Office of Nonproliferation Controls and Treaty Compliance Bureau of Industry and Security Nonproliferation & Export Control Update Briefing Steven Clagett

Office of Nonproliferation Controls and Treaty ComplianceBureau of Industry and Security

Nonproliferation & Export Control Update Briefing

Steven ClagettDirector

Missile and Nuclear Technology Control Divisions

Nonproliferation & Export Control Update Briefing

Steven ClagettDirector

Missile and Nuclear Technology Control Divisions


Trends in Export Control and Nonproliferation Policy after 9/11

• The Multilateral Nonproliferation Regimes remain

focused on the fundamental goal of preventing the spread of technologies that may contribute to the development of weapons of mass destruction (WMD).

• The Nuclear Suppliers Group (NSG), Missile Technology Control Regime (MTCR), and the Australia Group (AG) recognize the increased need for effective multilateral export controls.

• Regime members continue to update and modify the lists of controlled commodities and implement “catch all” controls.


U.S. Efforts to Strengthen Export Controls

• Proposals to modify the Multilateral Export Control Regime Guidelines & Annexes (Control Lists)

• NSG proposal to notify Partners of approvals for controlled nuclear items to non-partners

• Support for multilateral initiatives, such as the International Code of Conduct (ICOC) against Ballistic Missile Proliferation

• Ensure effective implementation of “catch all controls” for all commodities to end users (countries, companies, or individuals) of concern

• Provide multilateral notifications of U.S. denials to utilize the “no undercut” policies


U.S. Efforts to Strengthen Export Controls

• Sanctions

• Consultations with foreign governments and commercial entities

• Outreach efforts with U.S. industry to stress the importance of export control compliance

• Strong enforcement of the law against violators

• International outreach programs to assist other nations implement a effective export controls


MTCR Update

• Plenary: September 2002 Warsaw, Poland

• Technical Experts Meeting (TEM) to discuss changes to Annex controls

• Update on the new International Code of Conduct (ICOC) Against Missile proliferation

• Focus on regional nonproliferation issues.

• MTCR Plenary has added an Enforcement Experts component.


• Plenary convened May 2002 in Prague, Czech Rep.

• Enforcement experts meeting held in conjunction with the Plenary.

• Member States continued discussions on sharing NSG license approval data and proposed notification requirements.

• Regional nonproliferation issues.

NSG Update


Missile Technology Applications Processed (2001)

Received: 949

Value: $154.3 million

Received: 1036

Value: $2.2 billion

Nuclear Technology Applications Processed (2001)


UK4%

PRC4%

Germany3%

Israel3%

Netherlands5%

France5%

Japan6%

India46%

Other22%Italy

3%

Distribution of Missile Technology Licenses by Country (2001)


Other 15%

Taiwan9%

Russia5%

Thailand4%

Mexico5%

Singapore8%

PRC9%

Israel10%

India35%

Distribution of Nuclear Technology Licenses by Country (2001)


EPCI “Catch All” Controls

The Enhanced Proliferation Control Initiative (EPCI) is designed to:

• Strengthen multilateral non-proliferation efforts;

• Prevent the export of technology that could contribute to missile, chemical, biological, and nuclear-weapons proliferation; and

• Minimize the impact on legitimate commerce.

EPCI places export controls on end use and end users rather than a particular item.


EPCI

• License may be denied if destined for missile, nuclear, or CBW activities or facilities.

• License must be obtained if the exporter knows the commodities will be used in CBW or missile activities or facilities.

• BIS may inform exporters at anytime that a license is required for a specific end-user if there is a possibility of nuclear, CBW, or missile activities.

• Any U.S. participation in nuclear, CBW, or missile activities or facilities requires a license.


Evaluation Factors

• Country

• Commodity

• End-Use

• Significance for Missile/Nuclear Development

• Non-Proliferation Credentials

• Assurances and Guarantees

• Risk of diversion

• Sanctions


• Listed in Supplement #1 in Part 740 of the EAR• Programs in Countries:

– China -- M-series, CSS-2– India -- Prithvi, Agni, SLV-3, Augmented Satellite Launch Vehicle

(ASLV), Polar Satellite LV (PSLV), Geostationary Satellite LV (GSLV)– Iran -- Surface-to-surface, Scud– No. Korea -- No Dong, Scud– Pakistan -- Hatf-series missiles

• Other Countries: (Mostly Middle East)– Bahrain, Egypt, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Oman,

Qatar, Saudi Arabia, UAE, Yemen

Missile Technology Projects and Countries of Concern


Entities List

• The Entities List notifies exporters of a requirement for exports/reexports to specified end users.

• See Supplement Number 4 to part 744 of the EAR.


India/Pakistan Sanctions

• On September 22, 2001, President Bush lifted missile sanctions placed on India and Pakistan.

• On October 1, BIS reinstated a case-by-case license review policy for exports of MT and NP commodities to India and Pakistan and removed a significant number of entities from the Entity List.

• Entities affiliated with Indian and Pakistani missile development and their nuclear programs remain listed entities.

• The United States does not support Indian unsafeguarded nuclear power industry or the satellite launch vehicle development programs.


PRC Issues

• Ongoing missile and nuclear proliferation concerns with the People’s Republic of China (PRC).

• All commodities controlled for missile proliferation concerns - except inertial navigation systems for commercial aircraft - require presidential certification prior to export.

• The U.S. continues to conduct missile talks with the PRC in an effort to decrease Chinese proliferation activities.

• Success of these talks could affect U.S. export licensing in the future.


Questions?

Steve ClagettDirector, Missile and Nuclear Technology Divisions

[email protected]

www.bis.doc.gov

Documents

Office of Nonproliferation Controls and Treaty Compliance Bureau of Industry and Security Nonproliferation & Export Control Update Briefing Steven Clagett