US Export Controls: The Impact of ITAR Regulations to Your Industry & Your Business
One of the two main export controls that US aerospace & defense businesses encounter when exporting is the International Traffic in Arms Regulations (ITAR). Administered by the US Department of State - Directorate of Defense Trade Controls (DDTC), ITAR regulates the import and export of defense related items and services listed on the US Munitions List. Earlier in 2016, the DDTC issued an interim final rule that amends ITAR. The modifications include an update to the definitions of "export" and "re-export or retransfer", new definitions of "release" and "retransfer", new sections of the ITAR detailing the scope of licenses and unauthorized releases of controlled information, and revision on the measures on "exports" of technical data to US person abroad.
The ITAR have significant implications to international sales strategy of aerospace and defense businesses. Although compliance seems daunting, ITAR can be navigated easily with good understanding of the regulations and appropriate assistance from export compliance professionals.
In this two-hour LIVE Webcast, a panel of thought leaders and practitioners assembled by The Knowledge Group will discuss how ITAR impacts the aerospace and defense industry. They will also offer best practices to ensure ITAR compliance.
Some of the major topics that will be covered in this course are:
- Introduction to ITAR
- Export Control Reform
- Impact to Businesses
- Common Mistakes Businesses Make
- Penalties and Enforcement Trends
- Best Compliance Practices
SEGMENT 1: Christopher Stagg, Partner
- Introduction to the ITAR
- Business Impact & Risk
- Licensing Strategies
- Regulatory Strategies
SEGMENT 2: Dara Sanders, Compliance Specialist
Office of Strategic Industries and Economic Security
- Background of Export Control Reform; Current State of Export Control Reform (items moved from USML to CCL)
- Commerce Licensing vs. State Licensing (how export control reform tried to align the ITAR exemptions with EAR license exceptions)
- Advantages of Licensing with Department of Commerce vs. State.
SEGMENT 3: Hena M. Schommer, Attorney
Clifford Chance LLP
- General Overview of Compliance Obligations under the ITAR and EAR
SEGMENT 4: Jason A. McClurg, Counsel
Berliner, Corcoran & Rowe LLP
- DDTC Voluntary and Directed Disclosures
- Common DDTC Responses to Voluntary and Directed Disclosures
- Penalty and Oversight Agreements (a.k.a., Consent Agreements)
- Future Changes to Voluntary and Directed Disclosures Resulting from DDTC IT Modernization (Form DS-7787)
- DOJ Voluntary Disclosure Program for Criminal Export Controls and Sanctions Violations
SEGMENT 5: Heidi Mustonen, Managing Director
- Putting it all together
- Where do you start?
- Defining compliance's role
- Designing the appropriate organization
- Creating sustainable processes
- Leveraging technology appropriately
- Maintaining a living program
Who Should Attend:
- Risk and Compliance Officers
- International Contract Managers
- Export Compliance Counsel
- International Counsel
- Trade Compliance Administrators and Managers
- Export Control Counsel and Consultants
- Trade Counsel
- International Sales Managers
- Business Development Managers
- Business Executives
- Multinational Companies
- Other Related Professionals
Ms. Sanders currently serves as an Export Compliance Specialist in the Munitions Control Division of the Office of Strategic Industries and Economic Security. In her current position, Ms. Sanders has a dual role as a Licensing and Compliance Officer. Her duties involve export license reviews and performing desk audit and compliance site visits for US exporters. Ms. Sanders also provides policy updates on behalf of the Munitions Control Division.
Prior to working for the Department of Commerce, Ms. Sanders was a Staff Attorney providing litigation and compliance guidance in White Collar Crime and Trade Law. Ms. Sanders has also worked as a Law Clerk with a Nonprofit Organization, specializing in Constitutional Law.
Ms. Sanders holds a Bachelors Degree from the University of Virginia, and a J.D. from Wayne State University. Ms. Sanders is currently a member of two state bars, Michigan and Washington, D.C..
Ms. Sanders currently serves as an Export Compliance Specialist in the Munitions Control Division of the Office of Strategic Industries …
Heidi has been with the KPMG family of firms since 2005 and has worked on trade compliance matters in the US and EU firms. As a member of the Trade & Customs practice, Heidi has worked on a variety of engagements in nearly every industry assisting client’s to strengthen their internal compliance programs, with a specific focus on export compliance and companies under Consent Agreements. In addition to her extensive work with clients, Heidi also leads KPMG’s overall export efforts supporting the Aerospace Industry Association as a co-author of the aerospace and defense industry export control standards.
Heidi has been with the KPMG family of firms since 2005 and has worked on trade compliance matters in the …
Christopher Stagg's experience as a senior regulator with the U.S. Department of State and in private practice gives him unique understanding of the successful strategies companies require to navigate export controls and other national security related matters.
Mr. Stagg served with the Directorate of Defense Trade Controls (DDTC) at the U.S. Department of State from 2010 to 2013. In this position he was the deputy lead for the U.S. Department of State on Export Control Reform to rewrite U.S. export control laws under the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). This included the most significant update to the entire U.S. Munitions List in sixty years.
Additionally, Mr. Stagg was a leading member of the Commodity Jurisdiction (CJ) section that determines whether items are on the U.S. Munitions List. He was involved in more than 500 CJ determinations and appeals, and authored the government's procedures and regulations on reviewing requests. Mr. Stagg also authored the U.S. policy on designating and determining items on the U.S. Munitions List within section 120.3 of the ITAR.
As a senior advisor, Mr. Stagg provided actionable guidance on the ITAR to the Federal Bureau of Investigation (FBI), the U.S. Department of Homeland Security, and the Export Enforcement Coordination Center (E2C2) on export enforcement and national security investigations. Christopher worked with federal law enforcement on a number of criminal investigations.
Christopher Stagg's experience as a senior regulator with the U.S. Department of State and in private practice gives him unique …
Hena Schommer is an associate in Clifford Chance's U.S. Litigation & Dispute Resolution Practice. Her practice focuses on U.S. export controls, economic sanctions, anti-corruption, and other areas of law specializing in crossborder transactions, compliance advising, and internal investigations.
Ms. Schommer advises U.S. and international clients from a wide range of industries, in matters involving compliance with the Export Administration Regulations (EAR), International Traffic in Arms Regulations (ITAR), and the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) regulations, as well as other U.S. international trade regulatory regimes. She also supports clients in internal investigations and disclosures before various U.S. government agencies related to U.S. export controls and economic sanctions, including developing and implementing compliance programs.
Hena Schommer is an associate in Clifford Chance's U.S. Litigation & Dispute Resolution Practice. Her practice focuses on U.S. export …
Jason McClurg is a member of the export controls and sanctions practice at Berliner, Corcoran & Rowe L.L.P., focusing in particular on manufacturers and exporters of ITAR-controlled defense articles, technical data and defense services. Mr. McClurg has represented clients of all sizes, from Fortune 100 multinational corporations to small and medium sized businesses. Mr. McClurg has extensive experience advising clients on ITAR compliance issues including DDTC registration, product classifications, licensing, technical assistance and manufacturing license agreements, brokering, export compliance procedures and internal controls, internal compliance audits, and voluntary disclosures.
Mr. McClurg received his J.D. from Emory University School of Law in 2004. He received his B.A. from the University of California Los Angeles in 2001. Mr. McClurg is a member of the District of Columbia and California bars.
Jason McClurg is a member of the export controls and sanctions practice at Berliner, Corcoran & Rowe L.L.P., focusing in …
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NASBA Field of Study:
Business Law - Technical
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Areas of Professional Practice
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About Office of Strategic Industries and Economic Security
About KPMG LLP
KPMG LLP provides assurance, tax, and financial advisory services. The firm offers accounting, auditing, internal audit, regulatory and compliance, corporate recovery, forensic accounting, and risk management services. It also provides transaction advisory services such as due diligence, target risk assessment, acquisition accounting and tax advisory, and divestiture accounting. KPMG’s Trade and Customs practice’s dedicated professionals in over 10 cities in the U.S., and over 350 professionals globally serve multinational companies with their export risk management and improvement through internal audit services, export strategic planning, process development, and export management technology implementation.
About Stagg PC
Trusted by some of the world's largest aerospace and defense companies, Stagg P.C. is a unique law firm with exclusive attributes. The firm provides a distinct service in the areas of export controls, national security, and agency rulemaking. The firm's principal lawyer has government experience as a senior regulator with the Directorate of Defense Trade Controls at the U.S. Department of State, which involved writing export control regulations, handling commodity jurisdiction determinations and advisory opinion requests.
About Clifford Chance LLP
Clifford Chance is one of the world’s pre-eminent law firms with significant depth and range of resources across five continents. As a single, fully integrated, global partnership, we pride ourselves on our approachable, collegiate and team based way of working, providing the highest quality advice and legal insight, which combines the firm’s global standards with in-depth local expertise.
About Berliner, Corcoran & Rowe LLP
Berliner Corcoran & Rowe is a boutique law firm focused on international law, export controls and sanctions, litigation, government contracts, corporate law as well as domestic and international business transactions. With offices in Washington, D.C. and San Francisco, the firm serves an international, national, and local clientele including foreign governments, major corporations, small and emerging businesses, and individuals.
With over a hundred years of collective experience, the firm’s Export Controls and Sanctions Group is among the most experienced in the world. BCR represents clients in all aspects of U.S. export controls, embargoes, economic sanctions, and anti-boycott laws. Its attorneys are well respected for their substantive knowledge and credibility by regulators and enforcement officials at all relevant agencies. The firm’s advocacy and expert advice has included testifying before Congress, advising the Executive Branch on export control regulations, legislation, and policy, and providing expert testimony in dispute resolution proceedings.