pisa-relli itar third party liability (july 2010)
TRANSCRIPT
My Keeper’s BrotherMy Keeper’s BrotherBeing a Responsible Third Party under the ITARBeing a Responsible Third Party under the ITAR
John Pisa-RelliLegal Director Trade ComplianceThales USA, [email protected]
Thursday 15 July 2010
Genesis 4:9Genesis 4:9
And the LORD said unto Cain, Where is Abel thy brother? And he said, I know not:
Am I my brother's keeper?
ITAR 127:1ITAR 127:1
Any person who is granted a license or other approval … is
responsible for the acts of employees, agents, and all authorized persons to whom possession of the licensed defense article or technical data has been entrusted….
Step 1: Build a BridgeStep 1: Build a BridgeStep 1: Build a BridgeStep 1: Build a Bridge
JVs, TAAs and other longer term JVs, TAAs and other longer term arrangementsarrangements
• Focus on building a transverse compliance teamFocus on building a transverse compliance team
Step 1: Build a BridgeStep 1: Build a Bridge
Customers, distributors, consignees,Customers, distributors, consignees,and other more “arm’s length” relationshipsand other more “arm’s length” relationships
• Focus on contractual and other assurancesFocus on contractual and other assurances
In all casesIn all cases
• Understand/overcome cultural differencesUnderstand/overcome cultural differences• Learn/respect local legal requirementsLearn/respect local legal requirements• Identify and enlist foreign party’s U.S. affiliatesIdentify and enlist foreign party’s U.S. affiliates
Step 2: ShareStep 2: Share
KnowledgeKnowledge
• Educate your partnerEducate your partner• Empower your partnerEmpower your partner
Step 2: ShareStep 2: Share
ResourcesResources
• Help your partnerHelp your partner• Protect your partnerProtect your partner
RisksRisks
• Protect yourself at the end of the dayProtect yourself at the end of the day• Use voluntary disclosure as lever to encourage buy-in Use voluntary disclosure as lever to encourage buy-in
Step 3: Preserve Supply Chain IntegrityStep 3: Preserve Supply Chain Integrity
Make ITAR § 123.9 gospelMake ITAR § 123.9 gospel
• Impose controls to tag and track ITAR-controlled Impose controls to tag and track ITAR-controlled articles and dataarticles and data
• EveryEvery intermediate and subsequent transfer must be intermediate and subsequent transfer must be identified and authorized by license, retransfer identified and authorized by license, retransfer approval or exemptionapproval or exemption
• Unauthorized retransfer one of the most common Unauthorized retransfer one of the most common compliance lapses on part of foreign partiescompliance lapses on part of foreign parties
Step 3: Preserve Supply Chain IntegrityStep 3: Preserve Supply Chain Integrity
It takes two to tango…It takes two to tango…
but only one to stumblebut only one to stumble
