Society for International Affairs

Proviso Compliance

Panel Discussion

PANEL MEMBERS

Moderator

• Debi Davis – Vice President, DC Operations & International Trade Compliance – Moderator

Panel Members

• Anthony Dearth, Chief of Staff, Office of Defense Trade Controls

• MAJ Patrick Reimnitz, Office of Defense Trade Controls, Licensing

• Susan Daoussi, Division Chief, Licensing Directorate, Defense Technology Security Administration

• Benjamin Turkel, Raytheon CompanySIA Proprietary

WHAT IS A PROVISO?

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PROVISOS VERSUS CONDITIONS

• A rose by any other name is still a rose….

• Provisos = Department of State Licenses = Conditions of Approval

• Conditions = Department of Commerce Licenses

• The license is only approved based on the limitations that are added to the license (Provisos or Conditions)

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WHO DO THE PROVISOS APPLY TO?

• The Provisos are issued as part of the license to the applicant

• HOWEVER, there may be provisos that are focused specifically on the actions of the foreign party

• Need to review closely

• Should share the provisos with foreign party so they understand the requirements

• May have a proviso REQUIRING that you share with the foreign party

• In some cases may have a proviso requiring that you NOT share with the foreign party (e.g., Classified)

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STANDARD CONDITIONS

Commerce

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State

COMMON PROVISO QUESTIONS FOR DISCUSSION

• What do I do if I receive a proviso that drastically restricts my proposed statement of work?

• How can I determine where the restrictive proviso came from?

• Was the restrictive proviso caused by lack of details in the export application?

• (Too much info or phraseology – including but not limited to)

• How should I address the restrictive proviso with the USG point of contact?

• What should I do if I think a proviso may have been issued in error?

• Should I submit a proviso reconsideration request?SIA Proprietary

COMMON PROVISO QUESTIONS FOR DISCUSSION

• Can I have a case reissued due to a USG error in provisos?

• What do I do if the Proviso is really complicated and I don’t understand it?

• How do I handle classified provisos?

• What about Classified reconsideration requests?

• What if the proviso impacts the program’s ability to perform work?

• What sort of measures should I put in place to adhere to the proviso?

• How do I track compliance with provisos and audit/assessment requirements?

• Useful tools to setup proviso complianceSIA Proprietary

COMMON PROVISO QUESTIONS FOR DISCUSSION

• What are some practical tips for conducting self-assessments of Proviso compliance?

• What are my obligations for Provisos that apply to the Foreign Parties? (e.g., equipment must be locked up; logs must be maintained of access….)

• What do I do with provisos that require me to provide additional documentation or records?

• What about self-imposed provisos?

• If you say it you need to do it – approval is based on the totality of the information submitted

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So How Do I Request a Proviso Reconsideration?

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SUBMITTING A PROVISO RECONSIDERATION

• Licenses

• Submit a new license application (DSP-5, DSP-61, DSP-73…)

• Information must match the original license

• Purpose Block

• Identify “Proviso Reconsideration” as the purpose of the submission

• Identify the license to which it pertains

• The applicant should restate the purpose from the original license

• Attach an explanatory letter

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SUBMITTING A PROVISO RECONSIDERATION

• Agreements

• Submit a new DSP-5 application. Include all information required for an amendment ($1 value)

• Purpose Block

• Identify “Proviso Reconsideration” as the purpose of the submission

• Identify the agreement number

• The applicant should also restate the overall purpose from the agreement

• Attach an explanatory letter

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Submit a new DSP-5 application. Include all information required for an amendment

EXPLANATORY LETTER

• Provide the original wording of the proviso as issued in the DTCL approval

• Provide a recommendation on how the proviso should be revised or a recommendation to delete the proviso

• State the problem with the original proviso (“too restrictive,” “in error,” “not applicable,” etc.)

• Provide justification to the Government to support the change or deletion of the proviso

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Submit a new DSP-5 application. Include all information required for an amendment

Questions?

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