Visual Compliance:

July 23rd UC Campus Training & Query

Examples

Outline of UC System Training PowerPointOutline of UC System Training PowerPoint

Slides # 3 to #7: Background on Visual Compliance

Slides #8-11: UC Classification Examples

Slide #12: Libraries/Classification Archive

Slide #13: Restricted Party Screening Examples

Slides #14-15: Restricted Party Screening Examples – Case Links

Slides #16-19: Schedule B & AES (Automated Export System)

Slide #20: Authorities Contact Information

Slide #21: UC System Points of Contact for Assistance

Visual Compliance: Visual Compliance: Strengthened Compliance ProcessStrengthened Compliance Process

The VISUAL COMPLIANCE™ RESEARCH EDITION gives you tangible benefits that include:

● Positive screening returns emailed directly from the RESEARCH EDITION to all who need to know, including university administrators and legal counsel

● Strengthened compliance system with up-to-date and efficient export classification and Restricted Party Screening processes

● Usage Audit Reporting features to prove compliance

●  Raises the level of compliance at your university as well as enhances your ability to make your export compliance workflow an efficient and sophisticated process

Visual Compliance: Visual Compliance: Efficient “Deemed Export” ClassificationEfficient “Deemed Export” Classification

The VISUAL COMPLIANCE™ RESEARCH EDITION provides universities with a Deemed Export classification process that allows you to determine which of your research projects and educational activities should be considered “controlled,” right down to specific items of equipment, materials and substances, and technology. The solution offers multiple search options, with pertinent results on your controlled items returned in seconds, together with such details as export license requirements and exceptions, and reasons why controls are needed.

 

Visual Compliance: Visual Compliance: Comprehensive Restricted Party ScreeningComprehensive Restricted Party Screening

The VISUAL COMPLIANCE™ RESEARCH EDITION can screen entities who have dealings of any kind with your university. These entities include students, faculty staff, researchers, sponsors and their associates, suppliers and vendors, even visiting scholars. With the RESEARCH EDITION, you can maintain a high level of compliance with laws that further the national security objectives of the U.S. Government. The solution does have other uses such as finding out if suppliers have been blacklisted by the authorities, if individuals are wanted by law enforcement agencies, or if students have delinquent educational loans.

Visual Compliance:Visual Compliance:Effective “Schedule B” ClassificationEffective “Schedule B” Classification

After completing your Deemed Exports Classification and Restricted Party Screening, VISUAL COMPLIANCE™ RESEARCH EDITION rounds off your compliance procedure with a built-in Schedule B resource that allows you to find and classify your items against the HTSUS (Harmonized Tariff Schedule, United States), which is required for mandatory license and manifest documents covering all exports and deemed exports originating from the U.S.

Using the Schedule B functionality, you can easily search for your HTSUS code by keyword, phrase, or by section and chapter, with results accompanied by Section and Chapter notes, as well as U.S. Rulings where appropriate. 

Visual Compliance: Proving Your Visual Compliance: Proving Your Compliance to Federal AuthoritiesCompliance to Federal Authorities

Proving that your compliance system is effective and reliable across your entire organization is as important as performing the screening process on a particular individual or classifying specific items according to ECCN and/or ITAR rules. Being able to provide such proof demonstrates to federal government agencies that key university staff – from administrators and legal counsel to research project supervisors and associates – are strictly following the compliance procedures that have been laid down for them.

Record Keeping: EAR762https://www.visualcompliance.com/bis_ear/762.pdfhttp://www.access.gpo.gov/bis/ear/pdf/762.pdf

Classification Example #1:Classification Example #1:Laptops & Foreign TravelLaptops & Foreign Travel

Tools of the Trade License Exception (TMP): refer to Reasons for Control icon in Visual Compliance

http://www.bis.doc.gov/encryption/lechart1_sec508.htm

Please be careful as you can use this as a license exception BUT, you need to understand what “effective control” means. 

Effective control. You maintain effective control over an item when you either retain physical possession of the item, or secure the item in such an environment as a hotel safe, a bonded warehouse, or a locked or guarded exhibition facility. Retention of effective control over an item is a condition of certain temporary exports and re-exports – See EAR772 for Definition of Terms.

You cannot leave it in your hotel room when you go to dinner, for example BUT you also need to classify the item first, before you can determine if you can use this as a license exception.

Laptop Inspections Legal, Rare, Essential by U.S. Customshttp://www.cbp.gov/xp/cgov/travel/admissibility/labtop_inspect.xml

Dell Laptops (for example): Dell Laptops (for example): Contact Manufacturer for AssistanceContact Manufacturer for Assistance

http://www1.ca.dell.com/content/topics/global.aspx/about_dell/values/regulatory_compliance/reg_compliance?~ck=ln&c=ca&cs=cabsdt1&l=en&lnki=0&s=bsd

Contact Details for Regulatory Compliance WebsiteFor any questions related to Product Safety, EMC or Ergonomics, please send an e-mail to Regulatory_Compliance@dell.com.

Additional Compliance InformationThe World Wide Trade Compliance Organization (WWTC) is responsible for managing Dell’s compliance to import and export regulations, including product classification. Classification data for Dell manufactured systems is provided within the product-specific, system Product Safety, EMC and Environmental Datasheet.

For any questions related to import/export classification of Dell products, please send an e-mail to US_Export_Classification@dell.com

Classification Example #2Classification Example #2Engineering Export to CanadaEngineering Export to Canada

Item: Molecular Beam Epitaxy UnitDestination: CanadaDepartment shipping: EngineeringECCN: 3B001Outcome: No controls for the destination of Canada

Key Word Search Used: Molecular(4) ECCN’s Returned When “Exact” Search Used

 

Classification Example #3:Classification Example #3:Physics & Astronomy Export to ChinaPhysics & Astronomy Export to China

Item: Digital Signal Processor (DSP 56309 – Motorola), speed of 100 million instructions per second, 200 Mhz clock rate, greater than 40 MHz allowedDestination: ChinaDepartment shipping: Physics and AstronomyECCN: 3A001Outcome: Item is available for purchase in China, advised PI to purchase it there instead of shipping.

Key Word Search Used in VCRE: Digital Signal(5) ECCN’s Returned When “Exact” Search Used

Libraries & Classification Archive:Libraries & Classification Archive:Upload Equipment InventoryUpload Equipment Inventory

Above is a sample template of some of the information that is to be received in an excel spreadsheet. A copy of the template to perform an upload is available upon request.

eCustoms can upload any list of equipment to the classification archive (libraries) at no charge, if you subscription to this feature.

Restricted Party Screening ExamplesRestricted Party Screening Examples

Financial Transactions (for foreign travel):1. Bank of Maskan, Iran – General Supplies Purchased2. Agricultural Development Bank, Zimbabwe - PO #ZIMB125-96 – Seed & Fertilizer3. Al-Barakaat Wiring Service, Minneapolis, Minnesota

Vendors/Collaborators:4. Valtex International Corporation, California – Vendor of Laboratory Equipment5. Performance Medical Supplies, Australia – Vendor of Physical Therapy Equipment6. Baltic State Technical University, Russia - International Collaboration – Faculty of Physics

and Mechanics – Agreement – Flight Simulators7. Infocom Corporation, Inc., Texas, USA – Vendor of Internet Technologies/Computer

Company8. Data Physics Corporation, San Jose California – Vendor of signal processing solutions9. Suntek Microwave, Inc. Newark CA – Vendor of Instrument Manufacturing for Measuring

and Testing Electricity and Electrical Signals

Contractors:10. Chi Mak - Engineer for Paragon Power, L3 Communications11. Dongfan Chung – Engineer for Rockwell, Boeing12. Xiadong Sheldon Meng – Software Contact/Employee for Quantum 3D13. Consolidated Contract Nursing – Nursing Firm, Cleveland Ohio14. JS Engineering – Mechanical Engineers, Gardena California

Restricted Party Screening Examples:Restricted Party Screening Examples:Case Links #1Case Links #1

Valtex International Corporationhttp://www.bis.doc.gov/news/2005/valtexaug_03_05.htm http://efoia.bis.doc.gov/exportcontrolviolations/e863.pdf

Performance Medical Supplieshttp://efoia.bis.doc.gov/exportcontrolviolations/e935.pdf

Infocom Corporation, Inchttp://www.bis.doc.gov/news/2006/doj01_25_06.htmhttps://bxa.ntis.gov/whatsnewcgi.html?filename=infocomcorp.asc

Data Physics Corporationhttp://www.usdoj.gov/usao/ut/press/releases/False%20Claims%20Act%20HFB%20case.pdfhttp://efoia.bis.doc.gov/exportcontrolviolations/e973.pdf

Suntek Microwave, Inchttp://www.bis.doc.gov/news/2004/sunteckmay04.htmhttp://efoia.bis.doc.gov/exportcontrolviolations/e816.pdf

Restricted Party Screening Examples:Restricted Party Screening Examples:Case Links #2Case Links #2

Dongfan Chung:http://losangeles.fbi.gov/dojpressrel/pressrel09/la071609.htmhttp://http://www.cbsnews.com/stories/2009/07/16/national/main5165462.shtmlhttp://www.cnn.com/2009/CRIME/07/16/california.espionage.conviction/indexhtmlhttp://vzw.cnn.mlogic.mobi/cnn/ne/crime/detail/333028/full;jsessionid=B958A4ECC626AF0D5BA8F094DB58C8BA.live7ihttp://news.yahoo.com/s/ap/20090716/ap_on_re_us/us_economic_espionage

Chi Mak:http://losangeles.fbi.gov/dojpressrel/pressrel09/la071609.htmhttp://www.cnn.com/2005/US/11/15/spy.charges/index.htmlhttp://www.cnn.com/2008/CRIME/03/24/us.china.agent/index.htmlhttp://www.newser.com/tag/1881/1/chi-mak.html

Xiadong Sheldon Menghttp://www.usdoj.gov/criminal/cybercrime/mengCharge.htmhttp://www.wired.com/threatlevel/2008/06/economic-espion/

What is Schedule B & When Is it Required?What is Schedule B & When Is it Required?

Schedule B: Statistical classification of domestic and foreign commodities exported from the United States.

Automated Export System (AES): The Electronic Export Information (EEI) contained in the AES is confidential and is to be used solely for official purposes authorized by the Secretary of Commerce under Title 13 United States Code, Section 301 and Title 15, Code of Federal Regulations, Part 30.91. The collection of EEI by the Department of Commerce has been approved by the Office of Management Budget.

The items being shipped requires Schedule B numbers when the items are valued over $2,500.00 per Schedule B (includes EAR99 items i.e.. pallet of cotton mittens/gloves), or when a license is required.

***Please familiarize yourself with Title 15, Part 30 of the US Census Bureau for full requirements and exceptions: http://www.access.gpo.gov/nara/cfr/waisidx_02/15cfr30_02.html

AES Filing – Electronic Submissions MandatoryAES Filing – Electronic Submissions Mandatory

Effective June 2, 2008 – The EEI has a dual use.  The information collected by the Census Bureau is used for statistical purposes while the Bureau of Industry and Security and other export enforcement agencies uses it for export control and enforcement purposes (§30.60).http://www.census.gov/foreign-trade/www/

AES Filing – Electronic Submissions Mandatory AES Filing – Electronic Submissions Mandatory

What is the Harmonized Tariff Schedule (HTS)?An organized listing of goods and their duty rates, developed by the U.S. International Trade Commission, and used by the United States as the basis for classifying imports.The Schedule B, which is administered by the U.S. Census Bureau, is used to classify exports. 

What is a Schedule B number?The Statistical Classification of Domestic and Foreign Commodities Exported from the United States.  These 10-digit commodity classification numbers are administered by the U.S. Census Bureau and cover everything from live animals and food products to computers and airplanes.  To find a Schedule B number please contact the Commodity Analysis Branch, Foreign Trade Division, Census Bureau at 800-549-0595, option 2.

What is the system for classifying commodities? The Harmonized System is a method of classifying goods for international trade developed by the Customs Cooperation Council (now the World Customs Organization). All import and export codes used by the United States are based on the Harmonized Tariff System.

Why is filing Electronic Export Information (EEI) mandatory?Public Law 107-228 authorized the Secretary of Commerce, with the concurrence of the Secretary of State and the Secretary of Homeland Security, to publish regulations mandating that all persons who are required to file export information under Chapter 9 of Title 13, United States Code file such information through the Automated Export System (AES).

What are export controls?Export controls are administered by the Bureau of Industry and Security (BIS) in the U.S. Department of Commerce, and are described in detail in the official publication U.S. Export Administration Regulations (EAR). Whenever there is any doubt about how to comply with export regulations and licensing procedures, the Department of Commerce officials or qualified professional consultants should be contacted for assistance at 202-482-4811.

http://www.census.gov/foreign-trade/regulations/faqs/index.html#whatisaschedulebnumber

What Data Elements are Required on the What Data Elements are Required on the Electronic Export Information (EEI)? (§ 30.6) Electronic Export Information (EEI)? (§ 30.6)

Mandatory Conditional • Shipment Reference Number (SRN) • Authorized Agent Identification and Address Information• USPPI Identification and Address Information  • Intermediate Consignee Identification and Address Information• Ultimate Consignee Identification and Address Infor. • Port of Unlading Code• Filing Option Indicator • Quantity/Unit of Measure (Secondary)  • Date of Export  • Export Control Classification Number (ECCN)   • Country of Ultimate Destination Code  • Export License Number/CFR Citation/Authorization • Mode of Transportation (MOT) Code  Symbol/Kimberley Process Certificate Number  • Carrier ID  • Directorate of Defense Trade Controls (DDTC) ITAR • Conveyance Name/Carrier Name  Exemption Number • Port of Exportation Code  • DDTC Registration Number  • U.S. State of Origin Code known • DDTC Significant Military Equipment (SME) Related Company Indicator Indicator  • Domestic/Foreign Origin Indicator  • DDTC Eligible Party Certification Indicator  • Routed Export Transaction Indicator  • DDTC USML Category Code  • Export Information Code (EIC)  • DDTC Unit of Measure (UOM)  • Line Number  • DDTC Quantity  • Schedule B/HTSUSA Number)  • DDTC export license line number  Commodity Description  • Transportation Reference Number (TRN)   • Quantity/Unit of Measure (Primary)  • Entry Number  • Shipping Weight  • Foreign Trade Zone Identifier • Value of Goods   • License Code/License Exemption Used Self-propelled Vehicle Information• Hazardous Material Indicator   • Vehicle Identification Number (VIN)/Product Identification # (PIN)• In bond Code • Vehicle ID Qualifier  • Shipment Filing Action Request indicator  • Vehicle Title Number  • Line Item Filing Action Request Indicator • Vehicle Title U.S. State Code

More details found at: http://www.census.gov/foreign-trade/regulations/faqs/index.html#requiredelements ``

Authorities Contact InformationAuthorities Contact Information

Office of Defense Trade Controls Licensing: Key Personnelhttp://pmddtc.state.gov/about/key_personnel.html

BIS Program Offices - Export Administration Office of Exporter Services (OExS):http://www.bis.doc.gov/about/programoffices.htm

U.S. Depart. Of the Treasury: Office of Foreign Assets Controlhttp://www.treasury.gov/offices/enforcement/key.shtmlhttp://www.treasury.gov/offices/enforcement/ofac/contacts.shtml

UC System Export Control Points of ContactUC System Export Control Points of Contact

Luanna K. Putney, Ph.D., CHC, CCEPDirector of Research ComplianceUC Office of Ethics, Compliance and Audit Services1111 Franklin Street Oakland, CA 94607-5200Phone: 510-987-0028 (office); 510-914-5206 (work cell)Email: luanna.putney@ucop.edu

Kimberly Smith, CRAResearch Compliance/Privacy AnalystUniversity of California, Office of the PresidentOffice of Ethics, Compliance & Audit Services1111 Franklin St., 5th FloorOakland, CA  94607-5200Phone: (510) 987-0519Fax: (510) 287-3334Email: Kimberly.Smith@ucop.edu

Please contact Luanna or Kim for more information on any export compliance related questions.For information on how to access Visual Compliance or sign up for use, contact Catherine Bond at cbond@ecustoms.com for a list of “campus administrators who have the ability to register users.