How French and Foreign Aerospace companies can benefit from removing ITAR designation on key technologies

1. US Export Reform:
Impact on Aerospace
Presented by Jahna Hartwig
August 13, 2013

2. Background
> President’s National Export Initiative (NEI)
– goal of doubling U.S. exports over five years
> Federal agencies working to streamline U.S. export
controls in support of NEI
– building higher walls around the most sensitive items
– allowing exports of less critical items under less restrictive
conditions
> Proposals to move many military end-items and their
systems, subsystems, parts, components, and
technologies from the U.S. Munitions List (USML) to
the Commerce Control List (CCL)
2

3. Export Reform Effort
> Most items moved to
CCL will be
> Controlled for national
security reasons
> Require a license for
export to all destinations
except Canada
> Eligible for broad license
exceptions
> Eligible for de minimis
treatment when
incorporated into a
foreign article
3
> Some end-items, as well
as many parts and
components, will be less
strictly controlled for
export and re-export.
> Manufacturers,
exporters and brokers of
moved items would no
longer be required to
register with US State
Department

4. Status of Reform Efforts
April 16, 2013 - Finalized Categories VIII and XIX
• Finalized USML Category VIII (Aircraft)
• Moved some ITAR-controlled aircraft to CCL Category 9
• Added USML Category XIX (Gas Turbine Engines)
Changes effective October 15, 2013
4

5. UAV Controls after Reform
ITAR-Controlled UAVs
• Unarmed military UAVs
• Armed UAVs
• Target drones
Other ITAR-Controlled Aircraft include:
• Military intelligence, surveillance, and
reconnaissance aircraft
• Electronic warfare, airborne warning and control
aircraft
• Optionally Piloted Vehicles (OPV)
5

6. UAV Controls after Reform
ITAR-Controlled UAV Items Moving to CCL (ECCN
9A610)
• Apparatus and devices ‘‘specially designed’’ for the handling,
control, activation and non-ship-based launching of UAVs or
drones controlled by either USML paragraph VIII(a) or ECCN
9A610.a, and capable of a range equal to or greater than 300
km.
• Radar altimeters designed or modified for use in UAVs or
drones controlled by either USML paragraph VIII(a) or ECCN
9A610.a., and capable of delivering at least 500 kilograms
payload to a range of at least 300 km.
• Hydraulic, mechanical, electro-optical, or electromechanical
flight control systems (including fly-by-wire systems) and
attitude control equipment designed or modified for UAVs or
drones controlled by either USML paragraph VIII(a) or ECCN
9A610.a., and capable of delivering at least 500 kilograms
payload to a range of at least 300 km.
6

7. UAV Controls after Reform
EAR-Controlled UAVs (ECCN 9A012)
UAVs having any of the following:
• Autonomous flight control and navigation capability; or
• Capability of controlled flight out of direct visual range involving human
operator (e.g., televisual remote control)
Associated systems, equipment and components, as follows:
• Equipment specially designed for remotely controlling UAVs listed
above;
• Navigation, attitude, guidance or control specially designed to provide
autonomous flight control or navigation capability described above;
• Equipment or components specially designed to convert manned
aircraft to a UAV described above;
• Certain engines specially designed/modified to propel UAVs at altitudes
above 50,000 feet (15,240 meters).
7

8. Cyber Security
ITAR – U.S. Munitions List
• Software specifically designed for a military application may
be subject to the International Traffic in Arms Regulations.
Specifically designed and military application are undefined.
Export Control Reform
• The U.S. Government is currently reviewing the relevant
portions of the U.S. Munitions List that may impact how
certain security software is controlled for export purposes.
U.S. Senate Proposal for Controls
• U.S. Senate proposal in National Defense Authorization Act
for 2014 to require the Executive Branch to establish a policy
to control the proliferation of cyber weapons. This may
involve the use of export controls or economic sanctions.
8

9. Questions?
9