Defense Trade Advisory Group (DTAG)

Defense Trade Advisory Group (DTAG) Tasking Overview Plenary Session October 20, 2010

DTAG Working Committees • CAT VIII • Bryon Angvall - The Boeing Company • Dale Rill - Honeywell International Inc. • CAT XI • Tom White - Lockheed Martin • Kim DePew - G.E. - Aviation • CAT XII • Beth Mersch – Northrop Grumman • Krista Larsen – FLIR Systems, Inc. Committee Co-Chair Persons

DTAG 2010 Tasking • Review the CCL and USML to: • Create a “bright line” between the two controls lists • Clarify jurisdictional determinations • Reduce uncertainty about control of specific items • State or Commerce • Ensure items are Tiered - distinguish types of controls • Different levels, users, destinations • Create a “Positive List” • Describes controlled items • Objective criteria (technical parameters vs. catch all phrases) • Structurally Align the USML and CCL • For completion of a combined list at a later date Avoid re-control of defense articles removed from ITAR

Current Controlled Items and Technologies TIER 1 Defense Articles TIER 2 TIER 3 Dual-Use CATCH ALL BASED CONTROLS Overlaid on the Three Tiered Concept

Tiered Control Criteria • Tier 1 controlshall apply to: • a. A weapon of mass destruction (WMD); • b. A WMD-capable unmanned delivery system; • c. A plant, facility or item specially designed for producing, processing, or using: • (i) WMDs; • (ii) special nuclear materials; or • (iii) WMD-capable unmanned delivery systems; or • An item almost exclusively available from the United States that provides a critical military or intelligence advantage. Critical military or intelligence advantage to the U. S.

Tiered Control Criteria • A Tier 2 controlshall apply to an item that is not in Tier 1, is almost exclusively available from Regime Partners or Adherents and: • a. Provides a substantial military or intelligence advantage; or • Makes a substantial contribution to the indigenous development, production, use, or enhancement of a Tier 1 or Tier 2 item Available from Multilateral partners and allies

Tiered Control Criteria • A Tier 3 controlshall apply to an item not in Tiers 1 or 2 that: • a. Provides a significant military or intelligence advantage; • b. Makes a significant contribution to the indigenous development, production, use, or enhancement of a Tier 1, 2, or 3 item; or • Other items controlled for national security, foreign policy, or human rights reasons • Catch All Controls: • All items not covered in Tiers 1, 2, or 3 Items are more broadly available

Methodology – Seven Groups “A,” for “Equipment, Assemblies, and Components;” “B,” for “Test, Inspection, and Production Equipment;” “C,” for “Materials;” “D,” for Software;” “E,” for “Technology;” “F,” for “Defense Services;” and “G,” for “Manufacturing and Production Authorizations Each Category

Approach to Controlling Items Identify ITAR discriminating functionality Control Enabling Items A. (T2) Equipment employing discriminating functionality (or components contributing to the discriminating functionality) B. (T2) Equipment “specially designed” to produce or test items controlled in A C. (T2) Materials “specially designed” to contribute to the discriminating functionality D. (T2) Software “specially designed” for development, production, or use of equipment employing discriminating functionality E. (T2) Technology “required” for the design, manufacturer, test, or use of equipment employing discriminating functionality Detection, identification, tracking Countermeasures, counter- countermeasures Radar w/ jamming, low probability of intercept Cryptography Burst techniques Tempest Suppression… Identifying discriminating functionality key to approach

DTAG Issues & Concerns • This was not an easy task • Multiple DTAG members from various represented technologies • Coordinated effort to gain depth of knowledge required for a complete review • Technology vs. Technical data • Don’t want to control more than required • Complexity of Categories • Multiple defense articles • Multiple variants of each • All subject to interpretation • Time Constraints • 6 weeks vs. 6 months to accomplish • Avoid unintended control of items • Ensure the “positive” list does not recapture control of items • Cleared through the CJ process • Technical parameters require coordination • DoD, NSA, etc… Critically important activity

Next Steps • Additional technical review • Engineers from Industry and USG need to coordinate • Clarification of parameters • Further refinement of assigned Categories • Additional review and analysis is required for a completed positive list • Guidance on Groups E, F, and G needed • Technology, Defense Services, Manufacturing & Production Authorizations • DTAG approval of recommendations

Defense Trade Advisory Group (DTAG)