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Export Controls - Overview. Basics Why? Terms Exclusions and Exemptions Areas of Concern UMBC Management of EC Case Studies. 1. ORA/Protections and Compliance. http://www.umbc.edu/research/. Basics What are Export Controls?.

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export controls overview
Export Controls - Overview

Basics

Why?

Terms

Exclusions and Exemptions

Areas of Concern

UMBC Management of EC

Case Studies

1

ORA/Protections and Compliance

http://www.umbc.edu/research/

basics what are export controls
Basics What are Export Controls?

Regulations that control distribution of certain exports to foreign nationals and foreign countries

Have been around since the 1940s

Extend beyond just research

Need license before you can export

2

ORA/Protections and Compliance

http://www.umbc.edu/research/

basics what is an export
Basics What is an Export?
  • Transfer of Controlled:

Technology Software

Information Source Code

Equipment Services (ITAR)

  • To:
    • A non-U.S. entity or individual, wherever located (Deemed export )
    • Anyone outside the U.S., including U.S. citizens
  • By Any Means:
    • Actual shipment outside the US
    • Visual inspection in or outside the US
    • FAX – PHONE – EMAIL – FACE to FACE
    • Tours of labs
    • Training sessions
    • Computer data

3

ORA/Protections and Compliance

http://www.umbc.edu/research/

basics what is a deemed export
BasicsWhat is a “Deemed” Export?

The transfer, release or disclosure of Technical Data or Technology to a foreign national within the United States (includes university campuses).

A transfer is the same as exporting it to the home country of foreign national.

4

ORA/Protections and Compliance

http://www.umbc.edu/research/

basics who are u s persons
BasicsWho are U.S. Persons?

U.S. citizens

Aliens who are“Lawful Permanent Residents”(Green Card holders)

Other “Protected Individuals”

designated an asylee or refugee

a temporary resident under amnesty provision

Any entity incorporated to do business in the U.S.

5

ORA/Protections and Compliance

http://www.umbc.edu/research/

basics who are foreign persons
Basics Who are Foreign Persons?

Everyone else:

Any foreign interest or any US Person effectively owned or controlled by a foreign interest

Includes foreign businesses not incorporated in the U.S., persons representing other Foreign Persons, any foreign government

Includes: H1B Work Visa, F1 Study Visa, J1 Training Visa, E1 Investors Visa, TN Work Visa, L1 Intra-Company Transfer Visa, K and V Fiancée Visas

EAR does not use the term foreign person - instead it refers to “foreign national”- they mean the same thing

6

ORA/Protections and Compliance

http://www.umbc.edu/research/

basics application
Basics - Application
  • Applies to following UMBC areas:
  • * Research * Purchasing
  • * MTA, CDA, LA * Human Resources
  • * Shipping * Visiting Faculty – Foreign Nationals
  • * Foreign Travel * International Education
      • * Foreign Students
  • Export control laws apply to all activities – not just sponsored research projects
  • Your award does not have to cite the regulations for export controls to apply

7

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls
Export Controls

Basics

Why?

Terms

Exclusions and Exemptions

Areas of Concern

UMBC Management of EC

Case Studies

8

ORA/Protections and Compliance

http://www.umbc.edu/research/

why is this important
Why is this important?

Protect National Security & US foreign obligations

Combat Terrorism

Prevent spread of weapons of mass destruction (nuclear, chemical, biological, missiles, etc)

9

ORA/Protections and Compliance

http://www.umbc.edu/research/

why liability and violations
Why - Liability and Violations
  • Individual & institutional penalties:
      • Large fines & jail time ($500K Civil & $1M Criminal)
      • Multiple violations/finding for same occurrence
  • Not just you - Could result in UMBC wide:
      • All settlements public
      • Draconian compliance and reporting
      • Loss of export privileges (exporting is not a right)
      • Adverse impact on federal awards

10

ORA/Protections and Compliance

http://www.umbc.edu/research/

why university violations
Why - University Violations
    • U of Tenn – Roth – Fine & Jail time – ITAR.
    • UCLA - Supported a conference in Iran – OFAC
    • UC Santa Cruz civil enforcement action: 5 yr look-back rule
    • Texas Tech - Butler - Select Agent export to Tanzania 2 yrs in prison & $37,400 fine
  • Voluntary disclosure helps

11

ORA/Protections and Compliance

http://www.umbc.edu/research/

why maryland issues hsi
Why – Maryland Issues - HSI
  • Specs in English pg #’s in Arabic – Company front for Iran.
  • Chinese Govusing Weather research as cover
  • Singapore Co. trying to get 747 flight simulator - Iran.

RED FLAGS

  • Foreign Freight forwarders
  • Partner declines technical assistance/maintenance
  • Anything through United Arab Emirates, Malaysia, South East Asia

12

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls1
Export Controls

Basics

Why?

Terms

Exclusions and Exemptions

Areas of Concern

UMBC Management of EC

Case Studies

13

ORA/Protections and Compliance

http://www.umbc.edu/research/

most common us agencies

Department of State

Department of Commerce

Department of Treasury

Most Common US Agencies

International Traffic in Arms Regulations (ITAR)

Office of Foreign Assets Control (OFAC)

Export Admin Regulations (EAR)

Bureau of Industry and Security (BIS)

Directorate of Defense Trade Controls (DDTC)

Trade Protection

National Security

Trade Embargos

Regulates commercial goods & Services with potential military application

(Dual Use)

Commerce Control List (CCL)

Export of articles, services & related technical data that are military in nature

US Munitions List (USML)

Sanctions against:

Foreign Countries & Gov

Terrorists, Narcotics, War Criminals, Weapons Proliferators

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms dept of commerce bis
TermsDept of Commerce/BIS

Export Administration Regulations (EAR)

(15 CFR §§734-774)

The Commerce Control List (CCL) covers commodities, technology & software identified by an Export Control Classification Number (ECCN).

Goods and Services having a “dual use” (commercial with military application)

15

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms ear commerce control list categories
Terms EAR – Commerce Control List Categories

Category 0 - Nuclear Materials, Facilities & Equipment (and Miscellaneous Items)

Category 1 - Materials, Chemicals, Microorganisms, and Toxins

Category 2 - Materials Processing

Category 3 – Electronics

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

16

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms dept of state
TermsDept of State

International Traffic in Arms Regulations (ITAR)

22 CFR Parts 120-130

  • US Munitions List (USML) covers militaryarticles, services and related technical data

Prior Authorization required for:

    • Sending or taking out of U.S. in any manner
    • Disclosing (including oral or visual disclosure)
    • Transferring to foreign person, whether in U.S. or abroad. 
    • Performing a defense service on behalf of, or for the benefit of, a foreign person, whether in the U.S. or abroad.

Certain information may be controlled even if in public domain – Defense Services.

17

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms itar munitions list
Terms ITAR Munitions List

I – Firearms, Close Assault Weapons and Combat Shotguns

II – Guns and Armament

III – Ammunition/Ordnance

IV – Launch Vehicles, Guided & Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines

V – Explosives & Energetic Materials, Propellants, Incendiary Agents

VI – Vehicles of War & Special Naval Equipment

VII – Tanks and Military Vehicles

VIII – Aircraft and Associated Equipment

IX – Military Training Equipment and Training

X- Protective Personnel Equipment and Shelters

18

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms itar munitions list1
Terms ITAR Munitions List

XI – Military Electronics

XII – Fire Control, Range Finder, Optical and Guidance & Control Equip.

XIII – Auxiliary Military Equipment

XIV – Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment

XV – SPACECRAFT SYSTEMS AND ASSOCIATED EQUIPMENT

XVI – Nuclear Weapons, Design and Testing Related Items

XVII – Classified Articles, Technical Data and Defense Services

XVIII - Direct Energy Weapons

19

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms dept of treasury
TermsDept of Treasury

The Office of Foreign Assets Control (OFAC)

31 CFR 500-599

Based on US foreign policy and national security goals. They cover economic and trade sanctions against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction.

20

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms ofac application
Terms OFAC Application
  • OFAC license required for services to or from:
    • Countries, entities, or individuals
  • Covers Sanctions and Embargos
  • May apply when ITAR & EAR do not
    • Multiple lists must be checked (applies to entities and individuals even if their country is not listed)
    • Covers some practices (ie proliferation of WMD or diamond trading)
  • Restrictions vary by country
  • Some exemptions apply for academic collaboration

21

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms ofac application1
Terms OFAC Application
  • Prohibits:
    • Travel to embargoed countries
      • (Balkans, Burma, Cote d’Ivoire, Cuba, DRC, Iran, Iraq, Liberia, Lebanon, Libya, North Korea, Somalia, Sudan, Syria, and Zimbabwe)
    • Sanctions against Countries, Entities, Individuals
      • Research, field-work, or instruction
      • Surveys or interviews
      • Trade – Importing merchandise
      • Furnishing anything of value (ie materials, payments, services, honoraria, training)
      • Collaborating, presenting or training

22

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms ear itar end user controls prohibitions
Terms EAR & ITAR End User Controls/Prohibitions
  • Separate from USML & CCL, ITAR & EAR prohibit exports to, or export collaborations with, certain designated entities or countries identified as export violators both in and outside the U.S.
  • So, CCL and USML may say no license is required in general, but you need to also check their lists to determine if more stringent restrictions apply to the entity or country
    • Don’t be fooled by their “Academic” names (Beihang University, SW Institute of Env Testing, Chinese Academy of Engineering Physics).

23

ORA/Protections and Compliance

http://www.umbc.edu/research/

terms their lists
TermsTheir “Lists”

Denied Persons List (BIS)

Unverified List (BIS)

Entity List (BIS)

Specially Designated Nationals List (OFAC)

Debarred List (DDTC)

Nonproliferation Sanctions (DDTC)

24

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls2
Export Controls

Basics

Why?

Terms

Exclusions and Exemptions

Areas of Concern

UMBC Management of EC

Case Studies

25

ORA/Protections and Compliance

http://www.umbc.edu/research/

types of exclusions and exemptions
Types of Exclusions and Exemptions

Exclusion – Outside the regulationsnot subject to the regulations

Exemption - License not required for item or activity as defined within the regulations

Public Domain Exclusion (ITAR,EAR,OFAC)

Fundamental Research Exclusion (ITAR, EAR)

Education Exclusion (ITAR, EAR)

License Exception TMP (Temporary Exports)

Full-Time Employee Exemption (ITAR)

Must be used correctly; failure may result in an export control violation

26

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls3
Export Controls

Basics

Why?

Terms

Exclusions and Exemptions

Areas of Concern

UMBC Management of EC

Case Studies

27

ORA/Protections and Compliance

http://www.umbc.edu/research/

areas of concern
Areas of Concern

Equipment or Biologic Use:

  • No License required if FN “use” of controlled item is routine. Must not include information beyond what is publically available. However, TCP is required.
  • A license may be required if FN is "using" the controlled item in such a way as to access technical information beyond what is publicly available. Applies even if Fundamental Research.

28

ORA/Protections and Compliance

http://www.umbc.edu/research/

areas of concern1
Areas of Concern

TRAVEL

  • Travel to embargoed countries
      • (Balkans, Burma, Cote d’Ivoire, Cuba, Dem. Rep of Congo, Iran, Iraq, Liberia, Lebanon, Libya, North Korea, Somalia, Sudan, Syria, and Zimbabwe)
  • Taking equipment (laptops, etc.), out of the country may require a license for equipment or controlled technology loaded on equipment
  • Available license exceptions (must stay under effective control)
    • TMP temporary exports - Good for 1 yr
    • BAG personal baggage

29

ORA/Protections and Compliance

http://www.umbc.edu/research/

areas of concern2
Areas of Concern
  • Shipping equipment to a foreign country
    • License required to ship if controlled by ITAR to any foreign country (few exemptions).
    • License may be required to ship equipment controlled under EAR out of the US depending on what the equipment is, where it is being sent, who will be using, and for what purpose (many exceptions)
    • Process to classify equipment and obtain a license under EAR may take several months
    • Presumption under OFAC – any & all shipments of equipment and provision of services to countries under sanction or persons in those countries are ILLEGAL.
    • Do not use foreign freight forwarders w/o EC review
  • Collaborating with foreign colleagues in foreign countries
  • Teaching foreign persons how to use items in research (“Defense Service”)
  • Controlled software use in classes

30

ORA/Protections and Compliance

http://www.umbc.edu/research/

areas of concern3
Areas of Concern

Sponsor publication approval or foreign national restrictions

Contracts with DoD, NASA, DHS, Intel Agencies

Proprietary technology research with industry or government

Accepting another party’s proprietary information

International sponsors, subcontractors

31

31

ORA/Protections and Compliance

http://www.umbc.edu/research/

areas of concern4
Areas of Concern

Non-sponsored research at university

Collaborating with a country subject to US sanctions

Projects in your garage

Attending “closed” mtgs & conferences DD2345

Faculty start-up companies (no FRE)

Providing services (not research)

Protecting students

Consulting work

MTA’s and NDA’s

32

32

http://www.umbc.edu/research/

export controls4
Export Controls

Basics

Why?

Terms

Exclusions and Exemptions

Areas of Concern

UMBC Management of EC

Case Studies

33

ORA/Protections and Compliance

http://www.umbc.edu/research/

umbc s ec management system
UMBC’s EC Management System
  • Sponsored Programs
    • Export Control Flow Chart and Questionnaire created
    • Questions added to Routing sheet
    • Practical EC training to OSP planned
  • UMBC Community
    • Created EC information web site (found at http://www.umbc.edu/research/ORPC/_
    • Established EC Official & Legal - Dean & Dave
    • Work with Functional Departments (shipping, travel, etc)
    • Executed EC Policy
    • Outreach and training program
      • Presented to Faculty (CBEE, IS, CSEE, JCET, ME, Physics)
      • Add EC component to DRATT
      • Presented to Admin groups (BRG, RAG, etc)

34

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls5
Export Controls

Basics

Why?

Terms

Exclusions and Exemptions

Areas of Concern

UMBC Management of EC

Case Studies

35

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls case study
Export Controls – Case Study

I am a researcher at UMBC. I am only conducting research on campus with students and other faculty and don’t plan to ship anything outside the United States. Do export controls affect me?

Yes. An "export" also includes furnishing technical data to foreign persons or releasing technology or software to foreign nationals within the US and abroad. These types of exports are called "deemed exports" because the regulations deem them to be the equivalent of sending the same items (commodities, software, technology, technical data, defense articles, services) to the foreign national’s home country. Deemed exports can occur even when providing technical data in the form of graphs, specifications, or other technical information to a foreign student working in your lab. Whether it is a deemed export depends on whether the items provided is subject to and listed on the CCL or is considered technical data under ITAR.

36

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls case study1
Export Controls - Case Study

I will be traveling to China to do research work with my collaborator, who is a faculty member at a university in Beijing. I will be providing her with my research results from my studies at UMBC but also undergoing further research at her lab. Do I need to be concerned about export controls?

Yes. Your research results produced at UMBC are considered fundamental research results and fall under the fundamental research exclusion. However, information resulting from your research efforts in China does not fall within this exclusion from the export control regulations. Any transfer of controlled information to a foreign national, whether here or abroad, is considered an export and may require a license. Please check the CCL and USML to see whether your research in China will involve controlled technology, information or software. If so, please contact the Office of Research Protections and Compliance to determine what your next step is in order to undergo the collaboration.

37

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls case study2
Export Controls – Case Study

I, along with another colleague, have received a request to provide peer review guidance to Professor K at the University of Tehran, whom both of us know well from international conferences. His work is strictly civilian and would not appear to have any connection to Iran’s government or military establishment. While I am a U.S. citizen, my colleague is a British citizen living in the U.S., though originally from Iran. He visits Iran occasionally on personal matters, and mentions that Professor K is interested in strengthening his ties to UC for professional and personal reasons. Can we provide the peer review?

Potentially, not without an OFAC license. As a U.S. citizen subject to the OFAC rules, providing a peer review may constitute a service to Iran and is therefore prohibited without an OFAC license. The fact that you are not receiving compensation for the assistance or the Iranian professor’s work is purely civilian does not matter for purposes of the Iranian embargo regulation. While it is possible OFAC might grant such a license, this cannot be assumed. As to your British colleague, the fact he is living in the U.S. likely renders him subject to the same restriction.

38

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls case study3
Export Controls – Case Study

No. The release of information by instruction in catalog courses and associated teaching laboratories of academic institutions is not subject to EAR. Even if one of the students was from a restricted country, or you talked about unpublished results from your research lab.

I teach a grad course in the design and manufacture of very high-speed integrated circuitry. Many of the students are foreigners. Do I need a license to teach this course? What if the students were from countries that require a license? What if I talked about yet unpublished results?

39

ORA/Protections and Compliance

http://www.umbc.edu/research/

export controls case study4
Export Controls – Case Study

Quite possibly. Applications abroad of personal knowledge or technical experience acquired in the US constitutes an export of that knowledge and experience and is subject to EAR. If any part of the knowledge or experience your export or re-export deals with technology that is listed under the CCL you may need a license. Note: As a consultant you are outside the university.

I have expertise in design and creation of submicron devices. I have been asked to be a consultant for a “third-world” company that wishes to manufacture such devices. Do I need a license?

40

ORA/Protections and Compliance

http://www.umbc.edu/research/

slide41

Questions?

www.umbc.edu/research/ORPC

Export Control Management

Contact:

Dean Drake

DDrake@UMBC.EDU

410-455-5642

41

ORA/Protections and Compliance

http://www.umbc.edu/research/