Transcript Export Control Basics

Export Control Basics
James E. Peterson, Ph.D.
Associate Vice Chancellor for Research
Office of Sponsored Research
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 of
the nature or type of technology has potential
military applications
the nature or type of technology raises some
sort of trade/economic protection issue
concerns about the country, organization,
individual or end user of the technology
What are Export Controls?
Export control laws apply to all activities
– not just sponsored research projects
Control involves obtaining a license
from the federal government prior to
exporting
What is an export?
Transfer to a foreign person in the U.S. or
abroad of
Controlled technology
Information
Equipment
Software
Services
What is a transfer?
Transfer can be by:
Actual shipment outside the U.S.
Electronic or digital transmission
Visual inspection in or outside the U.S.
Written or oral disclosure
Actual use or application on behalf or
for benefit of foreign person or entity
What is a “deemed export”?
Transmitting the technology,
information, etc. to a foreign
person within the United States
Methods of disclosure include
FAX
Tours of labs
Telephone conversations
Training sessions
E-mail communications
Computer data
Face-to-face discussions
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. Agencies
STATE
International traffic in Arms Regulations (ITAR)
for inherently military technologies
COMMERCE
Export Administration Regulations (EAR)
for “Dual Use” technologies
TREASURY
Office of Foreign assets Control (OFAC)
prohibits transactions with countries subject to
embargo, boycott or trade sanctions
ITAR
U.S. Munitions List
http://www.pmdtc.org/reference.htm#ITAR
Defense articles, defense services and related
technical data
Divided into 21 categories
• GPS equipment
• Toxicological agents
Country Control Chart
http://www.pmdtc.org/country.htm
EAR
Commodity Control List
http://www.access.gpo.gov/bis/ear/ear_data.html
Part 738
Primarily commercial
11 different categories
• Computers
• Lasers
• Microorganisms/toxins
Country List
http://www.access.gpo.gov/bis/ear/ear_data.html
Part 783 SPIR
15 pages country vs category reason for control
OFAC
Embargoed Countries
http://www.treas.gov/offices/eotffc/ofac/s
anctions/index.html
List can change but today includes:
Cuba, Iran, Iraq, Libya, Liberia, Sudan,
North Korea, Syria
Difficult to do anything with these
countries
Penalties for ITAR
Criminal
Up to $ 1 million for a university or
company
Up to $1 million per violation for individuals
and/or up to 10 years in prison
Civil violations
Up to $500,000 / violation for individuals, a
university or company
Seizure of articles
Revocation of exporting privileges
Penalties for EAR
Criminal
Up to $1 million for a university or
company
Up to $250,000 / violation for individuals
and/or up to 10 years in prison
Civil
Loss of export privileges
Up to $12,000 / violation for individuals, a
university or company
Penalties for OFAC
Criminal
Maximum fine of $100,000 for individuals
and/or 10 years imprisonment
Maximum fine of $1 million for a university
or company
Civil
Maximum fine of $55,000 / violation
Violations of specific sanctions may add
additional penalties
Implications of Export Control
Laws
No effect on most university research
because we qualify for one of the exclusions
Potential impact on
Ability of foreign students or researchers to
participate in research involving a
controlled technology
Ability to provide services (including
training) to foreign persons
Ability to send controlled equipment to
foreign countries
Exclusions
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 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
Normally…
Unless the university accepts any clause that:
forbids the participation of foreign persons
gives the sponsor a right to approve
publications
restricts participation in research and/or
access to and disclosure of research results
Unless there are “side deals” between PI and
sponsor regarding publishing
Employment Exclusion
No license is required to share controlled
technical information with a foreign person who
is a full-time regular university employee
has 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 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-CH IPF
Is it Really a Can of Worms?
Reasons for the 4 Questions
Educate PIs and
staff on export
control regulations
Screen proposals to
determine if there
may be a problem
Basis for compliance
if proposal is funded
Things to Watch For
Restrictions on publications
“Side Deals”
Providing services or new information
materials to/from a boycotted country
Collaborating with foreign colleagues in
foreign countries
Foreign Nationals in the U.S.
Travel outside the U.S.
Carrying equipment/samples outside the U.S.
Shipping equipment/samples overseas
Payments to certain countries
Accepting export controlled information
Resources
OSR web site on Export Control
http://research.unc.edu/osr/policies/
export_control.php