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...exported articles, services, and related technical data subject to licensing under Section 38 of the AECA. The Directorate of Defense Trade Controls, in the Bureau of Political-Military Affairs (PM/DDTC), Department of State, is responsible for administering the International Traffic in Arms Regulations (ITAR) that implement the AECA. The Office of Defense Trade Controls Compliance's (DDTC) functions include the following:

* Registration of manufacturers

* Brokers and exporters

* Licensing of commercial defense trade

* Overseeing compliance with U.S. export regulations

* Supporting U.S. law enforcement agencies in criminal investigations

* Prosecutions of AECA violations

* End-use monitoring of licensed transactions

The Blue Lantern program is managed within PM/DDTC by the Office of Defense Trade Controls Compliance's Research and Analysis Division (RAD). Blue Lantern end-use monitoring entails pre-license or post-shipment checks undertaken to verify the legitimacy of a transaction and to provide reasonable assurance of the following:

* The recipient is complying with the requirements imposed by the U.S. government with respect to use, transfers

* Security of the defense articles and defense services

* Such articles and services are being used for the purposes for which they are provided

DDTC is currently authorized a full-time complement of seventy-six Department of State (DOS) personnel, which is supplemented by eight military officers, about forty contract personnel, and a DHS/Immigration and Customs Enforcement Special Agent working on defense trade licensing and compliance (including end-use monitoring) efforts. DDTC's operational budget for fiscal year 2005, in addition to American salaries, was approximately $8.7 million.

Overseas Monitoring: The Blue Lantern Program

Initiated in September 1990 and written into law under Section 40A of the AECA in 1996 as the U.S. government's first systematic end-use monitoring program,...

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