EXPORT COMPLIANCE. Export Compliance Awareness RUEC Module RU001 Robert Phillips Rutgers Export Compliance Officer 09/11/2012. Some History.
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Export Compliance AwarenessRUEC Module RU001
Rutgers Export Compliance Officer
1774- The First Continental Congress convened in Carpenter\'s Hall in Philadelphia and the following December the Congress declared the importation of British goods to be illegal. Twelve months later the Congress outlawed the export of goods to Great Britain, thus establishing the first American export controls.
1940-Congress passes the Export Control Act, forbidding the exporting of aircraft parts, chemicals, and minerals without a license. This prohibition was a reaction to Japan\'s occupation of parts of the Indo-Chinese coast.
1976- The Arms Export Control Act –gives the President the authority to control the import and export of defense articles and defense services.
1979- The Export Administration Act -legal authority to the President to control U.S. exports for reasons of national security, foreign policy, and/or short supply.
2001-Patriot Act- Post 9/11
U.S. federal government laws and regulations that require review and in some cases federal agency approval prior to the export of items, commodities, technology, software or information to foreign countries, persons and entities (including universities).
Exporters obligation to determine the applicable export control regulations and to apply those regulations to the export transaction.
Any oral, written, electronic or visual disclosure, shipment, transfer or transmission outside of the United States to anyone, including a U.S. citizen, of any commodity, technology (information, technical data, or assistance) or software/codes.
Any oral, written, electronic or visual disclosure, transfer or transmission of a commodity, technology or software/codes to a non-U.S. entity or individual, wherever located (even to a foreign professor/student at The University).
Re-export-shipment or transmission of an item subject to the EAR from one foreign country (i.e., a country other than the United States) to another foreign country.
A reexport also occurs when there is “release” of technology or software (source code) subject to the EAR in one foreign country to a national of another foreign country.
The term "foreign national" refers to everyone other than a U.S. citizen, a permanent resident alien, and certain "protected individuals" (refugees and those with asylum), it includes any company not incorporated in the United States.
For purposes of Export Controls, individuals on a visa (including foreign visiting faculty) are considered foreign nationals.
Restrict exports of goods and technology that could contribute to the military potential of adversaries
Prevent proliferation of weapons of mass destruction (nuclear, biological, chemical)
Comply with U.S. trade agreements and trade sanctions against other nations
Rutgers policy is to maintain a strict compliance with all export control regulations. Failure to comply with applicable export control regulations may result in denial of export privileges, imprisonment, fines and or other penalties.
Department of Commerce Export Administration Regulations (EAR)
The EAR implements the provisions of the Export Administration Act (EAA). It regulates the export and re-export of dual-use commodities, software and technology. Dual-use items have both civil (commercial) and military (proliferation) applications.
Within the Department of Commerce, the Bureau of Industry and Security (BIS) maintains the Commerce Control List (CCL), which covers trade items (commodities, software and technology) that are subject to the agency’s export licensing authority.
Category 1 - Materials Chemicals Microorganisms and Toxins
Category 2 - Materials Processing
Category 3 - Electronics Design Development and Production
Category 4 - Computers
Category 5 Part 1 - Telecommunications
Category 5 Part 2 - Information Security
Category 6 - Sensors and Lasers
Category 7 - Navigation and Avionics
Category 8 - Marine
Category 9 - Propulsion Systems Space Vehicles and Related Equipment
Category II-Artillery Projectors
Category IV-Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines
Category V-Explosives, Propellants, Incendiary Agents, and Their Constituents
Category VI-Vessels of War and Special Naval Equipment
Category VII-Tanks and Military Vehicles
Category VIII-Aircraft, [Spacecraft] and Associated Equipment
Category IX-Military Training Equipment
Category X-Protective Personnel Equipment
Category XI-Military [and Space] Electronics
Category XII-Fire Control, Range Finder, Optical and Guidance and Control Equipment
Category XIII-Auxiliary Military Equipment
Category XIV-Toxicological Agents and Equipment and Radiological Equipment
Category XV-Spacecraft Systems and Associated Equipment
Category XVI-Nuclear Weapons Design and Test Equipment
Category XVII-Classified Articles, Technical Data and Defense Services Not Otherwise Enumerated
Category XX-Submersible Vessels, Oceanographic and Associated Equipment
Category XXI-Miscellaneous Articles
OFAC enforces trade, anti-terrorism, narcotics, human rights and other national security and foreign policy based sanctions prohibiting the provision of anything of value, either tangible or intangible, to sanctioned countries, organizations or individuals. OFAC publishes the Specially Designated Nationals and Blocked Persons (SDN) List, which contains the names of individuals and organizations deemed to represent restricted countries or known to be involved in terrorism and narcotics trafficking.
Embargo-Cuba, Iran Syria, Sudan, North Korea
Exclusion-Not Subject to EAR or ITAR regulations.
Exception-Authorization to export items subject to the EAR without obtaining an export license.
Exemption-Permit the permanent or temporary export or temporary import of defense articles and technical data by U.S. persons in lieu of obtaining a U.S. license from the U.S. Department of State.
If your research/project does not meet the requirements of an Exclusion, Exceptions and Exemptions will be reviewed on a case by case basis.
Protect fundamental research exclusion by eliminating contractual clauses that deny our ability to claim the exclusion.
Q: Are export controls at a University something new?
A: No, but focus on compliance of export controls has been increased since 9-11 (pg 2 &3).
Q: I have a foreign national at Rutgers working on research, is that an export?
A: Yes, this is called a deemed export (pg 6), but remember not all exports are controlled, you may be covered under an exclusion (pg 19).
Q: I am giving a presentation in China next week.
A: You may be covered by an exclusion or exception (pg 19). You can review the Rutgers International Travel Module or contact the Rutgers Export Control Officer.
Q: The presentation is at Beijing University of Aeronautics and Astronautics, I see they are on the consolidated list you have on page 17. What should I do?
A: Beijing University of Aeronautics and Astronautics is on the BIS Entity List (EL). You still maybe may covered by an exclusion (pg 19), this will probably require a review by the Rutgers Export Control Officer.
Q: My research is covered under the Fundamental Research exclusion but I have foreign nationals using the Blue-Gene/P, IBM super computer. Should I be concerned?
A: The Blue-Gene/P is controlled by the EAR. As long as the technology disclosed to the foreign national does not meet the EAR definition (pg 23), you remain under the Fundamental Research exclusion.
Q: I am working on a sub-contract to a NASA grant, what issues might I have?
A: With any agreement you want to keep within the Fundamental Research guidelines. NASA also has other restrictions that pertain to the Chinese Government and Chinese Entities. You may want to review: NASA Funding Restrictions with China-http://vpr.rutgers.edu/export.php