Society for International Affairs D3 EAR Export Exercises D3 Export Scenarios 1
AFAS Company s Tactical UAV Export Management Team Unmanned Aerial Vehicles for all your Tactical Needs! Export Scenarios Your job: Determine the most effective, efficient manner to execute the export requirements. Work together with your table Ask Questions Tools required ITAR EAR Table of Contents EAR Supplement No. 1 to Part 774 CCL (Category 9) from tab 5 EAR Supplement No. 1 to Part 738 (Country Chart) EAR Part 740 Exceptions excerpt (740.2; 740.9-740.11; 740.13; 740.20) EAR Supplement No. 1 to Part 740 (Exception Country Groups) 2
Export Scenarios Carmella 500 Tactical UAV Composite Tail Section Carmella 500 Propeller Ground Fueling Station Carmella 500 Launcher Micro-SAR Radar Carmella 500 Launch Rail Scenario #1 Carmella 500 Engine Propeller The Carmella 500 Propellers are requiring field replacement at a rate three times the projected rate due to environmental conditions. The company has identified two test facilities to evaluate why the propellers are failing so quickly. We would like to send each facility two propellers to use in test. The propellers will be destroyed during the test. We do not need to send the test facility any technical data/technology on the propellers. One facility is located in Japan and the other is located in Singapore. Additional Information: Carmella 500 : USML CAT VIII(a)(5) Carmella 500 Propellers: (Value: $8,543 each) How can we send the propellers? 3
Scenario #1 Carmella 500 Engine Propeller What is the Classification of the propeller? What are the Reasons for Control? Is there an authorization required to export to Japan? Is there an authorization required to export to Singapore? 9A610 Military Aircraft And Related Commodities 9A610 Military aircraft and related commodities. License Requirements Reason for Control: NS, RS, MT, AT, UN 9A610.y.25 NS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if RS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if Country Chart (See Supp. 1 to part 738) NS Column 1 RS Column 1 MT applies to 9A610.t,.u,.v, and.w MT Column 1 AT applies to entire entry AT Column 1 Countries subject to UN Security Council Arms Embargoes are: Central African Republic, Cote d'ivoire (Ivory Coast), Democratic Republic of the Congo, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, Somalia, and Sudan. UN applies to entire entry except 9A610.y See 746.1(b) UN controls License Exceptions LVS: $1500 GBS: N/A CIV: N/A STA: (1) Paragraph (c)(1) of License Exception STA ( 740.20(c)(1) of the EAR) may not be used for any item in 9A610.a (i.e., end item military aircraft), unless determined by BIS to be eligible for License Exception STA in accordance with 740.20(g) (License Exception STA eligibility requests for 600 series end items). (2) Paragraph (c)(2) of License Exception STA ( 740.20(c)(2) of the EAR) may not be used for any item in 9A610. What are the reasons for Control? 4
Reason for Control 9 Is there an authorization required to export to Japan? Reason for Control 10 Is there an authorization required to export to Singapore? 5
Scenario #1 Answer Carmella 500 Engine Propeller What is the Classification of the propeller? What are the reasons for Control? Is there an authorization required to export to Japan? Is there an authorization required to export to Singapore? 11 Scenario #2 Carmella 500 Launcher Rail Our sale and delivery of the Carmella 500 TUAV to the ADoDwas a success. The ADoD has now decided that in order to best prepare for contingencies, they would like a minimum of five Launcher Rails on-hand at all times in case any might fail. The five rails will be obtained by T3 as part of their contract with the ADoD to provide sustainment T3 is an Australian Company; Additional Information: Carmella 500 : USML CAT VIII(a)(5) Carmella 500 Launcher: 9A610.x Carmella 500 Launch Rail: (Value: $2,575 each) How can we send the rails? 6
Scenario #2 Carmella 500 Launcher Rail What is the Classification of the Launch Rail? What are the reasons for control? Is there an authorization required to export to Australia? Australia? 9A610 Military Aircraft And Related Commodities 9A610 Military aircraft and related commodities. License Requirements Reason for Control: NS, RS, MT, AT, UN 9A610.x NS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if RS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if Country Chart (See Supp. 1 to part 738) NS Column 1 RS Column 1 MT applies to 9A610.t,.u,.v, and.w MT Column 1 AT applies to entire entry AT Column 1 Countries subject to UN Security Council Arms Embargoes are: Central African Republic, Cote d'ivoire (Ivory Coast), Democratic Republic of the Congo, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, Somalia, and Sudan. UN applies to entire entry except 9A610.y See 746.1(b) UN controls License Exceptions LVS: $1500 GBS: N/A CIV: N/A STA: (1) Paragraph (c)(1) of License Exception STA ( 740.20(c)(1) of the EAR) may not be used for any item in 9A610.a (i.e., end item military aircraft), unless determined by BIS to be eligible for License Exception STA in accordance with 740.20(g) (License Exception STA eligibility requests for 600 series end items). (2) Paragraph (c)(2) of License Exception STA ( 740.20(c)(2) of the EAR) may not be used for any item in 9A610. What are the reasons for Control? 7
Reason for Control Is there an authorization required to export to Australia? Scenario #2 Carmella 500 Launcher Rail What is the Classification of the Launch Rail? 9A610.x Australia? 8
License Exception STA Country Groups A:5 and A:6 STA Country Group A:5: Argentina Australia Austria Belgium Bulgaria Canada Croatia Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Japan Latvia Lithuania Luxembourg Netherlands New Zealand Norway Poland Portugal Romania Slovakia Slovenia South Korea Spain Sweden Switzerland Turkey United Kingdom STA Country Group A:6: Albania Hong Kong India Israel Malta Singapore S. Africa Taiwan Ukraine Scenario #2 Answer Carmella 500 Launcher Rail What is the Classification of the Launch rail? What are the reasons for Control? Is there an authorization required to export to Australia? Australia? 9
Scenario #3 Carmella 500 Composite Tail Section The U.S. Government has deployed the Carmella 500 in Afghanistan. The program manager has just phoned with an urgent request received from the field engineers for a Composite Tail Section to replace one where a structural crack was noticed during routine maintenance. They are returning the failed Composite Tail Section to the U.S., but now only have five operational UAVs supporting the U.S. Government, which is the minimum our contract allows at all times. Additional Information: Carmella 500 : USML CAT VIII(a)(5) Tail Section : (Value: $10,846) What license exception (s) can be used to expedite delivery to Bagram Airfield? Scenario #3 Carmella 500 Composite Tail Section What is the Classification of the Composite Tail Section? What are the reasons for control? Is there an authorization required to export to Afghanistan? Afghanistan? 10
9A610 Military Aircraft And Related Commodities 9A610 Military aircraft and related commodities. License Requirements Reason for Control: NS, RS, MT, AT, UN 9A610.t NS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if RS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if Country Chart (See Supp. 1 to part 738) NS Column 1 RS Column 1 MT applies to 9A610.t,.u,.v, and.w MT Column 1 AT applies to entire entry AT Column 1 Countries subject to UN Security Council Arms Embargoes are: Central African Republic, Cote d'ivoire (Ivory Coast), Democratic Republic of the Congo, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, Somalia, and Sudan. UN applies to entire entry except 9A610.y See 746.1(b) UN controls License Exceptions LVS: $1500 GBS: N/A CIV: N/A STA: (1) Paragraph (c)(1) of License Exception STA ( 740.20(c)(1) of the EAR) may not be used for any item in 9A610.a (i.e., end item military aircraft), unless determined by BIS to be eligible for License Exception STA in accordance with 740.20(g) (License Exception STA eligibility requests for 600 series end items). (2) Paragraph (c)(2) of License Exception STA ( 740.20(c)(2) of the EAR) may not be used for any item in 9A610. What are the reasons for Control? Reason for Control (Supplement 1 to 738) Is there an authorization required to export to Afghanistan? 11
Scenario #3 Carmella 500 Composite Tail Section What is the Classification of the Composite Tail Section? 9A610.t Afghanistan? Scenario #3 Answer Carmella 500 Composite Tail Section What is the Classification of the Composite Tail Section? What are the reasons for Control? Is there an authorization required to export to Afghanistan? Afghanistan? Would Exception RPL be acceptable? Why or why not? Would Exception GOV apply? 12
Scenario #4 Carmella 500 Fueling Station The U.S. Government has deployed the Carmella 500 in Afghanistan. The program manager has just phoned with an urgent request received from the field engineers for a Fueling Station to replace one that has failed in the field. They are returning the failed Fueling Station to the U.S., but now only have two operational Fueling Stations supporting the U.S. Government, and our contract requires three operational Fueling Stations deployed at all times. Additional Information: Carmella 500 : USML CAT VIII(a)(5) Fueling Station: (Value: $8,223) What license exception (s) can be used to expedite delivery to Bagram Airfield? Scenario #4 Carmella 500 Fueling Station What is the Classification of the Fueling Station? What are the reasons for control? Is there an authorization required to export to Afghanistan? Afghanistan? 13
9A610 Military Aircraft And Related Commodities 9A610 Military aircraft and related commodities. License Requirements Reason for Control: NS, RS, MT, AT, UN 9A610.f NS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if RS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if Country Chart (See Supp. 1 to part 738) NS Column 1 RS Column 1 MT applies to 9A610.t,.u,.v, and.w MT Column 1 AT applies to entire entry AT Column 1 Countries subject to UN Security Council Arms Embargoes are: Central African Republic, Cote d'ivoire (Ivory Coast), Democratic Republic of the Congo, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, Somalia, and Sudan. UN applies to entire entry except 9A610.y See 746.1(b) UN controls License Exceptions LVS: $1500 GBS: N/A CIV: N/A STA: (1) Paragraph (c)(1) of License Exception STA ( 740.20(c)(1) of the EAR) may not be used for any item in 9A610.a (i.e., end item military aircraft), unless determined by BIS to be eligible for License Exception STA in accordance with 740.20(g) (License Exception STA eligibility requests for 600 series end items). (2) Paragraph (c)(2) of License Exception STA ( 740.20(c)(2) of the EAR) may not be used for any item in 9A610. What are the reasons for Control? Reason for Control (Supplement 1 to 738) Is there an authorization required to export to Afghanistan? 14
Scenario #4 Carmella 500 Fueling Station What is the Classification of the Fueling Station? 9A610.f Afghanistan? Scenario #4 Answer Carmella 500 Fueling Station What is the Classification of the Fueling Station? What are the reasons for Control? Is there an authorization required to export to Afghanistan? Afghanistan? Would Exception RPL be acceptable? Why or why not? Would Exception GOV apply? Which provisions of GOV apply? 15
Scenario #5 Carmella 500 Launcher Our product performance in Afghanistan and Australia has really opened up our marketing activities, and to capitalize on that momentum, we want to send a launcher to the Singapore Trade Show to put on display for all to see. The trade show will last for seven days, and we anticipate the launcher being in country for no more that two weeks. The launcher will be located in a secure facility and controlled by our AFAS employees who will serve as the ultimate consignee Additional Information: Carmella 500 : USML CAT VIII(a)(5) Carmella 500 Launcher: 9A610.x Carmella 500 Launch Rail: (Value: $2,575 each) How can we send the launcher? Scenario #5 Carmella 500 Launcher What is the Classification of the Launcher? What are the reasons for control? Is there an authorization required to export to Singapore? Singapore? 16
9A610 Military Aircraft And Related Commodities 9A610 Military aircraft and related commodities. License Requirements Reason for Control: NS, RS, MT, AT, UN 9A610.x NS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if RS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if Country Chart (See Supp. 1 to part 738) NS Column 1 RS Column 1 MT applies to 9A610.t,.u,.v, and.w MT Column 1 AT applies to entire entry AT Column 1 Countries subject to UN Security Council Arms Embargoes are: Central African Republic, Cote d'ivoire (Ivory Coast), Democratic Republic of the Congo, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, Somalia, and Sudan. UN applies to entire entry except 9A610.y See 746.1(b) UN controls License Exceptions LVS: $1500 GBS: N/A CIV: N/A STA: (1) Paragraph (c)(1) of License Exception STA ( 740.20(c)(1) of the EAR) may not be used for any item in 9A610.a (i.e., end item military aircraft), unless determined by BIS to be eligible for License Exception STA in accordance with 740.20(g) (License Exception STA eligibility requests for 600 series end items). (2) Paragraph (c)(2) of License Exception STA ( 740.20(c)(2) of the EAR) may not be used for any item in 9A610. What are the reasons for Control? Reason for Control Is there an authorization required to export to Singapore? 17
Scenario #5 Carmella 500 Launcher What is the Classification of the Launcher? 9A610.x Australia? Scenario #5 Carmella 500 Launcher What is the Classification of the Launcher? What are the reasons for control? Is there an authorization required to export to Singapore? Singapore? 18
Scenario #6 Carmella 500 Launcher Rail Our product performance in Afghanistan and Australia has really opened up our sales activities, and just last month, we completed delivery of the Carmella 500 TUAV to the Singapore MoD. The Singapore MoD, much like Australia has also decided to maintain additional Launcher Rails on-hand at all times as a contingency. The rails will be obtained by Singapore Sling Company, the MoDs in country service provider; Additional Information: Carmella 500 : USML CAT VIII(a)(5) Carmella 500 Launcher: 9A610.x Carmella 500 Launch Rail: (Value: $2,575 each) How can we send the rails? Scenario #6 Carmella 500 Launcher Rail What is the Classification of the Launch Rail? What are the reasons for control? Is there an authorization required to export to Singapore? Singapore? 19
9A610 Military Aircraft And Related Commodities 9A610 Military aircraft and related commodities. License Requirements Reason for Control: NS, RS, MT, AT, UN 9A610.x NS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if RS applies to entire entry except: 9A610.b; parts and components controlled in 9A610.x if Country Chart (See Supp. 1 to part 738) NS Column 1 RS Column 1 MT applies to 9A610.t,.u,.v, and.w MT Column 1 AT applies to entire entry AT Column 1 Countries subject to UN Security Council Arms Embargoes are: Central African Republic, Cote d'ivoire (Ivory Coast), Democratic Republic of the Congo, Eritrea, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, Somalia, and Sudan. UN applies to entire entry except 9A610.y See 746.1(b) UN controls License Exceptions LVS: $1500 GBS: N/A CIV: N/A STA: (1) Paragraph (c)(1) of License Exception STA ( 740.20(c)(1) of the EAR) may not be used for any item in 9A610.a (i.e., end item military aircraft), unless determined by BIS to be eligible for License Exception STA in accordance with 740.20(g) (License Exception STA eligibility requests for 600 series end items). (2) Paragraph (c)(2) of License Exception STA ( 740.20(c)(2) of the EAR) may not be used for any item in 9A610. What are the reasons for Control? Reason for Control Is there an authorization required to export to Singapore? 20
Scenario #6 Carmella 500 Launcher Rail What is the Classification of the Launch Rail? 9A610.x Australia? License Exception STA Country Groups A:5 and A:6 STA Country Group A:5: Argentina Australia Austria Belgium Bulgaria Canada Croatia Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Japan Latvia Lithuania Luxembourg Netherlands New Zealand Norway Poland Portugal Romania Slovakia Slovenia South Korea Spain Sweden Switzerland Turkey United Kingdom STA Country Group A:6: Albania Hong Kong India Israel Malta Singapore S. Africa Taiwan Ukraine 21
Scenario #5 Answer Carmella 500 Launcher Rail What is the Classification of the Launch Rail? What are the reasons for control? Is there an authorization required to export to Singapore? Singapore? Scenario #7 Obtain a BIS License 1. What is the BIS Export License form? 2. What is the Electronic System used for submitting BIS Applications? 3. Based on the scenario provided, who would be: a) The End User: b) The Ultimate Consignee: 4. Is a purchase order required to support this license submission? 5. With a contract requirement to maintain 5 Launcher Rails on-hand at all times and trends indicate the MoD goes through approximately 5 rails per year, how many launch rails should you request? 6. Is it possible for a BIS Hardware license to have more than one (1) End User? 22
Questions? 23