Material Technical Advisory Committee (MTAC)

Committee Title: MTAC meeting Date:
February 7, 2013
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
Clara Zahradnik – DuPont
David Manger – Toray Composites America
Bruce Ruscio – Novartis
Scott Hubinger – BIS
Doug Brown - BIS
Judith Johnson* – Toho Tenax
Carol Sabourin* – Battelle
Eric McClafferty* – Kelly Drye
John Grabenstein* – Merck Vaccines

US Government:

Kevin Wolf - Assistant Secretary for Export Administration
Tracy O’Donnell - BIS
Laura Barmby – DoC US&FCS

Public/Visitor:

Mark Sagrens - DuPont
Bill Root – Legal Consultant
Matt Beck* – ATMI
Charles McCourt* – Dow Chemical
Corey Norton* – Keller and Heckman
Meredith Gilston – The Export Practitioner
Kate Reasoner* – Dow Chemical Co.
Cynthia Roberts* – SABIC
Carol Nordstrom* - Boeing

*  indicates attendance via teleconference
The meeting was opened at 10:00 AM

Commerce Address – Assistant Secretary for Export Administration -  Kevin Wolf

The Assistant Secretary reported BIS is working on all USML categories.  There were many comments received addressing the Category XI proposed rule and BIS is working on those now.  Out for review is the proposed rule for Category IV which addresses missile controls.  The proposed rules will incorporate into the USML and the CCL items which were previously included in the MTCR appendix to the USML.  Categories XII and XIV are still in work and they will be followed by proposed rules for VII and XIII.   Work is progressing on Category XV which addresses controls on satellites.  The proposed rule will reflect recommendations made in a report sanctioned by the DoD which indicated unilateral controls on domestic satellite items were negatively impacting the US defense industrial base.  The report contained proposed revisions to the listing and those will be rolled into the proposed rule for Category XV.

Technical Working Groups:

Composites Working Group: Tom May

The CWG is currently finishing up on the recycling and 9E003 initiatives.  The recycling initiative is focused on creating a common understanding as to how classifications should be applied to composite materials and parts throughout the material life cycle.  The paper will aid in determining what classifications should be applied to rejected materials, rejected parts, by-products of manufacturing processes, and products at the end of their design life. The 9E003 proposal will address overlaps between the coverage of 9E003 for polymeric matrix composite parts for turbine engine applications and 1E001 which addresses technology for the development and production of parts made from high temperature materials listed in 1A002. 

The CWG is currently brainstorming potential new initiatives for the coming year.  The list includes:

• Clarifying the coverage of 1A002 and the associated technology control exerted by 1E001
• Determine the status of  tooling for automated lay-up of composite parts covered by 1A002  relative to the definitions for “accessories and attachments” in 1B001
• Address possible disconnects between the thresholds for numbers of NC control axes between 1B001 and 1B101.
• Address the interpretation of the term “for” when used to describe items and not preceded by “specially designed”.
• Removing references to ITAR control listings in 1C101 and other ECCNs because similar references could be added to almost any ECCN in the CCL.

There were no reports in open session from either the Bio Working Group or the Chemical Processing Equipment Working Group. 

Assistant Secretary Wolf asked if members of the Bio Working group were tied into activities relating to the domestic select agent rules.  Members of the Bio Working Group indicated the MTAC is the only advisory group addressing this subject and that some members of the MTAC participate in CDC select agent rule making.   Dr. Orr indicated she is frequently in contact with her counterparts within the CDC. 

Special Presentation - Updates to Country Chart Due to New AG Membership:  Mark Sagrens, Clara Zahradnick - DuPont

DuPont pointed out that Mexico is currently applying for membership in the Australia Group.   Mexico was admitted to the Wassenaar Arrangement last year but the country chart has not yet been updated.  DuPont is concerned there may be a similar delay in the amendment of the country charts reflecting Mexico’s status as an AG member country.  Such a delay could result in potential lost sales for DuPont.  Companies in Mexico are current customers for commodity products produced by DuPont and other companies including those who do not participate in the Wassenaar Arrangement.  Although licensing is relatively easy for these commodities, DuPont is concerned that domestic sales may be impacted if other companies can react to market demand even slightly faster.  DuPont requested rapid update of the country chart if Mexico is admitted.   

Composite Materials Production: Dave Manger – Toray Composites America

Dave provided background information on the production of carbon fiber starting with Polyacrylonitrile (PAN) fiber.  Dave described the oxidation and carbonization processing for the fibers and showed where the fiber treatment and sizing operations occur.  In addition to the fiber processing, Dave described the typical resin impregnation process in which the resin is deposited as a film onto a carrier material.  The fiber is then pressed into the heated film using nip rollers and then wound onto spools to be subsequently frozen and shipped to the customers. 

Non-Proliferation Regimes:  Doug Brown (Treaty Compliance Division)

Chemical Weapons Convention:

The US will host the 7th and 8th inspections of 2013.

The executive council will meet in 2 weeks and will address:

• Concentration thresholds,
• Inadvertent chemical by-products
•  Convergence of chemistry and biology. 
  • The US will not support putting bio-production on the inspection list
• Safety and security of chemicals
  • Thwart usage by terrorists
  • US fully supportive
  • There is a concern the OPCW may add security criteria to inspections
• New product codes (old product codes are still in effect)
• Education

Biological Weapons Conference:

No implementation measures are currently required of private companies to support the BWC.  The Conference does hold implementation of laws and regulations regarding biological weapons as a requirement and some states still have work to do in that arena.   States parties will be encouraged to implement control through regulations if they have not already done so.  

One of the recent topics within the BWC has been “dual use research of concern” which addresses private sector work potentially applicable to weapons development.  The diplomats will try to establish the scope of this upcoming discussion.  Right now the definition may be tied to the funding status of the activity.

Confidence Building Measures are due to be submitted in 6 weeks.  BIS will review the draft US submittal and will send information to listed companies for an accuracy review. 

It has been determined that all decisions will be made during review conferences.

Additional Protocols NSG

This group is developing a new recording system and the interagency has met to review requirements. 

The US declaration will be vetted by the interagency next week prior to going to Congress.

Public Comments:

Bill Root indicated two items of public comment.  He reiterated concerns relating to the continued proposed usage of the term “specially designed” in commerce control listings.  Bill also surfaced a potential loophole in the materials coverage proposed in the revised USML proposals.

Wassenaar Arrangement:  John Varesi

John discussed items that may be included in the 2013 WA deliberations.

•  1B001 – provide better distinction between tow and tape feed materials for automated lay-up machines
• 1C010 – align the carbon fiber control thresholds of .b and .e
• 1C008 – establish a Tg control threshold in .a.3  at 300C and refine the specification of testing methods

Some changes to 1C006 and 1C009 are still being discussed also.

Next Meeting:

Future MTAC meetings are currently scheduled as follows:

2013:

May 9
August 8
November 14