1 An Introduction to Export Controls at UNCP Created by the Center for Sponsored Research and Programs at UNC Pembroke

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An Introduction to An Introduction to Export Controls at UNCPExport Controls at UNCP

Created by the Center for Created by the Center for Sponsored Research and Programs Sponsored Research and Programs

at UNC Pembrokeat UNC Pembroke

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Getting StartedGetting Started

► What are exports?What are exports?► What are examples of export methods?What are examples of export methods?► What are export controls, and why are they neededWhat are export controls, and why are they needed

??► What is an export license?What is an export license?► Which federal agencies regulate export controls?Which federal agencies regulate export controls?► How do I determine if I have an export issue?How do I determine if I have an export issue?► I have an export…how do I know if I need an export I have an export…how do I know if I need an export

license?license?► What are the penalties for ignoring export controls?What are the penalties for ignoring export controls?► Are there any exemptions for export controls?Are there any exemptions for export controls?► Where do I go for additional information?Where do I go for additional information?

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What are exports?What are exports?

►Exports are any transferExports are any transfer** of of commodities, technology, information, commodities, technology, information, technical data, assistance, or software technical data, assistance, or software codes to anyone outside the U.S., a codes to anyone outside the U.S., a non-U.S. individual wherever s/he is, non-U.S. individual wherever s/he is, and/or a foreign embassy or affiliate.and/or a foreign embassy or affiliate. *This includes any *This includes any oral, written, oral, written,

electronic, or visual disclosure of any of electronic, or visual disclosure of any of the aforementioned items.the aforementioned items.

Back to “Getting Started”

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What are examples of export What are examples of export methods?methods?

► To Overseas Recipients – Mail (shipping), e-mail, To Overseas Recipients – Mail (shipping), e-mail, fax, face to face transmissions.fax, face to face transmissions.

► ““Deemed” Export – The transfer of an export to a Deemed” Export – The transfer of an export to a foreign national in the U.S.foreign national in the U.S. A foreign national is anyone who is not a citizen, a legal A foreign national is anyone who is not a citizen, a legal

resident alien, or a protected individual (refugee) of the resident alien, or a protected individual (refugee) of the United States (including organizations not incorporated to United States (including organizations not incorporated to do business in the U.S.).do business in the U.S.).

► U.S. travelers in foreign countries with laptop U.S. travelers in foreign countries with laptop computers or GPS devices can be considered an computers or GPS devices can be considered an export.export. Allowing foreign nationals to access either technology is Allowing foreign nationals to access either technology is

considered an export.considered an export. Laptops can be excluded from this if they contain Laptops can be excluded from this if they contain onlyonly

software available through commercial or public sources.software available through commercial or public sources.


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What are export controls, and What are export controls, and why are they needed?why are they needed?

► Export controls are the laws and regulations Export controls are the laws and regulations set by the U.S. government to prevent the set by the U.S. government to prevent the export of potentially sensitive or militarily export of potentially sensitive or militarily adaptable items to foreign nationals or foreign adaptable items to foreign nationals or foreign countries.countries.

► Export controls are needed to restrict the Export controls are needed to restrict the export of goods and technologies that could export of goods and technologies that could directly and indirectly contribute to the directly and indirectly contribute to the military potential of other countries. military potential of other countries.

► Controls can also prevent the creation of Controls can also prevent the creation of weapons of mass destruction, as well as weapons of mass destruction, as well as terrorism and other similar activities.terrorism and other similar activities.


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What is an export license?What is an export license?

►An export license is a form of approval An export license is a form of approval from the U.S. government that allows from the U.S. government that allows exports to be transmitted to approved exports to be transmitted to approved overseas destinations (individual, overseas destinations (individual, government, organization, etc.).government, organization, etc.). This license allows the U.S. government to This license allows the U.S. government to

regulate the exportation of potentially regulate the exportation of potentially sensitive items and information for sensitive items and information for reasons of national safety.reasons of national safety.


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Which federal agencies regulate Which federal agencies regulate export controls?export controls?

►Export Controls are regulated by three Export Controls are regulated by three federal agencies:federal agencies: U.S. Department of CommerceU.S. Department of Commerce U.S. Department of StateU.S. Department of State U.S. Department of TreasuryU.S. Department of Treasury

►Each agency oversees a different Each agency oversees a different aspect of Export Controls.aspect of Export Controls.


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U.S. Department of U.S. Department of CommerceCommerce

►The Bureau of Industry and Security in The Bureau of Industry and Security in the Department of Commerce issues the Department of Commerce issues the Export Administration Regulations the Export Administration Regulations (EAR).(EAR).

►The EAR are used to control the export The EAR are used to control the export of “dual-use technologies”, which are of “dual-use technologies”, which are items with possible applications in items with possible applications in both a commercial and military sense.both a commercial and military sense. http://www.bis.doc.gov/ http://www.bis.doc.gov/


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U.S. Department of StateU.S. Department of State

► The Department of State issues the The Department of State issues the International Traffic in Arms Regulations International Traffic in Arms Regulations (ITAR).(ITAR).

► The ITAR are used to control the export of The ITAR are used to control the export of inherently military technologies.inherently military technologies.

http://http://pmddtc.state.gov/itar_index.htmpmddtc.state.gov/itar_index.htm

► A list of the ITAR categories of military A list of the ITAR categories of military technologies can be found at:technologies can be found at:

http://www.fas.org/spp/starwars/offdocs/itar/p1http://www.fas.org/spp/starwars/offdocs/itar/p121.htm#ITAR21.htm#ITAR


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U.S. Department of TreasuryU.S. Department of Treasury

►The Department of Treasury oversees the The Department of Treasury oversees the Office of Foreign Assets Control (OFAC).Office of Foreign Assets Control (OFAC).

►The OFAC is responsible for ensuring that The OFAC is responsible for ensuring that no exports reach organizations, countries, no exports reach organizations, countries, or individuals subject to embargo, or individuals subject to embargo, boycott, or economic sanctions.boycott, or economic sanctions. http://http://www.treas.gov/offices/enforcement/ofacwww.treas.gov/offices/enforcement/ofac

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How do I determine if I have an How do I determine if I have an export issue?export issue?

►Does your research team include Does your research team include members/collaborators from foreign members/collaborators from foreign countries (including graduate students)?countries (including graduate students)?

►Will the results be publicly available (e.g., Will the results be publicly available (e.g., presentations, publication, website, etc.)?presentations, publication, website, etc.)?

►Does the project involve any regulated Does the project involve any regulated categories? categories?


Yes No Contact CSRP for Instructions

No Issue

Yes No No IssueContact CSRP for Instructions

Yes NoContact CSRP for Instructions

No Issue

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How do I determine if I have an How do I determine if I have an export issue? (cont.)export issue? (cont.)

►Will there be restrictions on publications, Will there be restrictions on publications, access, dissemination, or proprietary access, dissemination, or proprietary information?information?

►Will I be receiving any restricted information?Will I be receiving any restricted information?

► Is the research/equipment/data, etc, going Is the research/equipment/data, etc, going overseas to a foreign company, government, overseas to a foreign company, government, or individual?or individual?


Yes

Yes

Yes

No

No

No

Contact CSRP for Instructions



No Issue

No Issue

No Issue

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How do I determine if I have an How do I determine if I have an export issue? (cont.)export issue? (cont.)

►Could the end product of your project Could the end product of your project be utilized in a manner that would be utilized in a manner that would require the need for an export license require the need for an export license (“dual-use”, military, etc.)?(“dual-use”, military, etc.)?Yes NoContact CSRP for

InstructionsNo Issue


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I have an export…how do I know I have an export…how do I know if I need an export license?if I need an export license?

►When there is a specific export in When there is a specific export in mind, a few simple questions can mind, a few simple questions can determine if you need an export determine if you need an export license:license: What are you exporting?What are you exporting? What is the destination of your export?What is the destination of your export? Who will receive your export?Who will receive your export? What will your export be used for?What will your export be used for?


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What are you exporting?What are you exporting?

► Almost all restricted exports can be found Almost all restricted exports can be found on the Commerce Control List.on the Commerce Control List. CCL is broken into 10 broad categories.CCL is broken into 10 broad categories.

► Exports on the CCL have specific Export Exports on the CCL have specific Export Control Classification Numbers (ECCN), Control Classification Numbers (ECCN), which indicate that a license may be which indicate that a license may be needed.needed. All ECCN indicate the level of control placed on All ECCN indicate the level of control placed on

each export (restricted export, allowed export, each export (restricted export, allowed export, etc.).etc.).


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Commerce Control List Commerce Control List CategoriesCategories

► 0 = Nuclear Materials, Facilities and Equipment0 = Nuclear Materials, Facilities and Equipment► 1 = Materials, Chemicals, Microorganisms and Toxins1 = Materials, Chemicals, Microorganisms and Toxins► 2 = Materials Processing2 = Materials Processing► 3 = Electronics3 = Electronics► 4 = Computers4 = Computers► 5 = Telecommunications and Information Security5 = Telecommunications and Information Security► 6 = Sensors and Lasers6 = Sensors and Lasers► 7 = Navigation and Avionics7 = Navigation and Avionics► 8 = Marine8 = Marine► 9 = Propulsion Systems, Space Vehicles, and Related 9 = Propulsion Systems, Space Vehicles, and Related

Equipment Equipment


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Unclassified ExportsUnclassified Exports

►All exports that do not fit into the All exports that do not fit into the categories previously listed are categories previously listed are classified as EAR99.classified as EAR99.

►EAR99 exports typically do not require EAR99 exports typically do not require that licenses be obtained, but that licenses be obtained, but exporting these items to questionable exporting these items to questionable countries or individuals, or for countries or individuals, or for questionable means, may warrant the questionable means, may warrant the need for a license. need for a license.


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What is the destination What is the destination of your export?of your export?

►Exports can be restricted by country of Exports can be restricted by country of destination (embargoed countries).destination (embargoed countries). Countries associated with supporting Countries associated with supporting

terrorist activities are almost always terrorist activities are almost always denied.denied.

►Some exports are restricted Some exports are restricted worldwide.worldwide.


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Embargoed CountriesEmbargoed Countries

► Current embargoed countries are the Balkans, Current embargoed countries are the Balkans, Belarus, Burma, Cote d’Ivoire (formerly known Belarus, Burma, Cote d’Ivoire (formerly known as the Ivory Coast), Cuba, Democratic as the Ivory Coast), Cuba, Democratic Republic of the Congo, Iran, Iraq, Liberia, Republic of the Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, and Zimbabwe.North Korea, Sudan, Syria, and Zimbabwe.

► An up to date list can be obtained from the An up to date list can be obtained from the Department of the Treasury’s website.Department of the Treasury’s website. http://http://

www.treas.gov/offices/enforcement/ofac/programswww.treas.gov/offices/enforcement/ofac/programs//


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Who will receive your export?Who will receive your export?

► Some organizations and individuals are Some organizations and individuals are prohibited from receiving U.S. exports by prohibited from receiving U.S. exports by several federal agencies (including several federal agencies (including embargoed countries).embargoed countries).

► All entities prohibited can be found on the All entities prohibited can be found on the following lists:following lists: Entity ListEntity List Treasury Department Specially Designated Treasury Department Specially Designated

Nationals and Blocked Persons ListNationals and Blocked Persons List The Unverified ListThe Unverified List


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Entity ListEntity List

►List of all organizations prohibited from List of all organizations prohibited from receiving U.S. exports due to activities receiving U.S. exports due to activities with weapons of mass destruction.with weapons of mass destruction. Administered by the Bureau of Industry Administered by the Bureau of Industry

and Security, Department of Commerce.and Security, Department of Commerce. http://www.bis.doc.gov/http://www.bis.doc.gov/

complianceandenforcement/complianceandenforcement/liststocheck.htmliststocheck.htm


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Treasury Department Specially Treasury Department Specially Designated Nationals and Blocked Designated Nationals and Blocked

Persons ListPersons List

►List composed of individuals and List composed of individuals and organizations suspected of either organizations suspected of either representing restricted countries or representing restricted countries or known to be involved in terrorism and known to be involved in terrorism and narcotics trafficking. narcotics trafficking. http://www.treas.gov/offices/http://www.treas.gov/offices/

enforcement/ofac/sdn/enforcement/ofac/sdn/


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The Unverified ListThe Unverified List

►List composed of groups that are List composed of groups that are suspected of having a connection with suspected of having a connection with a restricted country/individual, but not a restricted country/individual, but not completely investigated with an end-completely investigated with an end-check by the Bureau of Industry and check by the Bureau of Industry and Security, Department of Commerce.Security, Department of Commerce. http://www.bis.doc.gov/Enforcement/Unvehttp://www.bis.doc.gov/Enforcement/Unve

rifiedList/unverified_parties.htmlrifiedList/unverified_parties.html


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What will your export be used What will your export be used for?for?

►Exports to organizations, countries, or Exports to organizations, countries, or individuals known to be involved with individuals known to be involved with the production or distribution of the production or distribution of weapons of mass destruction are weapons of mass destruction are restricted, since the export in question restricted, since the export in question could be utilized in a harmful or could be utilized in a harmful or destructive manner.destructive manner. Ensure your export is not going to any Ensure your export is not going to any

restricted individual, group, organization, or restricted individual, group, organization, or country.country.


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What are the penalties for What are the penalties for ignoring export controls?ignoring export controls?

► The penalties for non-compliance are The penalties for non-compliance are severe. Fines can reach up to $1 million (for severe. Fines can reach up to $1 million (for Universities and Individuals) for each civil Universities and Individuals) for each civil violation of an EAR, ITAR, or OFAC violation of an EAR, ITAR, or OFAC regulation.regulation.

► Criminal penalties for willful misconduct can Criminal penalties for willful misconduct can also result in up to 10 years of imprisonment also result in up to 10 years of imprisonment or $1 million fine for each violation of an or $1 million fine for each violation of an EAR, ITAR, or OFAC regulation for EAR, ITAR, or OFAC regulation for researchers and administrators.researchers and administrators.


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Are there any exemptions from Are there any exemptions from export controls?export controls?

►No export license is needed if the No export license is needed if the information being exported is freely information being exported is freely obtainable to the public.obtainable to the public. Fundamental Research ExemptionFundamental Research Exemption Educational Material ExemptionEducational Material Exemption Public Domain ExemptionPublic Domain Exemption

►No export license may be needed for foreign No export license may be needed for foreign nationals working in U.S. institutions of nationals working in U.S. institutions of higher education (with special conditions). higher education (with special conditions).

►Government sponsored research is not Government sponsored research is not subject to Export Controls because it has its subject to Export Controls because it has its own security controls.own security controls.


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Fundamental Research Fundamental Research ExemptionExemption

►No export license is necessary for No export license is necessary for basic and applied research performed basic and applied research performed in the areas of science and in the areas of science and engineering performed in U.S. engineering performed in U.S. institutions of higher education.institutions of higher education. Results of research are published and Results of research are published and

shared broadly within and beyond the shared broadly within and beyond the scientific community.scientific community.


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Educational ExemptionEducational Exemption

►No export license is needed for No export license is needed for information concerning general information concerning general science, mathematic, and engineering science, mathematic, and engineering principles freely taught in U.S. principles freely taught in U.S. institutions of higher education or institutions of higher education or information in the public domain.information in the public domain.


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Public Domain ExemptionPublic Domain Exemption

►No export license is needed for the No export license is needed for the sharing of technical data or sharing of technical data or information with a foreign national information with a foreign national inside the U.S. as part of a class, inside the U.S. as part of a class, laboratory, or conference or seminar, if laboratory, or conference or seminar, if the same technical data or information the same technical data or information has already been widely published or has already been widely published or is available to the public.is available to the public.


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Employment ExemptionEmployment Exemption

►No license is required if a foreign national is No license is required if a foreign national is employed full time in the U.S. by a employed full time in the U.S. by a university*, provided that:university*, provided that: The individual has a permanent U.S. residence.The individual has a permanent U.S. residence. S/he is not a national of an export-prohibited S/he is not a national of an export-prohibited

country.country. The individual has been advised, in writing, not The individual has been advised, in writing, not

to share information with other foreign nationals. to share information with other foreign nationals.

*This exemption does not apply to graduate students.*This exemption does not apply to graduate students.


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Where do I go for more Where do I go for more information?information?

► If you are unsure if an Export License If you are unsure if an Export License is necessary, contact the Center for is necessary, contact the Center for Sponsored Research and Programs at Sponsored Research and Programs at 521-6494 or 522-5781.521-6494 or 522-5781.

►Additional information on Export Additional information on Export Controls can be found at the Controls can be found at the Department of Commerce, Bureau of Department of Commerce, Bureau of Industry and Security website (EAR):Industry and Security website (EAR): http://www.bis.doc.govhttp://www.bis.doc.gov


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Additional LinksAdditional Links

► Commerce Control ListCommerce Control List http://www.access.gpo.gov/bis/ear/pdf/indexccl.phttp://www.access.gpo.gov/bis/ear/pdf/indexccl.p

dfdf

► Export Administration Regulations WebsiteExport Administration Regulations Website http://www.access.gpo.gov/bis/index.htmlhttp://www.access.gpo.gov/bis/index.html http://www.access.gpo.gov/bis/ear/pdf/734.pdf http://www.access.gpo.gov/bis/ear/pdf/734.pdf

► ITAR Embargoed CountriesITAR Embargoed Countries https://www.pmddtc.state.gov/country.htmhttps://www.pmddtc.state.gov/country.htm

► License ExemptionLicense Exemption http://www.access.gpo.gov/bis/ear/pdf/740.pdfhttp://www.access.gpo.gov/bis/ear/pdf/740.pdf


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1 An Introduction to Export Controls at UNCP Created by the Center for Sponsored Research and Programs at UNC Pembroke