Introduction to Export Compliance

Office of Research ComplianceSeptember 17, 2012

Wendy Epley, ECoP®

Export Compliance Officer

College of Engineering

The Export Compliance Office Leadership: - The Office of the Vice Provost for Research

Management:- Wendy M. Epley Export Compliance Professional (ECoP®) - EAR & ITAR

Service: Maintains an export compliance program for the entire University to assist investigators, faculty and staff in the appropriate transfer of items, information, and equipment out of the U.S., or to a foreign national within the United States territory.

The office is responsible for: Training UM employees on basics of export compliance. Specialized training

for specific projects is also available. Reviewing contracts and agreements in collaboration with the GCs office Restricted Party Screening (RPS) I-129 Attestation Review Review purchase requisitions of high-end technology items International travel arrangements Technology Control Plan (TCP) investigations License applications to U.S. Government

The federal definition of an export is any item that is sent from the U.S. to a foreign destination; to anyone outside the U.S., including U.S. citizens to foreign entities, individuals, embassies or affiliates at any location, including the U.S.

Exporting may occur in any of the following ways:

“Items” include, but are not limited to, commodities, software or technology, retail software packages and technical information. 

In a university situation, these items include, but are not limited to: unpublished research findings, funds that are transferred to

restricted countries, entities or persons, biological specimens, microorganisms, toxins, electronics, computers, telecommunications, lasers, sensors and source code.

What Is An Export?

parcel phone e-mail lab tours meetings computer data visual inspection oral exchanges screen shots shared drives auditory

Sharing information with a foreign national may require an export license.The U.S. export control law treats or “deems” the sharing of technology or other information, even if it occurs completely within the U.S. or completely online, as an export to the foreign national’s country.

The Deemed Export Rule

What items are subject to the Deemed Export Rule?Any information, technology, technical data and software that cannot be freely shared, distributed, or published.

What common activities in research programs may be affected by the DER? Inclusion of foreign persons as project staff; Travel to foreign countries or institutions for collaboration, data collection, or

scientific/technical meetings; Presenting results from research (whether in the U.S. or abroad) with international

participants; Carrying technology, including laptops, PDAs, GPS devices, etc. when traveling; Hosting foreign visitors in a U.S. laboratory; Shipment of data equipment, software or research samples to locations outside the

U.S.

Triggers Within The Export Compliance Program Sponsored Research

• publication restrictions accepted; NDA terms note export restrictions• jointly shared laboratory equipment or technology that falls outside of FRE and may be

governed by dual-use export regulations• Institution responsible to understand whether equipment and/or technology is subject to

dual-use, ITAR, EAR controls• OFAC Regulations – nature of services and transactions with economic

embargoed/sanctioned countries and their foreign nationals

Faculty-Sponsored Research• Where a faculty member is using internal funding to pursue research; sponsored

programs does not have visibility into the research parameters or consulting relationships deriving from the work; FRE may not be applicable.

International Campuses and Collaborations• Depends on the scope and sensitivity of the activity; FRE may not be applicable

Distance Learning• On-line curriculum and academic relationships should be properly monitored;

registrations flagged from embargoed countries.• Need to make sure activity would not be interpreted by OFAC as providing a prohibited service or

value.

Why Should You Care?Prosecution applies to the individual and the institution. Monetary fines up to $1million or 5x value of export, per violation Imprisonment, Loss of License, Deportation, Other Sanctions

Fundamental Research Exclusion applies to any basic or applied research in science or engineering where the resulting information is ordinarily published and broadly shared in the scientific community.This exclusion only covers the “results” of research. It does not cover actual materials, items ortechnologies involved in or resulting from the research. Export Controls may still apply to these items.

Education Is Key

Basics of Export Compliance Training

Tuesday, September 18th, 2012

Wednesday, October 17th, 2012

Monday, November 12th, 2012

Wednesday, December 12th, 2012