Export Control BasicsExport Control Basics

James E. Peterson, Ph.D. Associate Vice Chancellor for ResearchOffice of Sponsored Research

What are Export Controls?What are Export Controls?A comprehensive series of regulations

enforced by the Federal Government that regulate the distribution of certain exports to foreign nationals and foreign countries because ofthe nature or type of technology has potential military applicationsthe nature or type of technology raises some sort of trade/economic protection issueconcerns about the country, organization, individual or end user of the technology

What are Export Controls?What are Export Controls?

Export control laws apply to all activities – not just sponsored research projectsControl involves obtaining a license from the federal government prior to exporting

What is an export?What is an export?

Transfer to a foreign person in the U.S. or abroad ofControlled technologyInformationEquipmentSoftwareServices

What is a transfer?What is a transfer?

Transfer can be by:Actual shipment outside the U.S.Electronic or digital transmissionVisual inspection in or outside the U.S.Written or oral disclosureActual use or application on behalf or for benefit of foreign person or entity

What is a “deemed export”?What is a “deemed export”? Transmitting the technology, information, etc. to a foreign person within the United States Methods of disclosure include

Tours of labs

Training sessions

Computer data

FAX

Telephone conversations

E-mail communications

Face-to-face discussions

Who is a foreign person?Who is a foreign person?

Any person who is not a lawful permanent resident of the U.S.Any foreign corporation or other entity or group that is not incorporated or organized to do business in the U.S.Any foreign government

Responsible U.S. AgenciesResponsible U.S. AgenciesSTATEInternational traffic in Arms Regulations (ITAR)for inherently military technologies

COMMERCEExport Administration Regulations (EAR)for “Dual Use” technologies

TREASURYOffice of Foreign assets Control (OFAC)prohibits transactions with countries subject to embargo, boycott or trade sanctions

ITARITARU.S. Munitions List

http://www.pmdtc.org/reference.htm#ITARDefense articles, defense services and related technical dataDivided into 21 categories• GPS equipment• Toxicological agents

Country Control Charthttp://www.pmdtc.org/country.htm

EAREARCommodity Control List

http://www.access.gpo.gov/bis/ear/ear_data.htmlPart 738Primarily commercial11 different categories• Computers• Lasers• Microorganisms/toxins

Country Listhttp://www.access.gpo.gov/bis/ear/ear_data.html

Part 783 SPIR15 pages country vs category reason for control

OFACOFACEmbargoed Countries

http://www.treas.gov/offices/eotffc/ofac/sanctions/index.htmlList can change but today includes:

Cuba, Iran, Iraq, Libya, Liberia, Sudan, North Korea, Syria

Difficult to do anything with these countries

Penalties for ITARPenalties for ITARCriminal

Up to $ 1 million for a university or companyUp to $1 million per violation for individuals and/or up to 10 years in prison

Civil violationsUp to $500,000 / violation for individuals, a university or companySeizure of articlesRevocation of exporting privileges

CriminalUp to $1 million for a university or companyUp to $250,000 / violation for individuals and/or up to 10 years in prison

CivilLoss of export privilegesUp to $12,000 / violation for individuals, a university or company

Penalties for EARPenalties for EAR

CriminalMaximum fine of $100,000 for individuals and/or 10 years imprisonmentMaximum fine of $1 million for a university or company

CivilMaximum fine of $55,000 / violationViolations of specific sanctions may add additional penalties

Penalties for OFACPenalties for OFAC

Implications of Export Control Implications of Export Control LawsLawsNo effect on most university research because we qualify for one of the exclusionsPotential impact on

Ability of foreign students or researchers to participate in research involving a controlled technologyAbility to provide services (including training) to foreign personsAbility to send controlled equipment to foreign countries

ExclusionsExclusions

A license is not required to disseminate information if one of three exclusions applies:

Fundamental Research (ITAR, EAR) Employment (ITAR only) Education (ITAR, EAR)

Fundamental Research ExclusionFundamental Research Exclusion

No license is required to disclose to foreign persons information that is published and generally available or accessible to the public. Basic or applied research in science or engineering at universities where the resulting information is ordinarily published and shared broadly in the scientific community.

Fundamental Research Fundamental Research Normally…Normally…Unless the university accepts any clause that:

forbids the participation of foreign personsgives the sponsor a right to approve publicationsrestricts participation in research and/or access to and disclosure of research results

Unless there are “side deals” between PI and sponsor regarding publishing

Employment ExclusionEmployment Exclusion

No license is required to share controlled technical information with a foreign person who

is a full-time regular university employeehas permanent address in the U.S. while employed provided that the person is

• not a national of a country to which exports are prohibited

• advised in writing not to share controlled information with other foreign persons

does not apply to graduate students

Education ExclusionEducation Exclusion

No license is required to share with foreign persons “information concerning general scientific, mathematical or engineering principles commonly taught in universities or information in the public domain.”Foreign students using controlled equipment to conduct research should be registered for a research credit class.

Questions from the UNC-CHQuestions from the UNC-CH IPFIPF

Is it Really a Can of Worms? Is it Really a Can of Worms?

Educate PIs and staff on export control regulationsScreen proposals to determine if there may be a problemBasis for compliance if proposal is funded

Reasons for the 4 QuestionsReasons for the 4 Questions

Things to Watch ForThings to Watch ForRestrictions on publications“Side Deals”Providing services or new information materials to/from a boycotted countryCollaborating with foreign colleagues in foreign countriesForeign Nationals in the U.S.Travel outside the U.S.Carrying equipment/samples outside the U.S.Shipping equipment/samples overseasPayments to certain countriesAccepting export controlled information

ResourcesResources

OSR web site on Export Controlhttp://research.unc.edu/osr/policies/

export_control.php