Transcript Proposal Processing/Routing and Submission via NORM

Certificate in Grants and Contracts
Administration Program Session 4:
Introduction to Export Controls
Wednesday, January 23, 2013
John Jacobs
Office of Compliance
Export Controls
Wednesday, January 23, 2013
John Jacobs
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Introduction to Export Controls
Is Export Control New
to The United States of America?
Early Tariffs
Civil War
WWI
September 11th 2001
Introduction to Export Controls
What/Why is the Issue/Concern with Export Control at
UNCC!
HSBC foreign bank: Violating DoT/OFAC
regulations concerning money laundering in
relation to Iran, Libya, Sudan, Burma, Cuba,
and Drug Cartels
Roth: U.S. citizen, Dr. Roth professor University
of Tennessee violated EAR and ITAR a number
incidents
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Introduction to Export Controls
What is an Export?
EAR: The shipment/transfer of items/technology/technical data out of the
United States that is subject to EAR or the same action to a foreign
person/national in the United States.
ITAR: (a) Sending or taking a defense article out of the United States in
any manner (b)Transferring registration, control or ownership to a foreign
person of any aircraft, vessel or satellite covered by the U.S. Munitions
List, whether in the United States or abroad (c) Disclosing (including oral or
visual disclosure) or transferring in the United States any defense article to
an embassy, any agency or subdivision of a foreign government(e.g.,
diplomatic missions) (d) Disclosing (including oral or visual disclosure) or
transferring technical data to a foreign person, whether in the United
States or abroad (e) Performing a defense service on behalf of, or for the
benefit of, a foreign person whether in the U.S. or abroad
Introduction to Export Controls
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:
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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
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Introduction to Export Controls
Scope of Controls of the EAR and ITAR Regulations
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Equipment
Chemicals/toxins
Biological
Software code
Computers
Associated technology
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Export Control Regulations
EAR: Export Administration Regulations - US
Department of Commerce – Bureau of Industry
and Security
Authorizes President to impose controls on dual use
goods for the following purposes:
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protect national security
promote foreign policy interests
implement international obligations
prevent shortages of goods domestically
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Basic Control Principles of EAR:
Dual-Use Items
• Controls goods, technology, or software subject to U.S.
jurisdiction
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U.S. goods wherever they are located
Foreign goods in the U.S.
Foreign made products containing U.S. parts & components
Technology
• Export from the U.S.
• Re-export from one foreign country to another
• Persons subject to U.S. jurisdiction
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Export Control Regulations
EAR: Export Administration Regulations - US Department
of Commerce – Bureau of Industry and Security
Continued
• Controls are imposed and maintained by
the Department of Commerce in
cooperation with the Departments of
State and Defense, and other agencies
Export Control Regulation
ITAR: International Traffic in Arms Regulations US Department of State – Office of Defense
Trade Controls
Controls all aspects of Ideas/Materials that are used
within Research/Development/Manufacturing any
items on the Munitions List of the United States this
includes subcomponents of major end items
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Export Control Regulations
OFAC: US Department of Treasury - Office of
Foreign Assets Control
• 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
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Introduction to Export Controls:
Embargo, Boycott, and Trade
Sanctions
• Controls are Country, Entity and Person Specific
• Terrorist Supporting Countries (T6)
Cuba
North Korea
Iran
Syria
Libya
Sudan
• Denied Parties List/ Restrictive Parties Screening
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UNCC PERSPECTIVE
• Universities know how to do compliance
• Export control regulations are no more
complicated than animal care regulations
• We didn’t learn animal care overnight
• We don’t have to learn export control
overnight
• So we don’t have to be afraid of this
• But we needed a plan
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UNCC Export Management System
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Designation of an institutional official
Training & professional development
Awareness programs
Record-keeping
Internal assessments
Legal counsel
Universities
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.”
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Universities Exclusions
• Fundamental Research Exclusion
• Educational Information Exclusion
• Public Information Exclusion
These are Exclusions, not Exemptions
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BIG Concern for Universities:
Deemed Exports
• The transfer of technology or technical data
to a foreign person/national in the U.S. is
“deemed” to be an export to that individual’s
home country
• Deemed exports is the primary challenge that
Universities face
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Operational Considerations
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Proposal review at all stages
Controls on visiting scientists & post doctorate
Student tracking
Travel, accounts payable, purchasing
Handling of proprietary information, software & encryption
Material transfer agreements
Taking or shipping items to a foreign country
Performing defense services; 6.3 funding
Controlling technology on campus
http://research.uncc.edu/compliance-ethics/export-control
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Export Controls
Penalties
EAR. Administrative penalties
for violations of the EAR may
include: (a) denial of export
privileges, (b) exclusion from
practice, (c) imposition of a
fine up to $250,000 per
violation, or twice the value of
the transaction, whichever is
greater, or (d) any combination
of the above. Criminal
penalties for a company
involve a fine up to the greater
of $1,000,000 or 5 times the
value of the exports per
violation.
ITAR. Civil penalties for ITAR violations
include a fine of up to $500,000 per
violation. Criminal penalties may
include a fine of up to $1,000,000 per
violation, imprisonment for up to 10
years per violation, or both. Additional
penalties may include seizure and
forfeiture of the merchandise, interim
suspension of export privileges, and
debarment - a prohibition from
exporting defense articles. Finally,
DDTC regularly requires the supervised
imposition of compliance programs.
Export Controls
Penalties
OFAC. Maximum civil
penalties for most
violations of OFAC
statutes and regulations
are $250,000 for each
violation or twice the
value of the transaction
(whichever is greater);
maximum criminal
penalties are fines of up
to $1,000,000 or, for an
individual, up to 20
years' imprisonment.
CBP. Penalties for violation of CBP statutes
and regulations allow for seizure
and forfeiture of the merchandise, as well
as the following penalties: (a) for fraud,
penalty is equivalent to the domestic value
of the imported merchandise; (b) for gross
negligence, penalty is the lesser of the
domestic value of the merchandise or four
times the loss of revenue to the U.S., or (c)
for negligence, the lesser of the domestic
value of the merchandise or two times the
loss of revenue to the U.S. 19 U.S.C. § 1
592.
Concerns You Need to Watch
•Restrictions on Publication
•Foreign Nationals on Campus
•Travel Outside the U.S.
•Carrying/Shipping Equipment/Samples Outside the U.S.
•Financial Payments to Foreign Nationals/Companies/Countries
•Collaborating with Foreign Colleagues in Foreign Countries or in the U.S.
•Providing Services or New Information Materials to or from a Boycotted
Country
•Joint Authorship/Editing of Articles with Foreign Nationals from Embargoed
Countries
•Accepting Export Controlled Technology/Technical Data/Information
•Side Deals
Office of Compliance
Export Controls
Introduction to Export Controls
Questions?
John Jacobs/ [email protected]/704.687.1877
Cameron Applied Research Center Room 319
Assessment Questions
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3)
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5)
What regulations cover export control?
List 4 concerns that you should watch for?
Name the Empowered Official?
Who do you call with a concern?
In what category does UNCC try to keep all the research?