Defense Trade Advisory Group (DTAG) Tasking Overview Plenary Session October 20, 2010

CAT VIII Bryon Angvall - The Boeing Company Dale Rill - Honeywell International Inc. CAT XI Tom White - Lockheed Martin Kim DePew - G.E. - Aviation CAT XII Beth Mersch – Northrop Grumman Krista Larsen – FLIR Systems, Inc. DTAG Working Committees 2 Committee Co-Chair Persons

Review the CCL and USML to: Create a “bright line” between the two controls lists Clarify jurisdictional determinations Reduce uncertainty about control of specific items State or Commerce Ensure items are Tiered - distinguish types of controls Different levels, users, destinations Create a “Positive List” Describes controlled items Objective criteria (technical parameters vs. catch all phrases) Structurally Align the USML and CCL For completion of a combined list at a later date DTAG 2010 Tasking 3 Avoid re-control of defense articles removed from ITAR

4 TIER 2 TIER 3 CATCH ALL BASED CONTROLS Dual-Use Defense Articles TIER 1 Current Controlled Items and Technologies Overlaid on the Three Tiered Concept

5 Tier 1 control shall apply to: a.A weapon of mass destruction (WMD); b.A WMD-capable unmanned delivery system; c.A plant, facility or item specially designed for producing, processing, or using: (i) WMDs; (ii) special nuclear materials; or (iii) WMD-capable unmanned delivery systems; or d.An item almost exclusively available from the United States that provides a critical military or intelligence advantage. Tiered Control Criteria Critical military or intelligence advantage to the U. S.

6 A Tier 2 control shall apply to an item that is not in Tier 1, is almost exclusively available from Regime Partners or Adherents and: a.Provides a substantial military or intelligence advantage; or b.Makes a substantial contribution to the indigenous development, production, use, or enhancement of a Tier 1 or Tier 2 item Tiered Control Criteria Available from Multilateral partners and allies

7 A Tier 3 control shall apply to an item not in Tiers 1 or 2 that: a.Provides a significant military or intelligence advantage; b.Makes a significant contribution to the indigenous development, production, use, or enhancement of a Tier 1, 2, or 3 item; or c.Other items controlled for national security, foreign policy, or human rights reasons Catch All Controls: All items not covered in Tiers 1, 2, or 3 Tiered Control Criteria Items are more broadly available

8 “A,” for “Equipment, Assemblies, and Components;” “B,” for “Test, Inspection, and Production Equipment;” “C,” for “Materials;” “D,” for Software;” “E,” for “Technology;” “F,” for “Defense Services;” and “G,” for “Manufacturing and Production Authorizations Methodology – Seven Groups Each Category

9 Approach to Controlling Items Identify ITAR discriminating functionality Detection, identification, tracking Countermeasures, counter- countermeasures Radar w/ jamming, low probability of intercept Cryptography Burst techniques Tempest Suppression… A. (T2) Equipment employing discriminating functionality (or components contributing to the discriminating functionality) B. (T2) Equipment “specially designed” to produce or test items controlled in A C. (T2) Materials “specially designed” to contribute to the discriminating functionality D. (T2) Software “specially designed” for development, production, or use of equipment employing discriminating functionality E. (T2) Technology “required” for the design, manufacturer, test, or use of equipment employing discriminating functionality Control Enabling Items Identifying discriminating functionality key to approach

10 This was not an easy task Multiple DTAG members from various represented technologies Coordinated effort to gain depth of knowledge required for a complete review Technology vs. Technical data Don’t want to control more than required Complexity of Categories Multiple defense articles Multiple variants of each All subject to interpretation Time Constraints 6 weeks vs. 6 months to accomplish Avoid unintended control of items Ensure the “positive” list does not recapture control of items Cleared through the CJ process Technical parameters require coordination DoD, NSA, etc… DTAG Issues & Concerns Critically important activity

11 Additional technical review Engineers from Industry and USG need to coordinate Clarification of parameters Further refinement of assigned Categories Additional review and analysis is required for a completed positive list Guidance on Groups E, F, and G needed Technology, Defense Services, Manufacturing & Production Authorizations DTAG approval of recommendations Next Steps