Day 1 - Tuesday, July 24, 2012
7:30 Registration and Continental Breakfast
8:30 Opening Remarks from the Conference Co-Chairs
Frederick F. Shaheen
Chief Counsel, Global Trade Controls
The Boeing Company (Washington, DC)
John Barker
Partner,
Arnold & Porter LLP (Washington, DC)
8:45 Measuring the Real-Life Impact of Export Control Reform on Your Business: The Lengths and Limits of USML-CCL Changes, and Managing the Expectations of Your Sales, Procurement and Other Teams
Kevin Maloney
Director,
Defense Trade Controls Licensing
Directorate of Defense Trade Controls
U.S. Department of State (Washington, DC)
Todd E. Willis
Director,
Munitions Control Division, Office of Strategic Industries and Economic Security Bureau of Industry and Security,
US Department of Commerce (Washington, DC)
Beth Mersch
Director, Export Operations, Export/Import Shared Services
Northrop Grumman Corporation (Washington, DC)
- The current status of reform efforts, and an update on concrete changes: Update on revised Commerce List 600 series and USML, and how to manage the changes
- Update on the Export Enforcement Fusion Center
- Practical impact of the new 600 Series Export Control Classification Number (ECCN)
- What the new system will look like, and how it will differ from the current one
- The scope of items to be placed on the CCL, and the associated types of licensing requirements
- Preparing your organization for reform: Export compliance program and training adjustments that should be planned, and what to leave unchanged
10:00 Networking Coffee Break
10:15 The Expanding Definitions of “Broker” and “Brokering” under ITAR Part 129: Implementing Compliance, Licensing and Reporting Mechanisms to Satisfy Current Requirements and Prepare for New Rules
Lauren Camilli
Vice President, Trade Compliance & Associate General Counsel
DRS Defense Solutions (Bethesda, MD)
Peter Lichtenbaum
Partner,
Covington & Burling LLP (Washington, DC)
- Status of pending revisions to brokering regulations, and the impact of industry comments: Contrasting DTAG recommendations, industry comments with the Federal Register notice
- Comparing existing and proposed brokering regulations, and how the changes impact your global export operations
- Defining “broker”, “brokering” and “facilitation”, and how it applies to foreign persons otherwise subject to U.S. jurisdiction
- Defining an “agent”: When an agent can include a parent or subsidiary of a U.S. company, and an unaffiliated foreign entity
- Who is a “broker” vs. a “distributor”
- Complying with “prior notification” requirements and exemptions
- Securing license and other approvals for brokers
- Drafting broker agreements: Best practices
- Complying with enhanced recordkeeping and reporting requirements
- Ensuring compliance by foreign agents and representatives: How to educate brokers on ITAR requirements
11:15 Benefitting from the New ITAR Dual/Third Country National Rule within Foreign Legal Limits: How to Apply 126.18 “Substantive Contact” Criteria and Manage the Risks Posed by Foreign Licensee Screening Activities
David Kuckelman
Senior Vice President & General Counsel
Smiths Group (Washington, DC)
Richard Wagner
Senior Partner,
Norton Rose OR LLP (Ottawa, Canada)
Kathleen Little - Panel Moderator
Partner,
Vinson & Elkins LLP (Washington, DC)
- Leveraging the new rule in a manner consistent with foreign privacy laws
- Defining and evaluating “substantive contacts”, and identifying disqualifying factors
- Scope of responsibility of foreign third parties to screen foreign national employees
- Implementing a Technology Security Plan (“TSP”) that includes “procedures for screening employees for such substantive contacts.”
- Monitoring foreign licensee compliance with new screening requirements, and how far to go in your due diligence
- Reconciling recordkeeping requirements of the new rule with foreign data privacy laws
- Screening, interviewing and doing business with foreign nationals without discriminating on the basis of national origin
- Incorporating U.S. export controls language into your offer letters, employment agreements and using non-disclosure agreements (NDAs)
- What to do if the conflict between U.S. and Canadian laws and regulations cannot be resolved
- Training HR on ITAR and EAR considerations affecting recruitment and employment decisions
12:15 Networking Luncheon for Speaker and Attendees
1:30 Preventing Defense Services Export Violations Related to Technical Support, Software Development and Other Assistance: Using “Public Domain” Information and Providing Services Related to Commercial Items
Andrea Fekkes Dynes
Assistant General Counsel, International
General Dynamics (Falls Church, VA)
Matt Fussa
Managing Attorney, Global Government Solutions
Cisco Systems (Washington, DC)
Franceska O. Schroeder
Principal,
Fish & Richardson P.C. (Washington, DC)
- Status and impact of the proposed rule to narrow the definition of a “defense service”
- Using public domain information: The limits of the proposed exemption
- Determining the applicable category of maintenance activities to determine whether the current and proposed rule would apply
- When a dual-use business becomes ITAR-controlled
- Preventing ITAR “taint” or contamination of commercial services
- When training on commercial items can become a defense service: Leveraging defense technical capabilities in commercial product development
- Segregating business units to prevent commercial services from becoming ITAR-controlled
- Managing heightened risks associated with “foreign units and forces”
- Securing ITAR licenses for defense services, and applying relevant licensing exemptions
- Recent trends in TAAs relating to defense services, and technical and collaborative discussions
- Handling unclear provisos and license conditions, and when to seek amendments
- Developing compliance policies, procedures and strategies for controlling the provision of services
2:30 Remedying Compliance Weaknesses during and after a Government ITAR Investigation
Sue Tooze
Deputy Head of Trade Controls - Compliance and Assurance
BAE Systems plc (Cumbria, UK)
John Barker
Partner,
Arnold & Porter LLP (Washington, DC)
Wendy Wysong
Partner,
Clifford Chance LLP (Hong Kong)
Special Compliance Monitor for Xe Services (now Academi)
- How should your approach differ when implementing remedial compliance measures
- Fostering company-wide ITAR compliance awareness through successful training
- Customers: When to disclose actual or suspected non-compliance to customers, and how
- Terminating problematic agents, and vetting new ones
- Updating your risk assessment process for your global export operations
3:30 Networking Refreshment Break
3:45 Classifying Foreign-Origin or Produced Items as “ITAR-Free”: How to Resolve Intricate Jurisdiction Determination Challenges Posed by the Extraterritorial Reach of the ITAR
Bruce Jackson
Vice President, Trade Controls & Export Strategy
Virgin Galactic (Law Cruces, NM)
Marynell DeVaughn
Vice President and Associate General Counsel
ATK Washington Operations (Arlington, VA)
- What is truly “ITAR-free” and addressing ITAR-free questions with your customers
- Identifying when foreign commercial products and technology can become ITAR-controlled
- How embedding US-origin content into foreign produced items can impact classification
- Avoiding misclassification errors when procuring parts from U.S. suppliers
- Reconciling conflicting US and non-U.S. classifications: What to do when your item is ITAR-controlled, but dual-use/commercial under foreign export controls
- Reducing the risk of ITAR migration
- when and how early to get involved in the product life cycle
- ensuring data remains foreign-origin technical data
- controlling the effect of minor military “tweaks” on jurisdiction
- working with engineers to design around the ITAR
- How to notify customers of ITAR migration, and resolve it
4:45 Conducting Internal Audits to Close out a Voluntary Disclosure or Settlement Agreement: Satisfying DDTC Requirements for Audit Scope, Structure and Process
Susan M. Frank
Vice President & Assistant General Counsel for Global Compliance
AECOM (Arlington, VA)
Phil Rhoads
Rhoads & Reed (Washington, DC)
- What can trigger a required audit
- How DDTC issues audit requests, when an independent audit and/or report is required, and when DDTC needs to approve the auditor
- What DDTC expects for a “comprehensive” audit plan: Structuring an audit, and determining audit scope
- Negotiating audit scope with DDTC
- Variations of requirements in voluntary vs. directed disclosure context
- Protecting and waiving privilege: Impact of an audit report on privilege
- Drafting and presenting the report to DDTC
- Strengthening internal audit systems
- Building an internal audit group: How to use an existing internal audit department vs. when to retain an outside auditor
- Developing standards for subsidiary audits
- Incorporating your quality assurance group into the audit program
- Training auditors
5:45 Conference Adjourns
Day 2 - Wednesday, July 25, 2012
7:30 Coffee Served
8:30 Opening Remarks from the Co-Chairs
8:35 Integrating Complex ITAR License Provisos, TAAs and Cyber Security Risk Management into Your IT Infrastructure: Strengthening Virtual ITAR Compliance Mechanisms to Protect Technical Data and Collaboration
Bill Wade Senior
Director, Export/Import Operations
Raytheon Company (Arlington, VA)
John Pisa-Relli
Special Counsel,
Fried, Frank, Harris, Shriver & Jacobson LLP (Washington, DC)
- Structuring your TCPs and TTCPs to meet ITAR requirements
- Assessing whether to automate some or all export compliance functions: Risk and cost considerations
- Working with your IT Department to create, manage and update a compliant framework to share information with foreign parties, parent companies, subsidiaries and affiliates
- Controlling foreign nationals’ access to ITAR-controlled data: Determining the scope of password, absolute lockdown and/or email controls
- Keynote Address
- Managing access risks posed by offshore IT support, and electronic collaboration
- Protecting US-origin data on laptops and servers amid increased cyber security threats
- Managing email transfers of technical data
- Complying with requirements for recordkeeping, storage, data maintenance, preservation and retrieval procedures
9:15 Implementing a Robust ITAR Compliance Program for Your Parent Organization and Foreign Subsidiaries: Reducing Unique, Heightened Risk Factors Impacting U.S. and Overseas Operations
Kathleen L. Palma
Senior Counsel, International Trade Compliance
GE Aviation (Washington, DC)
Douglas Whitlow
Director, Global Trade Compliance
Rolls Royce North America (Indianapolis, IN)
Robert A. Schacht
President & Chief Operating Officer
Hydra Electric Company (Burbank, CA)
- Reconciling ITAR compliance with local laws and regulations governing exports/imports
- Securing US and non-US management buy-in for a global training budget
- Creating an organization-wide culture of compliance
- Updating your compliance manual, procedures and processes, including policy statements and message from senior management
- Incorporating foreign licensing and approvals into your daily compliance activities
- Structuring and monitoring the effectiveness of your technology control plan
- Implementing data maintenance, preservation and retrieval procedures for your U.S. and overseas offices
- Tailoring training programs for engineers, sales, compliance and other personnel: Teaching employees how to identify potential violations
- Creating an anonymous reporting tool and compliance hotline
10:15 Networking Coffee Break
10:30 DTSA Speaks on New Requirements for CJ Requests
Michael Laychak
Director, Licensing Directorate
Defense Technology Security Administration
U.S. Department of Defense (Washington, DC)
11:00 The High Price of Overlapping FCPA, ITAR Brokering, and Part 130 Liability: What Triggers Multiple Government Investigations and What to Do if Prosecutors Come Knocking
Eric G. Lardiere
Senior Vice President, Secretary and General Counsel
Meggitt-USA, Inc. (Simi Valley, CA)
Lisa Prager
Principal,
Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, P.C. (New York, NY)
- How FCPA enforcement can overlap with or lead to ITAR investigations: Lessons learned from the BAE Systems PLC case and others
- When fees and commissions under Part 130 constitute a bribe, or a conduit to a bribe under the FCPA
- When Part 130 representations can be “false statements” under the False Statements Act: Verifying the accuracy of Part 130 statements for certification purposes
- Ensuring brokers have reporting mechanisms to comply with Part 130
- How to disclose payments, fees and commissions in ITAR license applications, and the consequences of inaccurate or false declarations: When to report fees and commission on a TAA
- Integrating ITAR and FCPA controls and reporting mechanisms into your global compliance program, audit and internal investigation processes
- Handling multiple subpoenas
- Adapting your approach to case management to the civil and criminal contexts
- Avoiding inadvertent waivers of attorney-client privilege
- Managing your disclosures to the public: Avoiding PR leaks and a media frenzy
12:00 Networking Luncheon
1:15 Managing Complex ITAR Licensing and Compliance Challenges Affecting Suppliers to Non-U.S. Customers: Practical Impact of US-UK and US- Australia Treaties and Other Key Considerations
George N. Grammas
Partner and Chair, Global Import and Export Compliance
Squire Sanders (US) LLP (Washington, DC)
- The latest on the implementation of the U.S.-UK and U.S. Australia, and how they will work
- To what extent export control reform and the treaties will improve the supplier relationship
- Critical ITAR jurisdiction missteps that can affect the supplier relationship and compliance status
- Addressing customers’ ITAR contamination concerns
- Key TAA missteps to avoid, and working with your EU or Australian counterpart at the application stage
- Assessing the scope of nationality coverage in the license application, and ensuring adequate coverage
- Pros and cons of using dual and third country national requirements under 124.8(5), 124.16 and 126.18
- The ITAR risks and rewards of using distribution agreements
- How deeply a US supplier should be involved in the customer’s ITAR training and compliance program implementation
1:45 Investigations and Prosecutions against Individuals and Companies for ITAR Violations: How Recent Government Cases have been Won and Lost, and Successful Defenses
A. William Mackie
U.S. Attorney’s Office, Eastern District of Tennessee
(Knoxwille, TN)
Prosecutor in the J. Reece Roth Case
Steven W. Pelak
National Export Coordinator
U.S. Department of Justice (Washington, DC)
J. Triplett Mackintosh
Partner,
Holland & Hart LLP (Denver, CO)
Giovanna M. Cinelli
Partner,
Jones Day (Washington, DC)
- The range of conduct that leads government to target an individual vs. the corporation
- Which violations have proven most costly for companies and individuals
- Increased emphasis by the U.S. government in seeking prosecutions and penalties for unauthorized exports of technical data
- Sentencing trends in ITAR cases: Impact of the Roth case on criminal prosecutions of individuals
- How the agencies are calculating penalties for ITAR violations, and the impact of voluntary disclosures on the calculus
- Factors that a court will, or should, consider in determining a sentence in export enforcement cases
- Defenses that have been successful in the context of civil and criminal cases
3:00 Networking Refreshment Break
3:15 Collaborative Research: Achieving R & D Objectives within ITAR Technical Data Restrictions, License Approvals and Fundamental Research Limits
David Brady
Director, Office of Export and Secure Research Compliance
Virginia Polytechnic Institute (Blacksburg, VA)
Karl Abendschein
Director, Export Compliance & Associate General Counsel
The MITRE Corporation (McLean, VA)
Jahna M. Hartwig
Partner,
Williams M. Mullen LLP (Washington, DC)
Former Associate General Counsel, Johns Hopkins University Applied Physics Laboratory
- Practical impact of export control reform on collaborative research programs
- Lessons learned from the Roth case
- Structuring collaborative research programs to facilitate DDTC license approvals
- Tailoring rules of engagement, guidelines and protocols to the collaborative research context
- Employing foreign national researchers: Reconciling restrictions on access and publication with research objectives
- When you can claim “fundamental research” in your collaborative efforts
- Utilizing ITAR exemptions in facilitating technical data transfers to international and university partners
4:15 Congressional Notification of ITAR License Applications and Other Authorizations: Lessons Learned for Reducing the Risk of Export Delays
John Ordway
Partner,
Berliner, Corcoran & Rowe LLP (Washington, DC)
When and how to notify Congress for exports and related services and under what circumstances• When Congressional notification is required for re-transfers of items previously exported and notified to Congress• Critical steps to take before the formal notification: Statutory requirements and informal Congressional practices• Timeline for applications and how to get information from Congress about the status of your case• Political factors that can affect your application4:45 Mitigating ITAR and National Security Risks Posed by M & A Transactions: Implementing an Effective Due Diligence Strategy for Quantifying Liability Risks Frederick F. Shaheen Chief Counsel, Global Trade ControlsThe Boeing Company (Washington, DC)James E. Bartlett III Senior Counsel, Export/Import Law Northrop Grumman Corporation (Washington, DC)Beth Peters Partner, Hogan Lovells LLP (Washington, DC)• Identifying, assessing and quantifying risk: How your approach should differ for a US vs. foreign target• How a target should prepare for the due diligence process• Transferring technical data during the due diligence: Licensing and documentation considerations• What to do if you uncover a violation: Remedying a target company’s export violations• When to file voluntary disclosures• Transferring licenses and authorizations: Avoiding lapses in ongoing programs• Timing and filing considerations under the ITAR and CFIUS• Post-closing implementation: Bringing the acquired target into the compliance fold
5:45 Conference Concludes
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