Dual-Use Export Controls and the Commerce Control List

1. Dual-Use Export Controls and the Commerce Control List

2. Licensing Overview • Majority of products do not require a license. • A few specialized high technology items require an export license due to Nuclear Proliferation (NP), Missile Technology (MT), Chemical Biological (CB), National Security (NS) controls. • If export license is required, license will generally be approved for a valid civil end use or tofriendly militaries.

3. License Jurisdiction • Department of Commerce : Dual-use • Department of State: Munitions • Nuclear Regulatory Commission (NRC): Trigger list • Department of Energy (DOE): Technology for Special Nuclear Material

4. Dual-Use Export Controls and the Commerce Control List Rationale External Considerations Wassenaar Arrangement Missile Technology Control Regime Nuclear Suppliers Group Australia Group Internal Considerations National Security Concerns Foreign Policy Initiatives Economic Concerns

5. International Nonproliferation Agreements Australia Group Biological Weapons Convention Chemical Weapons Convention CBW Missile Technology Control Regime Hague Code of Conduct Missiles Nuclear Nuclear Suppliers Group Zangger Committee Nuclear Nonproliferation Treaty Conventional Wassenaar Arrangement

6. Licensing Pyramid Majority of items exported to China from the U.S. do not require a license EAR 99 Anti-Terrorism Unilateral Controls License Exceptions License

7. List Based Controls • ECCN 1B117 • Heading Batch mixers with provision for mixing under vacuum in the range from zero to 13.326 kPa and with temperature control capability of the mixing chamber… • Reason for MT, AT Control

8. What Are Catch-All Controls? • Designed to help eliminate the worldwide threat of proliferation of WMD and their missile delivery systems • License requirements beyond the multilateral regime control lists • Between 50 to 80 percent of the goods and technology required for a project or facility of concern involving WMD or missile delivery systems are not controlled

9. U.S. Implementation of “Catch-All” Controls • “Knows” Provision • “Is Informed” Provision • “U.S. Persons” Provision • Crossover Provision

10. Entities List . The Entities List notifies exporters of requirements for exports/re-exports to specified end users See Supplement Number 4 to Part 744 of the EAR

11. Helpful Hints If a License Is Needed • Transparency is the key. • Clearly state name of the consignee, with accurate address and contact information. • Provide alternate points of contact. • If multiple end-users, provide accurate listings, including correct addresses and contact information. • Provide thorough descriptions of end use that details the appropriateness of the export for the stated end use.

12. Helpful Hints If a License Is Needed • Licenses can be used for multiple shipments. The quantity of items requested should be estimated for two(2) years of use. - If a longer duration for the export transaction is required, ask to have license validity extended. • BIS licenses are authorizations to ship approved items to approved consignees/end user(s). BIS licenses allow numerous end users (over 35) to be placed on the license. • Provide prior licensing history, if applicable. • Provide website information, press releases, etc., to show your company is engaged in commercial activities.

13. Evaluation Factors for Applications • Bona fides of consignee and end users • Sensitivity of commodity, software, or technology • Stated end-use and appropriateness of the exported commodity, software, or technology for that end use • Non-proliferation credentials • Assurances and guarantees • Risk of diversion and any associated intelligence • Licensing history

14. Licensing Deadlines Day 90 The President Day 85 EARB Day 69 ACEP OC Day 53 Dept. of Defense Dept. of State Dept. of Energy Dept. of Justice Day 39 Export ApplicationSubmitted to Dept.of Commerce Day 9 Day 1

15. QUESTIONS?