Export Rulings Requests from DDTC and BIS October 2012

Why Get Export Rulings? Certainty,Certainty,Certainty –(with limitations) –Best Avenue to Defend Your Export Practices –Can I Assume Dual Use Commerce Controls? “Bleed Through Rule” for Components (DDTC) –Avoiding Costly Business Surprises Avoid Unintended Results MKS Confidential 2

– Directorate of Defense Trade Controls (DDTC) – Scope of US Military List Items (22 CFR 120) Defense Articles Defense Services – Equipment must be “specifically designed or modified for military operations.” 22 CFR Note, without modifying regulation DDTC has adopted a “capable of performing” a defense service standard in a penalty letter for fluid dynamics software. COTS : Beware Product Modifications for Defense Industry MKS Confidential 3 Commodity Jurisdictions (CJs)

Commodity Jurisdictions Key questions for CJs 1.Why was this product originally developed, and for whom? 2.What was the product designed to do, and what can it actually do? 3.Has the product been changed since its original development and, again, why and for whom? 4.Is there a USML category that seems to capture it? MKS Confidential 4

Submitting a CJ Firms not required to be registered with DDTC prior to submitting CJ per 22 CFR 120.4(b). Non Registered firms use Electronic Forms Submittal (EFS) –Download and use the most recent version of the form available under the EFS TAB. All prior versions will be rejected. Be advised to always use the current version on-line versus saving a copy to their desktop and re-using it. Registered Firms use D-Trade. Reference: MKS Confidential 5

Commodity Classification Request (CCATS) with BIS with SNAP-R Certainty, Certainty, Certainty –(with limitations) –Refresher –Best Avenue to Defend Your Export Practices –Can I Assume Dual Use Commerce Controls? “Bleed Through Rule” for Components (DDTC) –Avoiding Costly Business Surprises Avoid Unintended Results MKS Confidential 6

Commodity Classification Request (CCATS) with BIS with SNAP-R Be as explicit as possible about the product –Advisory Only –The CCAT will be limited by accuracy your data application. Provide your Own Self Classification Opinion –Be Complete with Facts and Arguments –If Appropriate, State Alternatives and Distinguish From Yours –Best Result is No Surprise. MKS Confidential 7

Commodity Classification Request (CCATS) with BIS with SNAP-R Attach documents to the CCAT request –Cover Letter with Your ECCN Analysis –Data sheets –Blue prints –Bill of Materials –Brochure –Assert Your ECCN MKS Confidential 8

Example CCAT Application MKS Confidential 9

Example CCAT (continued) MKS Confidential 10

Strategy for Borderline Cases CJ vs. CCAT –Doing Your Homework Designed for Whom? Developed from What Technology? All Facts, Statements, Budgets, and Product Approval Forms All Regulatory Changes During Development Cycle Market Analysis –Which Export Analysis is First? Consequences? –Which Export Ruling is First? Consequences? –Real World Example Homeland Security Products MKS Confidential 11

References DDTC – – BIS – – network-application-process-redesign-snap-r/snap- r-faqs Questions MKS Confidential 12