Transfer of Gun Export Controls Expected to Allow DDTC to Expand End-User Checks

The Directorate of Defense Trade Controls expects to increase its end-user checks on sensitive defense exports after the transfer of gun export controls from the State Department to the Commerce Department was finalized earlier this year, the agency said. The transfer -- which placed Commerce in charge of export controls for firearms, ammunition and other defense items -- will free up DDTC to conduct more thorough post-shipment checks as part of its Blue Lantern process, the agency’s end-use monitoring program.

The transition will lead to a “reduction in licenses,” DDTC said in its 2019 end-use monitoring report released June 15, which will allow the agency to expand checks on end-users of defense goods that pose “a greater critical military or intelligence advantage.” DDTC said it will be able to more frequently revisit previously checked entities to verify compliance or help them improve their compliance programs.

DDTC also said it began sharing information with the Commerce Department’s Bureau of Industry and Security this year to help BIS better prepare for controlling and monitoring shipments of defense goods. The agency shared with BIS information from its Watch List -- DDTC’s internal screening tool with more than 200,000 entities that are either sanctioned or suspected of violating export laws. DDTC said it began sharing Watch List information with BIS in February, which should help Commerce “better scrutinize parties when it ultimately begins reviewing such license applications.” Although the transfer rules are finalized, a court temporarily blocked the transition of certain 3D printing controls from State to Commerce (see 2003090029).

Despite plans to increase end-user checks in the coming years, DDTC initiated about 150 Blue Lantern inquiries in 2019, about 200 fewer inquiries than in 2018. DDTC pointed to the 35-day lapse in government funding in December 2018 and January 2019, saying it “significantly interfered” with training of new workers to replace employees who had left, which led to a smaller number of inquiries. The government shutdown also impacted travel to embassies abroad and planning for future checks, DDTC said.