1. End-Use Monitoring & Third Party Transfer
Lesson #0607
15 December 2016

2. What’s in it for me? National Security of U.S. & Allies
Preserve our technological advantages
End-Use Monitoring (EUM) program can generate LOTS of visibility (not the good kind…)
Potential violations are reported to CCMD, DSCA and DoS, who determine if investigation/report to Congress is required
EUM SOPs and NVD Control Plans are important
Article transfers or changes of end-use require USG approval prior to the transfer occurring

3. USG Monitoring Programs
Defense Department
Golden Sentry
State Department
Blue Lantern
Commerce Department
No official Name
EXport TRANsfer CHECK
Extrancheck
Sentinel Program

4. Legal Basis For Golden Sentry (1)
Section 40A of the AECA (22 U.S.C 2785) requires the President to establish an EUM program
The Director, DSCA, is delegated authority to administer DoD’s EUM program, known as Golden Sentry
Designed to provide reasonable assurance that the recipient is complying with the requirements imposed by the USG

5. Legal Basis For Golden Sentry (2)
Must also provide for the end-use verification of defense articles and services that incorporate sensitive technology, and/or are particularly vulnerable to diversion or other misuse
Congress requires an annual report of actions taken to implement the program, a detailed accounting of the costs and number of personnel associated with the program

6. Golden Sentry Program Objective
To ensure compliance with technology control requirements in order to minimize security risks to the United States, partner nations, and Allies.
EUM includes all actions to prevent misuse or unauthorized transfer of defense articles or services from title transfer until disposal.
The type of defense article or service generally determines the level of monitoring required.
SAMM C8.2.2

7. Golden Sentry “Stakeholders”
Congress
DoS
DoD
GAO
Defense Industry
Partner Nations
The Press (Defense News)
The Public

8. Levels of EUM Two Levels of EUM Routine: SAMM Chapter 8.3
Enhanced: SAMM Chapter 8.4

9. Routine EUM
Key: Performed in conjunction with other security cooperation functions, installation visits, other assigned embassy personnel and any other readily available source of information
Not only EUM Manager—all USG should partake (visitors/TDY personnel also)
Emphasis is on specific categories of Significant Military Equipment/Major Defense Equipment (SME/MDE) defense articles
SCOs must document Routine EUM on at least a quarterly basis and maintain records for five years
USE REPORT TEMPLATE IN SCIP
SAMM C8.3

10. Routine EUM Items

11. Routine EUM “Watch List”
battle tanks
missiles and missile systems
armored combat vehicles
military vehicles
artillery systems
Bombs
fixed and rotary wing aircraft
crew served and individual weapons
unmanned aerial systems
platform-mounted night vision systems
warships and military vessels
man-portable NVDs
SAMM C

12. Specialized security and accountability notes in LOAs
Enhanced EUM (EEUM)
Specialized security and accountability notes in LOAs
Physical security assessments of facilities
Inventories by serial number
Verification/recording of the equipment final disposition (e.g., fired, lost, destroyed)
USG employee and U.S. citizen only
SAMM C8.4

13. EEUM
SCOs perform EEUM checks during collaboratively scheduled visits to military installations
Conduct 100% inventories by serial number of EEUM designated articles (within 90 days of arrival in-country & periodically thereafter), annotate inventory in SCIP, and assess PN‘s accountability procedures
Conduct physical security checks of storage facilities where items are located
Verifying final disposition of EEUM items (e.g., fired, lost, destroyed); record in SCIP

14. D R A F T
EEUM Items (1)
SAMM C8.T4

15. EEUM Items (2) Advanced Medium Range Air-to-Air Missiles (AMRAAM)
Air Intercept Missiles-9X (AIM-9X)
Communication Security (COMSEC) Equipment
Enhanced Targeting Data (ETD) Physical Security and Accountability Requirements
Harpoon Block II Missiles
Javelin Missiles and Command Launch Units (CLUs)
Joint Air-to-Surface Standoff Missiles (JASSM)
Joint Standoff Weapons (JSOW)
Large Aircraft Infrared Countermeasures (LAIRCM)
Night Vision Devices (NVDs)
SAMM C8.T4

16. EEUM Items (3) Standard Missiles-3 (SM-3)
Standoff Land Attack Missiles Expanded Response (SLAM-ER)
Stinger Missiles and Gripstocks
Terminal High Altitude Area Defense (THAAD).
Tomahawk Missiles
Tube-Launched, Optically-Tracked, Wire-Guided Missiles (TOW-2B)
Unmanned Aircraft Systems (UAS) designated as Category I by the Missile Technology Control Regime (MTCR)
SAMM C8.T4

17. LOA Entries for EUM

18. EUM LOA Terms and Conditions
2.7 Pursuant to section 505 of the Foreign Assistance Act of 1961, as amended (FAA)(22U.S.C. 2314), and section 40A of the AECA (22U.S.C. 2785), the USG will be permitted upon request, to conduct, end-use monitoring (EUM) verification with respect to the use, transfer, and security of all defenses articles and defense services transferred under this LOA. The Purchaser agrees to permit scheduled inspections or physical inventories upon USG request, except when other means of EUM verification shall be mutually agreed. Upon request, inventory and accountability records maintained by the Purchaser will be made available to U.S. personnel conducting EUM verification.

19. EUM –Special Requirements Iraq, Afghanistan, Pakistan
Section 1228, National Defense Authorization Act (NDAA) of 2008 (PL ) (28 Jan 08) (Iraq)
Section 1225, National Defense Authorization Act (NDAA) of 2010 (PL111-84) (28 Oct 2009) (Afghanistan and Pakistan)
Implemented by DODI (7 Sept 2010)

20. Accountability & Recording Afghanistan, Pakistan and Iraq
The NDAAs require a Registration and Monitoring System for defense articles exported to these countries:
Registration of serial numbers of all small arms
A monitoring program for all lethal defense articles
A detailed record of the origin, shipping, and distribution
See DoDI for compliance requirements

21. DSCA Responsibilities
Administer/manage DoD’s EUM program
Develop & disseminate EUM policy and guidance
Coordinate/approve all LOA EEUM notes/provisos
Ensure compliance with DoD’s EUM program
Participate in EUM investigations
Publish lessons learned / best practices
Provide annual report to Congress
(NOT INCLUSIVE)
SAMM C8.T2

22. EUM Visits
Familiarization and Assistance Visits (FAV) and Regional Forums
PN, SCO, CCMD, and DSCA work together to mutually develop effective EUM compliance plans
May be prompted by the introduction of new equipment or other changes in theatre
Determine requirement(s) for future Compliance Assessment Visits
Compliance Assessment Visits (CAV)
Review and Assess SCO and PN compliance programs
Investigation Visits
Investigate possible violations of AECA or FAA
Prompted by information reports or other sources
Closely coordinated with PN and SCO
Handled on a case-by-case basis in concert with DoS
SAMM C8.5

23. Combatant Commands Responsibilities
Maintain a Golden Sentry POC
Provide Regional EUM guidance
Supervise execution of EUM program
Support Regional Forums conducted by DSCA
Assess effectiveness of EUM compliance
Ensure all EUM activities are reported
Plan and program funding requirements
(NOT INCLUSIVE)
SAMM C8.T2

24. MILDEP & IA Responsibilities
Identify sensitive technologies and defense articles to be candidates for EEUM
Develop non-standard notes for articles/services requiring physical security & accountability procedures
Provide delivery records w/serial #s of all EEUM items to SCO and PN (also include in SCIP)
Maintain delivery and inventory records of EEUM items until final disposal/disposition
(NOT INCLUSIVE)
SAMM C8.T2

25. SCO Responsibilities
Designate in writing and maintain a Golden Sentry POC
Develop and coordinate EUM SOPs and NVD Control Plans
Conduct EEUM to verify compliance with Physical Security and accountability provisos in LOA
Establish and maintain EEUM of all defense articles and services
Assist the host nation in submitting third party transfer, change of end-use requests and verify disposal
Report possible violations to Department of State (PM/RSAT), DSCA (Programs Directorate), and the CCMD
(NOT INCLUSIVE)
SAMM C8.T2

26. SOP Minimum Information Requirements (1)
EUM responsibilities and procedures for conducting Routine and Enhanced-EUM (EEUM)
Host nation EUM points of contact and EUM visit scheduling requirements
Maintenance of records of Routine EUM visits and all EEUM physical security and accountability checks (Memorandums for Record or other written documentation)
Host nation internal physical security/accountability procedures
SAMM C8.T3

27. SOP Minimum Information Requirements (2)
Procedures for record keeping, reporting inventories, losses, theft, unauthorized access, third party transfers/disposal/damaged/expended defense articles, and reporting possible violations and corrective action
Procedures for capturing and submitting to the CCMD and DSCA actual costs and projected FMF Administrative funding required to perform EEUM functions
SAMM C8.T3

28. Partner Nation EUM Expectations (1)
Demonstrate support of U.S.
Principles
Laws
Regulations, Policies and Practices
Comply with the requirements in signed agreements for:
Third party transfer
End-use
Security / Protection

29. Partner Nation EUM Expectations (2)
Maintain good interface
Develop EUM SOPs with SCO
Maintain good internal accountability
Keep records of
Inventories
Items
Receipt Date
Consumed
Expended
Damaged or destroyed
Transferred
Change of End-Use

30. SCIP Routine EUM Summary Report

31. Routine EUM Checks Summary Report

32. Routine EUM Checks Detail Report
Click here to enter a Routine EUM Check

33. SCIP Routine EUM Template

34. Partner Nation Capabilities on SCIP EUM Community
Active / Inactive Reports
Add Item(s)
Dispose of an item (*)
Mark item as expended (*)
Perform Inventory (*)
Mark an item as Inventory loss (*)
Ad-Hoc Item
Ad-Hoc History (Host Nation)
View EUM Support Documents
(*) Host Nation users may enter information, however, their entries do not have any bearing on inventory status

35. SCIP EUM Handbook version 3.8--11 May 15

36. SCIP-EUM Support

37. Blue Lantern EUM Program
DoS Program that focuses on monitoring Direct Commercial Sales (DCS) of defense articles
Initiated by DoS in 1990 for DCS
Systematic process aimed at enforcing the AECA and the ITAR
DoS approves the export license and primarily focuses on “pre-delivery” controls (licensing checks) and limited post delivery checks.
Country POCs are located in the Embassy
SCO may be asked to help; track expenses

38. Blue Lantern Checks

39. DOC EUM Program
Department of Commerce (DOC) Program that focuses on monitoring Dual-Use Items transfers by U.S. Industry to a foreign government via the Export Administration Regulation (EAR)
DoC approves the export license and primarily focuses on “pre-delivery” controls (licensing checks) and conducts post delivery checks
Post delivery checks are performed by Bureau of Industry and Security (BIS) Attaches, “Sentinel Teams” from DoC BIS and U.S. Foreign and Commercial Service Officers
SCO may be asked to help; track expenses

40. Department of Commerce EUM Program
Exports of items subject to the Export Administration Regulations (EAR), including Commerce Control List (CCL) items:
Pre-License Check (PLC): Establishes bona fides and validates information on export license applications PRIOR to shipment
Post-Shipment Verification (PSV): Strengthens assurances that all parties comply with an export license and licensing conditions to deter diversions AFTER shipment
Non-Licensed PSV: Measures compliance with U.S. export controls and monitors illicit diversion of U.S. exports

41. Who Conducts DOC End-use Verification?
Conducted by:
Export Control Officers (ECOs)
Export control policy engagement
Foreign government and local business outreach
Sentinel Program:
Checks conducted by Export Enforcement personnel in locations where no ECO is present
Other U.S. Embassy officials

42. Third Party Transfers, Changes in End-Use, and Disposal (SAMM C8.7)

43. Third Party Transfer
In accordance with the FAA, section 505 (22 U.S.C. 2314); AECA section 3 (22 U.S.C. 2753); and LOA Standard Terms and Conditions, foreign governments may not transfer title to or possession of any defense articles or services to anyone not an officer, employee, or agent of that country or of the USG until the country receives prior written consent from the USG.
Nor may the foreign government use or permit the use of such articles or services for purposes other than for which they were furnished unless the foreign government receives prior written consent from the USG.
SAMM C8.7.1

44. TPT Request Requirements
An Official Request from the Divesting Government
A Completed Standard Questionnaire
SAMM C.8T7
End-Use, Retransfer, and Security Assurances from the Recipient(s)
Other Supporting Documentation (equipment lists, technical data lists, etc..)
TPT Process Step-by-Step instructions can be found on the DOS Website:

45. TPT Request
The USG may consent to a third party (government) transfer if the USG would directly transfer the articles to the proposed recipient
The divesting government or international organization submits a written third party Government transfer request to the USG for consideration
Track in SCIP
SAMM C8.7.3

46. Changes in End-Use
Requests follow the same process and require the same information as third party transfers.
May include transfers to non-defense uses by other agencies of the owning government, or demilitarization for museum display
Disposal for non-consumable items also requires prior DoS consent
C8.F2. Sample Format of a DEMIL Certificate
Cannibalization is viewed as disposal if the parts will no longer be under the control of the ministry or agency that owns them, or will be used for purposes other than for national defense
SAMM C8.8.1

47. Intangible Transfers
Authorization is also required for Demonstrations, Exhibits, and Displays (Intangible transfers)

48. TPT Completions: By Type of Transfer
U.S. Department of State
annual averages

49. TPT
U.S. Department of State

50. Potential End-Use Violations
Report all potential unauthorized end-use, including unauthorized access, unauthorized transfers, or security violations to the CCMD and DSCA Golden Sentry Point of Contact
DSCA formally forwards information regarding the potential violation to the DoS for appropriate action
DoS determines whether the AECA section 3 (22 U.S.C. 2753) , criteria require notification to Congress
SAMM C8

51. Violation Penalties
The President and Congress have legal authority to impose penalties
Law does not require imposition of specific penalty
Penalties may range from suspension to termination of Security Cooperation / Security Assistance program(s)

52. Summary
Golden Sentry program focuses on Transfer, Use, and Protection of U.S. provided articles and services
Done poorly, EUM could affect national/regional stability
EUM program helps preserve our tech advantages and U.S. industrial base
EUM program closely watched at CCMD and Wash, DC
Potential violations adjudicated in Washington DC…many factors involved
Transfers/changes of end-use require USG approval before the transfer

53. End-Use Monitoring & Third Party Transfer
Lesson #0607
15 December 2016