Complying with Export Controls at GWU

A Brief Primer on Export Controls

Presented by:Luthrecia D. Wiley

Compliance Specialist – Export ControlsResource Management, Operations, and

Emergency Preparedness

GW Policy on Exports

“It is the policy of the University to comply with U.S. export control laws.

It is the responsibility of faculty and administrators to be aware of and comply with these laws and the University’s written instructions and procedures.”

GWU Export Control Policy, October 1, 2004

http://www.gwumc.edu/orm/images/ExportControPolicy08-07.pdf

Roles and Responsibilities

•

All GW employees must exercise due diligence

before transferring any commodity, technology or software

•

Ask appropriate questions to determine whether an export control issue exists−

What is the item?

−

Where is it going?

−

Who will receive it?

−

What will be the end use?

−

What else does the end user do?

It’s bigger than just research…

•

Admissions (Undergrad & Grad)•

Compliance/Audit•

Environmental Health & Safety•

Human Resources•

Information Security•

International Affairs•

Police & Security•

Purchasing•

Shipping•

Tech Transfer (MTAs, Collaborative Agreements)•

Travel

Key Terms

•

Exports

•

Export Controls

•

Deemed Exports

•

Foreign Nationals/Foreign Persons and Restricted Parties

•

Export Triggers

What is an export?

•

any item subject to the regulations−

shipped or transmitted from the U. S. to a foreign destination

•

regular mail•

uploads or downloads from the Internet•

emails to a foreign destination•

chat conversations

−

release of source code or technologies to foreign nationals in the U.S.

What are export controls?

Laws governing the export of sensitive items

−aka Export Control Laws (ECLs)−include equipment, technology, software−often used at an academic institutions in coursework and research−can apply to all activities, regardless of funding (e.g., internal or external $$)

What is a “deemed export”?

•

Disclosure or transfer of export controlled software, technologies or technical data to a “Foreign Person”

or

entity inside the US−

Students (undergrad or grad)

−

Visiting faculty and scholars−

Staff (permanent or temporary)

−

Visitors and guests

What is a “foreign person”?

Any foreign corporation, business association, partnership, trust, society, or any other entity or group that is not incorporated or organized to do business in the United States−

international organizations, foreign governments and any agency or subdivision of foreign governments (e.g. diplomatic missions)

−

anyone who

is

not a U.S. citizen, a lawful permanent resident of the United States (i.e., a “green card”

holder) or who does not have refugee or asylum status in the United States

Who are “Restricted Persons”?

Designated persons and entities with whom certain transactions are restricted (i.e., a license generally is required) or are prohibited altogether

•

Entity List•

Denied Persons List

•

Unverified List•

General Orders

U.S. Regulatory Regimes & Governance

•

Department of Commerce−

Bureau of Industry and Security (BIS)

•

Export Administration Regulations

(EAR)

•

Department of State −

Directorate of Defense Trade Controls (DDTC)

•

International Traffic and Arms Regulations

(ITAR)

•

Department of the Treasury−

Office of Foreign Assets Control (OFAC)

•

Economic and Trade Sanctions

Regulatory Differences

EAR•

Commerce Control List

(CCL)− Divided into 10

categories

• Covers “dual use”

items−(e.g., items that have both

commercial and military or

proliferation applications)

• Covers both− goods and technology

•Items most commonly usedin academia

ITAR• US Munitions List (USML)

−Divided into 20categories (+ miscellaneous items)

• Covers military items • defense articles • Very restrictive

OFAC•

enforces economic and

trade sanctions

Are there any exclusions?

YES--

a license is not

required if one of the four exclusions applies:1.Education Exclusion2.Public Domain Exclusion/Publicly Available3.“Fundamental Research” Exclusion4.Employment Exclusion (ITAR only)

Why do we need them?

•

National Security•

Proliferation of chemical and biological weapons

•

Nuclear Nonproliferation •

Missile Technology

•

Anti-Terrorism (Balkans, Belarus, Burma, Cote d’Ivoire (Ivory Coast), Cuba, DR Congo, Iran, Iraq, Liberia, North Korea, Sudan (Darfur Region), Syria, and Zimbabwe)

•

Crime Control•

Regional Stability

•

U.N. Sanctions

What activities “TRIGGER” export controls?•

International travel−

with high tech equipment, confidential, unpublished or proprietary information or data, or with laptop computers, web-enabled cell phones and other personal equipment that contains encryption

software

•

Research in export-restricted science and engineering areas −

(examples: high performance computing, space/satellite technology, encryption technology, select agents & toxins, etc.)

•

Sponsored research containing contractual restrictions on publication or dissemination

What activities “TRIGGER” export controls?•

Shipping or Taking Items Overseas −

including laptops, GPS equipment, mobile devices, etc., devices that contains encryption

software

•

Engaging in activities with or involving countries subject to U.S. sanctions

•

Use of 3rd Party Export-Controlled Technology or Information

•

Providing Financial Support/International Financial

Transactions

Ultimately, how could controls affect GWU?

May restrict:−

Ability of foreign students or researchers to participate in activities

−

Ability to provide services (including training in the use of equipment) to foreign persons

−

Ability to send equipment,

spare/replacement parts, technology

or software to foreign countries

−

Ability to collaborate with researchers

in foreign countries

Why is all this important?

•

Avoids severe criminal and civil penalties for the institution and the individuals involved−Civil penalties up to $500,000 per transaction−Criminal penalties up to $1 million and jail time

−Suspension/denial of export privileges

•

Could adversely impact GW’s

ability to secure government contracts and awards

Case #1: “Former Professor Is Convicted of Sharing

Sensitive Research….”

In a case that could have implications for

universities that conduct militarily sensitive research, a former professor who worked as a consultant on a defense research project was convicted on Wednesday of violating national-security laws.

After a weeklong trial in U.S. District Court in

Knoxville, Tenn., the jury found

J. Reece Roth, a retired

professor of electrical and computer engineering

at the University of Tennessee at Knoxville,

guilty

on

18 counts of conspiracy, fraud, and multiple violations

of the

Arms Export Control Act, a federal law that prohibits disclosing sensitive technology to foreign countries.”

From – The Chronicle of Higher Education – September 4, 2008

Case #2: “Former student gets 15 years for

supporting terrorism…”A former University of South Florida student has been sentenced to 15 years in prison for providing material support to terrorists, including making a videotape showing how to assemble and use a remote-controlled bomb, prosecutors said.

At a court hearing, a sheriff's deputy who stopped their Toyota Camry for traveling 60 mph in a 45-

mph zone said he became suspicious when one of the men closed a laptop computer and placed it in the back seat when the car was pulled over. Mohamed was driving the car, authorities said. A search of Mohamed's laptop found "a large number of file folders containing information relating to the manufacture and use of bombs, rockets and other explosives, including several video recordings showing the use of such devices to attack and destroy manned United States military vehicles," prosecutors said in a statement Thursday.

Attorneys have said Mohamed is an Egyptian national who was born in Kuwait. He was a teaching assistant at USF, where he was pursuing a doctorate in civil engineering.

From – CNN – December 19, 2008

What can “I” do to comply?

1.

Know the policiesa)

Export Control Policy

b)

Laptop Computer and Mobile Device Security Policy

c)

Data Classification Security Policy

2.

Be able to identify “trigger”

activities

3. Communicate

Closing Thoughts…

•Export compliance isn’t optional; it’s our duty

•Export control issues must be considered from a

global perspective

•Remember to keep lines of communication open at

all times

Export Compliance

•

Website: http://www.gwumc.edu/orm/

•

Includes:−

GWU Export Control Policy

−

Decision-tree−

Additional guidance

−

Links to EAR, ITAR, OFAC, and more …

Contact InformationOffice of Resource Management, Operations,

and Emergency Preparedness

Astra Bain-DowellAssociate Vice President

Luthrecia D. WileyExport Controls Compliance Specialist

Ross Hall, 4th Floor Room 430Phone: (202) 994-2312, 5603 (direct)

Email: resldw@gwumc.eduQuestions about export controls? exportcontrol@gwumc.edu