SI’S EXPORT COMPLIANCE PROGRAM

1. SI’S EXPORT COMPLIANCE PROGRAM • Export Compliance Officer (ECO) • Position was created in 2013 • ECO is located at SAO, Cambridge, MA • Responsible for both SAO and SI export compliance issues • Located in Sponsored Programs and Procurement Department

2. Agencies That Regulate Controlled Items, Software or Data, Cultural Exchanges and Financial Transactions • Directorate of Defense Trade Controls, US Dept. of State • Bureau of Industry and Security, US Dept. of Commerce • Office of Foreign Assets Controls • Bureau of Census

3. Agency That Regulates Defense Items, Software or Data • US Dept. of State, Directorate of Defense Trade Controls • Regulates defense articles, subassemblies, parts and technology, including spacecraft systems and associated equipment, electronics, including certain focal plane detectors, chemical and biological agents and equipment. • SI Actions: • Obtain licenses for exports of controlled equipment • Obtain license or restrict collaboration with foreign sponsors or affiliates for ITAR-controlled programs • Ensure conference topics and venue qualify as fundamental research • Secure labs, computer networks, and mobile devices if working on export-controlled projects • Screen all (?) SI-affiliated persons and visitors against Denial Lists

4. Agencies That Regulate Commercial Items, Software or Data, • Bureau of Industry and Security, US Dept. of Commerce regulates “dual use” commercial items, production equipment, software and technology. These are items that have a strategic purpose with respect to national security, foreign policy, missile technology, proliferation, regional stability and crime control • SI Actions • screen awards with international sponsors, collaborators, foreign travel, purchase of equipment for controlled items on Commerce Control List • Obtain export licenses for equipment and deemed exports (EAR NDA may be available) • Screen against denial lists and for boycott of Israel • Ensure we comply with missile technology restrictions • Comply with country sanctions for equipment exports • Ensure conference topics and venue qualify as fundamental research • Maintain audit trail for five years

5. Agencies That Regulate Cultural Exchanges and Financial Transactions • Office of Foreign Assets Controls • licenses all exchanges and financial transactions with sanctioned countries • SI Actions • identify any projects with sanctioned countries: Cuba, Iran, North Korea, Sudan, Syria and determine if we can participate and, if yes, whether an export license is required • Screen all sponsors against Specially Designated Nationals List (include blocked persons from other countries such as Columbia, Mexico, Yemen, among others.) • Comply with financial sanctions relating to these countries

6. Agency That RegulatesAll Tangible Exports • US Dept. of Commerce, Census Bureau • Reports export clearance and trade statistics • SI Actions • Ensure Registrars are trained in Foreign Trade Regulations • Review freight forwarder records and Fed Ex accounts to ensure proper Electronic Export Information (EEI) filing in Automated Export System • Ensure a record is maintained for five years • Verify information on EEI filing is correct

7. Export License Decisions • 1. What is it? And does it need a license? • If so, from DDTC or BIS? • Is the item on a list for control? (US Munitions List of Commerce Control List) • Other regulatory concerns - Is it hazardous (X-ray, lithium batteries, solvents, magnetic), regulated for medical (FDA) or other reasons? • 2. Is the value of the export over $2500 or is the item subject to an export license? • The export needs to be filed in the Bureau of Census Automated Export System. The shipping company can do it for SI but we need to get the filing number and a copy for our records. Also required for Puerto Rico and some US possessions.

8. Export License Decisions (cont’d) • 3. Who is receiving it? • We need to check the name against the government denial lists • 4. Where is it going? • Is the item going internationally or to a US possession like Puerto Rico? • Make sure the country is not subject to trade restrictions (e.g., Cuba, Iran, North Korea, Sudan and Syria) • 5. Make sure all activities comply with the license conditions • Equipment, dollar value, parties involved, return, and reporting to US Government

9. Currently Work With Key Personnel at SAO • Directly: • SPP, Engineering, PIs and PMs, NASA Travel Coordinator, Fellowships Program • Support: • IT,Procurement,HR, Facility Managers, Accountable Property Officer, Shipping and Receiving

10. Units involved at SI • Finance and Administration, Under Secretary for Science • OSP, OIR, OGC, OCON, HR, CIO, Fellowships and Internships • Registrars, Research Centers, NASM, NZP • Traveling Exhibits Dept., SI Retail

11. 1. Initial Identification of Export- Controlled Projects-SAO SPP sent email to PIs Spring 2012 asking if their contract was controlled Compiled list of “possible” ITAR/EAR Controlled programs (See next page for sample) PI responded and provided names of persons, if working on controlled programs 1 ECO reviews programs with non-US persons first. Screened names and nationalities SPP- add PeopleSoft flag for proposals/ awards with export control clause No Any hits? 1 Yes Do new awards, federal projects, IR&D have export control clause or controlled instruments? Yes Resolve hit. (Remove person if true hit.) End No

13. 2. Classification Process with PIs ECO - Manager of SPP Review new proposals and awards (grants, federal, IR&D). Add candidate programs to “Possible controlled programs list” ECO contacts PI to meet with Classification Team. ECO provides PI/PM “Controlled Items” List PIs reviews list of “Controlled Items” from US Munitions List, (US ML) & Commerce Control List (CCL) 1 No PI meets with Classification Team to discuss US ML and CCL to classify Is program ITAR or EAR Controlled? ECO - Remove from “Possible Controlled programs” list 1 Yes 2 ECO Work on TCP issues: lab space, approve persons working on program, IT privileges. Apply for export license, if necessary ECO - Flag as ITAR or EAR in attributes in PeopleSoft. No Are there other similar projects or using same eqt? 2 End Yes Complete program classification form and TCP report 1

14. 3. Export of (controlled) Items ECO provide export checklist to gather details ECO alerts Accountable Property Officer about export PM/PT contacts ECO about export 1 ECO- Ensure license, screen against. Denied Persons. Complete invoice and Shipper’s Letter of Instruction per EAR/ITAR. ECO Work with freight forwarder to lodge license. Accountable Property Officer assists with shipment Export Controlled? Yes 2 1 No ECO Makes sure filing is correct per Foreign Trade Regs, file for 5 years. Yes Accountable Property Officer - file export docs for 5 years. End Export clearance filing? 2 No

15. 4. Approval of Conferences* ECO reviews abstract, country, if program is controlled, if open conference, export control clause Foreign Travel Coordinator or traveler copies ECO on travel request ECO sends abstract to conference approval team 1 Request traveler to contact sponsor for any limitations on topic or approval. Yes ECO receives answer Does sponsor need to approve? 2 1 No ECO - Advises traveler not to discuss ITAR controlled topics in detail. Reminder of mobile device policy. Traveler signs form. ECO - Advise Foreign Travel Coord. that conference is approved File form for 5 years Traveler receives approval or limitations. forwards sponsor’s response to ECO - 2 * This is the current process and will be modified in the future

16. Our Export Compliance Goals • Goal is to prevent violations • Demonstrate “Due Diligence” • Apply for all required export authorizations and explain provisos to PIs and project personnel. • Ensure that proper records are created and maintained (Classification, conference approval, export license shipping documents, export clearance filings.) • Ensure security measures for laptops and other mobile • devices are followed, especially when traveling abroad