How I could help your company as your ITAR Empowered Official

1. VP/Director Export
Compliance & Licensing
[Your Company]
Raymond J. Castagnaro, CPCM 29 April 2009

2. 2Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
Introduction
• Raymond J. Castagnaro, CPCM
• Over 20 years experience
• Top Graduate, International Import-Export Institute’s (IIEI)
course “Orientation for Empowered Officials” (2005)
• Achieved the only perfect score in the history of the course
• Empowered Official per ITAR 120.25

3. 3Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
§ 120.25 Empowered Official
• (a) Empowered Official means a U.S. person who:
• (1) Is directly employed by the applicant or a subsidiary in a position having authority for
policy or management within the applicant organization; and
• (2) Is legally empowered in writing by the applicant to sign license applications or other
requests for approval on behalf of the applicant; and
• (3) Understands the provisions and requirements of the various export control statutes and
regulations, and the criminal liability, civil liability and administrative penalties for violating
the Arms Export Control Act and the International Traffic in Arms Regulations; and
• (4) Has the independent authority to:
• (i) Enquire [sic] into any aspect of a proposed export or temporary import by the applicant,
and
• (ii) Verify the legality of the transaction and the accuracy of the information to be submitted;
and
• (iii) Refuse to sign any license application or other request for approval without prejudice or
other adverse recourse.
• (b) [Reserved]

4. 4Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
Experience as an E.O.
• DRS Technologies, Inc., Reconnaissance, Surveillance, & Target
Acquisition (RSTA) Business Segment - I know Defense
products and their ITAR implications
• Bell Helicopter Textron - Strong background in aircraft
systems, weapons platforms, etc.
• Coltec Industries, Menasco Aerospace - EO for five divisions
of the company
• Honeywell, Inc. - Satellite Systems - Electric actuators

5. 5Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
Professional Contacts
• Attend Society for International Affairs (SIA)
conferences twice annually
• Industry peers are highly-placed EOs for Airbus,
QioptiQ, Lockheed-Martin, Boeing, Bell
Helicopter, EFW, others
• Well-respected by Licensing Officers and
Enforcement officials at DoS (DDTC, DTCC)
and DoD (DTSA, USAF, USA)

6. 6Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
Member of the Team
• Some EOs see themselves as gatekeepers only
• Fosters the image of “Dr. No” or an obstacle to be
overcome, especially by BD, Engineering, Supply Chain
• I have a background in Business Development and
Marketing, Program Management, Supply Chain, and
Contracts (CPCM) - I speak the language
• My mission is to ensure that my company makes its
profit and revenue goals and KEEPS what it earns
(e.g. fines and penalties subtract from the bottom line)

7. 7Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
How do we do that?
• VP Export Compliance & Licensing has a seat at the President’s table
• Train Core Employees and Key Personnel - TRAIN TRAIN TRAIN!
• Include Compliance and Licensing in the earliest stages of Strategic and Tactical
Planning
• Streamline the compliance & licensing function by simplifying and balancing the
process across the enterprise
• Obtaining “Permission” early in the strategic planning, business development, and
procurement cycles is far more cost-effective than attempting to obtain
"forgiveness" for noncompliance later
• Permission = licenses, agreements, commodity jurisdiction requests, advisory
opinions, general correspondence clarifications, and proper use of exemptions
• Forgiveness = Disclosures & Corrective Actions

8. 8Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
What if we need “Forgiveness”?
• One of the value added benefits of a continuously
improving export compliance program, driven by a senior
member of the CEO's executive staff, is his/her
relationship with the USG
• Your company has already shown a promising approach to
trade compliance by seeking top talent from the industry and
positioning that talent where it can do the most good:The
Defense Trade Controls (DDTC) and Trade Controls
Compliance (DTCC) organizations of the State Department
consistently direct corrective action that includes doing
exactly what you are doing now: elevating export
compliance from an adjunct to a key executive role

9. 9Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
“Forgiveness” Continued
• I have a reputation with the DTCC
Enforcement officers, including its Chief, for
providing them with what they need to
“forgive” (“Same guy - different company”)
• All of my disclosures have remainedVoluntary
($zero penalties/fines on my watch)
• Have never been forced into a Directed
Disclosure or a Consent Agreement

10. 10Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
Compliance, Registration,Audits
• Have been through DDTC Audits by Deb
Carroll (now Division Chief) and US Customs
• Known and well-respected by NVESD (Army)
licensing officers
• Have close professional relationships with
partners at Poliner & Luks, Pisani & Roll, and
auditors/outside counsels at DLA Piper,
McKenna, Long, & Aldridge

11. 11Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
The Roadmap -Year 1
• Register with Corporation and DDTC as the company’s Empowered Official
• Build trust and mutual respect with all executives in the company
• Do the same with Export Personnel and executives of all supported business units -
any already planned gatherings make this easier and cost-effective - The goal here is to
Build/Improve theTeam
• Review and begin revision of ANY existing Trade Compliance processes, procedures,
manuals, etc. If not already automated, (depending on budget,) implement
customized/packaged software (i.e. OCR EASE) for Compliance requests, licenses,
agreements, exemptions tracking
• Create or improve the company-wide product matrix: Product, ITAR Category or EAR
ECCN#, other pertinent information
• The Goal is a “One Company” approach to Compliance (We use and improve the
good, replace the not-so-good tools)

12. 12Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
Year 2 and beyond
• All company Export Personnel to attend SIA conferences at least
once annually (Beginner and Advanced course, as appropriate)
• I will attend both courses with them
• Quarterly Compliance Team gatherings with one annual company-
wide Compliance seminar for all team members (presentations,
guest speakers, workshops, etc.)
• Make presentations to DDTC and DTSA for new products or for
any legacy products that might be the subject of Commodity
Jurisdiction requests - this outreach gains the trust of USG licensing
officials.
• MaintainYear 1 activities

13. 13Monday, April 20, 2009 Copyright (c) Raymond J. Castagnaro 2009 All rights
reserved
Thank you again
• ... for your time and attention
• Are there any questions not already
addressed? Please contact through Linked
In.