How to Effectively Manage Customers, Suppliers, Employees and Visitors for a better International Traffic in Arms Regulations (ITAR) Compliance.

2. Export Compliance Lifecycle
Identify new
customer, supplier,
contractor,
employee
Screen the
entity/person
Classify the
goods/technology for
export/disclosure
Conduct export
license
determination
Create necessary
documentation &
export/hire/serve
2
Compliance Process

3. Customer/Supplier Selection
3
Ensure your trade partners are not listed in U.S. denied,
sanctioned and/or restricted party lists; including but not
limited to:
U.S. Dept. of State – Debarred Party List
U.S. Dept. of State – Country Specific and End-Use Specific Sanctioned Party
Lists
U.S. Dept. of Commerce – Entity List, Unverified List and Denied Persons List
U.S. Dept. of Treasury – Specially Designated Nationals, FSE Lists
Other Gov. agency issued sanctioned persons lists
Lists are updated Frequently!
U.S. based companies can violate the Export Control Laws
by conducting a business with these entities & persons w/o
prior U.S. Government authorization

4. End-User Screening
44
• Intermediate and
Ultimate
Consignees
• End Users
• Pay-to and Pay-
from parties
• Freight
Forwarders
• New hires
• Employees
• Visitors
• Contractors
• Consultants
• Representatives
and Agents
• Potential and
existing
Customers
• Service Providers
• Recipients of
software and
technical data
• Financial
institutions
• Suppliers
• Vendors
• Subcontractors
- Purchasing
- Procurement
- Trade
Compliance
- Customer
Service
- Sales
- Trade
Compliance
- Shipping
- Receiving
- Traffic/Logistics
- Trade
Compliance
- Human
Resources
- Security
- Engineering
- Trade
Compliance
Automated
Screening
Software

5. 55
End-Use Screening
Ensure your foreign trade partners are not involved in the
following activities:
Chemical and Biological Weapon Proliferation
Nuclear Proliferation
Missiles and Unmanned Aerial Vehicles
Military activities in restricted countries
Anti-Boycott Law Violation
Diversion contrary to U.S. Export Control Laws
It is a violation of Export Control Laws to conduct a
business with such trade partners without prior U.S.
Government authorization

6. 66
DFARS ITAR Flowdown
Defense Federal Acquisition Regulation Supplement
("DFARS") 2010 Amendment
Final Rule requires that a clause “flowdown clause”
mandating strict compliance with U.S. export control
laws and regulations be included in all DoD
solicitations and contracts
Subcontractor: All suppliers, distributors, vendors,
etc.
Subcontract : All purchase orders, task orders,
contracts,..
Example:
“The Contractor shall comply with all applicable laws
and regulations regarding export-controlled items,
including, but not limited to, the requirement for
Contractors to register with the Department of State in
accordance with the ITAR.”

7. 77
DFARS ITAR Flowdown (Cont’d)
How Subcontractors Can be Compliant?
 Develop written export policies and procedures (EAR and ITAR)
 Determine whether the company is required to register with
DDTC
 Properly classify items, technology and services for licensing
purposes
 Implement access controls
 Apply for licenses if necessary
 Enforce and publish the export policy
 Record Retention …
 Record Retention …
 Record Retention …

8. 88
Plant Visits
Technology transfer to or defense service for a foreign employee
IS AN EXPORT
Plant visit by foreign nationals
IS AN EXPORT if technical data is disclosed

9. 99
Plant Visits (Cont’d)
Have a Visitor Management Process
Develop a Technology Control Plan
Implement Foreign National Visit Authorization Form
Must be under supervision of the Empowered Official and/or
Export Control Manager
Attach your Technology Control Plan to the Form
Attach “ITAR Non Disclosure Agreement” and “TCP Briefing
Record” to the Form
Visitors Must Sign the ITAR NDA and the TCP Briefing
Record before accessing to Site/Facility

10. 1010
Plant Visit License Exemptions
Foreign national visits, resulting a disclosure of unclassified
technical data, may not require a license if:
Visit has itself authorized pursuant to a license issued by the ODTC,
or
Visit was approved in connection with an actual or potential
government-to-government program or project by a U.S. government
agency having classification jurisdiction, or
Information is directly related to the classified defense article or
technical data for which approval was obtained and is not design,
development, production or manufacturing date for any other
defense article.

11. 1111
Trade Shows & Exhibitions
Export authorizations for exhibitions and trade shows can
take various forms
SEVERAL authorizations may be required!
Consider what is involved:
Hardware?
Technical Data?
Defense Services? (Demos)

12. 1212
Trade Shows & Exhibitions (Cont’d)
Some applicable License Exemptions:
22 CFR 123.16 (b)(4)
Models and mock-ups that are non-operable and do not reveal
any technical data and do not contain controlled components.
22 CFR 123.16 (b)(5)
Temporary export for public exhibition, trade show, air show or
related event if that article was previously licensed (DSP-73) for
public exhibition
22 CFR 123.4 (a)(3)
Temporary import (and subsequent export) of U.S. – origin
defense items without a license, for a period of up to 4 years, for
demonstration or marketing. (Other temporary imports are
under DSP-61 license)

13. 1313
Foreign National Employees
Foreign national employees in the U.S. who will potentially
access to U.S.M.L. defense articles or technical data must be
licensed (DSP-5) by DDTC
Technical Assistance Agreement may also be required in
certain cases
Once Again…
Develop and Implement a Technology Control Plan!

14. 1414
Foreign National Employees (Cont’d)
Important Things in Licensing Process
Specific purpose (end-use) for which the technical data is
required
Logical connection between the person’s need for the
technical data and the job description
Nationality of the foreign person matters in speed of license
approval
Consistency between the foreign person’s address and U.S.
visa issuing country matters

15. 1515
Technology Control Plan
Often required by the DDTC & Defense Technology Security
Administration (DTSA) for approval of a license or
agreement
Can be Broad or Program/End-Use Specific
Proof of the intention to maintain appropriate controls to
comply with terms of export authorization
Outlines the procedures and requirements for transfer of
technical data to U.S. and non-U.S. persons

16. 1616
Technology Control Plan (Cont’d)
Some of the Elements:
Definitions
Scope, Project/Program & End-Use Summary
Roles and Responsibilities
List of Controlled Items
Authorized Persons and Work Locations
Access Control Procedures
Technical Data Transfer Control Procedure
Employee/ Contractor Hire and Transfer Procedure
Training Procedure
Record Retention Procedure
Copies of Licenses, Agreements, and Associated Documentation

17. 1717
Excellence in ITAR Compliance
Stay Compliant!
Control
&
Monitor
ImplementPlan

18. Questions
Contact
Intredex, Inc.
3259 Progress Drive
Orlando, FL 32826
http://www.intredex.com
Phone: 888-397-1777
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