Transcript EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS Export Controls Officer Office of Sponsored Projects The University of Texas at Austin.

EXPORT ADMINISTRATION
REGULATIONS (EAR)
CLASSIFICATION PROCESS
Export Controls Officer
Office of Sponsored Projects
The University of Texas at Austin
THE EAR PROCESS – IF EAR
APPLIES, WHAT NEXT?

STEP 1: PI must classify the type of
technology or science being developed on
the “Commerce Control List” by determining
the ECCN – Export Control Classification
Number

http://www.access.gpo.gov/bis/ear/ear_data.html
COMMERCE CONTROL LIST


Contains lists of items subject to licensing
authority of BIS
Each entry is called Export Control
Classification Number (ECCN)
(Five alpha-numeric characters)
Items listed in terms of technical parameters
ECCN BREAKDOWN
EXAMPLE: 3D101

3 – Category

D – Product Group

1 – Reason for Control

0 – Relates to Reasons for Control

1 – Used for Numerical Ordering
TEN CATEGORIES IN THE CCL
(0 - 4)





0. Nuclear Materials, Facilities &
Equipment & Miscellaneous
1. Materials, Chemicals, Microorganisms
& Toxins
2. Materials Processing
3. Electronics Design, Development and
Production
4. Computers
TEN CATEGORIES IN THE CCL
(5 – 9)





5. Telecommunications & Information
Security
6. Sensors and Lasers
7. Navigation and Avionics
8. Marine (ships & vessels)
9. Propulsion Systems, Space Vehicles and
Related Equipment
PRODUCT GROUPS





A = Equipment, Assemblies &
Components
B = Production, Test & Inspection
Equipment
C = Materials (raw)
D = Software
E = Technology
I found the ECCN!
FINDING THE ECCN

Review general characteristics (technical
parameters) of items to arrive at Category
and Product Group

Match characteristics of item with ECCN and
subparagraph

HINT: Check the CCL alphabetical index
GENERAL PROHIBITIONS,
PART 736

STEP 2: Check General Prohibitions

Prohibit certain exports, re-exports, and other conduct, without a
license, license exception or determination that no license is
required

General Prohibitions 1-10 apply to items having a specific ECCN

General Prohibitions 4-10 apply to items that are EAR99 (not
found on the CCL)
GENERAL PROHIBITIONS 1-3
Apply only if your item is classified under an ECCN:
1.
2.
3.
Export and re-export of controlled items to listed
countries
Re-export and export from abroad of foreign-made
items incorporating more than a de minimis amount of
controlled U.S. Content
Re-export and export from abroad of the foreign
produced direct product of U.S. technology and
software
EAR 99-what???
GENERAL PROHIBITIONS 4-10
Apply if your item is classified under a specific ECCN
or is “EAR 99” (items not found on the CCL- usually no
license required)
4.
5.
6.
7.
Engaging in actions prohibited by a denial order (check
denied persons/entities lists)
Export or re-export to prohibited end-uses or end users
(e.g., chemical and biological warfare)
Export or re-export to embargoed or special
destinations
Support of proliferation activities
GENERAL PROHIBITIONS
4-10, Continued
8.
Intransit shipments and items to be unladen from
vessels or aircraft
9.
Violation of any order, terms, and conditions
10.
Proceeding with transactions with knowledge that a
violation has occurred or is about to occur
If Prohibitions don’t apply, look for Exceptions
LICENSE OR EXCEPTION?

STEP 3: Try to find the exception!

Using the CCL check reasons for control: Look at the
“Reason for Control” section directly under the category
heading and License Requirements.
-- E.g.: Reason for control: NS, MT, AT

Match specific controls to Country Chart column

Look for an “X” in Commerce Country Chart
LICENSE OR EXCEPTION?

If an “X” is present, look under the “License
Exceptions” category below the “Control(s)”
section

If no license exception available, license must
be obtained (4-6 weeks to process)
REASONS FOR CONTROL














AT= Anti-Terrorism
CB= Chemical & Biological weapons
CC= Crime Control
CW=Chemical Weapons Convention
EI = Encryption Item
FC=Firearms Control
MT=Missile Technology
NP=Nuclear Proliferation
NS=National Security
RS=Regional Stability
SI=Significant Item
SS=Short Supply
UN=United Nations
SL=Surreptitious Listening
COMMON LICENSE EXCEPTIONS

LVS – Limited Value Shipments



GBS – Group B Shipments



Pertains to Country Group B
Identified by “LVS: $(value)” on the CCL (e.g.: LVS: $5000)
Pertains to Country Group B
Identified by “GBS: Yes” on the CCL
CIV – Civil End-Users



Pertains to Country Group D-1
Identified by “CIV: Yes” on the CCL
National Security controlled items only
COMMON LICENSE EXCEPTIONS

TSR – Restricted Technology and
Software




Pertains to Country Group B
Identified by “TSR: Yes” on the CCL
National Security Controlled Items only
Written Assurance – Letter can be written stating
software will not be released to nationals of
certain country groups (e.g. D:1 and E:2)
COMMON LICENSE EXCEPTIONS

TMP -Temporary Exports and Re-exports








Tools of trade
Replacement parts
Exhibition and demo
Inspection and calibration
Assembly in Mexico
To US subsidiary, affiliate or facility in Country Group B
Beta test software
Return to US within 1 year
DEEMED EXPORT EXCEPTIONS

CIV: Civil End Use



TSR: Technology/Software Under Restriction



Applies to deemed exports for 3E001/3E002 technology
Requires Foreign National Review (FNR)
Applies to technology/software under national security only for
country group “B” nationals
Requires Letter of Assurance
APP – Computers

Applies to deemed exports for 4D001/4E001 software and
technology. (FNR required)
CLASSIFICATION EXERCISE
Find the ECCN and Reasons for Control for the
following items - Start at beginning of Category and
Product Group and move forward. Match technical
parameters/descriptive text.
1.
Integrated circuits radiation hardened to withstand a
total dose of 5x103 Gy (Si) or higher.
2.
Field programmable logic devices with a toggle
frequency of 150 Mhz.
CLASSIFICATION EXERCISE
You have a PI who is working on a project with a colleague who lives
in the Peoples Republic of China. As part of the research, the PI
must send his colleague 20 microprocessors manufactured from a
compound semiconductor and operating at a clock frequency of 50
Mhz. Is a license necessary? If yes, is there an exception available?





First: Find ECCN
Second: Check Reasons for Control (license requirements)
Third: Check Country Chart-look for “X”
Fourth: If “X”, then a license is required unless---Fifth: Look for exception; if none available, license IS
REQUIRED
EXERCISE – Part 1
The University is a subcontractor on a non-military project that is
funded by USAID. The project will take place in Iraq and
involves geographic mapping. Computers, software, and GPS
units must be shipped to Iraq for the project and will not be
returned to the U.S. Iraqi civilians as well as the PIs will be
operating the equipment. The following items will be shipped:
Dell computers: ECCN 4A994
Windows Servers 2003 Standard Edition:
ECCN 5D992.b.1
GPS units: ECCN 7A994
EXERCISE – Part 2





What are some of the issues?
What are the license requirements for each piece of
equipment?
Are there any license exceptions?
Is a license required to ship?
If an Iraqi researcher (in the U.S.) was working with
the development, production, or use of the
technology associated with 7E994, would a deemed
export license be required?
Questions?
Export Controls Officer
[email protected]
512-471-6424
http://www.utexas.edu/research/osp/ECR&R.htm