Northwest Export Controls Conference Seattle WA Managing Director (Acting) Directorate of Defense Trade Controls (DDTC) Bureau of Political Military Affairs U.S. Department of State 1 Overview Mission Statement Organizational Overview 2016 Stats New Administration What s Next for DDTC Contact Information 2 Page 1 of 11
Mission Statement Ensure commercial exports of defense articles and defense services are consistent with U.S. national security and foreign policy objectives. Department of State Yellow Borders are Political Positions Under Secretary for Arms Controls & International Security (T) Vacant Assistant Secretary for International Security and Non Proliferation (ISN) Eliot Kang (A) Assistant Secretary for Political-Military Affairs (PM) Amb Tina Kaidanow (A) Assistant Secretary for Arms Control Verification and Compliance (AVC) Anita Friedt (A) Deputy Assistant Secretary for Regional Security and Security Assistance Kevin O Keefe (A) Deputy Assistant Secretary for Defense Trade Controls Brian Nilsson Deputy Assistant Secretary for Plans, Programs, and Operations Maj Gen Mike Rothstein Page 2 of 11
DDTC Organization All Non-Political Professional Staff Deputy Assistant Secretary Of Defense Trade Controls Brian Nilsson Senior Advisors and Staff Managing Director (A) Office of Defense Trade Controls Compliance Arthur Shulman (A) Office of Defense Trade Controls Licensing Terry Davis (A) Office of Defense Trade Controls Policy Ed Peartree Office of Defense Trade Controls Management Licenses Submitted to DDTC by Calendar Year 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 2010 2011 2012 2013 2014 2015 2016 6 Page 3 of 11
Cases Received 2013 Total Cases: 78,810 2016 Total Cases: 41830 5.2% 0.7% 8.7% 6.1% 9.5% 67.6% 12.0% 7.6% 7.7% 6.3% 62.8% 2.1% 1.0% 2.6% DSP 5 DSP 61 DSP 73 DSP 85 Amend. AGs GC/BL 7 Licensing Decisions 2013 2016 0.4% 0.6% 11.1% 48.0% 15.6% 34.6% 40.5% 49.1% Approve Approve w/provisos RWA Deny Page 4 of 11
Overall RWA Statistics Average Annual Stats YEAR CASES AVG AGE AVG RWA 2012 86,188 18.6 10.6% 2013 78,387 19.2 11.3% 2014 59,527 21.9 14.5% 2015 44,523 26.58 16.0% 2016 41,830 28.08 15.6% 2017 (May) 16,370 27.68 15.4% Commodity Jurisdiction Determinations Median 70 Page 5 of 11
CJ Decisions FY 2016 Most Prolific USML Categories: 1. Cat XII (33) 2. Cat XI (28) 3. Cat VIII (26) USML 145 (15%) RWA 152 (15%) CCL 655 (68%) Other 2 (0%) Split 10 (1%) Disclosure Trends by FY 2500 2027 2000 1500 1000 806 1482 1312 1493 1107 1153 1318 1120 985 Directed 500 456 0 12 Page 6 of 11
New Administration Regulatory Burden Review E.O. 13771 (Reg Freeze) and 13777 (Task Force) State has Foreign Affairs exception, Commerce does not Review of Arms Transfer Process Slow Filling of Political Vacancies State Department Reorganization Review SecState Budget Remarks 8% personnel reduction State Department Hiring and Transfer Freeze This has an impact on staffing levels 13 What s Next For DDTC Category I-III Going through final clearance process 126.4 By or For the USG Exemption Continue USML List Reviews Cats VI, VII, XIII, XX under interagency review U.S. Persons Working Abroad Definitions Part Two Defense Services, Technical Data, Public Domain 14 Page 7 of 11
What s Next for DDTC Program Licenses Brokering ITAR Defrag IT System Modernization 15 ITAR Defrag 16 Page 8 of 11
ITAR Defrag Definitions Exercise Where are these? Performance Capability Vendor Payload Applicant Dual National Blue Lantern 17 Why ITAR Defrag The average life cycle of a federal regulation has a complete rewrite every 15 years. ITAR >30 years old Format/content require revalidation and adjustments due to years of narrowly scoped and topic-centric revisions The ITAR currently contain numerous inconsistencies, contradictions, gaps, and overlaps resulting in unclear, ambiguous guidance Failure to reverse this trend now will only exacerbate the problem, making the publication of future rules more difficult to achieve in a timely manner 18 Page 9 of 11
How to ITAR Defrag Consolidation of like content and ordering into an orderly, linear, readable format Examples of consolidation and organization: Separation of Part 120 into General Information and Definitions sections Reevaluation/migration of definitions into Part 120 Migration of exemptions, exceptions, and exclusions into a dedicated Part of the ITAR Incorporation of Agreements Guidelines and similar related policy 19 IT Modernization Changes Single interface for all DDTC online services Improved availability Enhanced security Use of USG Cloud Streamlined DDTC business processes and automated workflow Automation for data reuse Page 10 of 11
Resources DDTC s website: www.pmddtc.state.gov Provides extensive information on AECA/ITAR, detailed FAQs, Directorate contact information DDTC Response Team, 202-663-1282, DDTCResponseTeam@state.gov Provides single point of contact for industry questions and status updates 2013 stats: 24,000 emails + 26,000 phone calls = 50,000 queries (200/day) IT Questions: DDTC Help Desk, 202-663-2838, tradehelpdesk@state.gov Registrants/applicants can call for help with using our IT systems Case status: http://elisa.dtsa.mil/ Applicants can check the status of their cases on line Applicants can call licensing officers directly 21 Page 11 of 11