U.S. EXPORT CONTROL LAWS AND REGULATIONS This material is

U.S. EXPORT CONTROL LAWS AND REGULATIONS This material is intended only as an overview tool and does not provide all substantive information needed to make a responsible export decision. Please contact your Center Export Administrator or Counsel for assistance in interpreting and applying U.S. export control laws and regulations to your specific export or import requirement. Bob Tucker Director, Assessments and Technology Division, Office of External Relations and NASA Export Administrator

AGENDA An Introduction to U.S. Export Control Laws and Regulations (42 charts) – International Traffic In Arms Regulations (ITAR) – Export Administration Regulations (EAR) Missile Technology Control Regime (MTCR) Overview (12 charts)

INTRODUCTION Just What Is An Export Anyway? A Simplified Definition – The transfer of anything to a “FOREIGN PERSON” by any means, anywhere, anytime, or the knowledge that what you are transferring to a “U.S. PERSON”, will be further transferred to a “FOREIGN PERSON”.

U.S. Export Laws and Regulations AECA and ITAR (USML) - 22 CFR 120 – covers items such as Space Launch Vehicles (e.g., the Space Shuttle), rocket engines, certain spacecraft (including all remote sensing satellite systems), missile tracking systems, etc. (both the hardware and the technology) EAA and EAR (CCL) - 15 CFR 730 – covers what is commonly referred to as “dual-use” items, including the Space Station (the hardware and certain technology)

U.S. GOVERNMENT PLAYERS STATE COMMERCE – OSTP – NSC – USTR – BXA DoD – DTRA – JCS – Others ACDA TREASURY – U.S. CUSTOMS – OFAC WHITE HOUSE IC DoT – FAA JUSTICE – FBI DoE

U.S. Export Laws and Regulations Examples of Other U.S. Government Players, Laws & Regulations – – – – – – Drug Enforcement Administration (21 CFR 1311) Food and Drug Administration (21 USC 301) Department of Interior (50 CFR 17.21,22,31,32) Department of Treasury (31 CFR 500) Department of Energy (10 CFR 205.300, 10 CFR 110 & 810) Others

Reasons Certain Exports are Controlled National Security (NS) Foreign Policy (FP) Proliferation (MT, NP, CB) Short Supply (SS) Anti-Terrorism (AT) Crime Control (CC) High Performance Computer (XP) Regional Stability (RS) UN Sanctions (UN)

The International Traffic in Arms Regulations (ITAR) 22 CFR 120-130 Administered by the Department of State (Office of Defense Trade Controls) The United States Munitions List (USML) – 21 categories of “Defense Articles/Services” – If an item is listed, it is subject to the ITAR Example: Category IV - Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines Example: Category XV - Spacecraft and Associated Equipment

The United States Munitions List (USML) I - Firearms II - Artillery Projectors III - Ammunition *IV - Launch Vehicles, etc. *V - Explosives, Propellants, Incendiary Agents and Their Constituents VI - Vessels of War and Special Naval Equipment VII - Tanks and Military Vehicles VIII - Aircraft and Associated Equipment IX - Military Training Equipment X - Protective Personnel Equipment XI - Military Electronics *XII - Fire Control, Range Finder, Optical and Guidance and Control Equipment *XIII - Auxilary Military Equipment XIV - Toxicological Agents and Equipment and Radiological Equipment *XV - Spacecraft Systems and Associated Equipment XVI - Nuclear Weapons Design and Related Equipment XVII - Classified Articles, Technical Data and Defense Services Not Otherwise Enumerated XVIII - Reserved XIX - Reserved XX - Submersible Vessels, Oceanographic and Associated Equipment XXI - Miscellaneous Articles

ITAR DEFINITIONS- Defense Article Important ITAR Definitions – “Defense Article” - any item on the USML, including “technical data”.

ITAR DEFINITIONS - Public Domain Important ITAR Definitions – Public Domain - information which is published and which is generally accessible or available to the public: through sales at news stands and bookstores; through subscriptions which are available without restriction to any individual who desires to obtain or purchase the published information; through second class mailing privileges granted by the U.S. government

ITAR DEFINITIONS - Public Domain Important ITAR Definitions – Public Domain (cont’d) at libraries open to the public or from which the public can obtain documents; through patents available at any patent office through unlimited distribution at a conference, meeting, seminar, trade show or exhibition,, generally accessible to the public, in the United States;

ITAR DEFINITIONS - Public Domain Important ITAR Definitions – Public Domain (cont’d) through public release (i.e., unlimited distribution) in any form (e.g., not necessarily in published form) after approval by the cognizant U.S. government department or agency. through fundamental research in science and engineering at accredited institutions of higher learning in the U.S. where the resulting information is ordinarily published and shared broadly in the scientific community.

ITAR DEFINITIONS - Public Domain Important ITAR Definitions – Public Domain (cont’d) Fundamental research is defined to mean basic and applied research in science and engineering where the resulting information is ordinarily published and shared broadly within the scientific community, as distinguished from research the results of which are restricted for proprietary reasons or specific U.S. government access and dissemination controls.

ITAR DEFINITIONS - Public Domain Important ITAR Definitions – Public Domain (cont’d) University research will not be considered “fundamental research” if: – the University or its researchers accept other restrictions on publication of scientific and technical information resulting from the project or activity, or – the research is funded by the U.S. government and specific access and dissemination controls protecting information resulting from the research are applicable.

ITAR DEFINITIONS - Technical Data Important ITAR Definitions – Technical Data - information which is required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of “defense articles”; classified information related to “defense articles”; information covered by an invention secrecy order; software directly related to “defense articles”.

ITAR DEFINITIONS - Technical Data Important ITAR Definitions – Technical Data (cont’d) - does not include information concerning general scientific, mathematical or engineering principles commonly taught in schools, colleges and universities or information in the “public domain”. It also does not include basic marketing information on function or purpose or general system descriptions of “defense articles”.

ITAR DEFINITIONS - U.S. Person Important ITAR Definitions – U.S. Person - a natural person who is a lawful permanent resident as defined in 8 U.S.C. 1101(a)(20) or who is a protected individual as defined by 8 U.S.C. 1324b(a)(3). It also means any corporation, business association, partnership, society, trust, or any other entity, organization or group that is incorporated to do business in the U.S. It also includes any governmental (federal, state or local), entity.

ITAR DEFINITIONS - Foreign Person, Export Important ITAR Definitions – Foreign Person - opposite of U.S. Person. – Export - sending or taking a “defense article” out of the U.S. in any manner, except by mere travel outside of the U.S. by a person whose personal knowledge includes “technical data”; or transferring registration, control, or ownership to a “foreign person” of any aircraft, vessel, or satellite covered by the USML, whether in the U.S. or abroad; or

ITAR DEFINITIONS - Export Important ITAR Definitions – Export (cont’d) - disclosing (including oral or visual disclosure) or transferring in the United States any “defense article” to an embassy, any agency or subdivision of a foreign government (e.g., diplomatic missions); or disclosing (including oral or visual disclosure) or transferring “technical data” to a “foreign person”, whether in the U.S. or abroad; or performing a “defense service” on behalf of, or for the benefit of, a “foreign person”, whether in the U.S. or abroad.

ITAR - “TEMPORARY” vs “PERMANENT” EXPORTS “Temporary” vs “Permanent” exports of “defense articles” – Under the ITAR a temporary export is less than four (4) years with no transfer of title. – A permanent export is four years or over, or anytime there is a transfer of title. “Temporary” imports* – Temporary import is up to four (4) years

EXAMPLES OF “TEMPORARY” vs “PERMANENT” EXPORTS UNDER ITAR The launch of an ITAR controlled satellite or satellite component on a foreign launch vehicle is a “Permanent Export” The transfer of control of an ITAR controlled satellite to a “foreign person” is an export and can be either Permanent or Temporary The launching of ITAR controlled items on Shuttle and then transferring them to the Russian MIR is an export and can be either Permanent or Temporary.

ITAR TYPES OF LICENSES Export/Import Licenses – Export and/or Temporary Import licenses are issued by the Dept. of State for the export or temporary import of “defense articles”. Common ITAR license types include: DSP-5 - Permanent Export License (Unclassified) DSP-73 - Temporary Export License (Unclassified) DSP-61 - Temporary Import License (Unclassified) – When required, NASA licenses are obtained per our internal Export Control Program (ECP).

ITAR - LICENSES vs EXEMPTIONS Licenses vs Exemptions – As required NASA seeks and obtains ITAR export licenses per our internal Export Control Program (ECP) – As a government agency, NASA enjoys certain license exemptions not available to others – Such exemptions do not apply in all circumstances and never when dealing with “foreign persons” of proscribed countries (22 CFR 126.1)

ITAR LICENSE EXEMPTIONS License Exemptions – The ITAR contains numerous exemptions* to licensing requirements. U.S. government agencies enjoy several unique exemptions not available to others: – – – – 22 CFR 125.4(b)(3) - Technical Data 22 CFR 125.4(b)(13) - Technical Data 22 CFR 125.5(c) - Plant Visits and Technical Data 22 CFR 126.4 - Temporary Exports/Imports of Hardware and Technical Data – *Use of these exemptions is pursuant to the specific terms of the ITAR and the NASA ECP

ITAR LICENSE EXEMPTIONS ITAR licensing exemptions available to NASA as a U.S. government agency* – 22 CFR 126.4(a) - subject to certain requirements, temporary exports (and temporary imports**) for the official use by NASA, or for carrying out any cooperative project of NASA, and exports of technical data and performance of Defense Services – 22 CFR 126.4(c) - subject to certain requirements/circumstances, temporary export or import or permanent export for end-use by NASA in a foreign country * These exemptions do not apply to exports destined for “proscribed countries”; **permanent imports by NASA of defense articles do not require a license pursuant to Dept. of Treasury regulations.

ITAR LICENSE EXEMPTIONS ITAR license exemptions available to NASA as a U.S. government agency (cont’d) – 22 CFR 125.4(b)(3) - Subject to certain requirements/restrictions, NASA may authorize it’s first tier contractors to export technical data in furtherance of a contract that exists between the contractor and NASA*. – 22 CFR 125.4(b)(13) - Subject to NASA’s internal review and approval processes (e.g., NASA Scientific and Technical Data Program), technical data under NASA’s cognizance may be released to the public (unlimited distribution). – * Exemption does not apply to exports destined for “proscribed countries”

ITAR PROSCRIBED COUNTRIES Proscribed Countries - 22 CFR 126.1 – If a country appears on this list, it is (generally) U.S. policy to deny licenses, or other approvals, associated with exports and imports of defense articles and defense services, destined for or originating in that country. – ITAR License Exemptions are trumped if a “foreign person” from any of these counties is involved; i.e., a license must be applied for.

ITAR - PROSCRIBED COUNTRIES LIST (22 CFR 126.1) AFGHANISTAN ANGOLA ARMENIA AZERBAIJAN BELARUS BURMA CHINA (PRC) CYPRUS CUBA HAITI INDIA IRAN IRAQ LIBERIA LIBYA NIGERIA NORTH KOREA PAKISTAN RWANDA SOMALIA SUDAN SYRIA TAJIKISTAN VIETNAM YEMAN FEDERAL REPUBLIC OF YUGOSLAVIA – SERBIA – MONTENEGO ZAIRE

The International Traffic in Arms Regulations (ITAR) Rule of Thumb - NASA seeks and obtains ITAR export licenses for the permanent transfer of USML hardware or for any transfer of USML hardware or technical data involving a “foreign person” in/from a “proscribed country”. Consult your Center Export Administrator for advice and guidance.

The Export Administration Regulations (EAR) Administered by the Department of Commerce (Bureau of Export Administration) The Commerce Control List (CCL) – Divided into ten (10) categories (0 to 9) – Complete listing of items controlled by the EAR Example: Category 9- Propulsion Systems, Space Vehicles and Related Equipment

The (New) Export Administration Regulations (EAR) 15 CFR 730-774 Category 0 - Nuclear Materials, Facilities and Equipment and Misc. Category 1 - Materials, Chemicals, Microorganisms and Toxins Category 2 - Materials Processing Category 3 - Electronics Category 4 - Computers Category 5 - Communications, telecommunications Category 6 - Optics, Cameras, Lasers, radar Category 7 - Guidance, navigation, altimeters, avionics Category 8 - Submersible systems, scuba, marine equipment Category 9 - Propulsion Systems, space vehicles,

EAR DEFINITIONS - Export Important EAR Definitions – Export - an actual shipment or transmission of items subject to the EAR out of the United States; or release of technology or software subject to the EAR to a foreign national in the U.S.

EAR DEFINITIONS - Controlled Technology Important EAR Definitions – Controlled Technology - specific information required for the “development”, “production”, or “use” of a product which is itself “controlled”. The information takes the form of “technical data” or “technical assistance”.

EAR DEFINITIONS - Technical Data Important EAR Definitions – Technical Data - May take forms such as blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals and instructions written or recorded on other media or devices such as disk, tape, or read-only memories. – Technical Assistance - may involve transfer of “technical data”

EAR DEFINITIONS - Reexport, Publicaly Available Information Important EAR Definitions – Reexport - shipment from one foreign country to another foreign country – Publicly Available Information - information that is generally accessible to the interested public in any form and, therefore, not subject to the EAR

EAR DEFINITIONS - Publicly Available Technology and Software Important EAR Definitions – Publicly Available Technology and Software - that technology and software that are already published or will be published; arise during, or result from fundamental research; are educational; or are included in certain patent applications (see 15 CFR 734)

EAR DEFINITIONS - Items subject to the EAR Important EAR Definitions – Items Subject to the EAR - items listed on the Commerce Control List (CCL) and those items designated as EAR 99

EAR EXPORT CONTROL CLASSIFICATION NUMBER Export Control Classification Number (ECCN) - a five character, Alpha-numeric symbol; e.g., 9A004 – First Character (Digit)- identifies CCL category; e.g., 9 is Propulsion Systems, Space Vehicles and Related Equipment – Second Character (Letter)- identifies which of five “groups” the item is associated with; e.g., A is Equipment, Assemblies and Components

EAR EXPORT CONTROL CLASSIFICATION NUMBER Export Control Classification Number (ECCN) - a five character, alpha-numeric symbol; e.g., 9A004 – Third through Fifth Characters (Digits)identifies the type of control(s)

EAR CLASSIFICATION REQUESTS Classification Requests – If an exporter is unable or uncomfortable in determining the “classification” of the item to be exported, a “classification” can be requested from BXA. BXA is obliged to “classify” an item or advise an exporter that an item is not subject to the EAR (and may be subject to the jurisdiction of another agency). – Typically takes 10 working days from receipt at BXA

EAR LICENSE EXCEPTIONS License Exceptions - 15 CFR 740 – Examples TMP (use for certain temporary exports up to one year) GOV (U.S. gov’t official use and use by gov’t agencies of cooperating countries in their national territory) BAG (your right to take your personal belongings out of the country on a trip) – CAUTION - Use exceptions with care and read all conditions/provisions.

ENHANCED PROLIFERATION CONTROL INITIATIVE (EPCI) Scope Foreign Policy controls requiring individual validated license (IVL) if U.S. exporter knows or is informed that Commodity is destined to a missile activity Origin Executive order 12735, Nov 16, 1990 Interim rule announced, Aug 15, 1991

MISSILE TECHNOLOGY CONTROL REGIME (MTCR) OVERVIEW MTCR OBJECTIVE: Limit Proliferation of Delivery Systems of Weapons of Mass Destruction The United States Government acts in accordance with the MTCR Guidelines for sensitive missilerelevant transfers The Government implements the MTCR Guidelines in accordance with national legislation MTCR is a non-binding international accord

MTCR MISSION Control transfers that: – limit risks of weapons of mass destruction (WMD) proliferation – contribute to unmanned WMD weapons delivery vehicles MTCR Mission is not to impede national space programs

MTCR SCOPE Unmanned capability to deliver 500KG to 300 KM Capability regardless of name/kind – Ballistic missiles – Space launch vehicles – Drones/RPVs Low tech/old tech included Projects, not nations are targeted

MTCR ORIGINS Public announcement April 16, 1987 Original membership (G7 Countries): Canada, France, Federal Republic of Germany, Italy, Japan, United Kingdom, United States

CRITERIA FOR MTCR MEMBERSHIP Like mindedness (notice of adherence) Effective export control laws Enforcement Track record MOTIVATION TO JOIN: Prestige, Exposure/visibility JOIN THROUGH SPONSORSHIP MEMBERSHIP APPROVAL THROUGH MEMBER CONSENSUS

CURRENT MTCR MEMBERSHIP Australia Hungary Portugal Austria Iceland Russia Argentina Ireland South Africa Belgium Italy South Korea Brazil Japan Spain Canada Luxembourg Sweden Czech Republic Netherlands Switzerland Denmark New Zealand Turkey Finland Norway United Kingdom France Greece United States Germany Poland Ukraine

MTCR GUIDELINES Category I Items – No transfers of production facilities – Strong presumption of denial for other transfers – If transfer is contemplated: binding Gov’t-to-Gov’t assurances on end-use/no retransfer; Supplier responsible for all steps necessary to ensure end-use Category II Items – Case-by-case review – End-use assurances if transfer could contribute to a delivery system for WMD – Gov’t-to-Gov’t assurances needed if transfer could contribute to a delivery system for WMD

MTCR CATEGORY I Scope: unmanned capability to deliver 500KG to 300 KM Complete systems – Rockets: Ballistic Missiles, Space Launch Vehicles, Sounding Rockets – Air Vehicles: Cruise Missiles, Target and Recon Drones

MTCR CATEGORY I (cont’d) Complete subsystems – Rocket stages, Reentry vehicles, Solid or liquid fuel rocket engines, Guidance sets (CEP 10km at 300km), Thrust vector controls, Warhead safing, arming, fusing, and firing mechanisms – Specially designed production equipment and facilities Technology for designs and production

MTCR CATEGORY II Propulsion components, Propellants and constituents, Propellant production and technology and equipment, Missile structural composites: production technology and equipment, Pyrolytic deposition/densification tech and equipment, Structural materials, Flight instruments, inertial NAV and production,

MTCR CATEGORY II (cont’d) Flight control systems, Avionics equipment, Launch support equipment and facilities, Missile computers, Analog to digital converters, Test facilities and equipment, Software and related analog or hybrid computers, Reduced observables tech, materials and devices, Nuclear effects protection

U.S. IMPLEMENTATION OF THE MTCR Arms Export Control Act – International Traffic In Arms Regulations Export Administration Act – Export Administration Regulations Interagency Working Group (IWG) Missile Technology Export Control (MTEC) Missile Trade Analysis Group (MTAG) Case-by-Case Review of Export License Applications