1. Bureau of Political-Military Affairs Office of Regional Security and Arms Transfers http://www.state.gov/t/pm/rsat/ Third Party Transfers Leann Luong June 2013 UNCLASSIFIED

2. Arms Transfer Decision Process/Policies What You Need to Know About Third-Party Transfers New Initiatives

3. Leann Luong LuongLL@state.gov NATO TPT Outreach National Disclosure Policy TPT Policy MID’s POC Training Leann Luong LuongLL@state.gov NATO TPT Outreach National Disclosure Policy TPT Policy MID’s POC Training LaTania Barnes BarnesLM@state.gov Global Disposals and Displays LaTania Barnes BarnesLM@state.gov Global Disposals and Displays David An AnDT@state.gov East Asia David An AnDT@state.gov East Asia Ed Richardson RichardsonEP@state.gov Near East Asia Ed Richardson RichardsonEP@state.gov Near East Asia Sue Plant PlantSA@state.gov Team Lead Non-NATO EUR South Central Asia TPT Policy Alcohol, Tobacco, & Firearms Sue Plant PlantSA@state.gov Team Lead Non-NATO EUR South Central Asia TPT Policy Alcohol, Tobacco, & Firearms U.S. Department of State Jenny Hoang HoangJ@state.gov Western Hemisphere Jenny Hoang HoangJ@state.gov Western Hemisphere

4. Law  Arms Export Control Act AECA  Foreign Assistance Act FAA  International Traffic in Arms Regulations (ITAR)/Munitions list  CAT Policy  Security Assistance Guidance/Policy  SAMM Regulations and Policies U.S. Department of State 4

5. “No defense article or defense service shall be sold or leased by the United States Government…unless- the country agrees not to transfer title to, or possession of, any defense article or related training or other defense service so furnished to it to anyone not an officer, employee, or agent of that country...and not to use or permit the use of such article or related training or defense service for purposes other than those for which furnished unless the consent of the President has first been obtained.” 5 U.S. Department of State

6. The retransfer, sale, disposal, or change in end use of any U.S.-origin defense article(s), service, training, and tech data/access, that was initially obtained via a USG Security Assistance Program, to a third party. Examples of TPTs include: Transfer of U.S.-origin defense articles, technical data or software to a contractor(s) for support services (integration, maintenance, repair, overhaul, training, etc.); Transfer or sale of U.S.-origin defense articles to another foreign government; Demilitarization and/or disposal of U.S.-origin defense articles; Demilitarization of U.S.-origin defense articles for static display; Access to its U.S.-origin defense articles for demonstrations or joy rides.

7. U.S. Department of State 2012 Third Party Transfer Completions: Type of Transfers

8. Government-to-Government Channels TPT  PM/RSAT Ex: FMS, EDA, MAP, IMET, MOU, drawdown programs Retransfer of Defense Articles Acquired via Direct Commercial Sale (DCS) Request Retransfer Approval from PM/DDTC Ex: DCS Remember: Origin of Acquisition is Key! FMS  RSAT DCS  DDTC 8

9. An Official Request from the Divesting Government A Completed Standard Questionnaire End-Use, Retransfer, and Security Assurances from the Recipient(s) Other Supporting Documentation (equipment lists, technical data lists, etc.) U.S. Department of State

10. – Varies according to the complexity of the case and/or case load – Average time for completion is 50 days – Congressional Notification may add an additional 2-4 months U.S. Department of State

11. NATO Members, Australia, Japan, Korea, Israel and New Zealand 15-Day Formal Notification Period MDE $25 Million Threshold All Other Articles $100 Million Threshold All Other Countries 30-Day Formal Notification Period MDE $14 Million Threshold All Other Articles $50 Million Threshold U.S. Department of State

12. Governed by Department policy Presumption of denial Limited exceptions for entities with proof of government contract or for static display / public good U.S. Department of State

13.  End Use Assurances(EUA) from all recipients, including any intermediaries, must be included with the request  If recipient is a foreign private entity  EUA are required from the Country exercising legal jurisdiction over the P/E recipient aka the ‘COPE’ (Country Over P/E) EUA  Blanket Assurance Program 13

14. Afghanistan Albania Belgium Bolivia Canada Chile Denmark Georgia Hungary Iraq Norway Oman Portugal ROK Sweden Turkey Tunisia U.A.E. Yemen Israel Italy Jordan Lebanon Latvia Lithuania Malaysia Morocco NATO New Zealand U.S. Department of State 14

15. SME to private entities with no specific government end user contract. Aircraft parts to private entities with no specific Government end-user contract (i.e. warehousing or stock). USML to private individuals (i.e. private collection). Section 126.1 of the ITAR (prohibited countries). U.S. Department of State

16. Provide a complete & detailed questionnaire – the more information, the better! Include ALL private companies that will have access to USML. Divesting government must obtain the required end-use assurances from recipients before the TPT can be processed. Allow plenty of time for processing by giving advance notice if possible. Request/Use RSAT case numbers. Contact the TPT Team -we’re here to help! U.S. Department of State

17. 17 The transfer, sale, disposal or change in end use of any U.S.-origin defense article without prior USG authorization is a VIOLATION The transfer, sale, disposal or change in end use of any U.S.-origin defense article without prior USG authorization is a VIOLATION

18. Electronic transmission of third party transfer requests via the Security Cooperation Information Portal (SCIP). Increase participation in Blanket End Use Assurance Program. Possible extension of the Blanket End Use Assurance Program to include Country Over Private Entity assurances. For “hybrid” cases (defense articles/services supplied via FMS and DCS, e.g., the C-17) – Coordinate with DDTC and RSAT. U.S. Department of State

19. QUESTIONS? U.S. Department of State