Material Technical Advisory Committee (MTAC)
“Minutes of Meeting”
Committee Title: MTAC meeting
Date: May 17, 2012
Time: 10:00 AM
Location: Herbert C. Hoover Building
Attendance:
Material TAC Members:
Tom May, Chairman - Boeing
Kimberly Orr, Designated Federal Officer – DoC/BIS
Gillian Woollett – Avalere Health
Andrew Skibo - MedImmune
Doug Brown – DOC/BIS
Ken Foot *– Dow Corning
Peter Witting – Harper International
Clara Zahradnik – DuPont
Judith Johnson* – Toho Tenax
Carol Sabourin*- Battelle
US Government:
John Varesi – DOC/BIS
Sharon Bragonje – DOC/BIS
Kevin Wolf - Assistant Secretary for Export Administration
Greg Tarr – State Department
Jody Lang – DoD/DTSA
Frank Trevino Jr. – DOC/BIS
Michael Tu – DOC/BIS
Scott Hubinger – DOC/BIS
Alex Lopes – DOC/BIS
Mike Rithmire – DOC/BIS
Public/Visitor:
Bill Root – Legal Consultant
Janelle Gamble – Boeing
Bruce Ruscio – Novartis
Chuck Mateer- Cray Valley
Bill Wittig – Cray Valley
Jana del-Cerro – Venable
The meeting was opened at 10:00 AM
Commerce Address – Assistant Secretary for Export Administration - Kevin Wolf
The Assistant Secretary reported that the USML rewrite is progressing and the vehicles section has been completed. USG is still working on Aircraft Engines and Ships. Category V is out for review and other categories are drafted but have not been agreed. OMB is reviewing categories IX, and X. Category XIII has been signed by the Assistant Secretaty and will soon be published in the Federal Register. Because of the content of Category XIII, that should be of particular interest to the MTAC.
The Interagency discussion on “specially designed” continues as does the discussion regarding the transition rule. It is expected the transition rule will be posted in early June.
The USG has been taking a lot of time working on the changes to controls on commercial satellites (Category 15). Implementation of the changes will require an amendment to the Defense Authorization Act to enable the President to move USML-controlled items to the CCL. Only 17 legislative days remain prior to the election in Nov. AS Wolf estimated 20% odds for action on the satellite controls this year, or in the lame duck session. BIS is still working on USML categories I, II, and III. Category IV is proving to be very complicated due to overlaps in coverage by various control regimes. VI, VII, and VIII are out. [IX and X were discussed above]. Category XII on night vision optics is currently under review by the DoD.
With respect to the definition of specially designed, BIS is studying approaches to minimize the use of the term and move toward a positive listing of parts, components, and accessories. BIS will soon approach industry on this subject but the process could take some time due to the Wassenaar Arrangement change implications.
BIS is working through responses to the CCL clean-up inquiry and is finding a number of areas in which there is no common Inter-agency interpretation of the regulations.
Hydroxyl-Terminated Polybutadiene - Cray Valley
Representatives from Cray Valley included: Charles C. Mateer – Director, Adhesive Market, William Wittig – VP Business and Trade Compliance, and Jana Del-Cerro – Venable. The Cray Valley / Venable team made a presentation on hydroxyl-terminated polybutadiene HTPB. The presentation included an overview of Cray Valley, HTPB product performance and characteristics, a profile of Cray Valley HTPB customers, and US vs. foreign export control requirements.
Key points from the presentation follow:
- HPBT is used primarily in commercial applications but is also used as a binder in solid rocket motors
- HTPB is one of a number of chemistries providing viable binders in solid rocket motors
- USML sales of HPBT represent only 2% of the consumption
- Commercial applications include: adhesives, coatings, insulating gels, potting compounds, rollers and insulated glass sealants.
- Export controls impact many commercial applications of HTPB
- The technology to mfg. HPBT was disclosed in a patent in 1972
- A number of countries including China have HTPB plants
- Cray has 120 licenses to 150 EU based customers
- US requires an export license authorization to all destinations except Canada and MT controls do not allow for CIV, VEU, LVS, STR, APR, or SCL exceptions
- HTPB can be exported between EU countries without a license
- EU has issued a General Export Authorization to Australia, Canada, Japan, New Zealand, Norway, Switzerland, and the US
- MTCR parties are not administering the MTCR controls similarly.
- Differences between US and EU administration of the MTCR agreements is resulting in lost sales for US
- Help obtaining a level global playing field is requested.
Several approaches were suggested to address the issues including submittal of formal comments to USML cat. V proposed rules, seeking a practical solution such as an exclusion, and working with BIS to develop other approaches. Cray Valley provided copies of the presentation to MTAC members and US Government representatives and will work with the BIS to develop an approach to resolve the issue.
Sub Team Reports:
BWC Working Group – Dr. Gillian Woollett
Nothing new for open session
Chem. Processing Equipment Working Group – Mr. Eric McClafferty
Nothing new for open session
Activities of the Composite Working Group – Mr. Tom May
Several technical initiatives are active right now:
- A proposal to amend 1C210 (2.C.7-NSG) to align it with the logic and limits of 1C010. The 1C210 proposal no longer contains language to change the carbon fiber limits and is now only addressing relief for glass fiber and the possible addition of a Tg threshold.
- A proposed summary of classifications to address export of scrap or recycled materials and parts. A table of classifications has been developed for materials and scrap parts throughout the material life cycle. A brief discussion was held regarding how the information might be used and we concluded an Advisory Opinion may be a viable approach.
- A review of controls on composite parts exerted by 9E003
- Sub team reviews of:
- Composite equipment controlled by 1B001 / 101
Status Of Control Regime Activities:
Wassenaar Arrangement:
No report for open session.
Biological Weapons Convention:
No report for open session
MTCR:
No report for open session
Australia Group: Dr. Kimberly Orr
The Australia group has been considering control thresholds for spray dryers and has agreed that the same capacity limits applicable to freeze dryers will apply to spray drying equipment.
Public Comments:
Mr. Bill Root provided a paper addressing the “May 2, 2012, Proposed Rules on USML Category V and CCL 1C111 and 1C608”. The paper addresses items on the Wassenaar Munitions list that are currently omitted from proposed coverage, items within the proposals which are redundant, and items currently proposed for coverage which are not listed in the WML. Following a discussion of the paper, there were no objections from the MTAC and it was suggested Mr. Root submit the comments as part of the formal comment cycle for the proposed rules.
Next Meeting:
Future MTAC meetings are currently scheduled as follows:
2012:
August 9
November 14
2013:
February 7
May 9
August 8
November 14