DDTC Update with Acting Chief Tim Betts

Timothy A. Betts, Acting Deputy Assistant Secretary for Defense Trade Controls

At the recent Defense Trade Advisory Group Meeting, Timothy A. Betts, the Acting Deputy Assistant Secretary, presented an overview of the significant developments and accomplishments of the Directorate of Defense Trade Controls (DDTC).

Highlights from the Presentation:

1. Defense Export Control and Compliance System (DECCS) Enhancement: Betts commended the management staff, particularly the IT team, for their instrumental role in refining the DECCS experience for industry users. The annual DECCS User Group (DUG), a platform for feedback on system improvements, saw participation from over 50 industry volunteers this year.

2. DTC’s IT Modernization: The year witnessed a myriad of IT enhancements in DECCS. Notably, the DDTC introduced a feature to calculate registration renewal fees for registered entities and launched a speaker request form on their website. The integration of zero-trust architecture highlights their dedication to data security.

3. ITAR Reorganization: To ensure alignment with U.S. National Security and the defense industrial base, several amendments to the International Traffic in Arms Regulations (ITAR) were rolled out. One such change segmented ITAR part 120 into three subparts, simplifying and consolidating definitions for better readability. The department is gearing up for another ITAR reorganization, termed "ITAR reorg 2.0."

4. Targeted Revision Rules: DTC introduced a new approach focusing on revising specific entries within the USML (U.S. Munitions List). An interim final rule was released this April, which excluded certain high-energy storage capacitors from the USML.

5. AES and USML Category 21 Updates: Changes to the Automated Export System (AES) will ensure stricter compliance measures, especially for USML category 21. This update seeks to minimize erroneous declarations under this category.

6. AUKUS Implementation: Emphasizing the significance of the AUKUS partnership, Mr. Betts outlined a three-tiered strategy for its implementation, promoting efficient defense trade and information exchange among the U.S., U.K., and Australia. The AUKUS Trade Authorization Mechanism (ATAM) will serve as a uniform framework for defense trade within this alliance.

7. DTC Compliance Office Achievements: The compliance office, crucial for civil enforcement within the Arms Export Control Act and ITAR, settled three agreements this year. They also introduced the ITAR Compliance Program guidelines and unveiled a Risk Matrix, assisting companies in identifying and mitigating risks in compliance programs.

8. Updates on Registration Fees: A proposal for adjusting registration fee rates, unchanged since 2008, is on the horizon, reflecting inflation adjustments.

9. Personnel Changes: Mr. Betts announced the end of his tenure as acting director, passing the torch to Jae Shin, the Compliance Director, from October 20th.

Mr. Betts concluded by expressing his gratitude for the consistent support and dedication towards DDTC and emphasized the importance of collective efforts in addressing future challenges.