DEFENSE TRADE SECURITY INITIATIVES

JOINT DOD/STATE DTSI BRIEFING IN POWERPOINT (Click here to view)

I.  CREATION OF NEW LICENSE AUTHORIZATIONS:  The first four initiatives deal with the U.S. commercial export process and create three new license authorizations:  Major Program Authorization, Major Project Authorization and a Global Project Authorization.

1. Major Program Authorization.   This single comprehensive authorization, issued at the start of a U.S. Government (USG) -sanctioned program, will target the U.S. firm as the original equipment manufacturer (OEM).  The new initiative will allow the USG to license major programs upfront, rather than by piecemeal.

3. Global Project Authorization     This initiative will reduce the amount of authorizations governments must seek to perform activities in furtherance of government-to-government international agreements or Memorandums of Understanding (MOUs) concluded between the governments or DoD and a foreign Ministry of Defense to carry out cooperative programs for research and development, including test and evaluation of defense systems and technologies or cooperative production.

2. Major Project Authorization.     This comprehensive authorization is issued to one or more registered U.S.  prime contractors for a major project such as a foreign government commercial competition.

4. Technical Data Exports for Acquisitions, Teaming Arrangements, Mergers, Joint Ventures and Similar Arrangements     This initiative would enable qualified U.S. defense companies to apply for licenses that authorize exchange with approved, NATO-member countries, Australia, and Japan firms, technical data to explore cooperative ventures.

II.  EXPANDING THE SCOPE OF EXISTING LICENSING PRACTICES.  The second main area deals with expanding the scope of existing licensing practices.

5. Multiple Destination Licenses This authorization is designed to encourage the use of multiple destination licenses when a U.S. firm enters into commercial cooperative projects with foreign companies.	8. Expedited Embassy Licensing Review Process     This initiative is designed to expedite the handling of license applications for key supplies submitted to the Office of Defense Trade Controls, DoS, by foreign embassies based in Washington.
6. Warehousing and Distribution Agreements     This initiative will permit U.S. companies to export bulk items (e.g. spare parts) to a foreign company, to include U.S. subsidiaries overseas.	9. Improving U.S. Government Export License Automation Systems     This initiative would standardize incompatible computer systems between DoD and State and between the USG and industry.
7. Expedited License Review Process for Defense Capabilities Initiatives     This initiative is designed to expedite U.S. review of licenses determined to be in support of Defense Capabilities Initiative (DCI).

III. ENHANCING EXISTING ITAR EXEMPTIONS.  The third main area deals with improving existing International Traffic in Arms Regulations (ITAR) exemptions.

10. Extension of ITAR Exemption to Qualified Countries     This initiative applies to allied countries that adopt and demonstrate export controls and technology stems that are comparable to those in the U.S.	13. Improving DoD's Use of ITAR Exemptions     This initiative authorizes DoD to use the numerous exemptions to licensing requirements that the DoD can utilize in connection with exports of defense articles, technical data, and defense services.
11. Exemption for Export Licensing of Maintenance Services and Training     This initiative expands the ITAR exemption to authorize U.S. companies, without licensing requirements, to provide basic maintenance and/or maintenance training for inventories allied equipment.	14. Special Commercial Satellite Licensing Regime    This initiative implements, sec. 103(a), FY2000 and 2001 Foreign Relations Act which authorizes expedited treatment of commercial satellite, technologies, components, and systems while ensuring priority to to national security and U.S. obligations under the Missile Technology Control Regime.
12. Exemption for Export of Technical Data in Response to DoD Requests for Proposals     This initiative expands the ITAR exemption to allow U.S. firms, without licensing requirements, to provide basic maintenance and/or maintenance training for inventory allied equipment.

IV.  IMPROVING TRANSFERS RELATIVE TO GOVERNMENT-TO-GOVERNMENT PROGRAMS.  The fourth main area deals with streamlining government-to- government programs.

15. ITAR Exemption for FMS Defense Services     This initiative revises the ITAR regulations to provide exemptions for defense services under FMS.	17. Periodic Review of the U.S. Munitions List     This initiative provides a mechanism for the U.S. Munitions List to be reviewed completely every four years by requiring sections of the USML to be reviewed on an annual basis.
16. Advance Retransfer Consent for USG Sold or Granted Items     This initiative expands a similar initiative that was originally offered several years ago on advance retransfer consent for USG sold or granted items.