Export Controls: An Overview
Export Controls of the United States: A Brief Overview For
“Special Organizations”
International Trade Compliance Training MeetingAugust 19 - 20, 2009
EXPORT EXPERTS, LLC - A Non-Profit International Trade Business Training and Advisor Organization HTTP://WWW.EXPORTEXPERTSLLC.COM
Export Controls: An Overview
What are the U.S. Export Controls?
“Export Controls” are the laws established by the
United States government agencies and
departments responsible for control of items of
technology, products, and data distribution to
foreign countries and foreign nationals of
strategically important technology, services and
information for reasons of foreign policy and the
national security of the United States.
Export Controls: An Overview
What is the definition of an Export?
1. Transfer of controlled technology, data or
information, equipment, software or services to a
foreign person (e.g. Legal Resident or Citizen) in
the United States or abroad.
2. An export to a foreign person inside the United
States is considered a “deemed export”.
Export Controls: An Overview
Responsible U.S. Government Departments and Agencies
The State Department
International Traffic in Arms Regulations (ITAR)
The Department of Commerce
Export Administration Regulations (EAR)
The Treasury Department
Office of Foreign Assets Control (OFAC)
Other Agencies: Department of Homeland Security, Customs and Border Protection, Department of Energy, Food and Drug Administration, The Census Bureau….
Export Controls: An Overview
This Communication Is To Make Clear:
The Laws and Regulations of the United
States Government dealing with
“Exports” are technical & complex and
the penalties to individuals and
organizations can be very severe.
Work with the Head of Compliance, always.
Export Controls: An Overview
Typical “Unique Organizations, Hi-Tech Corporations, Colleges and Universities”
•Fundamental Research
•Educational Information
•Public Domain/Publicly Available Information
Export Controls: An Overview
“Fundamental Research” Exclusion
“Fundamental research” means basic and applied
research in engineering and the sciences, the results of
which ordinarily are published and shared broadly
within the scientific community, as distinguished from
proprietary research and from industrial development,
design, production and product utilization, the results of
which are ordinarily restricted/controlled for proprietary
or national security reasons.
Reference: National Security Decision Directive 189
Export Controls: An Overview
Educational Institution Exclusion(s)
Such exclusions are applicable when the
information in question consists of general
scientific, mathematical or engineering
principles commonly taught in colleges and
universities or information that is now
available within the public domain.
Export Controls: An Overview
Public Domain & Publicly Available Information
The controls over such publicly available
information is referred to as “Public Domain”
and these exclusions are applied when the
information is already in the public domain
(i.e. available in a Library) and does not have
restrictions on who may come and access
this data or information.
Export Controls: An Overview
BEWARE: There Are Areas of Risk!
Many college & university activities are
subject to US Federal Export Controls and
the exclusions may not always apply. i.e.•Defence Contracts/Services
•International Projects
•Access to Controlled Equipment (ITAR v. EAR)
•Development (Activities)
•Proprietary Research & Related Information
Export Controls: An Overview
Export Control Violation Penalties
•Administrative penalties • Loss of US Government funding & debarment
• Loss of export privileges
•Monetary fines• Up to $1 Million per violation
•Prison Sentences (Incarceration) • Up to 20 years per violation
Export Controls: An Overview
Why Care About U.S. Export Controls?
• Increasingly more college and university research
projects are subject to U.S. Export Controls.
• Investigations by multiple agencies with related
enforcement actions are on the rise.
•Voluntary Disclosures by colleges & universities:•Violation related to ITAR controlled information released via
a University’s Research Department website
•Possible EAR/OFAC violation; computers send to Cuba
Export Controls: An Overview
Examples of Licenses Secured and Pending Export License Applications
•3 ITAR licenses received for equipment shipments
to Belize, Costa Rica and Spain. (DSR)
•2 EAR licenses and 1 application pending for
shipping materials & equipment overseas. (EHS)
•Request of an Institutional License from OFAC for
certain types educational travel to Cuba. (UFIC)
Export Controls: An Overview
Other Export Control Points of Control and Control Officials to be Involved
• University’s International Center•Controls related to international travel restrictions
• Organization’s Purchasing and Asset Management•Recording of controls on all controlled assets
•Determining or obtaining the correct ECCN or USML category on
goods and materials purchased
• Environmental Health and Safety Department•Administration and compliance with all shipping and transfer of
controlled biologics and chemicals
• The Legal Department; Office of the General Counsel•Assists export controls processes in an advisory role
Export Controls: An Overview
Understand The General Prohibitions & Organizational Policies
•Questions?•1st Inquire Within Your Own Organization,
College or University about established
points of contact and control for direction•2nd Contact an outside resource that
specializes in Export Control Regulations:HTTP://WWW.EXPORTEXPERTSLLC.COM
E-mail: [email protected]
General Information Telephone: (714) 875-6546
International Trade Specialist Attorney: Michael Doram (626) 296-9161