hello again and Welcome to our podcast series on selling to Nato today I'm going to talk about a topic a related topic export controls let me start with a disclaimer us export controls are currently undergoing a significant overhaul and things are in flux so check the links below for the latest currently there are at least five different us export controls out there but we will be focusing on two the international traffic and arms regulations or itar and the export Administration regulations or E these two export controls cover 95% of what NATO and allies deal with for both itar and E the goal is to prevent sensitive technology hard or soft for getting into the wrong hands itar is defense related and it's managed by the department of state's directorate of Defense trade controls or ddtc they regulate the export of items that are on the US Munitions list these are items that are explicitly considered weapons or related there is a presumption of denial of the export of these items in addition to that there is also a catchphrase which is Goods that are specifically designed for military use as you can imagine the interpretation of iar's RS can be fairly Broad and excessively encompassing imagine a roll of duct tape painted olive drab that's specifically designed for military use this could be subject to itar again this is one of the reasons that export controls are being overhauled now let's go over to commerce's export Administration regulations the E governs the Commerce control list encompassing what is commonly known as dual use Goods it is managed by the Department of Commerce Bureau of industry and security there is no presumption of denial due to the nature of the product but rather a question of where the potentially sensitive technology is going who is using it and for what purpose for example true story exporting a speak and spell to Syria could require an export license understand that if a product or service is not on the US SML it is still regulated by commerce's E for Commerce you need to determine using the export control classification number if it's on the Commerce controlled list and see whether or not a license is required for the destination if your eccn is not listed on commerce's control list then it is designated as an e99 and most of the times you won't need a Commerce an export license from Commerce again it's about where the product is going the country to whom who's using it and for what purposes see the links Below on how to get an eccn and to compare it to the Commerce controlled list how do I know if my item requires a license for cars or state it is a manufacturer's responsibility to determine whether an export license is necessary and they can selfcheck you can go on to the US Munitions list see below and see if you're on it if you're not sure you will need to ask the directorate of Defense trade controls for commodity jurisdiction once again see the link below ddtc will examine your product or service and determine if it is subject to either Commerce or state export licensing most of the time they turn around requests fairly quick but if it's a tough call it can take up to 90 day uh sorry up to 60 days if if your item is on the US Munitions list then you need to be registered with the uh ddtc regardless of whether or not you ex decide to export this is a sensitive technology and needs to be registered I'll go into itar specifics in a later podcast in the meantime see the links below for online commodity jurisdiction requests registration and Export license applications note as a rule in both itar and E once an item is export exported on a license the recipient may not reexport the item without further requesting an additional export license also bear in mind that an export can occur any number of ways by hand delivery via Courier email internet even a phone call the release of information is considered a deemed export so it extends to intellectual property such as schematics and a person's knowledge so a person with highly technical military related knowledge may need an authorization to travel to a foreign country failure to comply can result in loss of Rights fines and even a prison sentence let's go back to Goods that were specifically designed for military use as I mentioned it can be it's a fairly catch-all phrase and because of this the difficulties Allied countries are facing re exporting controlled items to other friendly countries the US export controls are undergoing a vast overhaul as much as 70% of the items on the US Munitions list will probably will be moved over to um the E's Commerce control list the process isn't over yet and clarifications are being added on a regular basis finally how does this articulate with NATO's procurement agencies nspa and ncia both procurement agencies require that the actual end user sign the end user certification generally this is an authorized representative of the nation's Ministry of Defense I hope this was helpful for you and see you next time when we talk about advocacy support