Export Controls 101 Export Controls 101 TrainingTraining

What is Export What is Export Control?Control?

Export Control is a federal government Export Control is a federal government mandate designed to ensure that each mandate designed to ensure that each employee comply with regulations that employee comply with regulations that restrict the export of goods, technology and restrict the export of goods, technology and related technical information to countries related technical information to countries that have been identified as a threat to our that have been identified as a threat to our homeland security or economic status.homeland security or economic status.

What is an export?What is an export?

• Any oral, written, electronic or visual disclosure, Any oral, written, electronic or visual disclosure, shipment, transfer or transmission outside the shipment, transfer or transmission outside the U.S. to anyone, including a U.S. citizen, of any U.S. to anyone, including a U.S. citizen, of any commodity, technology (information, technical commodity, technology (information, technical data, or assistance) or software/codes.data, or assistance) or software/codes.

• Such exports include transfers of items or Such exports include transfers of items or information to foreign embassies, overseas information to foreign embassies, overseas corporate affiliates and contractors.corporate affiliates and contractors.

Exports – Actual and DeemedExports – Actual and Deemed

• ““Actual Export.” Technology and Actual Export.” Technology and information leaving the shores of the information leaving the shores of the United States. United States.

• ““Deemed Export.” Transmitting the Deemed Export.” Transmitting the technology or information within the technology or information within the United States to an individual other than a United States to an individual other than a U.S. citizen or permanent resident.U.S. citizen or permanent resident.

Technical DataTechnical Data

• Technical Data means Technical Data means information required for the information required for the design, development, production, design, development, production, manufacture, assembly, manufacture, assembly, operation, repair, testing, operation, repair, testing, maintenance or modification of maintenance or modification of controlled articles. controlled articles.

• This includes information in the This includes information in the form of blueprints, drawings, form of blueprints, drawings, plans, instructions, diagrams, plans, instructions, diagrams, photographs, etc. photographs, etc.

US Export Controls and US Export Controls and Responsible AgenciesResponsible Agencies

• U.S. Department of Commerce: Controls U.S. Department of Commerce: Controls “Dual-“Dual-Use” technologies Use” technologies (designated for civilian use, (designated for civilian use, but with military application) – Export but with military application) – Export Administration Regulations (EAR). Administration Regulations (EAR).

• U.S. Department of State: Controls inherently U.S. Department of State: Controls inherently military technologiesmilitary technologies –International Traffic in –International Traffic in Arms Regulations (ITAR).Arms Regulations (ITAR).

• U.S. Department of Treasury, Office of Foreign U.S. Department of Treasury, Office of Foreign Assets Control (OFAC): Prohibits transactions Assets Control (OFAC): Prohibits transactions with with countries subject to boycotts, trade countries subject to boycotts, trade sanctions and embargoessanctions and embargoes..

Export Administration Regulations Export Administration Regulations (EAR)(EAR)

• Goods and related technology listed on the Goods and related technology listed on the Commerce Commerce Control List Control List (CCL, 15 CFR 774, Supp. 1)(CCL, 15 CFR 774, Supp. 1)

• Lists 10 categories for which a license is requiredLists 10 categories for which a license is required– Materials (chemicals, microorganisms, toxins), Materials Materials (chemicals, microorganisms, toxins), Materials

Processing, Electronics, Computers, Telecommunications, Processing, Electronics, Computers, Telecommunications, Lasers and Sensors, Navigation and Avionics, Marine, Lasers and Sensors, Navigation and Avionics, Marine, Propulsion Systems, Space Vehicles and Related EquipmentPropulsion Systems, Space Vehicles and Related Equipment

• Goods may have Goods may have dual usedual use. . • Classic examples are lasers, Global Positioning Classic examples are lasers, Global Positioning

Systems, and computers. Systems, and computers. • The release of technical data includes “oral exchanges of The release of technical data includes “oral exchanges of

information in the United States or abroad” (15 CFR. information in the United States or abroad” (15 CFR. 734.1(b)(3)(ii)). 734.1(b)(3)(ii)).

• All exports of technical data in a restricted category may All exports of technical data in a restricted category may require a license prior to export. require a license prior to export.

International Traffic in Arms International Traffic in Arms Regulations (ITAR)Regulations (ITAR)

• Regulates defense articles, defense services, related Regulates defense articles, defense services, related technical data on the technical data on the US Munitions ListUS Munitions List (USML) at 22 (USML) at 22 CFR 121.CFR 121.

• Items “deemed to be inherently military in character.” Items “deemed to be inherently military in character.” • Categories include equipment, software, algorithms Categories include equipment, software, algorithms

and technical data and services directly related to the and technical data and services directly related to the items specified. items specified.

• The USML lists 21 categories which require a license.The USML lists 21 categories which require a license.• The List includes weapons, chemical and biological The List includes weapons, chemical and biological

agents, vehicles, missiles, equipment and all satellites.agents, vehicles, missiles, equipment and all satellites.

Office of Foreign Assets Control Office of Foreign Assets Control (OFAC)(OFAC)

• Prohibits transactions with countries, entities and Prohibits transactions with countries, entities and individuals subject to boycotts, trade sanctions and individuals subject to boycotts, trade sanctions and embargoes and enforces economic and trade embargoes and enforces economic and trade sanctions based on U.S. foreign policy and national sanctions based on U.S. foreign policy and national security goals. security goals.

• Targets foreign countries, terrorists, international Targets foreign countries, terrorists, international narcotics traffickers and those engaged in activities narcotics traffickers and those engaged in activities related to the proliferation of weapons of mass related to the proliferation of weapons of mass destruction.destruction.

• Prohibits transactions with Specially Designated Prohibits transactions with Specially Designated Nationals and Blocked Persons. Nationals and Blocked Persons.

Export Controls CheckpointsExport Controls Checkpoints

• Sponsored researchSponsored research• Management of intellectual propertyManagement of intellectual property• Visits of foreign nationalsVisits of foreign nationals• Purchasing and dealing with Purchasing and dealing with

foreign/international vendorsforeign/international vendors• Shipment and utilization of scientific equipmentShipment and utilization of scientific equipment• Working with collaborators and colleagues Working with collaborators and colleagues

within and outside of the U.S. within and outside of the U.S. • Travel outside the U.S. for scientific and Travel outside the U.S. for scientific and

educational purposeseducational purposes

• Admission and matriculation of students from Admission and matriculation of students from embargoed countriesembargoed countries

• Employment restrictionsEmployment restrictions• University facilities access by foreign nationalsUniversity facilities access by foreign nationals• Publication restrictionsPublication restrictions• Confidential information transmission and receiptConfidential information transmission and receipt• Exporting information, goods or services to foreign Exporting information, goods or services to foreign

nationals and countries identified as a threat by the nationals and countries identified as a threat by the Departments of State, Commerce and TreasuryDepartments of State, Commerce and Treasury

• Recordkeeping requirementsRecordkeeping requirements• Licenses for regulatory approvalLicenses for regulatory approval

How could export controls affect How could export controls affect Research?Research?

• Publication of research results would be severely Publication of research results would be severely restricted or controlled, if contrary to university policy.restricted or controlled, if contrary to university policy.

• Foreign national participation would be strictly prohibited.Foreign national participation would be strictly prohibited.• Secure facilities with restricted access may be required.Secure facilities with restricted access may be required.• Special rules for controlled toxins, bio-agents and Special rules for controlled toxins, bio-agents and

chemicals may be invoked.chemicals may be invoked.• An export control license may be required by Commerce An export control license may be required by Commerce

or State if information, technology, items or services are or State if information, technology, items or services are controlledcontrolled..

• Research requiring an export control license may not be Research requiring an export control license may not be approved the ECRC. Obtaining an export license may be approved the ECRC. Obtaining an export license may be costly and result in considerable delays.costly and result in considerable delays.

Dissemination of InformationDissemination of Information

• The regulations prohibit the disclosure of controlled The regulations prohibit the disclosure of controlled technical information by any method to a foreign technical information by any method to a foreign national in the U.S. or abroad without a license from national in the U.S. or abroad without a license from Commerce or State.Commerce or State.

• Methods of disclosure include:Methods of disclosure include:– FaxFax– Telephone discussionsTelephone discussions– E-mail communicationsE-mail communications– Computer data disclosureComputer data disclosure– Face-to-face conversationsFace-to-face conversations– Training sessionsTraining sessions– Tours which involve visual inspectionsTours which involve visual inspections

Other Examples of RestrictionsOther Examples of Restrictions

• Conferences and meetings where previously Conferences and meetings where previously unpublished research will be presented (web-unpublished research will be presented (web-based, abroad or in the U.S.).based, abroad or in the U.S.).

• Teaching foreign collaborators how to use Teaching foreign collaborators how to use controlledcontrolled items in research (defense service). items in research (defense service).

• Transfers of research equipment abroad.Transfers of research equipment abroad.• Sharing/shipping encryption source code abroadSharing/shipping encryption source code abroad• Travel to/transactions with OFAC sanctioned Travel to/transactions with OFAC sanctioned

countriescountries

ExceptionsExceptions

• Fundamental ResearchFundamental Research

• Public Domain Public Domain

• Transfer of general scientific, technical or Transfer of general scientific, technical or engineering information engineering information

• ITAR bona fide employeesITAR bona fide employees

• Information and technology taught in Information and technology taught in catalog courses – Educational Exemptioncatalog courses – Educational Exemption

Fundamental Research Fundamental Research ExemptionExemption

• The “fundamental research” exclusion applies for basic and The “fundamental research” exclusion applies for basic and applied research in science and engineering performed or applied research in science and engineering performed or conducted at an accredited institution of higher learning in the conducted at an accredited institution of higher learning in the U.S. where the resulting information is ordinarily published U.S. where the resulting information is ordinarily published and shared broadly in the scientific community so long as that and shared broadly in the scientific community so long as that research is carried out research is carried out openly and without restrictions on openly and without restrictions on publication or access to or dissemination of the research publication or access to or dissemination of the research resultsresults. .

• It applies essentially to “deemed exports.”It applies essentially to “deemed exports.”• Fundamental research is distinguished from research that Fundamental research is distinguished from research that

results in information that is restricted for proprietary reasons results in information that is restricted for proprietary reasons or national security reasons (EAR) or pursuant to specific U.S. or national security reasons (EAR) or pursuant to specific U.S. government access and dissemination controls (ITAR).government access and dissemination controls (ITAR).

Public Domain ExemptionPublic Domain Exemption

• It is published and generally accessible to the It is published and generally accessible to the public through unlimited and unrestricted public through unlimited and unrestricted distribution, or distribution, or

• It is “fundamental research in science and It is “fundamental research in science and engineering at accredited institutions of higher engineering at accredited institutions of higher learning in the U.S. where the resulting learning in the U.S. where the resulting information is ordinarily published and shared information is ordinarily published and shared broadly in the scientific community” broadly in the scientific community”

Reference EAR 734.8; ITAR 120.11(8).Reference EAR 734.8; ITAR 120.11(8).

Educational Instruction Educational Instruction ExemptionExemption

• Generally, a license is not needed for classroom/lab Generally, a license is not needed for classroom/lab teaching to foreign nationals in U.S. universities.teaching to foreign nationals in U.S. universities.

• Authorizes the disclosure of educational information Authorizes the disclosure of educational information released by instruction in released by instruction in catalog coursescatalog courses or general or general scientific, mathematical or engineering principles scientific, mathematical or engineering principles commonly taught in colleges and universities commonly taught in colleges and universities without a license from the Departments of without a license from the Departments of Commerce or State Commerce or State

• Students in degree programs, using controlled Students in degree programs, using controlled equipment to conduct research need to be equipment to conduct research need to be registered for a research credit classregistered for a research credit class

Reference EAR 734.9:ITAR 120.10(5).Reference EAR 734.9:ITAR 120.10(5).

Laptop Approval and Checkout Laptop Approval and Checkout ProcedureProcedure

If a WCU faculty member or administrator is traveling overseas If a WCU faculty member or administrator is traveling overseas and wants to take a laptop alongand wants to take a laptop along,, according to federal export according to federal export control laws, certain goods deemed “sensitive” or “controlled” are control laws, certain goods deemed “sensitive” or “controlled” are restricted from being taken abroad. A WCU laptop falls under restricted from being taken abroad. A WCU laptop falls under the category of a “controlled” good because of the encryption the category of a “controlled” good because of the encryption technology employed in the Computrace (Lojack for laptops) technology employed in the Computrace (Lojack for laptops) software that WCU and many other institutions in the UNC software that WCU and many other institutions in the UNC system use to protect laptops from theft. system use to protect laptops from theft.

If a laptop with this encryption device were to fall in the hands of If a laptop with this encryption device were to fall in the hands of a terrorist or individual who carries out a plot to harm the United a terrorist or individual who carries out a plot to harm the United States, the owner of the computer would be taken to court, fined States, the owner of the computer would be taken to court, fined up to $1,000,000, or jailed for up to 10 years. In this instance, up to $1,000,000, or jailed for up to 10 years. In this instance, the State of North Carolina would not have an obligation to the State of North Carolina would not have an obligation to legally defend the faculty member’s actions.legally defend the faculty member’s actions.

Unless the faculty member/administrator wants to Unless the faculty member/administrator wants to sleep, eat, and shower (not advisable) with your sleep, eat, and shower (not advisable) with your personal laptop, the office of International personal laptop, the office of International Programs and Services and WCU Programs and Services and WCU stronglystrongly recommend that you recommend that you

1. Seriously reconsider whether you need a laptop 1. Seriously reconsider whether you need a laptop overseas (there are internet cafes or university overseas (there are internet cafes or university computers that you may be able to use while computers that you may be able to use while doing business overseas) anddoing business overseas) and

2. Sign out and take one of the travel friendly 2. Sign out and take one of the travel friendly laptops prepared by IT Services that does not laptops prepared by IT Services that does not have the encryption device. have the encryption device.

Laptop Checkout ProcedureLaptop Checkout Procedure

Two weeks before pick-up:Two weeks before pick-up: 1.1. Faculty issues an email request to Lois Petrovich-Mwaniki or Kay Faculty issues an email request to Lois Petrovich-Mwaniki or Kay

Moore for a laptop to IPS with date of pick-up and return (Lmwaniki Moore for a laptop to IPS with date of pick-up and return (Lmwaniki or Kmoore)or Kmoore)

2. IPS goes on-line to 2. IPS goes on-line to HELP.wcu.eduHELP.wcu.edu to request a travel friendly to request a travel friendly laptop for international travel specifying pick-up and return dateslaptop for international travel specifying pick-up and return dates

3. IPS receives a ticket # by email and prints this3. IPS receives a ticket # by email and prints this 4. IT delivers laptop to IPS at least 2 days ahead of the pick-up date4. IT delivers laptop to IPS at least 2 days ahead of the pick-up date 5. IPS checks out laptop and goes over bag contents with faculty 5. IPS checks out laptop and goes over bag contents with faculty

membermember 6. Faculty member signs and dates memo6. Faculty member signs and dates memo 7. Faculty member returns laptop to IPS on date specified7. Faculty member returns laptop to IPS on date specified 8. IPS does quick inventory check with traveler to insure that 8. IPS does quick inventory check with traveler to insure that

everything is in the bageverything is in the bag 9. IPS updates ticket number in on HELP website9. IPS updates ticket number in on HELP website10.10. IT gets notification and picks up laptop from IPS.IT gets notification and picks up laptop from IPS.

RecordkeepingRecordkeeping

The EO maintains all export controls and The EO maintains all export controls and embargoes documentation at a central embargoes documentation at a central repository located at the Graduate School repository located at the Graduate School for five years. Records that need to be for five years. Records that need to be maintained are listed in the Export maintained are listed in the Export Controls Communication Plan under Controls Communication Plan under recordkeeping.recordkeeping.

Red Flags!Red Flags!

• Shipments of equipment to a Shipments of equipment to a foreign countryforeign country

• Training or collaboration with Training or collaboration with foreign nationalsforeign nationals

• Research activities performed Research activities performed in or traveling to an in or traveling to an embargoed countryembargoed country

• Reference to export controlled Reference to export controlled technologies in an award technologies in an award documentdocument

• Restrictions on publication Restrictions on publication rightsrights

• Restrictions on foreign Restrictions on foreign participationparticipation

• Grant/Contract terms & Grant/Contract terms & conditions limiting access to or conditions limiting access to or dissemination of research dissemination of research resultsresults

• Sharing/Shipping Encryption Sharing/Shipping Encryption Source Code AbroadSource Code Abroad

• ANY Item, Information or ANY Item, Information or Software that is:Software that is:

• Designed or modified Designed or modified for a military usefor a military use

• Suspected use in/for a Suspected use in/for a weapon of mass weapon of mass destruction (nuclear, destruction (nuclear, chemical, biological, chemical, biological, missiles)missiles)

Violations and PenaltiesViolations and Penalties

• Criminal penalties (including fines and/or prison Criminal penalties (including fines and/or prison sentences for sentences for individualsindividuals) and civil sanctions.) and civil sanctions.

• May affect future research opportunities.May affect future research opportunities.

• Fines of up to $1,000,000 per violation for Fines of up to $1,000,000 per violation for individuals and/or the universityindividuals and/or the university..

• Prison sentences up to 10 years. Prison sentences up to 10 years.

Contact InformationContact Information

Mimi FentonMimi Fenton

Interim Dean, Interim Dean,

Graduate School and ResearchGraduate School and Research

mfenton@email.wcu.edu

Graduate School and ResearchGraduate School and Research

110 Camp Building110 Camp Building

Western Carolina UniversityWestern Carolina University

Phone: (828) 227-7212Phone: (828) 227-7212

Fax: (828) 227-7480Fax: (828) 227-7480

These slides were developed with the assistance of previously prepared material from UNC General Administration, UNC Chapel Hill, NCURA presentations and an Export Control presentation by Dr. Debra Burke, Professor, Western Carolina University and LeVon E. Wilson, Professor, Georgia Southern University

Andrea MoshierAndrea Moshier

Research Compliance Officer,Research Compliance Officer,

Graduate School and ResearchGraduate School and Research

amoshier@email.wcu.edu

LinksLinks

Export Control Review Committee Export Control Review Committee http://www.wcu.edu/6800.asp

ECRC Committee Member contact information ECRC Committee Member contact information http://www.wcu.edu/6806.asp