THE JOURNAL OF EXPORT CONTROLS AND SANCTIONS

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DDTC consults on data collection

May, 2019

Information wanted on ‘Technology Security/Clearance Plans, Screening Records, and Non-Disclosure Agreements’.

DDTC consults on data collection

The US Department of State is soliciting comments on a proposed collection of data on ‘Technology Security/Clearance Plans, Screening Records, and Non-Disclosure Agreements,’ with a view to obtaining approval from the Office of Management and Budget to proceed with it.

A notice in the Federal Register explains:

‘The export, temporary import, and brokering of defense articles, defense services, and related technical data are licensed by the Directorate of Defense Trade Controls (DDTC) in accordance with the International Traffic in Arms Regulations (‘‘ITAR,’’ 22 CFR parts 120-130) and Section 38 of the Arms Export Control Act.

‘ITAR §126.18 eliminates, subject to certain conditions, the requirement for an approval by DDTC of the transfer of unclassified defense articles, which includes technical data, to or within a foreign business entity, foreign governmental entity, or international organization that is an authorized end-user or consignee (including transfers to approved sub-licensees) for defense articles, including the transfer to dual nationals or third-country nationals who are bona fide regular employees directly employed by the foreign consignee or end-user.

‘To use ITAR §126.18, effective procedures must be in place to prevent diversion to any destination, entity, or for purposes other than those authorized by the applicable export license or other authorization. Those conditions can be met by requiring a security clearance approved by the host nation government for its employees, or the end-user or consignee have in place a process to screen all its employees and to have executed a Non-Disclosure Agreement that provides assurances that the employee will not transfer any defense articles to persons or entities unless specifically authorized by the consignee or end-user.

‘ITAR §126.18(c)(2) also provides that the technology security/clearance plans and screening records shall be made available to DDTC or its agents for law enforcement purposes upon request.’

 

Comments on the proposed collection can made online by going to www.Regulations.gov and searching for the document by entering ‘Docket Number: DOS–2019–0010’ in the Search field.

Also, see https://www.govinfo.gov/content/pkg/FR-2019-05-07/pdf/2019-09271.pdf

 

 

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