Nadcap and Export Control rev 2

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Nadcap and Export Control (rev 2)

• DonB
• Export Control Roundtable
• Pittsburgh, PA
• July 24, 2008 Allegheny Room
• 100 PM 430 PM

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Attendees

• The following people attended in person on via
  phone

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Purpose of the Roundtable

• Encourage greater understanding of the challenges
  and approaches we (PRI) are taking on behalf of
  the Nadcap process to ensure 100 compliance with
  the regulations (ITAR/EAR)
• To encourage dialogue among primes suppliers, and
  PRI Staff on the subject of EC

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Topics

• New definition EC-LR/Restricted
• New form to report EC-LR/Restricted materials to
  PRI
• Explanation of the PRI TAA licensing process via
  a flow chart
• Other licensing alternatives
• Auditor input of data in eAuditNet on
  EC-LR/Restricted parts
• New WEB pages
• Open discussion other issues

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EC-LR/Restricted definition

• All Defense Articles and Technical Data
  controlled by the ITAR

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EC-LR/Restricted definition

• All Defense Articles and Technical Data
  controlled by the ITAR any foreign origin
  Defense Articles and Technical Data that would be
  controlled by the ITAR if of U.S. origin

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EC-LR/Restricted definition

• All Defense Articles and Technical Data
  controlled by the ITAR any foreign origin
  Defense Articles and Technical Data that would be
  controlled by the ITAR if of U.S. origin any
  dual-use or civil items or Technology controlled
  by the EAR under any ECCN except EAR99

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EC-LR/Restricted definition

• All Defense Articles and Technical Data
  controlled by the ITAR any foreign origin
  Defense Articles and Technical Data that would be
  controlled by the ITAR if of U.S. origin any
  dual-use or civil items or Technology controlled
  by the EAR under any ECCN except EAR99 and
  includes any foreign origin dual-use or civil
  items or Technology that would be controlled by
  the EAR under any ECCN except EAR99 if of U.S.
  origin.

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New form to report EC-LR/restricted materials

• Once the supplier has signed the supplier
  agreement in eAuditNet, the following question
  must be answered

When you click here
This is scheduled to be in place in the 4th qtr
2008
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EC-LR form

• Suppliers are to complete the data on this form
  to start the licensing process

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PRI TAA Licensing process
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Other licensing Processes Volvo approach

• Volvo approach - supplier approaches primes to
  modify their initial MLAs TAAS to include the
  Nadcap audit
• PRI to determine what auditors Staff Engineers
  would be involved in the Nadcap audits at the
  supplier
• PRI to send personnel data to supplier (personal
  data sheet NDA copy passport)
• Supplier coordinates with primes to amend MLAs
  TAAs

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Other licensing Processes Volvo approach

• Prime submits amended license request to
  appropriate government agency
• Once authorized - PRI would coordinate any PRI
  personnel sign offs needed back to prime
• Once License secured copy to PRI for posting in
  eAuditNet coordination with all applicable PRI
  personnel
• Next audit licensed items and materials can be
  subject to the Nadcap audit

Thanks to Chet Date Honeywell who is piloting
this approach with their company
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Other licensing Processes New Licenses

• Prime coordinates with PRI on upcoming licenses
  which will be submitted for approval by
  government agency
• PRI provides personnel data and verbiage to prime
  to include the Nadcap audit in the license
• Prime submits PRI personnel and the Nadcap audit
  to the Governmental agency as part of the initial
  authorization to export the materials

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Other licensing Processes New Licenses

• Once authorized - PRI would coordinate any PRI
  personnel sign offs needed back to prime
• Once License secured copy to PRI for posting in
  eAuditNet coordination with all applicable PRI
  personnel
• Next audit licensed items and materials can be
  subject to the Nadcap audit

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3 Licensing Options listed in order of
desirability

• Include PRI (auditors Staff) on initial
  licenses to export EC-LR/Restricted items
• Get it done up front cleanest no impact on
  audit schedules. PRI provide data on personnel.
• Amend existing Licenses
• Use when there are 2 or less primes with EC-LR
  items at a supplier. Primes will have to agree -
  much coordination between Export Control Depts
  prime Quality personnel PRI. PRI provide data
  on personnel.
• Get PRI TAA -
• Used when we have more than 2 primes involved.
  Covers all EC-LR/Restricted items at a supplier
  good for 10 years NOTE Possible downside -
  supplier may still have to secure re transfer
  authorization

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Response/discussion

• How do you (primes and suppliers) react to the 2
  additional ways to get the Nadcap audit licensed?
• Are you willing to help resolve the EC issues we
  have in the Nadcap process by one of these means?
• What does PRI need to know about this process
  (from primes standpoint)? What data would you
  need from PRI to get your licenses amended?

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Auditor input

• Checklists have been/are being identified with an
  (EC) for those questions where detailed data
  cannot be input into eAuditNet (see example next
  page)

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Auditor Input

• Auditors to not display technical details in
  writing up ncrs on EC-LR/Restricted materials

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Audit Status

• PRI has generated a report which identifies
  audits which must have action (Licensing) before
  the next audit due date
• In response to additional requests from primes,
  PRI is working on a new report

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Audit Status

• New report will outline suppliers whose next
  audit will involve the work around

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New WEB page

• Export Control page on PRI/Nadcap web
• http//www.pri-network.org/PRI/
• Nadcap
• About Nadcap
• Export Control (http//www.pri-network.org/Nadc
  ap/Export-Control.id.879.htm)

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Questions?

• Don Buehler
• donb_at_sae.org
• 513-662-5190 (phone)
• 513-305-7493 (cell)

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Notes from the meeting

• We reviewed the definition of EC-LR/Restricted
  quite extensively in the mtg.
• NOTE a basic question which came up during the
  meeting has now been resolved see embedded word
  file for the situation
• Page 22 work around list - we reviewed this
  committed to getting it to primes by August 8th.
  Note there was no discussion nor commitment on
  the part of PRI to this being a regular report.
• During the licensing discussions it was noted
  that many primes do not license individual part
  numbers that they license sub systems and
  generally described components.
• NOTE even though this was not directly
  discussed as part of the Roundtable it became
  apparent to DonB that 1- the approach to
  licensing by part number is not the best way to
  proceed and 2 due to the terrible time we have
  getting the needed data from the suppliers
  (unless they physically have the licenses from
  the primes), the best way for PRI to proceed get
  the data needed for the PRI TAAS is to go
  directly to the primes.
• This new approach will be outlined in a letter to
  the primes NMC reps recounting the proposed
  approaches discussed during the Roundtable and
  proposing this addition al approach.