Passport to Proficiency on the International Traffic in Arms Regulations

EARN CLE CREDITS

ITAR Passport to Proficiency on the

CALENDAR-ALT April 6 – 29, 2021

VIRTUAL SERIES

A 4-Week Deep Dive into Highly Technical, Complex Requirements in the International Traffic in Arms Regulations

LICENSING MICROPHONE ITAR GUIDANCE FROM: Robert DeSilva Export Control Directorate, Defense Technology Security Agency (DTSA) U.S. Department of Defense

Practical Learning with Leading Exporters: Boeing

Gulfstream

TE Connectivity

Honeywell

AECOM

Collins Aerospace

Northrop Grumman

Your 1-Month Passport to ITAR Proficiency: CALENDAR-ALT

4 weeks, 2 sessions weekly

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Build your “Brain Trust”, sounding board and global network

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Substantive resource materials for your daily work

cogs 5 in-depth modules

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28 hours of true professional development

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4 hands-on, practical sessions with case studies and hypotheticals

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8 session recordings for future reference

AmericanConference.com/Proficiency-ITAR • 888 224 2480

Certificate of completion + CLE credits

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Schedule permits attendance in all time zones

Part of ACI’s PROFICIENCY SERIES

Take a Deep Dive to Master the Essentials ACI’s highly anticipated Proficiency Series provides true immersion in the ITAR with the objective of becoming proficient in four weeks.

Your Building Blocks for ITAR Proficiency WEEK 1 Apr. 6 & 8

WEEK 2 Apr. 13 & 15

WEEK 3 Apr. 20 & 22

WEEK 4 Apr. 27 & 29

Compliance Roadmap & Classification

Foreign, Dual and Third Country Nationals

Licensing Requirements and Exemptions

ITAR Compliance in Practice: The Core Elements for Your Program, Due Diligence and Supply Chain Management

The “How To” of ITAR Classification

Technology Transfers

Review of Proficiency Assignment and Q&A

True Professional Development for Success on the Job Your Blueprint to Proficiency: Immersive and Practical • Interactive format that encourages dialogue with attendees and speakers • Convenient and easy to follow: Fits around your schedule, 2 times per week in easy to follow blocks focused on what you really need for your work

Real Life, Not Textbook • Expert speakers will take you through concrete experiences and “war stories” • Actionable takeaways for your work: Sharpen your knowledge and skills for success on the job

Connect: Build Your Network and "Brain Trust" • Build Your “Brain Trust” by connecting with likeminded professionals • Develop your sounding board and global network of community peers • Access a highly respected, diverse faculty with verified subject-matter expertise and track records • Join dedicated Q&A sessions with expert faculty

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BUSINESS INFORMATION IN A GLOBAL CONTEXT

#ITARproficiency twitter: @ACI_IntTrade linkedin: ACI: International Trade: Legal, Regulatory & Compliance Professionals

EXPERT INSTRUCTORS: GOVERNMENT FACULTY: Robert DeSilva Export Control Directorate, Defense Technology Security Agency (DTSA) U.S. Department of Defense

Catherine Hamilton Director of Licensing, Office of Defense Trade Controls Licensing (DTCL) Directorate of Defense Trade Controls (DDTC)

Learn from Expert Instructors with Verified Subject-Matter Expertise and Proven Track Records: Maria Alejandra del-Cerro Partner Crowell & Moring LLP Rich Baldwin Director, International Trade Compliance TransDigm Group Inc. Jack R. Hayes Of Counsel Steptoe & Johnson LLP Denise Lester Manager, International Trade Compliance Northrop Grumman Bob Vander Lugt Partner Little, Rothwell & Vander Lugt, PLLC Brad Neumann Global Trade Specialist The Boeing Company

Ken Nichol Director, International Trade Compliance Gulfstream Aerospace Corporation Darren P. Riley Partner Riley Trade Law PLLC Jeff Sammon Director, Global Trade Services Program Management Office TE Connectivity Michelle Schulz Chair, International Trade & Customs Polsinelli Jon Schwank Associate Director, Global Trade, Technology Management Collins Aerospace

Heather C. Sears Of Counsel Morgan Lewis & Bockius LLP Jim Slear Partner Thompson Coburn LLP Michael Slonim Director, Export Compliance Honeywell Christopher B. Stagg Partner Stagg P.C. Kimberly A. Strosnider Partner Covington & Burling LLP

Real-Life Benefits of Attending:

ADVANCE your career and professional development by becoming ITAR proficient.

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ADD VALUE to your organization with a practical roadmap for compliance.

CONNECT with a global community of export controls peers.

AmericanConference.com/Proficiency-ITAR • 888 224 2480

Part of ACI’s PROFICIENCY SERIES

WEEK 1

MODULE 1, PART 1: Compliance Roadmap & Classification April 6 • 1:00 pm – 4:30 pm EDT

Jon Schwank Associate Director, Global Trade, Technology Management Collins Aerospace

Darren P. Riley Partner Riley Trade Law PLLC

Your U.S. Export Controls Roadmap: A Review of Key Concepts, Agencies, Their Jurisdictions and Roles – and Who to Contact for What As a primer for the day ahead, speakers will review key agencies for ITAR and other export-controlled goods and technologies, their roles, and key tips for staying on their “good sides.”

• Jurisdiction: ITAR vs. EAR

• BIS, DDTC, DTSA, OFAC, DOJ, and HSI: Which agency does what?

• What is covered by the U.S. Munitions List (USML)

• What is an "export" and "re-export"?

The Essentials of Classification for "Defense Articles", "Technical Data" and "Defense Services": Key Pitfalls and Lessons Learned • Identifying when foreign commercial products and technology can become ITAR-controlled • Considerations for classification of sensitive technologies that are not on the USML

I. Defense Articles •

Definition of “defense articles”

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Clarifying ITAR application to commercial and “dual-use” items

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How original design intent, government funding, specifications, underlying technology, and intended market can affect jurisdiction

•

Definition of “public domain” and of ITAR’s “See Through” rule

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Integrating commercial and defense technologies

II. Technical Data •

Defining “technical data” and “export” of technical data under the ITAR

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Determining whether technical data is in the “public domain” under 120.11

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Identifying whether technical data is ITAR-controlled

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Recent DDTC guidance on how to control technical data

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Reducing the risk of technical data export violations

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Complying with restrictions governing “technical” discussions

III. Defense Services •

What are “defense services” under the ITAR? Common examples and pitfalls to avoid

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How the broad definition of “defense services” affects commercial business

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How U.S. persons can engage in ITAR-controlled “defense services” by simply providing public domain information

•

How “defense services” can cover technical data related to ITAR-controlled items

ITAR Parts 120 & 121: The “Specially Designed” Definition: Where Exporters Have Gone Right and Wrong in Determining ITAR Jurisdiction • What is the “specially designed or modified” reach of the ITAR? • What are the qualifiers for a “specially designed” designation?

• A review of the most common mistakes by industry when making this determination • The do’s and don’ts for self-classifying items as “specially designed” • How to ensure adequate documentation to support your position

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BUSINESS INFORMATION IN A GLOBAL CONTEXT

#ITARproficiency twitter: @ACI_IntTrade linkedin: ACI: International Trade: Legal, Regulatory & Compliance Professionals

WEEK 1

MODULE 1, PART 2: The “How To” of ITAR Classification April 8 • 1:00 pm – 4:30 pm EDT Rich Baldwin Director, International Trade Compliance TransDigm Group Inc.

Kimberly A. Strosnider Partner Covington & Burling LLP

Christopher B. Stagg Partner Stagg P.C.

Classification/Re-Classification in Practice: A Step-by-Step Guide to Structuring Your Classification Approach, and the Most Common Missteps to Avoid • Ensuring self-classification follows a proper analysis and use essential sources of information • What is the approach to take for self-classification, compared with writing a Commodity Jurisdiction (CJ) request?

• My item meets the control criteria of multiple entries; which is the correct classification?

• Differences between classifications for hardware, technical data, software, and defense services • How are companies updating their classification and re-classification approaches to account for new and proposed DDTC and DTSA guidelines?

• The most important CJ factors when determining if your item is ITAR-controlled • How do companies design and maintain jurisdiction and classification systems (e.g., creating databases to store the classifications, creating bucket classification groups)?

• What do ITAR-applications to commercial and dual-use items “look like”?

• When do foreign commercial products and technology become ITAR-controlled?

• What is the effect of re-classification on suppliers? How can you mitigate them?

• Ensuring and documenting when the ITAR does not apply to commercial and “dual-use” and even military items • The use of engineers and other subject-matter experts to perform self-classifications • What to do if there is an error in self-classification? Does it mean there is a violation?

ITAR Sections 120.3 and 120.4 – When to Use the Commodity Jurisdiction Process, and How to Draft a CJ Request Through a review of sample CJs, best practices and common pitfalls, you will gain comprehensive guidance for preparing CJ requests- and deciding when to file a CJ instead of conducting a self-determination. You will also benefit from insight on how DDTC and DTSA review CJ requests, and recent trends in jurisdictional determinations.

• Preparing a CJ request: What you need to submit, what supporting material to include and other key elements • DDTC Guidelines for preparing CJ requests: What the State Department expects and how to expedite the process • Who should prepare CJ requests and when • Key factors affecting CJ determinations: Recent trends in rulings and lessons learned • How to interpret CJ determinations, and what you can do with them • The consequences of filing a CJ determination: Pre-filing, while awaiting a decision, and afterwards • Strategic uses of the commodity jurisdiction procedure • Alternatives to using the commodity jurisdiction process

Hypothetical Exercises, Q & A and Review Toward solidifying your understanding of this session, the instructors will take you through a series of hypothetical scenarios, sample license applications, and how to put the “rubber to the road.” Ample time will be left for Q&A. As a closing segment, instructors will provide additional clarification and guidance, and take your questions.

AmericanConference.com/Proficiency-ITAR • 888 224 2480

Part of ACI’s PROFICIENCY SERIES

WEEK 2

MODULE 2, PART I: Foreign, Dual and Third Country Nationals, and Technology Transfers April 13 • 1:00 pm – 4:30 pm EDT Brad Neumann Global Trade Specialist The Boeing Company

Maria Alejandra del-Cerro Partner Crowell & Moring LLP

ITAR Sections 120.10, 120.17, 124.1, 125.2, 125.3 and 126.18 – How to Comply with Foreign, Dual and Third Country National Rules • How DDTC defines “foreign national”, “dual national”, “third country national”, “U.S. person” and “access”: Impact of dual and third country national requirements under 126.18, and available exemptions • How the ITAR addresses the sharing of technology with foreign persons inside and outside the U.S. • Screening and interviewing foreign nationals without discriminating on the basis of national origin: Reconciling the ITAR with EU, Australian and Canadian human rights and privacy laws • Incorporating export controls language into your offer letters, employment agreements and using non-disclosure agreements (NDAs) • Assigning foreign persons to ITAR sensitive areas: Avoiding deemed export/re-export violations, and to how to badge non-U.S. persons

Technology Transfers Under the ITAR • How to define “technology transfer” • Special considerations for IT access: Key ITAR risks associated with your networks, servers, cloud applications, mobile devices and social media activity • Flagging R&D and engineering that can pose ITAR compliance risks • Examples of technology transfers in the cloud, on social media and via email

Hypothetical Exercises, Q&A and Review Toward solidifying your understanding of this session, the instructors will take you through a series of hypothetical scenarios, sample license applications, and how to put the “rubber to the road.” Ample time will be left for Q&A. As a closing segment, instructors will provide additional clarification and guidance, and take your questions.

quote-left Already the first module was a great opportunity to get to work with

seasoned trade compliance professionals in an in-depth discussion of very complex trade compliance subjects with the upcoming generation of trade compliance leaders. The presentations were challenging and the very thought-provoking questions from the audience were even more so. All in all, it was an excellent way to spend an afternoon. quote-right

– VICE PRESIDENT – GLOBAL TRADE COMPLIANCE, LEONARDO DRS

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BUSINESS INFORMATION IN A GLOBAL CONTEXT

#ITARproficiency twitter: @ACI_IntTrade linkedin: ACI: International Trade: Legal, Regulatory & Compliance Professionals

WEEK 2

MODULE 2, PART 2: Foreign, Dual and Third Country Nationals, and Technology Transfers April 15 • 1:00 pm – 4:30 pm EDT Jeff Sammon Director, Global Trade Services Program Management Office TE Connectivity

Jim Slear Partner Thompson Coburn LLP

A Deep Dive In to Required Technology Controls: Managing Visitor and IT Access to ITAR-Controlled Technical Data • Controlling foreign nationals’ access to ITAR-controlled data: When a password, absolute lockdown and/or email controls are required • Managing access risks posed by offshore IT support, cloud computing and e-rooms for electronic collaboration • Protecting US-origin data on laptops and servers • Managing email transfers of technical data: Tracking and marking sensitive communications, and designating emails • Protecting hardware and servers: When to create separate servers for controlled information and/or partition drives • Cloud computing dos and don’ts • Requirements for recordkeeping, storage, data maintenance, preservation and retrieval procedures • Working with your IT Department, and conducting reviews of your IT program • Controlling visitor access to restricted areas and physical access to your facility

Special Considerations for Laptops, E-Mails, Mobile Devices and Employee Travel • How to use IT security software such as DLP to pull data back onto U.S. servers • Which countries have import/use restrictions on encryption items?

• Concerns about accessing company networks and downloading while abroad • Reconciling BIS and ITAR license exemptions • Practical examples of travel procedures and clean device requirements

Due Diligence of Cloud Service Providers, ITAR-Controlled Data and Your Compliance Plan: How Far You Need to Go • Key ITAR compliance risks in the cloud • Traversing considerations for infrastructure as a service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS) • Reconciling Commercial vs. Government Cloud • DFARS, National Institute of Standards & Technology (NIST) 800-171, and U.S. Export Controls.

• Practical examples of how companies are navigating compliance with these types of solutions

The Nuts and Bolts of TCPs & TTCPs: Your Step-by-Step Checklist Through a review of sample TCPs and TTCPs, the speakers will take you through the essentials and address, among other issues: • How to control access by foreign nationals and other unauthorized persons to controlled data • How to “right size” compliance for your organization • Identifying tailored facility concerns for your organization (e.g., screening visitors, requiring sign-in, badges and accompanied hosts, etc.)

• Best practices for IT controls and network access rights • Tips for Facility Management and Technology Control Plans

Hypothetical Exercises, Q&A and Review Toward solidifying your understanding of this session, the instructors will take you through a series of hypothetical scenarios, sample license applications, and how to put the “rubber to the road.” Ample time will be left for Q&A. As a closing segment, instructors will provide additional clarification and guidance, and take your questions.

AmericanConference.com/Proficiency-ITAR • 888 224 2480

Part of ACI’s PROFICIENCY SERIES

WEEK 3

MODULE 3, PART I: Licensing Requirements and Exemptions April 20 • 1:00 pm – 4:30 pm EDT Robert DeSilva Export Control Directorate, Defense Technology Security Agency (DTSA) U.S. Department of Defense

Catherine Hamilton Director of Licensing, Office of Defense Trade Controls Licensing (DTCL) Directorate of Defense Trade Controls (DDTC)

Heather C. Sears Of Counsel Mogan Lewis & Bockius LLP

How to Prepare and Secure an ITAR License, TAA and MLA, and Reduce the Risk of RWAs: A Deep Dive into the Electronic Filing Process, License Application and Supporting Documentation ITAR Licenses: A Deep Dive into Requirements for Securing a DSP-5, DSP-73, or DSP-61 and DSP-85 • When a DSP-5, DSP-73, or DSP-61, DSP-85 is required: The approvals process, how to expedite the process, timeframes and how to reduce the risk of delay • Ensuring you get hardware and tech data included on a single license • Returns: Special considerations • Licenses in furtherance of agreements • Constructing an accurate scope of export in your license application • Drafting a license application: What to include, how to fill out the forms using DTrade2, and how to submit the application • When to use a letter of intent to support a license request • What DDTC expects beyond the written guidelines • Structuring and valuing license authorizations • Key reasons for RWA (Returns without Action) or license denials, and how to prevent them

ITAR Agreements: Demystifying TAAs, MLAs and WDAs • Overview of the different types of ITAR agreements, what is required, the timeline, and how to reduce the risk of delay • When and how to get TAAs, TAA Amendments, Re-Baselined TAAS and MLAs • When to cover foreign nationals under MLAs and TAAs • Degree of information expected by DDTC and DTSA in TAA scope of export and statement of work • What DDTC and DTSA expect beyond the written guidelines • Analysis of sample TAAs and MLAs

Hypothetical Exercises, Mock License Applications, Q&A and Review on the Do’s and Don’ts Toward solidifying your understanding of licensing requirements and exemptions, the instructors will take you through a series of hypothetical scenarios, sample license applications, and how to put the “rubber to the road.” Ample time will be left for Q&A. As a closing segment, instructors will provide additional clarification and guidance, and take your questions.

quote-left Provides in-depth, practical knowledge and experience that I will be able to take back to improve our processes and program. quote-right – DIRECTOR — GLOBAL TRADE COMPLIANCE, OSHKOSH CORPORATION

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BUSINESS INFORMATION IN A GLOBAL CONTEXT

#ITARproficiency twitter: @ACI_IntTrade linkedin: ACI: International Trade: Legal, Regulatory & Compliance Professionals

WEEK 3

MODULE 3, PART 2: Licensing Requirements and Exemptions April 22 • 1:00 pm – 4:30 pm EDT Michael Slonim Director, Export Compliance Honeywell

Michelle Shulz Chair, International Trade & Customs Polsinelli

Brokering Requirements • When and how to register as a broker • Which activities constitute “brokering”? Who is considered a “broker”?

• “Broker” and “Brokering”: What is now required for screening and monitoring • Review of the current requirements and how they impact industry • When and how to get ITAR license approvals for brokers and meet reporting requirements • Satisfying “prior notification” requirements, and exemptions for large exporters and SMEs • Best practices for broker agreements and activities • Monitoring compliance by agents and representatives

The Lengths and Limits of ITAR Exemptions – and the Costs of Getting Them Wrong • U.S. person abroad/U.S. subsidiary • U.S. Government exemption • Canadian exemption • Return and repair exemption • Temporary Imports • FMS exemption • Re-exports to NATO, Australia or Japan • UK and Australia ITAR exemptions • University fundamental research exclusion

Hypothetical Exercises, Q&A and Review on the Do’s and Don’ts Toward solidifying your understanding of licensing requirements and exemptions, the instructors will take you through a series of hypothetical scenarios, sample license applications, and how to put the “rubber to the road.” Ample time will be left for Q&A. As a closing segment, instructors will provide additional clarification and guidance, and take your questions.

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Part of ACI’s PROFICIENCY SERIES

MODULE 4: ITAR Compliance in Practice: The Core Elements of an Effective Program, Due Diligence and Supply Chain Management

WEEK 4

April 27 • 1:00 pm – 4:30 pm EDT Ken Nichol Director, International Trade Compliance Gulfstream Aerospace Corporation

Jack R. Hayes Of Counsel Steptoe & Johnson LLP

Review of ITAR Enforcement Cases and Practical Takeaways Experts will take you through the most important compliance lessons learned from key enforcement actions, and how exporters are updating their ITAR compliance programs and supply chain management in response.

The Nuts and Bolts of an ITAR Compliance Program • Key elements and best practices for effective ITAR compliance

• Creating an anonymous reporting tool and compliance hotline

• Identifying and empowering the right internal resources and personnel

• Ensuring that your program can adapt to new, evolving ITAR compliance risk factors

• Developing and updating your compliance manual, procedures and processes, including policy statements and message from senior management

Third Party Due Diligence and Exporters’ Liability Risks: Supply Chain, End-Use and End-User Screening • Where the exporter’s responsibility for third party compliance begins and ends

• Recordkeeping: What documents/information to collect from foreign third parties, and how to review them

• Vetting third parties, including subcontractors, freight forwarders, distributors, customs brokers, customers, re-sellers and others:

• Building an effective end use/end user screening program

• What to look for and ask at the due diligence stage

• Safeguards to implement for orders and shipments, and when to terminate the relationship because of export enforcement risks

• Monitoring ITAR compliance of third parties

What to Do If You Suspect or Discover an ITAR Violation: Real-World Guidance • What pushes a case from a DDTC warning letter to a penalty, and what can lead to a criminal prosecution

• Examples of how to strengthen an ITAR compliance program to meet agency expectations

• Top mistakes to avoid during a government and internal investigation

MODULE 5: Review of Proficiency Assignment and Q&A

WEEK 4

April 29 • 1:00 pm – 4:30 pm EDT In advance of this last unit, participants will complete an assignment on the life cycle of an export. The questions will be based on a case study of an ITAR export transaction from A to Z. During this last session, participants will share their responses to the assignment questions, followed by feedback from the expert instructors. There will also be ample time for additional, extended Q&A to address any questions from the assignment and beyond.

Bob Vander Lugt Partner Little, Rothwell & Vander Lugt, PLLC

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BUSINESS INFORMATION IN A GLOBAL CONTEXT

Denise Lester Manager, International Trade Compliance Northrop Grumman

#ITARproficiency twitter: @ACI_IntTrade linkedin: ACI: International Trade: Legal, Regulatory & Compliance Professionals

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