Presentation 4 LH1107

8/12/2019 Presentation 4 LH1107

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U.S. Department of CommerceBureau of Industry and Security

Overview of BIS

Export ControlProgram

Bernard KritzerDirectorOffice of Exporter Services


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Topics of Discussion

BIS Mission

Regulatory Overview

Educational Tools

Focus on Compliance

Deemed ExportsExport Control Reform


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Bureau of Industry and Security

Bureau Mission: to advance U.S. national securityforeign policy, and economic interests

Statutory Authority: Export Administration Act(EAA) of 1979, as amended; InternationalEmergency Economic Powers Act, as amended

Responsibilities : BIS is responsible for

implementing and enforcing the ExportAdministration Regulations (EAR), which regulatethe export and reexport of most commercial anddual-use items.


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BIS Authority for Export

Controls Export Administration Act (EAA) of 1979,

as amended

International Emergency EconomicPowers Act, as amended (IEEPA)


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Export Administration Regulations

(EAR) Implement the Export Administration Act

Apply to dual-use items

Civil as well as military use

Not primarily for weapons or military

related use

Broad jurisdiction but narrow licensing

requirements

Item: Commodity, Technology or Software


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What is Subject to the EAR?

Scope of Commerce Controls All items in the U.S. (regardless of origin)

Certain items located outside the U.S.

Certain activities of U.S. persons

Releases of source code or technology to

foreign nationals in the United States or abroad

(Deemed exports and reexports)


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Why Does BIS Control Exports?

National Security

Foreign Policy

Anti-terrorismCrime control

Regional Stability

Non ProliferationNuclear weapons

Chemical/biological weapons

Missiles


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What Types Of Transactions

Does BIS Control Vs State?

BIS regulates exports, reexports and

certain transfers of items subject to

the EAR in addition to certain activities of U.S.persons.

State regulates exports of a defense article/technical

data; the disclosing, by any means, or transferring adefense article or technical data to a foreignperson in the United States or abroad; performing adefense service on behalf of or for the benefit of aforeign person in the United States or abroad


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Broad jurisdiction BUTnarrow license requirements

Export Administration

Regulations (EAR)

Implement the Export Administration Act

Apply to dual-use and commercial items


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Dual-use Items

Items that have both commercial and

military or proliferation applications.

This term is often used informally to

describe items that are subject to the EAR.


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Commerce Control List ( CCL )Part 774, Supplement No. 1

Contains lists of those items subject to the

licensing authority of BIS

Each entry is called an Export Control

Classification Number (ECCN)

Most items are described in terms of their

technical parameters


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What does Export Control

Classification Number ( ECCN ) tellus? Part 772

What items are controlled?

Why BIS controls the item?

Which destinations will require a license?

Country Chart in Supp. 1 to part 738,

What (if any) list-based license exception

applies?


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The Structure of the ECCN

0 A 018

0 Category

A Product Group

018 Type of Control


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Categories of the Commerce Control List

0 Miscellaneous & Nuclear Materials

1Materials, Chemicals,

Microorganisms, and Toxins

2 Materials Processing

3 Electronics

4 Computers

5 Part 1-Telecommunication

5Part 2-Information Security

6 Sensors & Lasers

7 Navigation & Avionics

8 Marine

9 Aerospace & Propulsion


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Product Groups of the Commerce

Control List

A Systems, Equipment & Components

B Test, Inspection & Production EquipmentC Materials

D Software

E Technology


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Type of Controls Associated

w/Entry0 National Security Reasons

1 Missile Technology Reasons

2 Nuclear Nonproliferation Reasons

3 Chemical & Biological Weapons Reasons

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Anti-terrorism

Crime Control

Regional Stability

Short Supply

UN Sanctions

Surreptitious Listening


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Most of the time related items are

grouped in series

Equipment,assembliesand

componentsTest,

inspectionand

productionequipment

Software

Technology

Materials


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Other Regulatory Agencies US Dept. of State - Directorate of Defense Trade Controls

US Dept. of Treasury - Office of Foreign Assets Control

US Dept. of Energy

Nuclear Regulatory Commission

US Dept. of Commerce Patent & Trademark Office

US Department of Interior

Food and Drug Administration

U.S. Department of Commerce Bureau of the Census (tradestatist ics and AES)

U.S. Department of Homeland Security Border andTransportation Security

U.S. Customs Service (works with BIS to ensure compliance)


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Deemed Exports

Release of technology or source code to a foreign

national in the U.S.

Considered to be an export to that persons homecountry

Does not apply to:

U.S. citizens Individuals granted permanent resident status

Protected individuals


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Deemed Export Concerns

Deemed export rule was established in 1994 to address nationalsecurity issues relating to the transfer of sensitive technologies tocertain foreign nationals working on controlled technology withinthe U.S.

The deemed export program balances two opposing concerns:

- The vital role of foreign nationals in U.S. industry andacademia, contributing to the strength of our industrial baseand our high-technology advantage, and ultimately our nationalsecurity.

- Foreign countries seek to illegally acquire controlled U.S.technology that could be diverted to the development ofweapons programs.


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Outreach and Education

Exporter Counseling Call Center

Web site www.bis.doc.gov

Contact e-mailE-mail notification

Exporter Counseling

BIS Seminar Program Annual Update Conference and Forum
http://www.bis.doc.gov/http://www.bis.doc.gov/


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Educational Resources

BIS Web site provides access to:

Export Control Basics

Online Training Modules

Most current version of EAR

Brochures and Publications

Past WebinarsVideo Portal of Annual Update Conference


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Export Management and

Compliance Provide guidance on best practice export

compliance strategies to assist in the development,

or enhancement of compliance programs.

Review written compliance manuals and provide

recommendations on how to strengthencompliance policies, procedures, and overall

program.


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BIS Focus on Compliance

Through seminars and one-on-one telephonecounseling, BIS is available to answer questions and

assist in export compliance efforts.

Provide Special Comprehensive License (SCL)counseling and evaluate SCL Internal Control

Programs.

Provide guidance and assistance on Validated End-

User (VEU) submissions and conduct compliance

reviews of VEU advisory opinion applications


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Export Control Reform

Three Phases of Development

Phase I - This phase includes implementing specific

reform actions already in process and initiating review ofnew ones.

Phase II - Results in a fundamentally new U.S. export

control system based on the current structure.

Phase III - completes the transition to the new U.S.

export control system.


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Key Recommendations:

Single Control List

Single Primary Enforcement Coordination Agency

Single Information Technology (IT) System

Single Licensing Agency


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Details:

http://www.whitehouse.gov/the-press-

office/fact-sheet-presidents-export-control-reform-initiative


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Contact BIS

Office of Exporter Services

Washington, D.C. (202) 482-4811

Northern California (408) 291-4212

Southern California (949) 660-0144

Export Enforcement (800) 424-2980

Nine Field Off ices in the U.S.

Documents

Presentation 4 LH1107