Government Contracts University. ITAR & EAR Awareness GOVCON U. Milt Johns Partner, Senior Government Contracts Counsel

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Government Contracts University GOVCON U Milt Johns Partner, Senior Government Contracts Counsel

About FH+H GOVCON U FH+H is a veteran owned law firm focused on helping corporate clients thrive FH+H lawyers have a deep understanding of government contracting, corporate governance, and international business FH+H lawyers include: Former federal law clerks Former White House counsel Former Supreme Court law clerk Former public company General Counsel Combat veterans with top security clearance Accolades: Virginia Chamber 6th ranked Fastest Growing Company in Virginia 2014 Inc. 5000 Number 1 ranked fastest growing law firm in America in 2013

Milt C. Johns, Esq. Private practice for over 17 years. Almost 30 years experience in government and defense contracting arenas in a variety of roles. Primary areas of practice are in business litigation, corporate law and formation, government contracts and serving as counsel for government contracting companies.

Adam Munitz, Esq. Practice focuses on solving clients complex legal and business challenges in a wide variety of matters including foreign investment, export compliance, international business transactions, foreign ownership, control and influence, and government contracting. Holding a security clearance, Mr. Munitz has spent years supporting agencies and corporations in the defense and national security sectors.

U.S. corporations are subject to the controls of export laws and regulations as well as the corresponding laws of the foreign countries in which business is conducted. Types of Exports: Commodities Physical goods, hardware, equipment, weapons, etc. Technical Data Papers, documents, software, media, etc. Knowledge Personal expertise, subject matter experts, technical and specific information. NOTE: Transference of specialized knowledge from U.S. citizen to non-u.s. citizen whether in another country or within the U.S. IS AN EXPORT and can be subject to ITAR or EAR regulations. NOTE: Hand carrying an item on board an aircraft IS AN EXPORT and can be subject to ITAR or EAR regulations.

2 Statutes Governing U.S. Exports (Selected via Commodity Jurisdiction Process) Dept. of State (Directorate of Defense Trade Controls) Defense & Military Articles, Services & Technical Data Commerce Dept. (Bureau of Industry and Security) Dual-use items, Technology, Software, Computers, Electronics, Marine Equipment ARMS EXPORT CONTROL ACT EXPORT ADMINISTRATION ACT ITAR EAR U.S. Munitions List Control List Proprietary - Sensitive Information

What is ITAR? International Traffic in Arms Regulation Government regulation issued by the State Department regulating the export and trade of articles designed or used for defense and military applications. Articles classified under the jurisdiction of the State Department s Department of Defense Trade Controls (DDTC) that are ITAR regulated require licensing and registration. Licensing requirements vary by countries the articles are exported to as identified on the U.S. Munitions List DOES NOT apply to articles that can be derived from public domain or commercial resources

What is EAR? Export Administration Regulations Government regulation issued by the Commerce Department regulating the export and trade of specifically controlled articles. Articles classified under the jurisdiction of the Commerce Department s Bureau of Industry and Security (BIS) that are EAR regulated require licensing and registration. Licensing requirements vary by countries the articles are exported to as identified on the Control List This can apply to articles that can be derived from public domain or commercial resources

How can this impact the operations of your business? Please make provisions to allow for 2-3 month minimum lead time prior to training execution in order give ample time to evaluate, classify, and potentially license defense related articles that may be controlled or regulated. Potential Costs of non-compliance are HIGH! 2008 Boeing 40 violations $3,000,000 Northrop Grumman 110 violations $15,000,000 2007 ITT Corporation 208 violations $28,000,000 2006 L-3 Communications 6 violations $1,500,000

Examples Hypotheticals GOVCON U Direct contract with foreign government US Government contract that refers to exports US Government contract that doesn t refer to export Marketing data Subcontracting

Questions? For More Info FH+H www.fhhfirm.com (703) 590-1234 Milt Johns mjohns@fhhfirm.com Adam Munitz amunitz@fhhfirm.com