DEFENSE SECURITY COOPERATION AGENCY  2800 DEFENSE PENTAGON  WASHINGTON, D.C. 20301-2800	2/6/2006

MEMORANDUM FOR :

DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION DEPARTMENT OF THE ARMY 
DIRECTOR, NAVY INTERNATIONAL PROGRAMS OFFICE DEPARTMENT OF THE NAVY 
DEPUTY UNDER SECRETARY OF THE AIR FORCE (INTERNATIONAL AFFAIRS) DEPARTMENT OF THE AIR FORCE 
DIRECTOR, DEFENSE LOGISTICS AGENCY 
DIRECTOR, NATIONAL IMAGERY AND MAPPING AGENCY 
DIRECTOR, DEFENSE TECHNOLOGY SECURITY ADMINISTRATION 
DIRECTOR, DEFENSE REUTILIZATION AND MARKETING SERVICE 
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY 
DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE 
DEPUTY DIRECTOR FOR SECURITY ASSISTANCE, DEFENSE FINANCE AND ACCOUNTING SERVICE - DENVER CENTER

SUBJECT :

SUBJECT: Interim Security Assistance Management Manual (SAMM) Change - Missile Technology Control Regime (MTCR) Review Policy for Explosives (DSCA Policy 02-06)

Nearly all of the item descriptions in the MTCR Annex excuse from the control regime any product which is not useable in a ballistic missile or a long-range UAV. However, that exclusion was not written into Item 4 of the Annex, "Propellants," which lists many compounds that are commonly only used as exploding, propelling or detonating charge. in ordnance that is frequently exported via Foreign Military Sales. Without that exclusion, the Annex treats all instances of export of the compounds listed in Item 4 as MTCR concerns. This fails to take into account that those compounds, once poured or molded into the charges described above, are no longer useable as missile propellant.

Because the charges cannot be re-used as missile propellant, and because their properties and manufacture are widely understood - meaning they are not likely to be technically exploited as samples for reverse chemical engineering - their export under FMS does not pose an MTCR concern. Therefore, the following will be added to the SAMM as a new paragraph 50004.D2:

"2. The reviewer is NOT to report as a possible MTCR controlled item any explosive charges that are already molded or poured into a form other than a rocket motor, e.g.: a shell, cartridge, case, squib or actuator, even though they are composed of a compound or chemical listed in Item 4 of the MTCR Annex. However, the reviewer must report the listed compounds and precursors in any other physical state that permits their use as a propellant for a missile or a VA V, or their use as inputs to create another product that can be so used."

The existing paragraph 50004.D2 will be renumbered to 50004.D3.

This change will be included in the automated version of the SAMM found in the Defense Acquisition Deskbook as SAMM E-Change 29. If you have any questions concerning this change, please contact Col. Craig McLane, DSCAIWEAPS, (703) 604 6625 (DSN 664) or e-mail: craig.mclane@osd.pentagon.mil.

Richard J. Millies 
Acting Director