Robert S. Kovac Acting Deputy Assistant Secretary of State Bureau of Political Military Affairs Defense Trade

2 Topics Mission NSPD-56 Performance AS and UK DTCTs Issues of Concern

3 Defense Trade Mission Advance US national security and foreign policy through licensing of direct commercial sales in defense articles and the development and enforcement of defense trade export control laws, regulations and polices.

4 NSPD-56 Defense Trade Reform Signed by the President on Jan 22, 2008 Directed the most far reaching reforms to the defense trade process in 16 years Mandated specific process and resource requirements to support an export control system that is transparent, predictable, and timely.

5 60 day license suspense unless specific national security concerns apply Dual/Third County Nationals (124.16) New registration fee structure Cat VIII Update 123.9(e) change to include NATO organizations Foreign Person Hire requirements limited to a single license Policy and Reg Changes

6 Weekly 45 and 60-Day Reviews Weekly “5%” QA Reviews Published Operating Procedures Performance Metrics Increased Outreach Updated Guidelines Process Improvements

7 OEF/OIF: 80% faster Open Cases: 66% reduction Overall Case Processing: 55% faster RWA Rate: 58% reduction CJs: 33% faster All occurred while the number of cases received increased Improvement Metrics

License Processing Times Month and YearMar '08Apr '08May '08Jun '08Jul '08Aug '08Sep '08Oct '08Nov '08Dec '08Jan '09Feb '09Mar '09 Cases Received6,9477,7286,9207,0637,1416,6446,4197,0305,9016,2716,1496,6127,241 Cases Closed7,2007,4387,0546,7797,1447,0146,5526,8146,0056,6505,7556,3027,369 Cases Open at End of Month 3,4583,7203,5623,8223,7833,3893,2303,4383,2882,9083,2653,5543,436 Average Processing Time (in Calendar Days)

9 NSPD-56 Status – Open Tasks CJ 60 day process DAS Adjudication mechanism Fully electronic licensing

10 Defense Trade Cooperation Treaties between the U.S. and the UK and the U.S. and Australia were not ratified by the 110 th Congress. The Department has been discussing resubmission with the Senate. Although no decision has been made concerning when they will be submitted, they remain a Department priority. DDTC remains committed to publishing the implementation rules for public comment before going final. Defense Trade Treaties

11 Foreign “ITAR free” products Non-governmental ownership “All or nothing” jurisdiction Foreign partner involvement with proscribed destinations Areas of Concern

12 Improvements to date have been impressive and work will continue Improvements will be made in accordance with the law Once the new team is onboard we will be developing the next/new Defense Trade priorities In Closing