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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, Director, Office of National Security and Technology Transfer Controls, started discussion by welcoming everyone to the TransTAC. Bernie thanked the TransTAC members and other interested persons for participation in the TransTAC.
Discussion started with recent personnel changes at the Bureau of Industry and Security. Further topics of interest to the TransTAC, (1) the jurisdiction determination process and the study being undertaken by the TransTAC Jurisdictional Technical Working Group; (2) BIS outreach to industry by participation in conferences and other industry meetings; (3) the potential for a Canada Missile Technology rule; (4) Commerce Department response to Inspector General recommendations on deemed exports; (5) the potential for a conventional arms catchall; and (6) proposals for Wassenaar Arrangement multilateral controls.
Jurisdictional Technical Working Group Status
Todd Zarfos, Boeing, started discussion by reporting on the status of the Jurisdictional Technical Working Group (J-TWG). The J-TWG has met three times since the November 9, 2005 TransTAC meeting, 12/9/2005, 1/30/2006 and the latest this past Tuesday, February 7, 2006, to discuss what kind of information and format to provide describing the impact the jurisdictional determination process has on industry.
The J-TWG is working to develop data collection tools for industry describing what information is requested to be provided to government, and a flowchart of the impact the jurisdiction process imposes on industry. Specifically we are developing a Data Collection Questionnaire to guide industry on what information to provide such as financial impact and time required for filing a jurisdiction request, interruption in business during a pending jurisdiction determination, disruption of supplier or customer relationships, foreign markets and loss of market share due to potential jurisdiction issues, etc.
There is general concern throughout both U.S. and foreign industry about the “see through rule.” A legal analysis of this would be welcome.
Essentially, Rules of Engagement are required by industry and government. By industry providing the information requested above it is expected government will be able to establish Rules of Engagement that are equitable and understandable to industry.
Update on Regulatory Overview
Bill Arvin provided comment on Policy and Procedure updates.
The Simplified Network Application Process (SNAP) is making progress for a revised SNAP system that will permit electronic attachment of supporting documents for applications. Requiring all supporting documents to be submitted electronically is intended to be phased in gradually in the future.
Mandatory use of the U.S. Census Bureau’s Automated Export System (AES) for all users is expected to be finalized this year. Subsequent changes to the Export Administration Regulations are expected to be made for consistency.
The Missile Technology rule to Canada is being discussed on how to implement rather than if we should implement.
The pre-proposal Wassenaar Arrangement military item catchall rule for items which you know are intended for a military end use will require a license. The discussion is considering two groups for greater or lesser requirements for licensing. A definition of what constitutes a military end use is being considered.
Update on Country Policy Issues
Joan Roberts, Director, Foreign Policy Controls Division, Non-Proliferation & Treaty Compliance provided comment on country specific policy issues of interest to the TransTAC.
Libya : The majority of licenses issued have been for aircraft and aircraft equipment.
Syria : There is a specific waiver to the Syria Accountability Act for aircraft parts required for safety of flight with a $2 million cap per license approval.
Sudan : There have been very few license applications since the new embargo went into affect.
A discussion of the reporting requirements for Section 6(j) of the Export Administration Act (EAA) of 1979 outlined that aircraft are the most typical items that rise to the level requiring reporting per Section 6(j) to the House or Representatives.
Update on Wassenaar Arrangement Proposals
Mr. Jim Thompson provided updates on Wassenaar Arrangement (WA) issues.
A proposal was received for definition of controls for equipment used for non-destructive testing of composites.
A proposal was received for expanding the size of fabric or prepreg made from “fibrous or filamentary materials” for the repair of aircraft structures or laminates that is exempted from control under 1.C.10.
A proposal was received for revision of controls for infrared cameras used on aircraft during ground operations, ref 6.A.3.b.4. Two handouts were passed around.
A proposal was received for revising controls on gyros.
A proposal was received for updating controls on accelerometers.
A proposal was received for revising controls on underwater Doppler navigation systems.
Feedback and technical support on the proposals is requested by February 17, 2006. New proposals may be forwarded to Gene and Jim at any time for future consideration.
Update on Missile Technology Control Regime
Steve Clagett provided update on MTCR issues.
There is a proposal for a license exception for bearing systems for one-for-one replacement.
BIS is working toward developing an expedited, automated, process for application reviews for items controlled for MT reasons for export to Canada after the MT rule goes into affect.
Discussion of 9A101 controls would like to control only engines “specially designed” specifically for missiles.
There is a MTCR Technical Experts meeting expected sometime in the second quarter.
TransTAC Membership and Other Items of Interest
The goals for 2006 for the TransTAC were discussed. All the TACs are being tasked with developing goals and a plan to accomplish those goals each year, thereby creating a measure of the effectiveness of each TAC.
A goal to expand industry membership. Request for additional membership applications was made. Two applications from turbine engine manufacturers have been received and are expected to be confirmed this year. Two helicopter company’s have been contacted asking if they would apply for membership to the TransTAC.
A goal for increased active support to multilateral control functions, such as the Missile Technology Control Regime and the Wassenaar Arrangement.
A goal to actively participate in review of current regulations. The membership was asked to provide feedback and comment on the TMP license exemption regarding ability to travel with tools of the trade, such as a laptop computer, but not able to take technical data under TMP. Use of TSU or TSR are for technology.
Comment was made that ‘composites’ currently residing on the Materials TAC has a large vested interest by the aerospace industry and ‘composites’ is a topic of considerable interest for discussion and support by the TransTAC.
Comment was made that a bill has been introduced to the U.S. House of Representatives, H.R. 4572 dated December 16, 2005, proposing to revise and extend the Export Administration Act of 1979 by Mr. Henry Hyde at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h4572ih.txt.pdf. The bill has been referred to the H.R. Committee on International Relations.
For the MT Controls expected to be imposed for exports to Canada comment was made that aerospace companies should try to standardize a consistent application format 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.
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 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?
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 combustor exit temperature change from 2800 F to 3000 F due to typical civil uses today. All other industry members need to provide comment.
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.
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 feedback.
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 additional examples.
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.
Action 13: Mr. Zarfos and Mr. Pfeifer review “civil certified” as it is used in ECCN 9A001.a. Specifically, can an engine be civil certified for generic civil application or must the certification be specific to an engine/airframe combination?
Update 9/7/2005: The Jurisdictional TWG has picked up this action item.
Update 11/09/2005: The four major engine manufacturers requested to provide further input. Also, input on use of exception RPL is requested, as well as any 9A101 issue proposals.
Update 02/09/2006: Changes to 9A001 has been published in the EAR. This item is thereby closed.
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.
No new Action Items.
The next TransTAC meeting, for the second quarter of 2006, is set for 9:30 am, Wednesday, May 3, 2006 at the U.S. Department of Commerce.
The third quarterly meeting for 2006 is tentatively scheduled Wednesday, September 13, 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 2:15pm.
Attendees
NAME |
ORGANIZATION |
Howard M. Pfeifer TransTAC Industry Member, Chair |
Pratt & Whitney |
Michael Osborne TransTAC Industry Member |
Honeywell |
David Salome TransTAC Industry Member |
Honeywell |
Donald Stevenson TransTAC Industry Member |
Honeywell |
Todd Zarfos TransTAC Industry Member |
Boeing |
Gene Christensen TransTAC Designated Federal Official |
DOC/BIS |
Anthony Lombardi TransTAC Government Member |
OSD/DTSA |
Yvette Springer TransTAC Government Liaison |
DOC/BIS |
Dan Squire |
DOC/BIS |
Ed Auger |
OSD/DTSA |
Kandi Shejavali |
Steptoe & Johnson LLP |
Julie Felgar |
Boeing |
Carol Kalinoski |
Carol A. Kalinoski & Assoc |
Kim DePew |
GE Aircraft Engines |
Sam Gilston |
Washington Tariff & Trade Letter |
William S. Kennedy |
Rolls-Royce NA |
Jim Thompson |
DOC/BIS |
Bernard Kritzer |
DOC/BIS |
Ramona Hazera |
Boeing |
Natalie Geren |
Greenberg Traurig |
Kelly Gardner |
DOC/BIS |
Corey Smith |
Arent Fox |
William Arvin |
DOC/BIS |
Eric Longnecker |
DOC/BIS |
Mark Holland |
GE Aircraft Engines |
Dee Ruilova |
United Technologies Corp |
Joan Roberts |
DOC/BIS |
Steve Clagett |
DOC/BIS |