Temple University Commitment Temple University Commitment to Comply with Export Control Lawsto Comply with Export Control Laws

Compliance Statement and Position: Compliance Statement and Position:

TU adheres to the principle of open scholarly exchange and TU adheres to the principle of open scholarly exchange and academic freedomacademic freedom

TU fully supports a policy of strict compliance with all TU fully supports a policy of strict compliance with all applicable U.S. export control lawsapplicable U.S. export control laws

TU believes that education and awareness by the TU TU believes that education and awareness by the TU community of all U.S. export control laws is critical to community of all U.S. export control laws is critical to compliancecompliance

Goals of U.S. Export ControlsGoals of U.S. Export Controls

The Export Control Laws and Regulations have several purposes: to restrict exports of goods and technology that could

contribute to the military potential of U.S. international adversaries

to prevent proliferation of weapons of mass destruction to advance U.S. foreign policy goals and to protect the U.S. economy and promote trade goals

Attention to export controls has increased due to: recent heightened concerns about national and homeland

security, as well as the need to prevent proliferation of weapons of mass destruction

and terrorism and leaks of technology to U.S. economic competitors

U.S. Export Controls: Basic PrinciplesU.S. Export Controls: Basic Principles

Export controls apply to certain goods, materials, tests, Export controls apply to certain goods, materials, tests, software and technology (including related information and software and technology (including related information and technical data) that are: technical data) that are:

- transferred to other countries- transferred to other countries

- transferred WITHIN the U.S. to certain foreign nationals - transferred WITHIN the U.S. to certain foreign nationals (“deemed exports”)(“deemed exports”)

A wide range of high-technology items and associated A wide range of high-technology items and associated technologies are subject to U.S. export controlstechnologies are subject to U.S. export controls

- BUT key exclusions or exemptions for universities often - BUT key exclusions or exemptions for universities often applyapply

Research activities that do not qualify for an exclusion or Research activities that do not qualify for an exclusion or exemption under Export Control Regulations will require a exemption under Export Control Regulations will require a license from the appropriate Government Agencylicense from the appropriate Government Agency

Severe penalties apply for violations of Export Control Severe penalties apply for violations of Export Control RegulationsRegulations

Export Controls: What is Covered?Export Controls: What is Covered?

U.S. Export Control Regulations restrict the release to foreign nationals in the U.S. and abroad of certain: - Controlled Critical Technologies

- both civilian “dual-use” and “military-focus”- Technical Data and Software Code - Equipment and Research Tools- Chemicals and Biological Materials/Specimen- Other Materials and Information- Services of value to certain countries, entities, or

individuals

What Constitutes an Export? Constitutes an Export?

Export to Persons or Entities Outside the United States covers: Physical exports (shipment or hand carried) Digital and electronic transmissions (incl. e-mail) Other verbal or visual disclosures or releases of information

such as:

- at lab visits abroad or in U.S. or

- unintended WEB access to your PC especially abroad

Deemed Exports are: transfers as described above within U.S. to certain foreign

nationals

What is a “Deemed Export”?What is a “Deemed Export”?

“Deemed Exports” include disclosure or transfer of technology or software to a foreign national within the U.S.

Permanent U.S. residents (green card holders) and certain “protected immigrants” have the same right to controlled information as U.S. citizen

Any transfer of export-controlled technology to a non-permanent resident is subject to U.S. jurisdiction and may require the prior approval of U.S. government (a license), unless an exclusion or exemption applies

Export Controls: Three Regulatory RegimesExport Controls: Three Regulatory Regimes

EAR - Export Administration Regulations of the Commerce Department - regulate commercial and “dual-use” items

ITAR - International Traffic in Arms Regulations of the State Department- regulate defense and space-related technologies

OFAC - Office of Foreign Assets Control of the Treasury Department - prohibits activities with certain sanctioned

countries,institutions or individuals- OFAC controls override any exemption to EAR and ITAR

controls

Consequences of Non-Compliance with U.S. Consequences of Non-Compliance with U.S. Export Control LawsExport Control Laws

Violations can result in: severe criminal and civil penalties for individuals

millions of dollars in fines

extended jail sentences

the denial of government funding

the loss of exporting privileges

damage to individual and institutional reputations

threats to national security

Most TU Activities will Most TU Activities will NotNot Require Require

Export Control LicensesExport Control Licenses

Most research and teaching on campus does not fall under Export Control Regulation

Most research and teaching that involves export controlled information or technology qualifies for an exclusion or exemption from licensing

Exemptions are valid only under specific conditions

It is important that all conditions for these exclusions or exemptions are met and are vigorously protected

Key Exclusions and ExemptionsKey Exclusions and Exemptions

(1) (1) Public Domain Information

(2) Fundamental Research Exemption (FRE)

(3) Educational Information Exception

Public Domain ExclusionPublic Domain Exclusion This is the broadest Exclusion under EAR and ITAR

It allows exports or deemed exports without controls for information ordinarily published or already published

in libraries that are open to the public

in unrestricted subscriptions and generally accessible free websites

in published patents

in conferences, seminars in the United States (or also abroad) accessible to public for a reasonable fee where notes can be taken

Fundamental Research Exemption (FRE)Fundamental Research Exemption (FRE)

FRE provides exemptions for most on-campus University research. It covers:

(1) information (not items!) (2) resulting from “basic

and applied research in science and engineering” (3)

at an “accredited institution of higher education”

(EAR) or “higher learning” (ITAR) (4) “located in

the United States” (5) that is “ordinarily published

and shared broadly within the scientific community”

Fundamental Research Exemption (FRE)Fundamental Research Exemption (FRE)ContinuedContinued

FRE is invalidated if the University or the PI accepts any of the following conditions:

(1) unspecified and open ended pre-publication reviews (2) sponsor approvals or conditions on publication or

information exchange (3) foreign national controls or approvals, including limiting

the participation of foreign nationals in your lab or center (4) access and dissemination controls on the research Several technologies are ineligible for FRE under any condition

(e.g., advanced encryption, nuclear, WMD)

IMPORTANT: AVOID SIDE DEALS or informal AGREEMENTS that invalidate the FRE

Fundamental Research Exemption Fundamental Research Exemption PublicationsPublications

Fundamental research results generated at TU can be freely published

- as long as the research falls under the Fundamental Research Exemption

Under the FRE, sponsors may be allowed a short period of time (no longer than 45 days) to:

remove confidential or proprietary information from the proposed publication / presentation

search any patentable subject matter they may have an option to and work to facilitate patent filings

Educational Information ExemptionEducational Information Exemption

The scope of this exemption varies depending upon the applicable regulation:

- EAR – Information taught in catalog-listed classes, and released in associated teaching laboratories, at accredited institutions of higher learning are exempt from export licensing

- ITAR – The exemption only covers general science, math and engineering principles in the public domain that are taught at schools, colleges and universities

Important to KnowImportant to Know Be aware of potential Export Control issues that may arise in

your area of research Make sure that your research and your activities stay within

the realm of the Fundamental Research Exemption (FRE)− do not accept any controls over any disclosure− do not accept any controls over who can or cannot work

on your project− note that the Fundamental Research Exemption covers

only information− export and deemed export of devices, samples,

specimens, software and materials may require a license It is not the end of your research if a license is required.

− typical time frame to acquire is 30 to 60 days− work with SPA if a license is required

However: Most licenses carry severe restrictions / limitations- safekeeping of results- no foreign students can work on project

Some Important Questions to AskSome Important Questions to Ask

1. Does the award contain any terms or conditions that would restrict the disclosure or dissemination of the research results?

2. Are there any restrictions on access to or dissemination of information the sponsor or others will furnish for use on this project?

3. If the answer to 1 or 2 is yes, does the research project fall

under one of the export-controlled technologies?

4. Does this project involve training specific personnel for a special purpose? If so, could it be considered a defense service? If yes, how can you proceed?

5. Will the university need to apply for an export license? 6. For proposal submission, have you marked the appropriate

boxes on the TU Proposal Processing Form?

For Further InformationFor Further Information

Where to go for assistance and information:

to the list of individuals on the next slide

to the excellent COGR website written to assist faculty and University officials to deal with the complexities of Export Control Regulations

to the reference websites at the end of this briefing, listing details of OFAC, EAR and ITAR restrictions

To the TU Sponsored Research Administration if a license is required

HOWEVER, individuals are personally responsible for knowing and understanding the laws – ignorance is not a defense

Key Contact Offices and Persons Key Contact Offices and Persons for the TU Communityfor the TU Community

Ken Blank, Senior Vice Provost for Research and Graduate Education

• blank@temple.edu. 215-204-6875

Important Web Sites providing access to Important Web Sites providing access to EAR and ITAR InformationEAR and ITAR Information

Council on Government Relations, Guide to Export ControlCouncil on Government Relations, Guide to Export Controlwww.cogr.edu/docs/export%20controls.pdfwww.cogr.edu/docs/export%20controls.pdf

Office of Foreign Assets Control OFAC Office of Foreign Assets Control OFAC www.treas.gov/offices/eotffc/ofacwww.treas.gov/offices/eotffc/ofac

Bureau of Export Administration EAR Bureau of Export Administration EAR www.bis.doc.govwww.bis.doc.govCommodity Control List in EAR Commodity Control List in EAR

www.access.gpo.gov/bis/ear/ear_data.htmlwww.access.gpo.gov/bis/ear/ear_data.htmlOverview using EAR Regulations and Lists Overview using EAR Regulations and Lists

www.access.gpo.gov/bis/ear/pdf/732.pdfwww.access.gpo.gov/bis/ear/pdf/732.pdfDenied Persons List Denied Persons List www.bis.doc.gov/DPL/Default.shtmwww.bis.doc.gov/DPL/Default.shtmEntity List www.bis.doc.gov/Entities/Default.htmEntity List www.bis.doc.gov/Entities/Default.htmList of Specially Designated Nationals and Blocked Persons List of Specially Designated Nationals and Blocked Persons

www.ustreas.gov/offices/eotffc/ofac/sdn/index.htmlwww.ustreas.gov/offices/eotffc/ofac/sdn/index.htmlList of ITAR Defense Articles, Defense Services and related List of ITAR Defense Articles, Defense Services and related

Technical Data Technical Data www.fas.org/spp/starwars/offdocs/itar/p121.htm#P121.8www.fas.org/spp/starwars/offdocs/itar/p121.htm#P121.8