• Introductions
• Remarks from the Bureau of Industry and Security Manangement
• Industry Presentations
• New Business
• Closed Session
• Meeting adjournment

- Introductions and opening remarks. Mr. Goodrich called the meeting to order at 9:30 am and asked for everyone present to introduce themselves. After the brief introductions, David McCormick, Undersecretary of the Bureau of Industry and Security, addressed the meeting attendees by describing the four Bureau responsibilities which were (1) overseeing U.S. export controls of dual use items, (2) working with countries around the world to help strengthen their export policies, (3) enforcing U.S. export policies by prosecution and deterring illegal export activities, and (4) being an active participant in policy decision making with support and guidance from U.S. industry.

- The senior management reviewed the DoC proposal to revise the regional stability controls for certain night vision cameras which was then forwarded to the interagency for comments on 20 April 2006 . These comments are due back from the interagency no later than 19 May 2006 . Mr. McCormick explained that export controls needed to be evaluated on their ability to protect while not undermining U.S. national security interests. He mentioned that the “current system is not the right system.” The proposed regulation would liberalize U.S. unilateral export controls (Regional Stability 1) currently in place on thermal imaging cameras controlled under ECCN 6A003.b.4. Specifically, this regulation, which is based on technology levels, would accomplish the following:

Remove the unilateral Regional Stability 1 (RS 1) reason for control on relatively lower-end thermal imaging cameras (those cameras that integrate a focal plane array having a pixel count less than or equal to 21,000 elements and a frame rate less than 60 Hz). This change removes Commerce Control List based license requirements for these cameras when being exported or reexported to: Australia, Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

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• Replaces the RS 1 reason for control with a RS 2 reason for control on thermal imaging cameras that integrate mid-level technology (those cameras that integrate a focal plane array having a pixel count greater than 21,000 elements but less than or equal to 111,000 elements and a frame rate less than 60 Hz). This change removes Commerce Control List based license requirements for these cameras when being exported or reexported to Australia, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Iceland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Turkey, and the United Kingdom. With respect to the cameras for which the rule adopts the RS 2 reason for control, the rule also removes the RS license requirement for exports and reexports to Austria , Ireland , Sweden and Switzerland , which items controlled for a RS 2 reason otherwise require a license. This change is designed to make U.S. licensing practice more in line with that of the EU.
• The rule would retain the existing RS 1 reason for control for cameras with high levels of performance (those cameras that integrate a focal plane array having a pixel count greater than 111,000 elements and a frame rate greater than or equal to 60 Hz).

• Mr. Goodrich and others asked what the SITAC membership could do to support the DoC proposal. Mr. McCormick explained that any information that could be provided on the (1) domestic vs. foreign market share trends, (2) foreign and domestic research and development investments, and (3) any recent information on foreign activities would be helpful in advancing the DoC proposal. He also recommended that the SITAC bring forward new issues as soon as they are discovered especially as pertaining to next generation foreign products. Also mentioned was that ULIS plans to ship 20,000 units in 2006 but has the capacity to produce as many as 100,000 units. 
• Mr. Kritzer explained that the Office of Strategic Industries and Economic Security (SIES) has completed their analysis portion of their study and are now writing up their report.
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• Mr. Kritzer also commented on some licensing statistics specifically mentioning that there has been a 20% increase in export licenses for 6A003 items over the same time period from the last fiscal year with an average processing time of 32 days. The top destinations being to the Japan, Germany, UK, South Korea.
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• Ms. Debbie Kapler spoke about the status of the Special Comprehensive License (SCL). She explained that the first night vision SCL applicant is now exporting under their approved license. She mentioned that there was some issues that had to be resolved before the license was approved which had to do with identifying the distribution patterns and related compliance issues. All new SCL licenses have to go through interagency process. She explained that the SCL process is focused at getting to know the end user and how the consignees will enforce the license conditions. Specific attention is given to the internal flow processes from the manufacturer to the distributor and to the final end-user destination. Physical security of the item throughout the process is another key point in draft an internal control program (ICP).
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• A presentation was made by a NUFERN representative, Martin Seifert, on fiber lasers and export controls. He explained that Nufern was founded in April 2000 as a specialty fiber manufacturer in East Granby, CT. While Nufern is currently a world leader in manufacturing such fibers, it is currently being challenged by foreign competition, especially in the PRC. He identified several companies such as Liekki ( Finland), Optical Fibre Technology Center ( Australia), and Coractive ( Canada) which are selling laser fibers without obtaining export licenses. The un-level playing field has cost Nufern at least 0.5 Million dollars is lost revenue for calendar year 2005 alone. Nufern is asking the DoC to consider the following:
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• Solid quartz (SiO2) glass fibers are well known and understood worldwide. When doped these fibers can achieve Single Mode CW power levels of ~ 150 W. Output powers below that level at any wavelength should be unrestricted.
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• The need for Eye Safe output wavelength is ubiquitous in industrial applications. Restrictions should focus on high power outputs in this wavelength range (1500 nm - 2300 nm).
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• A presentation of low light level devices was made by Intevac representative, Les Tack. He summarized the earlier April 13 th meeting which developed a strawman decontrol document which identified several potential carveouts for cameras which were:
  • a. 9 Hz maximum frame rate
  • b. Specifically designed for non-imaging camera applications with tamperproofing.
  • c. Cameras which will be embedded into systems similar to the automotive decontrol language.
  • d. Cameras designed specifically for laboratory use and would be damaged or useless if used in the field.

    Les Tack explained that a non-paper was being crafted for presentation to the Wassenaar Arrangement Expert’s Group for this year to begin the process of multilateral discussion. There was some addition discussion on the expiration of the validity note for Category 6 items.

• Mr. Goodrich than concluded the open session and after a brief break, brought to order the closed session.

• After the discussions in the closed session concluded, Mr. Goodrich adjourned the April 2006 SITAC meeting.