Transition Planning Under Export Control ReformDecember 2013

AEROSPACE & DEFENSE

1 Avionics Rotron Mil Aero Air Technology Sensors

COMPANY CONFIDENTIALCOMPANY CONFIDENTIAL

Aerospace & Defense DivisionTHERMAL MANAGEMENT SYSTEMS MAINTENANCE REPAIR OVERHAUL MEASUREMENT & POWER SYSTEMS

Action Plan for Category VIII reforms• Re-determine export jurisdiction and classification for your

items and implement new determinations– 12,500 SKUs with activity over last 5 years

– Extremely time consuming• “Specially Designed” and new “600 series” ECCN• Category VIII vs. new Category XIX• Requires documentation

• Revise policies, procedures, manuals, standard job instructions

• Train relevant business functions (e.g., engineering, contracts, supply chain/procurement, IT, legal, etc.)– Develop a communication plan to ensure all personnel are aware

of changes

2

COMPANY CONFIDENTIALCOMPANY CONFIDENTIAL

Aerospace & Defense DivisionTHERMAL MANAGEMENT SYSTEMS MAINTENANCE REPAIR OVERHAUL MEASUREMENT & POWER SYSTEMS

Backup

3

COMPANY CONFIDENTIALCOMPANY CONFIDENTIAL

Aerospace & Defense DivisionTHERMAL MANAGEMENT SYSTEMS MAINTENANCE REPAIR OVERHAUL MEASUREMENT & POWER SYSTEMS

New Definition of Specially Designed

• Two-part “catch” and “release” structure– Part (a): catches items that are specially designed– Part (b): releases items from control under enumerated

circumstances

• Same definition in CCL and USML (with slight differences)

• USML and CCL sections containing the term “specially designed” only apply if any of the elements of part (a) apply and none of the elements of part (b) applies

• Some “release” provisions require release supporting documentation

4

COMPANY CONFIDENTIALCOMPANY CONFIDENTIAL

Aerospace & Defense DivisionTHERMAL MANAGEMENT SYSTEMS MAINTENANCE REPAIR OVERHAUL MEASUREMENT & POWER SYSTEMS

Category VIII Changes

5

COMPANY CONFIDENTIALCOMPANY CONFIDENTIAL

Aerospace & Defense DivisionTHERMAL MANAGEMENT SYSTEMS MAINTENANCE REPAIR OVERHAUL MEASUREMENT & POWER SYSTEMS

New Definition of Category VIII components

• Revised USML Category VIII = “positive list” of specific types of parts, components, accessories and attachments that continue to warrant control under ITAR with one exception:

– Parts, components, accessories and attachments “specially designed” for U.S.-origin B-1B, B-2, F-15SE, F/A-18 E/F/G, F-22, and F-35 aircraft and future variants thereof, or the F-117 or U.S. Government technology demonstrators continue to be controlled in “catch all” format [see Category VIII(h)(1) of revised USML]

6

COMPANY CONFIDENTIALCOMPANY CONFIDENTIAL

Aerospace & Defense DivisionTHERMAL MANAGEMENT SYSTEMS MAINTENANCE REPAIR OVERHAUL MEASUREMENT & POWER SYSTEMS

ECCN 9A610

• ECCN 9A610.a - .w: Specifically enumerated end items, materials, parts, components, accessories, and attachments– some items may be “specially designed”

• ECCN 9A610.y: Specifically enumerated parts, components, accessories, and attachments that are “specially designed” but warrant no more than AT controls

• ECCN 9A610.x: “specially designed” parts, components, accessories, and attachments that are “specially designed” –

7