Management of Export Control and Nonproliferation Property

1. Management of Export Control and Nonproliferation Property

2. Why be Concerned? • The threat to U.S. and global security is the proliferation or terrorist acquisition of nuclear, chemical, or biological weapons (weapons of mass destruction, or WMD). • Numerous countries are capable of or openly striving to acquire WMD.

3. Who Needs This?

4. What is an Export? • Any item that is sent from the United States to a foreign destination is an export. "Items" include commodities, software or technology, such as clothing, building materials, circuit boards, automotive parts, blue prints, design plans, retail software packages and technical information. • How an item is transported outside of the United States does not matter in determining export license requirements. Regardless of the method used for the transfer, the transaction is considered an export for export control purposes. An item is also considered an export even if it is leaving the United States temporarily,

5. Export “CONTROLS” • Legal and Regulatory Controls • Laws and regulations • Control Lists • Nuclear Suppliers Group • Missile Technology Control Regime • Australia Group • Wassenaar Arrangement • Legal authority to deny licenses • Criminal and civil penalties

6. Export “CONTROLS” (cont.) • Licensing Procedures and Practices • Licensing organizations • Procedures, databases and watch lists • Process to ensure government agencies have the knowledge and opportunity to evaluate license applications

7. Export “CONTROLS” (cont.) • Enforcement, Investigation and Prosecution • Enforcement agencies prosecute violators of export control laws and regulations • Authorities review details of manifest data to analyze for suspicious transfers • Procedures to apply risk management and targeting strategies to detect suspect transfers and to minimize impediments to legitimate trade. • Use of inspection techniques and equipment to identify potential transfers of proliferation concern.

8. Export “CONTROLS” (cont.) • Industry Outreach • Effective outreach to raise the awareness of companies and commercial individuals, universities, and centers of research and development –- including conventions and trade shows -- about their responsibilities under the economy’s export control system, including penalties for violations. • Strong relationships with industry to identify suspect sales and deliveries. • Efforts to encourage industry to develop internal compliance practices that incorporate checks on end-users and end-uses of concern.

9. How Serious is This, Really? Example: Reprocessing Equipment

10. How Do You Know If An Export License Is Required? • A relatively small percentage of total U.S. exports and re-exports require a license from Bureau of Industry and Security (BIS) of the Dept of Commerce. License requirements are dependent upon an item's technical characteristics, the destination, the end-user, and the end-use. You, as the exporter, must determine whether your export requires a license. When making that determination consider: • What are you exporting? • Where are you exporting? • Who will receive your item? • What will your item be used for?

11. Agencies Involved In The United States Export Control System • Department of State • Nuclear Regulatory Commission • Department of Energy • Department of Commerce • Department of Defense (advisory role) • Intelligence Community (advisory role)

12. Direct exports Sales, donations, loans, leases, transfers Patent assignments Communications Publications Presentations Foreign visits Foreign travel Transfer Mechanisms Whatever the transfer mechanism, an export control review is a must.

13. Export Control Classification Number Structure Controlled items are identified by an export control classification number, ECCN, e.g., 3A001

14. Export Restriction Notice • The use, disposition, export and re-export of this property are subject to all applicable U.S. laws and regulations, including…which among other things, prohibit: • The making of false statements and concealment of any material information regarding the use or disposition, export or re-export of the property; and • Any use or disposition, export or re-export of the property which is not authorized in accordance with the provisions of this agreement, This statement must accompany any transfer of the commodities (see example).

15. The Nuclear Suppliers Group (NSG) • The NSG is a group of 45 nuclear supplier countries that seek to avert the proliferation of nuclear weapons by implementing Guidelines for nuclear exports and nuclear-related, dual-use exports. • The NSG has developed two sets of export control Guidelines: • Guidelines for Nuclear Transfers • Published by the International Atomic Energy Agency (IAEA) as INFCIRC/254/Part 1 (as amended)—Part 1 • Includes the Trigger List in Annexes A and B • Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, Materials, Software and Related Technology • INFCIRC/254/Part 2 (as amended)—Part 2 • Includes the Dual-Use List in its Annex

16. The Trigger List What items are on the Trigger List?

17. The NSG Guidelines—Part 1 • Guidelines for Nuclear Transfers (INFCIRC 254/Part 1) is a 52-page document that includes the Trigger List, which is an illustrative list covering items that are especially designed or prepared (EDP) for nuclear use. • The Trigger List (Annexes A and B to Part 1) includes: A. Nuclear material – e.g., uranium (U), plutonium (Pu) B. Materials and Equipment 1. Nuclear reactors and equipment EDP therefor 2. Non-nuclear materials for reactors (e.g., heavy water) 3. Reprocessing plants and equipment EDP therefor 4. Nuclear fuel fabrication plants and equipment EDP therefor 5. Uranium enrichment plants and equipment EDP therefor 6. Heavy water production plants and equipment EDP therefor 7. U and Pu conversion plants and equipment EDP therefor • Especially Designed or Prepared – 146 occurrences in Part 1 • The Trigger List is firmly rooted in the Non-Proliferation Treaty (NPT)

18. Non-Nuclear Materials for Reactors Stainless steel heavy water drums. Nuclear grade graphite

19. Pumps EDP for Use in aNuclear Reactor ◄ Four pumps EDP for use in a nuclear reactor. One of the motor nameplates, whichreads, “nuclear service motor.” ►

20. The Dual-Use List What items are on the Dual-Use List?

21. Categories of Dual-Use-List Items 1. Industrial equipment (e.g., machine tools) 2. Materials (e.g., carbon fiber) 3. Uranium isotope separation equipment and components (e.g., filament winding machines) 4. Heavy water production plant related equipment(e.g., special pumps) 5. Test and measurement equipment for the development of nuclear explosive devices(e.g., photomultiplier tubes – see next chart) 6. Components for nuclear explosive devices(e.g., detonators)

22. Industrial Equipment and Materials Crucibles made of variousmaterials High-accuracy milling machine

23. Test & Measurement Equipment Pulse generators

24. Chem/Bio Commodities

25. Manufacturing Equipment for Chemicals • Manufacturing Equipment • Reaction Vessels, Reactors or Agitators • Storage Tanks, Containers or Receivers • Heat Exchangers or Condensers • Distillation or Absorption Columns • Filling Equipment • Valves • Multi-Walled Piping • Pumps • Incinerators • Toxic Gas Monitoring Systems and Detectors

26. Corrosion-Resistant Materials • Nickel or alloys with more than 40% nickel by weight • Alloys with more than 25% nickel and 20% chromium by weight • Titanium or titanium alloys • Tantalum or tantalum alloys • Zirconium or zirconium alloys • Niobium (columbium) or niobium alloys • Fluoropolymers (e.g., PTFE, FEP, PFA, PVF) • Glass or glass lined • Graphite or carbon graphite • Silicon carbide • Titanium carbide • Ceramics • Ferrosilicon

27. Manufacturing Equipment for Bio • Fermenters • Centrifugal Separators • Laboratory • Decanter • Flow Filtration Equipment • Freeze-Drying Equipment • Aerosol Inhalation Chambers • Containment Equipment • Spraying and Fogging Systems • Protective Suits

28. U.S. Munitions List

29. Firearms, Close Assault Weapons and Combat Shotguns Guns and Armament Ammunition/Ordnance Launch Vehicles, Guided Missiles, Rockets, Torpedoes, Bombs, and Mines Explosives and Energetic Materials, Propellants, Incendiary Agents and Their Constituents Vessels of War and Special Naval Equipment Tanks and Military Vehicles Aircraft and Associated Equipment Military Training Equipment Protective Personnel Equipment Military Electronics Categories of U.S. Munitions List • Fire Control, Range Finder, Optical and Guidance, and Control Equipment • Auxiliary Military Equipment • Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment • Spacecraft Systems and Associated Equipment • Nuclear Weapons, Design and Testing Related Items • Classified Articles, Technical Data and Defense Services Not Otherwise Enumerated • Directed Energy Weapons • Reserved • Submersible Vessels, Oceanographic and Associated Equipment • Miscellaneous Articles

30. Demilitarization DEMIL is the act of destroying the offensive or defensive advantages inherent in certain types of military equipment or material. The term can include mutilation, dumping at sea, cutting, crushing, scrapping, melting, burning or alteration design to prevent the further use of the equipment and material for its originally intended military or lethal purpose.

31. Coding of Munitions List Items Demilitarization Codes • Demilitarization coding is a method used by DoD for the control of DoD personal property- Demilitarization Coding Management Office (DCMO). • Every item in the Federal Stock System is required to have a DEMIL Code • Any item turned in to a disposal activity must have a DEMIL code and/or clear text statement of DEMIL instructions. • If MLI/SME, items requires DEMIL worldwide. • There are eight Demilitarization (DEMIL) Codes • DEMIL Code • A single character alpha code identifying the degree of DEMIL necessary prior to accomplishing final disposition of a MLI

32. DEMIL Codes (cont.) A Non-MLI/Non-CCLI – DEMIL not required B MLI (Non-SME) – DEMIL not required. TradeSecurity Controls required at disposition C MLI (SME) – Remove and/or demilitarize installed key point(s), as prescribed in the manual, or lethal parts, components and accessories D MLI (SME) total destruction of item and components so as to preclude restoration or repair to a useable condition by melting, cutting, tearing, scratching, crushing, breaking, punching, neutralizing, etc….

33. Transfer of Surplus Property • There is a presumption of destruction for • NSG Trigger List items (equipment or materials especially designed or prepared for nuclear use) • Weapons components These items must be rendered useless for nuclear purposes before being offered to the public or a transfer agreement shouldrequire supervised disposalas scrap (see example)

34. Change of Custody • Although not technically “disposal,” it is still a vulnerable area regarding export control • Loans, subcontracts, etc. • Review with your site SMEs (Export Control, Legal, etc.) • Transfer of Custody Form

35. Property management and export control are difficult! “I want to express my utmost sympathy with the people who have to grapple with this problem [the spread of nuclear weapons capabilities], and in the strongest terms urge you not to underestimate its difficulty.” J. Robert Oppenheimer, “Father” of the atomic bomb,and first director of Los Alamos National Laboratory

36. Nonproliferation and Property Management • An effective property management system at your site is vital to the nonproliferation of these WMD technologies • Use the Export Control Notice on all disposals! Resources are available to assist: • Training / Guidebooks / Handbooks • Export Control Specialists • Technical Experts

37. CONTACT INFORMATION Cheri L. Cross, CPPM, CF 865.574.6046 crosscl@ornl.gov Marcia D. Whitson, CPPM, CF 865.241.5120 whitsonmd@ornl.gov