Arms & Strategic Technology Investigations Unit

1. Arms & Strategic Technology Investigations Unit William J. ArgueSpecial Agent William.Argue@dhs.gov617-565-7410

2. ProjectShield America New Business Practices for a Safer America

3. Project Shield America Goals • Gain cooperation from manufactures, sellers, and exporters • Enhance Public Awareness of export laws • Provide opportunity for private sector input • Establish a more formal liaison and continuing relationship • Provide a contact point for future questions and concerns

4. Al Qaeda and Religious Extremism Chemical and Biological Agents Weapons of Mass Destruction State Sponsored Terrorism Proliferation of Violence Illegal exports of strategic technology Illegal financial transactions The Threats

5. Global Security • Pushing the Borders Out From Their Traditional Places • Extending Customs Role Globally

6. Export Control Laws and Their Use to Thwart Terrorism • Arms Export Control Act • Export Administration Act • Trading with the Enemy Act • International Emergency Economic Powers Act

7. Arms Export Control Act (AECA) • 22 USC 2778 • Product is manufactured or specifically designed for military use or has a significant military use. • Examples • Missile Technology • Military Aircraft Parts (F-14) • Tanks • Regulated by the Department of State, • Directorate of Defense Trade Controls • International Trafficking in Arms Regulations (ITAR) • Commodity List - United States Munitions List

8. Defense Articles Actual Munitions Items Defense Services Technical Assistance, Debugging, Repairs, Installations Technical Data Technical specifications for a product, blue prints, or other planning designs or data The ITAR Controls:

9. Export Administration Act (EAA) • Controls both the Commodity and the End User or End Use • Dual-Use – Items that have both a civilian • and military application • Examples • Pharmaceutical, Bio-Technology (Freeze Dryers) • Night Vision Technology • Chemicals (Flame Retardant Chemicals) • Microwave Amplifiers (Communications vs. Military Radar) • Jet Mill Grinders (Pharmaceutical or Rocket Propulsion) • Regulated by the Department of Commerce • Bureau of Industry and Security • Export Administration Regulations (EAR) • Commodity Control List (CCL)

10. International Emergency Economic Powers Act (IEEPA) Trading with the Enemy Act (TWEA) • Destination Based Controls • Transactions involving a prohibited location such as Iran, Cuba, Syria • Transactions include imports, exports, financial activity and travel • Regulated by the Department of Treasury, Office of Foreign Assets Control (OFAC) • treas.gov/ofac • Foreign Assets Control Regulations

11. Deemed Exports and Other International Communications • Any transfer of, or communication regarding data, products, or services that would be licensable for export, also requires a license in order to be transferred to a foreign national within the United States. • This includes but is not limited to: • Article or Product Transfer • Exposure to Research Facilities or Data • Email Communications • Phone Conversations • International Visits

12. Export Control Statutes are complex, and it is recommended that Exporters establish Export Management Programs You cannot make the Consignee responsible! Willful Blindness - It’s not my problem Onus for Export Control

13. I.C.E.’s Approach to Export Enforcement • INTERDICTION • INVESTIGATION • INTELLIGENCE • INDUSTRY OUTREACH • PROJECT SHIELD AMERICA

14. INVESTIGATIONS • Industry Cooperation • Overt Investigations • Detentions and License Determinations • Undercover Stings

15. Interdiction efforts - Port of Boston • Outbound Taskforce Program comprised of ICE, CBP, DCIS, DSS, OSI, NCIS, FBI, and U.S. Commerce Department members to target and examine outbound cargo, parcels and individuals • Mission - To effectively deter, investigate, intercept, and prosecute violators involved in the illegal movement of U.S. munitions/controlled listed items and strategic technology having sensitive civil and military applications to proscribed destinations around the world, and to terrorist organizations which pose a threat to the national security of the US and its allies.

16. An Average Day in CBP and ICE • Effects: • 64 Arrests • 118 Narcotics Seizures • 4,639 pounds of narcotics • 116 Other Seizures • $315,973 in conveyances • $467,118 in merchandise • $23,083 in arms and ammo • 11 Currency Seizures • $715,652 in Currency • Examines: • Over 1.1 Million Passengers • 2,459 Aircraft • 570,006 Trucks / Containers • 323,622 Vehicles • 580 Vessels • 67,638 Entries FY 2002

17. Iraq Iran Libya North Korea China Syria Pakistan Known Proliferation Countries

18. U.A.E. Singapore Hong Kong Cyprus Jordan Canada Sudan Yemen Thailand Malta Known Transshipment Countries

19. DESIRED CHEMICAL & BIOLOGICAL TECHNOLOGY • FERMENTERS • CENTRIFUGAL SEPARATOR • SAFETY HOODS - CLASS II OR III • REACTOR VESSELS • HASTELLOY-HIGH NICKEL ALLOYS • DOUBLE-SEAL PUMPS

20. DESIRED NUCLEAR TECHNOLOGY • MARAGING STEEL • SPIN-FORMING MACHINERY • BERYLLIUM • GRAPHITE COMPONENTS • RADIATION SHIELDING • ELECTRON BEAM WELDERS

21. DESIRED MISSILE TECHNOLOGY • NOSE CONE/RE-ENTRY VEHICLE • CARBON/CARBON • SKIN • MARAGING STEEL • SOLID FUEL MOTOR • PROPELLANTS • FINS • CARBON/CARBON • GUIDANCE SYSTEM • GPS/INS • 3-AXIS GYRO • 3-AXIS ACCELERATOR • MOTOR • KEVLAR • MARAGING STEEL • CARBON/CARBON • CARBON/ PHENOLIC

22. Search Engines as Procurement Tool • The Goal as Indigenous Production • Surfing the Web • Unsolicited Emails • Procurement with Anonymity

23. Internet Use as a Terrorist Tool • Anonymity • Hotmail, Yahoo, Juno, Gmail • Ease of Access • Public Libraries • Internet Cafes • Coded Messages • Strong Encryption

24. Knowing Your Customer • You are in the best position to know if the Customer is bona-fide. • Does the Customer know what he’s trying to procure?

25. Red Flags of Potential Problems • Products Inconsistent with Customer’s Needs • Anomaly of consumption • Why is this business ordering this type of material? • Illogical Routing • Avoiding certain ports • Port shopping • Less controls • Corruption in Foreign Government • Pays Cash • Most international transactions use pro-forma invoices or letters of credit • Won’t Provide End User • Reluctance to provide end use • Ultimate consignee • Strong indicator of diversion

26. Red Flags of Potential Problems • Declines Installation or Service Contracts • No warranties • No installation on complex equipment • Orders Placed from Different Country than End User • Diversion Points • Avoid Embargo • Packing Inconsistent with Shipping • Overly secure packing to deter examination • Containerized or palletized when not normally done • Customer is Unfamiliar with Product • Vague understanding of needs • No Specifics on for what product would be used

27. Handling Suspicious Contacts • Don’t Slam the Door • Keep it Neutral • Obtain Contact Numbers or Email • Quickly Contact ICE Special Agents for a Controlled and Monitored Response

28. Where to Find Help? • The World Wide Web • www.export.gov • bis.doc.gov • treas.gov/ofac • pmdtc.org • Export Assistance Centers • An Export Consultant • Training Programs • Your local ICE Agent

29. QUESTIONS ?

30. Arms & Strategic Technology Investigations Unit William J. Argue Special Agent 617-565-7410 William.Argue@dhs.gov