
City , State, ZIP
Point of Contact for ELLIE

Phone ( ) Fax ( )





Systems Update

Log Onto ROBB — State’s
Bulletin Board for Exporters

The Remote On-line Bulletin Board, ROBB,

is available to all companies registered with
the Office of Defense Trade Controls (DTC)
as arms manufacturers or exporters. Via
ROBB, registrants can receive details on the
status of open cases and cases issued within
the past month. ROBB is also used to dissemi-
nate breaking policy news, such as modifica-
tions to the list of proscribed destinations.

ROBB is accessible 22 hours daily, every day.
It is down from 7 to 9 a.m., when its database
is updated. DTC imposes no user fee for
ROBB or any other system.

To access ROBB, you must have an IBM-
compatible PC, a 2400 BPS Hayes-compatible
asynchronous modem, and the PC communi-
cations software VsCom. VsCom can be pur-
chased from M/H Group, 300 West Adams
Street, Chicago, IL 60606 [tel (312) 443-1222,
fax (312) 443-1377]. Its “Part Number” is VSTI.

To sign up, contact DTC’s Computer Support
Staff by fax [(703) 875-5663] or mail, provid-
ing your company name, DTC registration
number, a point of contact and phone num-
ber. DTC will issue a ROBB user ID number
and password.

Questions on Office of Defense Trade
Controls systems can be addressed to the
Computer Support Staff at (703) 875-6650.

A User’s Guide to ROBB

The following screen-by-screen description
details ROBB’s functions. Each screen is iden-
tified in the upper-left corner and functional
guidance is provided at the bottom.

Some of the functional guidance is unique to
a specific screen, but the following commands
apply to all screens: function key “F10” per-
mits you to “escape” (return to the previous
screen and ultimately log-off); “F5” lets you
scroll down to the next screen; “F4” scrolls
back. Use the “Tab” key to move the cursor
and hit “Enter” (or “Return” on some key-
boards) to carry out commands.

Screen 1 — Welcome to ROBB

Upon connecting and entering the correct
log-on ID and password, you are invited to
press “F1” to view licenses.

Screen 2 — List of Licenses

Screen 2 shows your company’s open cases
and all cases closed within the past month.
Columns 2, 8, and 9 provide case numbers,
the initials of the licensing officers handling
each case, and each case’s status. Columns
1 and 3-7 provide information submitted on
the original license application.

Column 1 displays the license type: 05 for
DSP-5, 61 for DSP-61, 73 for DSP-73, 85 for
DSP-85, AG for Agreement, GC for General
Correspondence (advisory opinions), and
CJ for Commodity Jurisdiction. Column 2
provides the license numbers DTC has
assigned to the applications. Column 3
notes the type of registration: “M” for
manufacturer or exporter, “F” for foreign
embassy, and “G” for U.S. Government.

The last four digits of your firm’s DTC
registration code appear in column 4.
Column 5 gives the date the license applica-
tion was prepared. The application value
appears in column 6. Column 7 lists the

Page 28

Defense Trade News, Volume 5, Number 3, July and October 1994



<a
POLICY

U.S. Initiatives for Demining and Landmine Control

Beyond the Export Moratorium

This item is reprinted from the U.S. Department
of State Dispatch.

Anti-personnel landmines are the weapon of
choice for many government and insurgent
groups. They are cheap, easy to manufacture
and use, difficult to detect, and expensive and
dangerous to remove. Usually, landmines are
not removed after armed conflict ends. They
are left for populations and, more recently,
peacekeepers to deal with.

While the U.S. military employs landmines
responsibly and in accordance with interna-
tional law, others often use them in uncon-
ventional and indiscriminate ways against
civilian populations to generate fear, inhibit
refugee repatriation, disrupt economic recon-
struction, and generally create chaos in fragile
governments.

Addressing the horrible toll in innocent civil-
ian casualties caused by the irresponsible and
indiscriminate use of anti-personnel land-
mines is a high priority of the Administration.
Given the immediacy and the complexity of
the problem, the U.S. has developed a com-
prehensive, four-track strategy.

Demining Initiatives. The U.S. currently
assists demining programs in Cambodia,
Afghanistan, Nicaragua, and Mozambique.
These follow five steps: landmine assessment,
training in mine awareness, education and
training in mine clearance, transition of
responsibility for the program to the host
government or other designated entity
(e.g., an international organization or a
private non-governmental organization),
and follow-on assistance.

Using this general plan, the Administration
is initiating this year support of demining
efforts in Eritrea, Ethiopia, Honduras, and
Costa Rica. There are significant landmine
problems in Angola, Somalia, Rwanda, and
Liberia as well, but unrest in those countries
has prevented the implementation of U.S.
assistance,

By the end of 1994, the U.S. aims to have
programs in at least nine countries where
landmines are a serious problem. The
Administration hopes to expand the program
to other countries; it has requested additional
funding for FY 1995, particularly for research
and development of technologies to assist
affected nations to detect and clear
landmines.

Efforts To Strengthen the Convention on
Conventional Weapons (particularly Protocol
Tl which governs the use of landmines). The
convention has been transmitted to the Senate
for advice and consent to ratification. The
US. is pressing for substantial improvements
to the landmine protocol, such as making it
applicable to internal conflicts, requiring all
mines to have a substantial metallic content,
requiring certain mines to be self-deactivat-
ing, and establishing verification procedures.

Moratoria on Landmine Transfers. In Octo-
ber 1992, the U.S. adopted a unilateral export
moratorium on antipersonnel landmines.
This moratorium was extended in 1993 for
three years. In 1993, the UN General Assem-
bly unanimously adopted a U.S. resolution
calling for moratoria on exports of landmines
that pose a grave risk to civilians. The U.S.

is strongly urging key countries to adhere to
moratoria. To date, eight other countries for-
mally have declared moratoria of their own;
several have export controls in place.

Page 4 —

Defense Trade News, Volume 5, Number 3, July and October 1994



Licensing Cyberspace, Part Il

New Procedures for Encryption Exports

The April issue of Defense Trade News and
Export Policy Bulletin outlined the new Admin-
istration policy on the liberalization of encryption
exports. Herewith, is information on the regula-
tory changes effected to implement the new poli-
cies.

In April 1993, the President ordered a review
of U.S. policy regarding the domestic use and
export controls of encryption technology.
That review concluded that vital U.S. interests
~~ national security, economic, and law
enforcement — compel the maintenance of
appropriate control of encryption. It also
concluded that there are measures which can
be taken to reform existing export controls to
ensure that controls are not unduly burden-
some to U.S. exporters.

On February 4, 1994, the Department of State
announced reforms to the export control pro-
cedures applicable to products incorporating
encryption technology.

Direct Distribution...

Previously, almost every encryption product
required an individual export license; the
only exception was for exports covered by a
foreign distribution arrangement. A new
revision to the International Traffic in Arms
Regulations (ITAR) provides a licensing
procedure permitting direct overseas distri-
bution by U.S. manufacturers without going
through foreign distributors.

Under this new arrangement (detailed in a
new ITAR section, §124.15), U.S. manufactur-
ers may ship encryption products covered by
U.S. Munitions List Category XIII(b)(1) from
the U.S. directly to customers in approved
countries, without obtaining individual
licenses for each end-user. Manufacturers
will retain the option of exporting to foreign
distributors under distribution agreements.

Detense Trade News, Volume 5, Number 3, July and October 1994

The new procedure is similar to existing
distribution agreement procedures. An
exporter must submit for approval by the
Office of Defense Trade Controls a proposed
arrangement which provides information on
specific items to be shipped, countries of
destination, and proposed end-users and
end-uses. Upon approval of the arrangement,
the exporter will be permitted to ship the
specified products directly to end-users in

the approved countries under a single license.

Defense Trade News On-Line

If you have a PC and a modem, you can
have 24-hour electronic access to U.S.
Government publications via the Fed-
eral Bulletin Board. Download Defense
Trade News before your hardcopy
reaches you. Keep abreast of U.S. foreign
policy with the Department of State Dis-
patch. Track modifications to the Inter-
national Trafficin Arms Regulations with
the Federal Register.

To access the Bulletin Board, dial up
(202) 512-1387 via an 8-bit/no parity /

L-bit stop modem, at 300 to 9600 baud.
For more information, call (202) 512-1526.

Page 15



a

(4) Specific identification of the country
or countries that comprise the distribution
territory. A Nontransfer and Use Certificate
(DSP-83) will be required, in accordance with
§123.10.

(c) Required Statements. The following state-
ments must be included in all arrangements:

(1) “This arrangement shall not enter
into force, and shall not be amended or
extended, without the prior written approval
of the Department of State of the U.S. Govern-
ment.”

(2) “This arrangement is subject to all
United States laws and regulations relating to
exports and to all administrative acts of the
U.S. Government pursuant to such laws and
regulations.”

(3) “The arrangement shall not affect the
performance of any obligations created by
prior contracts or subcontracts which the
applicant may have individually or collec-
tively with the U.S. Government.”

(4) “No liability will be incurred by or
attributed to the U.S. Government in connec-
tion with any possible infringement of
privately owned patent or proprietary rights,
either domestic or foreign, by reason of the
U.S. Government's approval of this arrange-
ment.”

(5) “No export, sale, transfer, or other
disposition of the U.S. Munitions List articles
covered by this arrangement is authorized to
any country outside the distribution territory
without the prior written approval of the
Office of Defense Trade Controls of the U.S.
Department of State.”

(6) “The applicant agrees that a semi-
annual report of sales or other transfers
pursuant to this arrangement of the licensed
articles, by quantity, type, U.S. dollar value,
and purchaser or recipient shall be provided
by (applicant) to the Department of State.”
Such reports may cover calendar or fiscal
years. Reporting shall continue until such

time asall articles authorized under the
arrangernent or a permanent unclassified
license (DSP-5) authorized in support of the
arrangement have been reported. Reports
shall be deemed proprietary information by
the Department of State and will not be
disclosed to unauthorized persons. (See
Section 126.10(b) of this subchapter).

(7) The applicant agrees to notify (identify

foreign end user) of any end use or retransfer
restrictions and (identify foreign end user)
agrees to incorporate the following statement
as an integral provision of a contract, invoice
or other appropriate document when the
articles covered by this arrangement are

sold or otherwise transferred:

“These commodities are authorized for export
by the U.S. Government only to (identify coun-
try of ultimate destination). They may not be
resold, diverted, transferred, transshipped, or
otherwise disposed of in any other country,
either in their original form or after being
incorporated through an intermediate process
into other end-items, without the prior writ-
ten approval of the U.S. Department of State.”

(8) “All provisions in this arrangement
which refer to the United States Government
and the Department of State will remain bind-
ing on the applicant after the termination of
the arrangement.”

(d) The license will be valid for four years and
quantities and values should reflect those for
this time period. No application will be
accepted for any export for which Congres-
sional notification is required.

The application shall be filled out in accor-
dance with the instructions; however, in this
instance, foreign end-user, foreign consignee,
and foreign intermediate consignees need not
be identified. In each block state: “The foreign
person in this block will be reported in accor-
dance with §124.15 of the ITAR.” The provi-
sions of §126.13(b) with regards to foreign
consignee and foreign intermediate consignee
need not be complied with at the time the
DSP-5 is transmitted but will be reported
semi-annually.

Defense Trade News, Volume 5, Number 3, July and October 1994



Editor’s Note

This issue of Defense Trade News and Export Policy

Bulletin focuses on compliance issues, including industry's
role in assuring that defense trade is conducted in accordance
with the law and in furtherance of U.S. foreign policy and national security.

Feedback from the first issues of the revamped Defense Trade News and Export Policy
Bulletin suggests that a substantial majority of readers welcome our increased empha-
sis on policy material, although there are a few demurrals. Comments run the gamut
from “This bulletin is one of the most informative, well-written government publica~
tions I read; it does a good job of updating exporters on current U.S. policy” to “Please
maintain the high standards of this publication and do not pollute it with political
comments.” We plan to continue to publish both policy background articles and de-
tailed operational material. Your feedback does matter to us, so let us hear from you. #

DTC Registrants — New Address? New Boss? Let Us Know

Of course, all subscribers need to notify us of a change of address to
continue to receive the magazine. But for those recipients of Defense
Trade News registered with the Department of State as manufacturers
or exporters, there is another important reason to keep in touch —
registrants are required by law to notify State’s Office of Defense
Trade Controls of any change of address or change in the name of the
registrant entered in Block 14 of Registration Form DSP-9. For details,
consult ITAR §122.4 or contact the Registration Staff at (703) 875-5663.

Defense Trade News, Volume 5, Number 3, July and October 1994 _ Page 3





Commodity Jurisdiction
Determinations

The following chart lists selected recent Commodity
Jurisdiction (CJ) determinations. We have described the
commodities in general terms to ensure confidentiality of

proprietary information.

Determinations apply only to the specific commodities

reviewed. If you believe one of your firm’s products is similar to one listed here as having been
placed on the Commerce Department’s Commerce Control List (CCL) and wish to have the product
reviewed, please submit a C] request letter following the guidelines set forth in ITAR §120.4. Refer
to Defense Trade News articles “Guidelines for Preparing C] Requests” and “CJs for Mass Market
Software” (Vol. 3, No. 4, Oct 1992) and “Class and Multiple CJ Requests” (Vol. 3, No. 1, Jan 1992),

or call (703) 875-5655 for guidance. @

COMMODITY RULING

Ablative Materials
Specifically Designed for

Military Applications USML IV(
Air lonization Monitor System. CCL 3A96G
Altimeter, Digital Pressure ccL**
Amplifier CCL 3A96G
‘Antenna, Portable and Mount CCL 5A96G
Automatic Teller Machine CCL SALIA

Brake, Disk ccl**

Buffer, Advanced Octal CCL 3A96G
Case Analysis Management System
Specifically Designed for Military
‘Applications USML XXI
Chip Detector, Pulsed Electric ccLTM
Circuit
Integrated, Communication CCL 3A96G
Integrated, Performs Data
Confidentiality Functions USML XIII(b)()
Communications Access System CCL 5A02A

Computer, Notebook, with DES

Coprocessor USML XIII(b)( 1)
Conductive Footware Tester + CCL 3A96G
Cryptographic Source Code

for Data Encryption USML XIII®)()
Customer Service Center CCL 5ATIA
Data Encryption Device USML X1I(6)Q)
Decoder

Stereo-Audio, Video-Stereo,

Video Only, or with Tilt Corrector ccl**

COMMODITY RULING
Diesel Engine
Specifically Designed or Modified for
Military Use USML
Not Specifically Designed or Modified for
Military Use cc"
Digital Mixer Core Product CCL 4A03A,
Digital Wireless Key System CCL5ALIA
Distribution System, Secure Cable ccL**
Dual Visor Kit ccLTM

Encoder, Bit an¢ Computer

using DES algorithm USML XIIi(b)(1)

Engine, Turbofan ccL**
Filter
Specifically Designed for Military
‘Applications USML XI(d)
Global Trainer cc

Grenade Launcher
Helicopter, Military

USMLIV(c)
USML VII(a)

Helmet, Flyer’s USML X(a)
Visor Cover Assembly, Leather cel”
Image Intensifier USML XII(c)
Infrared Focal Plane Array Detector USML Xil(c)
Intensifier, Second Generation
Specifically Designed for Military

‘Applications USML XIK(c)
Key Loading Module USML XIII(b)(5)
Key Transport Units USML XII(b)(5)

Landing System, Mobile Microwave
Specifically Designed for Military

‘Applications USML X1(a}(3)(vi)

Page 26 _

Defense Trade News, Volume 5, Number 3, July and October 1994



Secretary of State
Warren Christopher

Assistant Secretary
of State for
Political-Military
Affairs
Thomas E. McNamara

Deputy Assistant
Secretary for
Export Controls
Martha Caldwell Harris

Executive Editors
Jeffrey R. Cellars
and
Kathleen Hartnett

Managing and
Production Editor
Nadia L. Brown

Contributing Editors
Commodity Jurisdiction:
Thomas A. Denner

Defense Trade Advisory
Group: Linda Lum

Layout Design
Paula M. Lorfano

Graphics Design
Richard E. Florence

Defense Trade News (ISSN 1051-2845) is a quarterly publication
(January, April, July, October) of the Bureau of Political-Military Affairs,
USS. Department of State. Its purpose is to provide American industry,
the public, and Congress with information on defense trade policy,
licensing practices, and compliance issues. Contents include official
policy statements and other official documents. Special features, articles,
and other materials (such as maps, charts, graphs, tables, and photo-
graphs) provide additional information on current issues but should not
necessarily be interpreted as official U.S. policy statements. The
Secretary of State has determined that the publication of this periodical
is necessary in the transaction of public business required by law.

Subscription and Address Changes: DTC Registrants — Every firm
registered with the Office of Defense Trade Controls as a manufacturer
or exporter should automatically receive this publication at its registered
address in the name of the registrant in Block 14 of Form DSP-9. To
change mailing address, a registrant must notify the Office of Defense
Trade Controls in writing, citing its applicant code and amending Form
DSP-9 (see ITAR §122.4).

Non-Registrants — Defense Trade News is also available to U.S. govern-
ment agencies, foreign governments, non-registrant firms, and other
|_interested parties. To subscribe or to submit an address change, write to
| Editors, Defense Trade News, PM/DTC, SA-6, Room 200, Department of
State, Washington D.C. 20522-0602, or fax (703) 875-5663.

Copyright: Unless otherwise marked, this publication’s contents are in
the public domain and are not copyrighted. Such items may be
reprinted; we would appreciate citation of Defense Trade News as the
source. You must obtain permission to reproduce any copyrighted
material (including photographs) from its original source.

Limited Reprint Authorization: DTC registrant companies may
reproduce this entire edition (excluding postal mailing label) for internal
distribution. This permission is given to ensure proper distribution
throughout firms with multiple locations, and to reduce mailing costs.

Corrections, Contributions, and Correspondence: Address to Editors,
Defense Trade News, PM/DTC, SA-6, Room 200, Department of State,
Washington, D.C. 20522-0602.

Postmaster: Send address changes to Defense Trade News, PM/DTC,
SA-6, Room 200, Department of State, Washington, D.C. 20522-0602.

Postage: Third-class postage paid in Washington, D.C. 20522-0602.





Contacting the Office of Defense Trade Controls

Postal Address

Office of Defense Trade Controls
Bureau of Political-Military Affairs
PM/DTC, SA-6, Room 200

U.S. Department of State
Washington, D.C. 20522-0602

Express Mail/Courier Delivery Address
Office of Defense Trade Controls

Bureau of Political-Military Affairs
PM/DTC, Room 200

U.S. Department of State

1700 Lynn Street

Arlington, VA 22209-3113

Fax Numbers

Director; Licensing Division;
Defense Trade News:

Compliance Division;
Computer Support Staff:

(703) 875-6647

(703) 875-5663

General Telephone Numbers
General Information:

Office Director & Deputies:
Defense Trade News:
Licensing Division:
Registration /Compliance:
Commodity Jurisdiction:

(703) 875-6644
(703) 875-7050
(703) 875-5671
(703) 875-6644
(703) 875-6650
(703) 875-5655

Status Inquiry Telephone Numbers
Case Status Inquiries: (703) 875-6652
Congressional Case Status: (703) 875-6641
Automated License
Status System (ALISS):
Remote On-Line
Bulletin Board (ROBB):

(703) 875-7374

(703) 875-6650

Contacting the Deputy Assistant
Secretary for Export Controls

Deputy Assistant Secretary for Export Controls
Bureau of Political-Military Affairs

PM, Room 7325A

U.S. Department of State

Washington, D.C. 20520-7325

Contacting the Office of
Export Control Policy

Office of Export Control Policy
Bureau of Political-Military Affairs
PM/EXP, Room 2242

U.S. Department of State
Washington, D.C. 20520-2242

Telephone — (202) 647-4231
Fax (202) 647-4232

Ordering Forms and Regulations

To order license application forms, write the Office of Defense Trade Controls or fax (703) 875-6647.
Please mark your message “Attn: Forms.” Specify the type and quantity of forms needed, and
provide a phone number and point of contact along with your address. To order a copy of the
International Traffic in Arms Regulations, call the Government Printing Office at (202) 783-3238 from
8:00 - 4:00 EST; cite stock number 069-001-000-58-1. Please note that DTC doesnot distribute the ITAR

and GPO does not carry application forms.

Department of State Publication 10138
Bureau of Political-Military Affairs
Revised June 1994


eS

country of ultimate destination (using
two-letter country codes referenced in
ITAR Appendix C).

Column 8 shows the initials of the licensing
officer handling each case. Column 9 displays
case status: “X” for Pending, “A” for
Approved, “P” for Approved with Provisos,
“D” for Denied, “R” for Returned Without
Action, “W” for Withdrawn.

If your list of licenses exceeds one screen,
“5” will move you to the next screen; hitting
“FS” and the “Shift” key together moves you
to the last screen. If you want more informa-
tion on a case than Screen 2 provides, move
the cursor to that case and press “Enter.”

Screen 3 — Case Chronology

The top of this screen provides much the
same information as Screen 2, but ina differ-
ent format. The bottom shows case chronol-
ogy: the date the application was prepared,
the date DTC received it, whether it was
staffed, the date it was notified to Congress
(if applicable), the date it was signed by the
licensing officer, and the date of final action
(when DTC mailed it back to the applicant).

To move from one case chronology to
another, press “F5” to scan the licenses in the
order they were listed on Screen 2, or return
to Screen 2 by hitting “F10” and then move
the cursor to the next case of interest. If the
chronology indicates the case was staffed,
press “F7” to get the staffing screen.

Screen 4 — Staffing Information

DTC “staffs” about 25% of cases to other
offices or agencies for policy or technical
review. Screen 4 shows the date the case was
staffed and the date each recipient made its
recommendation to DTC. If the case was
restaffed, “F3” will supply restaffing info.

Cases are often staffed to DTC’s Compliance
Division (CAD). Cases are staffed within the

Political-Military Affairs Bureau to the Office
of Export Control Policy (EXP); the Office of
Defense Relations and Security Assistance
(DRSA); and the Office of Chemical, Biologi-
cal, and Missile Nonproliferation (CBM).

DTC staffs to State’s Bureau of Democracy,
Human Rights, and Labor (DRL, formerly
HA); Bureau of Oceans, Environmental, and
Scientific Affairs (OES), and regional bureaus:
African Affairs (AF); Inter-American Affairs
(ARA); East Asian and Pacific Affairs (EAP);
European and Canadian Affairs (EUR); Near
Eastern Affairs (NEA); and South Asian
Affairs (SA).

DTC also refers cases to the Arms Control
and Disarmament Agency (ACDA); the
Department of Defense (DoD); the Depart-
ment of Energy (DOE), and NASA.

Screen 5 — Query Options

Access Screen 5 by pressing “F9” while in
Screen 2. Use Screen 5 to perform queries
against your company’s ROBB database by
license type, license number, date received,
date prepared, country of destination, final
action, date of final action, and license value.
To doa query of your company’s applications
for a specific country, for example, enter the
country code and press “Enter.”

Use two-digit dates (e.g., January 4, 1991 is
01/04/91). Use the colon to search a range
{e.g., to search December 1, 1990 through
January 4, 1991, enter 12/01/90:01/04/91).
Use a semi-colon to check two dates but not
the intervening period (e.g., 12/01/90;01/04/
91 will check December 1 and January 4, but
not the dates in between). To get details of the
many queries which can be run using Screen
5, press “F8” for “Help.”

Log Off

Failure to log-off formally may allow sub-
sequent ROBB users from other companies to
see some information accessed by you. @

Defense Trade News, Volume 5, Number ‘3, July and October 1994

Page 29



Sudan

57 Federal Register 49741, November 3, 1992.
58 Federal Register 52523, October 8, 1993.
59 Federal Register 15624, April 4, 1994

Syria

59 Federal Register 15624, April 4, 1994.
Tajikistan

59 Federal Register 15624, April 4, 1994

Turkmenistan
59 Federal Register 15624, April 4, 1994.

Ukraine
59 Federal Register 15624, April 4, 1994.

Uzbekistan
58 Federal Register 39280, Juty 22, 1993.

Vietnam
59 Federal Register 15624, April 4, 1994.

Yemen
57 Federal Register 59852, December 16, 1992.

Former Yugostavia
56 Federal Register 33322, July 19, 1991.
59 Federal Register 15624, April 4, 1994.

Zaire
58 Federal Register 26024, April 29, 1993.
59 Federal Register 15624, April 4, 1994.

For more information on export restrictions
to these countries, contact the Office of
Export Control Policy. #

Redefining “U.S. Person”

Regulatory Revision Clarifies Licensing Eligibility

On May 18, 1994, the definition of “U.S.
Person” in the International Traffic in Arms
Regulations (ITAR) was broadened to include
all Lawful Permanent Residents of the U.S.

Fine Print

The July 22, 1993 ITAR revision aligned the
ITAR definition of “U.S. Person” with the
Immigration and Naturalization Act (INA)
definition of “Protected Individual.” The
INA definition excluded 2 categories of
Lawful Permanent Resident previously
regarded as U.S. Persons under the ITAR —
aliens who had failed to apply for naturaliza-
tion when eligible, and aliens who had
applied but had not been naturalized within
2 years of eligibility. Thus the July 22, 1993
ITAR revision considered Lawful Permanent
Residents in those two categories “Foreign

Defense Trade News, Volume 5, Number 3, July and October 1994

Persons.” One effect was that companies
were required to obtain export licenses or
approvals to transfer technical data or
defense services to such employees.

The May 18, 1994 ITAR revision broadened
the definition of U.S. Person to include Law-
ful Permanent Residents [as defined by

8 U.S.C, I0I(a)(20)] and “Protected Individu-
als.” The latter includes U.S. citizens and
nationals, and aliens lawfully admitted as
temporary residents [INA section 1160{a),
1161(a), or 1255a(a)(1)], as refugees [INA
section 1157], or as asylees [INA section 1158].

Bottom Line

Effective May 18, 1994, companies do not

need licenses or approvals to transfer data
or services to Lawful Permanent Resident
employees. @

Page 13



Part 123 — Licenses for the Export of
Defense Articles

1. The authority citation for 22 CFR Part 123
continues to read as follows:

Authority: Secs. 2 and 38, Pub. L. 90-629,

90 Stat. 744 (22 U.S.C. 2752, 2778); E.O. 11958,
42 FR 4311,3 CFR 1977 Comp. 79; 22 U.S.C.
2658.

2. Section 123.16(b)(1) is revised to read as
follows:

(1) District Directors of Customs shall
permit the export without a license of defense
hardware being exported in furtherance of a
manufacturing license agreement, technical
assistance agreement, distribution agreement
or an arrangement for distribution of items
identified in Category XII](b)(1), approved in
accordance with Part 124, provided that:

(i) The defense hardware to be
exported support the activity and must be
identified by item, quantity and value in the
agreement or arrangement; and

(ii) Any provisos or limitations placed
on the authorized agreement or arrangement
are adhered to; and

(iii) The exporter certifies on the
Shipper’s Export Declaration that the export
is exempt from the licensing requirements of
this subchapter. This is done by writing
“22 CFR §123.16(b)(1) and the agreement or
arrangement (identify/state number) appli-
cable;” and

(iv) The total value of all shipments
does not exceed the value authorized in the
agreement or arrangernent.

(v) In the case of a distribution agree-
ment, export must be made directly to the
approved foreign distributor.

PART 124 - Agreements, Offshore
Procurement, and other Defense
Services

3. The authority citation for 22 CFR Part 124
continues to read as follows:

Authority: Secs. 2, 38, and 71, Pub. L. 90-629,
90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); E.O.
11958, 42 FR 4311, 3 CFR 1977 Comp. p. 79;
22 U.S.C. 2658.

4. Section 124.15 is added to read as follows:

Section 124.15 Arrangements for
U.S. Encryption [Category XIII(b)())]
Distribution by Manufacturers

(a) Arrangements for the export of unclassi-
fied defense articles identified in Category
XIII(b)(1) must be approved by the Office of
Defense Trade Controls before they enter into
force. Such arrangements will be limited to
unclassified defense articles identified in
Category XIII(b)(I) and must contain condi-
tions for special distribution, end-use and
reporting. Licenses for export pursuant to
such arrangements must be obtained prior to
export of the defense article unless an exemp-
tion under §123.16(b)(1) of this subchapter is
applicable.

(b) Required Information. Proposed arrange-
ments shall be submitted to the Office of
Defense Trade Controls for review and
approval. The following information must be
included in all such arrangement proposals:

(1) A description of the U.S. Munitions
List articles involved. This shall include when
applicable the Federal Stock Number, name-
plate data, and any control numbers under
which the articles were developed or
procured by the U.S. Government;

(2) A detailed statement of the terms and
conditions under which the articles will be
exported and distributed;

(3) The duration of the proposed
arrangement; and

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Defense Trade News, Volume 5, Number 3, July and October 1994