Introduction to Export Controls Introduction The U.S. export - PowerPoint PPT Presentation

Introduction to Export Controls

Introduction • The U.S. export control system is based on several different laws

Introduction • The U.S. export control system is based on several different laws • These laws are implemented through a series of executive orders, regulations, and interagency agreements

Principal Laws • Export Administration Act of 1979 (EAA) • International Emergency Economic Powers Act • Arms Export Control Act • Atomic Energy Act • Trading with the Enemy Act • United Nations Participation Act

Export Controls, Sanctions and Embargoes Regulations – EAR: Export Administration Regulations - US Department of Commerce – Bureau of Industry and Security

Export Controls, Sanctions and Embargoes Regulations – EAR: Export Administration Regulations - US Department of Commerce – Bureau of Industry and Security – ITAR: International Traffic in Arms Regulations - US Department of State – Office of Defense Trade Controls

Export Controls, Sanctions and Embargoes Regulations – EAR: Export Administration Regulations - US Department of Commerce – Bureau of Industry and Security – ITAR: International Traffic in Arms Regulations - US Department of State – Office of Defense Trade Controls – OFAC: US Department of Treasury - Office of Foreign Assets Control

OFAC • OFAC prohibits: – Payments or providing anything of value to sanctioned countries – Travel to and other activities with embargoed countries

OFAC • OFAC prohibits: – Payments or providing anything of value to sanctioned countries – Travel to and other activities with embargoed countries • In general, OFAC ‘trumps” export controls.

Export Administration Act • Authorizes President to impose controls on dual use goods for the following purposes: – protect national security – promote foreign policy interests – implement international obligations – prevent shortages of goods domestically

Export Administration Act • Authorizes President to impose controls on dual use goods for the following purposes: – protect national security – promote foreign policy interests – implement international obligations – prevent shortages of goods domestically • Controls are imposed and maintained by the Department of Commerce in cooperation with the Departments of State and Defense, and other agencies.

Basic Control Principles: Dual-Use Items • Controls goods, technology, • Export from the U.S. or software subject to U.S. • Re-export from one jurisdiction foreign country to – U.S. goods wherever another they are located • Persons subject to U.S. – Foreign goods in the U.S. jurisdiction – Foreign made products containing U.S. parts & components – Technology

Scope of EAR/ITAR Controls • Equipment • Chemicals/toxins • Biologicals • Software code • Computers • Associated technology

List of Controlled Items • EAR: Commerce Control List (CCL)

List of Controlled Items • EAR: Commerce Control List (CCL) • ITAR: U.S. Munitions List (USML)

Deemed Exports • The transfer of technology (EAR) or technical data (ITAR) to a foreign national in the U.S. is “deemed” to be an export to that individual’s home country

Deemed Exports • The transfer of technology (EAR) or technical data (ITAR) to a foreign national in the U.S. is “deemed” to be an export to that individual’s home country • Deemed export is the primary challenge that Universities face

Exclusions

Exclusions • Fundamental Research Exclusion

Fundamental Research • As defined in NSDD 189: “Basic and applied research in science and engineering, 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 ordinarily are restricted for proprietary or national security reasons.”

Exclusions • Fundamental Research Exclusion

Exclusions • Fundamental Research Exclusion • Public Information Exclusion

Exclusions • Fundamental Research Exclusion • Public Information Exclusion • Educational Information Exclusion

Exclusions • Fundamental Research Exclusion • Public Information Exclusion • Educational Information Exclusion These are Exclusions, not Exemptions.

Controls are Country-Specific

Terrorist Supporting Countries (T6) • Cuba • North Korea • Iran • Syria • Libya • Sudan

Controls are Person-Specific (Denied-Party Lists)

PERSPECTIVE

PERSPECTIVE • Universities know how to do compliance

PERSPECTIVE • Universities know how to do compliance • Export control regs are no more complicated than animal care regs

PERSPECTIVE • Universities know how to do compliance • Export control regs are no more complicated than animal care regs • We didn’t learn animal care overnight

PERSPECTIVE • Universities know how to do compliance • Export control regs are no more complicated than animal care regs • We didn’t learn animal care overnight • We don’t have to learn export control overnight

PERSPECTIVE • So we don’t have to be afraid of this

PERSPECTIVE • So we don’t have to be afraid of this • But we need a plan!!

What is UNC Charlotte doing?

What is UNC Charlotte doing? • CRO & GC went to basic workshop

What is UNC Charlotte doing? • CRO & GC went to basic workshop • CRO convened a task force

What is UNC Charlotte doing? • CRO & GC went to basic workshop • CRO convened a task force • 8 people got up to speed

What is UNC Charlotte doing? • CRO & GC went to basic workshop • CRO convened a task force • 8 people got up to speed • Questions put to other experts

What is UNC Charlotte doing? • CRO & GC went to basic workshop • CRO convened a task force • 8 people got up to speed • Questions put to other experts • Consultant brought in for training

What is UNC Charlotte doing? • CRO & GC went to basic workshop • CRO convened a task force • 8 people got up to speed • Questions put to other experts • Consultant brought in for training • Risk assessment – (classification of equipment)

Next steps

Next steps • Present risk assessment and operational options to executive staff, deans, senior staff

Next steps • Present risk assessment and operational options to executive staff, deans, senior staff • Develop policy

Next steps • Present risk assessment and operational options to executive staff, deans, senior staff • Develop policy • Create implementation committee

Next steps • Present risk assessment and operational options to executive staff, deans, senior staff • Develop policy • Create implementation committee • Develop procedures & processes

Export Management System

Export Management System • Designation of an institutional official

Export Management System • Designation of an institutional official • Training & professional development

Export Management System • Designation of an institutional official • Training & professional development • Awareness program

Export Management System • Designation of an institutional official • Training & professional development • Awareness program • Record-keeping

Export Management System • Designation of an institutional official • Training & professional development • Awareness program • Record-keeping • Internal assessment

Export Management System • Designation of an institutional official • Training & professional development • Awareness program • Record-keeping • Internal assessment • Legal counsel

Operational Considerations

Operational Considerations • Review at proposal stage

Operational Considerations • Review at proposal stage • Review at award stage

Operational Considerations • Review at proposal stage • Review at award stage • Controls on visiting scientists & postdocs

Operational Considerations • Review at proposal stage • Review at award stage • Controls on visiting scientists & postdocs • Student tracking

Operational Considerations • Review at proposal stage • Review at award stage • Controls on visiting scientists & postdocs • Student tracking • Travel, accounts payable, purchasing

Operational Considerations • Review at proposal stage • Review at award stage • Controls on visiting scientists & postdocs • Student tracking • Travel, accounts payable, purchasing • Handling of proprietary information