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The meeting was called to order by Mr. Howard Pfeifer at 9:30am with welcoming remarks.
Introduction of persons present was made around the room.
TransTAC members in attendance: (Industry) Mr. Michael Osborne, Mr. Howard Pfeifer (TransTAC Chair), Mr. David Salome, Mr. Donald Stevenson and Mr. Todd Zarfos; (Government) Mr. Gene Christiansen, Mr. Anthony Lombardi and Ms. Yvette Springer.
Others present: The complete list of attendees is attached at the end of these minutes.
Opening remarks
Bernie Kritzer started discussion by welcoming everyone to the TransTAC.
TransTAC members and other interested persons were thanked for participation in the TransTAC and support of government interests in the national security, foreign policy and economic wellbeing of the United States of America . Further thanks to TAC members for support of multilateral control regimes such as the Wassenaar Arrangement. BIS is interested in understanding issues and interests that affect industry, such as foreign availability. Including jurisdictional issues and the potential for new missile technology controls, among others.
Further thanks to TAC members for support of outreach efforts by BIS and encouragement for further opportunities.
BIS expects an increase of approximately 15 to 20 percent this fiscal year for reviews of license applications and related activities. This increase is not in any one particular area it is a general increase for all areas. BIS is averaging about 33-40 days for these activities.
Comments on BIS proposals for a Canada Missile Technology rule, and a conventional arms catchall rule. The MT controls proposal has been referred to the Office of Management and Budget for review as a significant item, if so judged it will go for small business review. There is a National Security Council concern that a provision in the North America Free Trade Agreement (NAFTA) may prohibit the imposition of such a license requirement on Canada. BIS is willing to consider a bulk licensing format from industry, BIS would like to review proposed formats. Comment that machinery for material processing, the area of interest of the Materials Processing TAC (MPTAC), may be another area that TransTAC members may want to participate. TransTAC members who are interested in participating on a TWG for machinery can contact Gene Christiansen for contact information to members of the MPTAC.
Update on Regulatory Overview
Hillary Hess started discussion on Regulatory updates.
Comments on license exception TMP. Laptop computers can be hand carried under TMP for most activities to most locations. But there was no provision in TMP for technical data on the laptop. There is a proposal being drafted for revising TMP to permit export of technical data for personal use when residing on a laptop.
Comments made for revision of a License Exception for a limited amount of technical information required for investigations of aircraft accidents in a foreign country. Industry would like a revision of TSU or AVS to permit disclosure of certain technical information required for timely aircraft accident investigations [this is Action Item 1 below].
A proposed rule on deemed exports is still pending.
Update on Country Policy Issues
Eric Longnecker started discussion on Policy Overview.
Comments on Section 6(j) of the Export Administration Act on Foreign Policy Controls and Countries Supporting International Terrorism. The focus of this discussion was Syria and Libya . The Secretary of State is responsible for reviewing license applications for goods [aircraft and related components] and technology to countries identified as supporting international terrorism to determine if the export may significantly affect that country’s military potential, military logistics capability or support of acts of international terrorism.
Comment on a pending Commodity Jurisdiction determination, originally submitted in 2003, for the C-130 and L-100 aircraft. Further information is expected to be published in the Federal Register in the future.
Comments of the new Hamas led government of Palestinian Authority. There have been questions on how to treat them. The Treasury Department’s Office of Foreign Asset Control (OFAC) published a notice on April 12, 2006 stating that Hamas has ‘property interest’ in the Palestinian Authority and because Hamas is a designated terrorist group no transactions may be conducted with Hamas without specific license authority from OFAC. Concurrently, General License Number 5 was issued which allows ongoing transactions through May 12, 2006 with the Palestinian Authority to complete contracts entered into prior to Hamas winning the general election. Under the EAR, an export to the Palestinian Authority is an export to Israel , but that does not negate the requirement for OFAC license authority. Export authority is required from both agencies.
Update on Missile Technology Control Regime
Mike Rithmire started discussion on MTCR issues.
A new regulation for ball bearings has been provided a carve out for bearing systems installed in machine tools. Specifically, License Exception RPL is provided for bearings installed in machinery.
Comment on the definition of what is a ‘continuous output accelerometer’. Is this vibration sensors or navigation grade sensors? Input from industry is requested.
Comment on a possible use on License Exception RPL for 9A101 engines when an engine is being replaced on an aircraft is being considered.
Update on Wassenaar Arrangement Proposals
Mr. Jim Thompson started discussion on Wassenaar Arrangement (WA) issues.
A proposal for decontrol of thermal imaging cameras used in civil aircraft did not get onto the agenda this year. A non-paper is expected to be provided to Wassenaar for discussion only.
A proposal to increase the size of repair material controlled by 1.C.10.b [see Note after 1.C.10.b in Wassenaar Arrangement regulations] was approved. Also still need to address similar size note in 1.C.10.e.
A proposal to decontrol PEEK type materials was successful.
A Technical Working Group to Wassenaar was established to discuss a few proposals on gyros and other inertial equipment. The TWG will be meeting late 2nd quarter to discuss specific issues to the proposals. If any industry representatives have an interest in getting their particular issue heard they should contact Jim for further information about the TWG.
A proposal was made for control of software specially designed to design internal cooling passages in aero gas turbine engine blades, vanes or tip shrouds, and software specially designed to predict aerothermal, aeromechanical and combustion conditions in gas turbine engines and having theoretical modeling predictions of the aerothermal, aeromechanical and combustion conditions which have been validated with actual turbine engine data. The validation criteria is either experimental or production performance data.
A new proposal for protection of civil aircraft from missiles and specially designed components is also being considered.
A proposal for control of three dimensional defect inspection equipment for composites is being considered.
There was a non-paper presented that discussed clarifying the text in 9.E.3.a.4 and 9.E.3.a.5 and increasing the temperature limits. This item may become a proposal next year. TransTAC industry members will discuss providing a consolidated position on a definition of “gas path temperature” for Part 772 of the EAR or other clarifications to 9E003 in the CCL.
Additional Technical Working Groups for Wassenaar are for Lasers; batteries and fuel cells; accelerometers and gyros; and low light level cameras and sensors.
Any new proposal drafts for Wassenaar to be considered in 2007 should be sent to Jim by the end of July or early August. Proposals should expect to be finalized by October for U.S. government review. If a proposal passes muster with the U.S. government it will be communicated to other Wassenaar member countries in late January for review before the spring experts group meeting.
Jurisdictional Technical Working Group Status
Todd Zarfos started discussion on the status of the Jurisdictional TWG.
The Jurisdictional TWG is still encouraging submittal by industry of examples of transactions that have been affected by jurisdictional issues. Rules of Engagement are desired by industry and government. By providing the information requested it is expected government will be able to establish Rules of Engagement that are equitable and understandable to industry. [This is Action Item 11 below].
Composites Technical Working Group Establishment
Tom May introduced a proposal for a Technical Working Group (TWG) to review controls on Composite items to be sponsored jointly by the Materials TAC and the TransTAC.
In recent years the Materials TAC has been focusing discussion on areas other than Composites thereby the interest in joint sponsorship, and with significant industry interest in Composites at the TransTAC we would like to co-sponsor a TWG for review of Composites. The Composites TWG will be expected to review existing controls and make recommendations jointly to the TransTAC and the Materials TAC. Membership is expected to be from industry, government, academic representatives and industry associations.
A Composites Technical Working Group has been proposed and accepted with Tom May and Kim DePew appointed as co-chairs. A draft charter is requested from the Composites TWG by the next TransTAC meeting.
TransTAC 2006 Goals and Other Items of Interest
A goal to expand industry membership. A request for additional membership applications was made.
A goal for increased active support to multilateral control functions. A request for members to actively provide support to multilateral control reviews such as the Missile Technology Control Regime and the Wassenaar Arrangement.
A goal to actively participate in review of current regulations. The members were encouraged to provide written comment and feedback through the TransTAC to the Bureau of Industry and Security (BIS) on items listed on the Commerce Control List (CCL), specifically Category’s 7, 8 or 9. A Composites TWG was co-established with the Materials TAC to review Composite items in the CCL.
Comment was made, regarding the possibility of a new control for items controlled for MT reasons for exports to Canada, that aerospace companies should try to standardize an application format for consistency so reviews by BIS are easier and quicker. Industry representatives who are interested in participating may contact Julie Felgar, Boeing, at julie-ann.felgar@boeing.com.
A proposal of a list of items in the CCL for review was presented including 7B001, 9A004, 9D104, 9E001 and 9E002. Industry is requested to review these items and provide comment back to the TransTAC.
Open Action Items
Action 1: (November 2003) Mr. Gene Christiansen to review the proposed change to license exception “TSU” for disclosure of technical data to non-U.S. civil aviation authorities and NTSB type foreign organizations in support of flight incident investigations.
Update 9/21/04 : Mr. Osborne to provide additional refinements to proposal and identify which export license exception should be modified.
Update 12/8/04 : Mr. Osborne provided a proposed change to the license exception TSU. Mr. Christiansen has the action to review within BIS.
The proposal has been provided to Commerce Regulations Division and to DOD for comment.
Update 3/17/05 : Gene Christiansen to continue review within BIS and other government agencies.
Update 5/18/05 : Gene Christiansen to continue review within BIS and other government agencies.
Update 9/7/2005 : Mr. Osborne has provided information to Mr. Christiansen and has requested Gene review it internally in Commerce for consideration for inter-agency review. Mr. Osborne will also work with Julie Felger, Boeing to be sure that the proposal covers all applicable civil aircraft systems.
Update 11/09/2005 : A revised white paper, with further clarification, was presented by Mike Osborne.
Update 02/09/2006 : Discussed the intent and clarification of the White Paper from last meeting. The discussion asked for lists of items typically requested in an investigation, and whether requests are for use technology or include development or production technology?
Update 05/03/2006 : The request for industry to provide lists of items typically requested in an investigation was reiterated.
Action 4 : (February 2004) TRANSTAC Team will validate whether the current multi-dome combustion controls are realistic or provide any changes that are required, for instance with respect to temperature vs. number of domes.
Update May 2004: This was provided in the handout. There is a follow up action to have other engine manufacturers not represented on the TRANSTAC review the proposal. (Gene Christiansen).
Update September 2004: Howard Pfeifer to coordinate putting the proposed changes into Wassenaar proposal format.
Update 3/17/05 : Still open
Update 5/18/05 : Pending TransTAC member input.
Update 9/7/2005 : Still pending TransTAC member input. Also, want to request input from Mr. Brostmeyer and Ms. DePew.
Update 11/09/2005 : Pending additional input and clarification from industry whether to revise current controls or impose new controls on multidomed combustors, multipoint fuel injection combustors and/or thermally decoupled combustors.
Update 02/09/2006 : GE provided a proposal for changes to 9E003.a.2. Proposal to make a combustor exit temperature change from 2800 F to 3000 F due to typical civil uses today. All other industry members need to provide comment.
Update 05/03/2006 : The request for industry to provide comment on the proposal for changing combustor exit temperature from 2800 F to 3000 F was reiterated.
Action 5 : (February 2004) TRANSTAC Team: Review 9E003.a.4 and 9E003.a.5 on whether temperature range is correct and whether this needs to be clarified with respect to hot spot, average or some other defined gas path or hardware temperature.
Update: This was provided in the handout at the May 2004 TRANSTAC meeting. There is a follow up action to solicit inputs from GE and other engine manufacturers (Gene Christiansen).
Update September 2004: Howard Pfeifer to coordinate putting the proposed changes into Wassenaar proposal format.
Update 3/17/05 : Still open.
Update 5/18/05 : Pending TransTAC member input.
Update 9/7/2005 : Still pending TransTAC member input. Also, want to request input from Mr. Brostmeyer and Ms. DePew.
Update 11/9/2005 : DTSA persons in attendance requested the TransTAC work on a clarification of what constitutes “hot section” in a turbine engine. Kim DePew provided a proposed definition of “hot section” for TransTAC propulsion member review. Require further discussion of the proposal and definition of design point parameters between all major engine manufacturers.
Update 02/09/2006 : GE provided a revision of the proposal from the last meeting for changes to the definition of hot section parts in 9E003.a.4 and 9E003.a.5. Proposal would apply to aero, industrial, civil, defense and marine turbine engines. All other industry members need to provide comment.
Update 05/03/2006 : The request for industry to provide comment on the proposal for clarifying the definition of hot section parts was reiterated.
Action 10 (rewritten 3/17/05 ): Mr. Martling, Cessna, and Mr. Pfeifer: Report to TRANSTAC on any helicopter power transfer system issues and on whether the CCL (9E003.d) needs to change. Would like to know if there are differentiating features or capabilities between military and commercial use helicopter power transfer systems.
Update 5/18/05 : Pending TransTAC member input.
Update 9/7/2005 : Pending TransTAC member input.
Update 11/09/2005 : Pending TransTAC member input. Include DTSA in distribution.
Update 02/09/2006 : Are there differences in civil and defense helicopter power transfer systems? What are they? Still require input from helicopter manufacturers. Include Ed Auger in any input.
Update 05/03/2006 : Elaine Vaught, Bell Helicopter, agreed to review 9E003.d.
Action 11 : For TRANSTAC membership: provide examples where US business interests have been negatively affected by jurisdictional issues between State and Commerce (December 2004)
Update 3/17/05 : This was discussed in committee. Boeing representatives noted new contract language containing considerable financial penalties for reduced utility of aircraft as a result of ITAR controls.
Update 5/18/05 : Pending TransTAC member input. The Jurisdictional TWG may add to this Item.
Update 9/7/2005 : The Jurisdictional TWG has picked up this action item. TransTAC members and Industry members are invited to provide examples to the TransTAC.
Update 11/09/2005 : This item transferred to the J-TWG. The J-TWG continues to request examples.
Update 02/09/2006 : The J-TWG is still requesting examples.
Update 05/03/2006 : The request for industry to provide examples of transactions that have been negatively affected by jurisdictional issues was reiterated.
Action 12 : Mr. Stevenson of Honeywell to investigate foreign design capability for Fly By Wire (FBW) flight control.
Update 3/17/05 : White paper was presented to Committee. Closed.
Update 5/18/05 : Mr. Stevenson still working.
Update 9/7/2005 : Mr. Stevenson has submitted information to Commerce. The next step is to write a new proposal requesting decontrol based on foreign availability, Mr. Stevenson has offered to start the proposal.
Update 11/09/2005 : A white paper for the proposal was distributed. DOC to distribute white paper for interagency review.
Update 02/09/2006 : The white paper is currently queued for review in BIS and interagency. Any additional industry input is welcome.
Update 05/03/2006 : The BIS interagency review is continuing.
Action 14 : Mr. Stevenson of Honeywell to investigate availability of Heads Up Displays and 3D Displays.
Update 11/09/2005 : Pending TransTAC member and industry input.
Update 02/09/2006 : Pending TransTAC member and industry input.
Update 05/03/2006 : Pending TransTAC member and industry input.
No new Action Items.
Next Meeting
The next TransTAC meeting, for the third quarter of 2006, is set for 9:30 am Wednesday September 13, 2006 at the U.S. Department of Commerce.
The fourth quarterly meeting for 2006 is tentatively scheduled Thursday, November 2 or 9, 2006.
TransTAC Members are reminded that meetings typically work through lunch and are trending toward five hours in length and should plan accordingly.
The meeting adjourned at 1:15pm .
Attendees
May 3, 2006 TransTAC
NAME |
ORGANIZATION |
Howard M. Pfeifer TransTAC Industry Member, Chair |
Pratt & Whitney |
Michael Osborne TransTAC Industry Member |
Honeywell |
Todd Zarfos TransTAC Industry Member |
Boeing |
Donald Stevenson TransTAC Industry Member |
Honeywell |
David Salome TransTAC Industry Member |
Honeywell |
Gene Christensen TransTAC Designated Federal Official |
DOC/BIS |
Robert J. Anstead Institute for Defense Analyses |
IDA |
Yvette Springer TransTAC Government Liaison |
DOC/BIS |
Bernard Kritzer |
DOC/BIS |
Bill Root |
Consultant |
Brian Martling |
Cessna |
Dan Squire |
DOC/BIS |
Dean Johnson |
Crossbow Technology |
Dee Ruilova |
United Technologies Corp |
Elaine Vaught |
Bell Helicopter Textron |
Eric Longnecker |
DOC/BIS |
Gordon Boezer |
IDA |
Hillary Hess |
DOC/BIS |
Jerry Hawkins |
Textron Inc |
Jim Thompson |
DOC/BIS |
Joe Brostmeyer |
Florida Turbine Technology |
Julie Felgar |
Boeing |
Kara Bombach |
Greenberg Traurig |
Kay George |
Arent Fox |
Kelly Gardner |
DOC/BIS |
Kenneth Hutton |
Hyperion Catalysis |
Kim DePew |
GE Aircraft Engines |
Maggie Oneill |
Rockwell Collins |
Mark Holland |
GE Aircraft Engines |
Michael Gries |
Rockwell Collins |
Mike Rithmire |
DOC/BIS |
Narinder Chauhan |
DOC/BIS |
Roger French |
Rockwell Collins |
Sam Gilston |
Washington Tariff & Trade Letter |
Sunjin Choi |
IDA |
Tom Brennan |
BIS/DOC |
Tom May |
Boeing |
Walter Desrosier |
GAMA |
William S. Kennedy |
Rolls-Royce NA |