EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

1. EXPORT ADMINISTRATION REGULATIONS (EAR)CLASSIFICATION PROCESS

2. THE EAR PROCESS – IF EAR APPLIES, WHAT NEXT? • STEP 1: PI must classify the type of technology or science being developed on the “Commerce Control List” by determining the ECCN – Export Control Classification Number • http://w3.access.gpo.gov/bis/ear/ear_data.html

3. COMMERCE CONTROL LIST • Contains lists of items subject to licensing authority of BIS • Each entry is called Export Control Classification Number (ECCN) (Five alpha-numeric characters) Items listed in terms of technical parameters

4. ECCN BREAKDOWNEXAMPLE: 3D101 • 3– Category • D – Product Group • 1 – Reason for Control • 0 – Relates to Reasons for Control • 1 – Used for Numerical Ordering

5. TEN CATEGORIES IN THE CCL (0 - 4) • 0. Nuclear Materials, Facilities & Equipment & Miscellaneous • 1. Materials, Chemicals, Microorganisms & Toxins • 2. Materials Processing • 3. Electronics Design, Development and Production • 4. Computers

6. TEN CATEGORIES IN THE CCL(5 – 9) • 5. Telecommunications & Information Security • 6. Sensors and Lasers • 7. Navigation and Avionics • 8. Marine (ships & vessels) • 9. Propulsion Systems, Space Vehicles and Related Equipment

7. PRODUCT GROUPS • A = Equipment, Assemblies & Components • B =Production, Test & Inspection Equipment • C = Materials (raw) • D = Software • E = Technology

8. I found the ECCN!

9. FINDING THE ECCN • Review general characteristics (technical parameters) of items to arrive at Category and Product Group • Match characteristics of item with ECCN and subparagraph • HINT: Check the CCL alphabetical index

10. GENERAL PROHIBITIONS, PART 736 • STEP 2:Check General Prohibitions • Prohibit certain exports, re-exports, and other conduct, without a license, license exception or determination that no license is required • General Prohibitions 1-10 apply to items having a specific ECCN • General Prohibitions 4-10 apply to items that are EAR99 (not found on the CCL)

11. GENERAL PROHIBITIONS 1-3 Apply only if your item is classified under an ECCN: • Export and re-export of controlled items to listed countries • Re-export and export from abroad of foreign-made items incorporating more than a de minimis amount of controlled U.S. Content • Re-export and export from abroad of the foreign produced direct product of U.S. technology and software

12. EAR 99-what???

13. GENERAL PROHIBITIONS 4-10 Apply if your item is classified under a specific ECCN or is “EAR 99” (items not found on the CCL- usually no license required) • Engaging in actions prohibited by a denial order (check denied persons/entities lists) • Export or re-export to prohibited end-uses or end users (e.g., chemical and biological warfare) • Export or re-export to embargoed or special destinations • Support of proliferation activities

14. GENERAL PROHIBITIONS, Continued • Intransit shipments and items to be unladen from vessels or aircraft • Violation of any order, terms, and conditions • Proceeding with transactions with knowledge that a violationhas occurred or is about to occur If Prohibitions don’t apply, look for Exceptions

15. LICENSE OR EXCEPTION UNDER EAR? • STEP 3: Try to find the exception! • Using the CCL check reasons for control: Look at the “Reason for Control” section directly under the category heading and License Requirements.-- E.g.: Reason for control: NS, MT, AT • Match specific controls to Country Chart column • Look for an “X” in Commerce Country Chart

16. LICENSE OR EXCEPTION UNDER EAR, Continued • If an “X” is present, look under the “License Exceptions” category below the “Control(s)” section • If no license exception available, license must be obtained (4-6 weeks to process)

17. REASON FOR CONTROL • AT= Anti-Terrorism • CB= Chemical & Biological weapons • CC= Crime Control • CW=Chemical Weapons Convention • EI = Encryption Item • FC=Firearms Control • MT=Missile Technology • NP=Nuclear Proliferation • NS=National Security • RS=Regional Stability • SI=Significant Item • SS=Short Supply • UN=United Nations • XP=Computers

18. COMMON LICENSE EXCEPTIONS • LVS – Limited Value Shipments • Pertains to Country Group B • Identified by “LVS: $(value)” on the CCL (e.g.: LVS: $5000) • GBS – Group B Shipments • Pertains to Country Group B • Identified by “GBS: Yes” on the CCL • CIV – Civil End-Users • Pertains to Country Group D-1 • Identified by “CIV: Yes” on the CCL • National Security controlled itemsonly

19. COMMON LICENSE EXCEPTIONS,Continued • TSR – Restricted Technology and Software • Pertains to Country Group B • Identified by “TSR: Yes” on the CCL • National Security Controlled Items only • Written Assurance – Letter can be written stating software will not be released to nationals of certain country groups (e.g. D:1 and E:2)

20. COMMON LICENSE EXCEPTIONS,Continued • TMP -Temporary Exports and Re-exports • Tools of trade • Replacement parts • Exhibition and demo • Inspection and calibration • Assembly in Mexico • To US subsidiary, affiliate or facility in Country Group B • Beta test software • Return to US within 1 year

21. DEEMED EXPORT EXCEPTIONS • CIV: Civil End Use • Applies to deemed exports for 3E001/3E002 technology • Requires Foreign National Review (FNR) • TSR: Technology/Software Under Restriction • Applies to technology/software under national security only for country group “B” nationals • Requires Letter of Assurance • APP – Computers • Applies to deemed exports for 4D001/4E001 software and technology. (FNR required)

22. CLASSIFICATION EXERCISE Find the ECCN and Reasons for Control for the following items - Start at beginning of Category and Product Group and move forward. Match technical parameters/descriptive text. • Integrated circuits radiation hardened to withstand a total dose of 5x103 Gy (Si) or higher. • Field programmable logic devices with a toggle frequency of 150 Mhz.

23. CLASSIFICATION EXERCISE You have a PI who is working on a project with a colleague who lives in the Peoples Republic of China. As part of the research, the PI must send his colleague 20 microprocessors manufactured from a compound semiconductor and operating at a clock frequency of 50 Mhz. Is a license necessary? If yes, is there an exception available? • First: Find ECCN • Second: Check Reasons for Control (license requirements) • Third: Check Country Chart-look for “X” • Fourth: If “X”, then a license is required unless---- • Fifth: Look for exception; if none available, license IS REQUIRED

24. EXERCISE – Part 1 OSU is subcontractor on a non-military project that is funded by USAID. The project will take place in Iraq and involves geographic mapping. Computers, software, and GPS units must be shipped to Iraq for the project and will not be returned to the U.S. Iraqi civilians as well as the PIs will be operating the equipment. The following items will be shipped: Dell computers: ECCN 4A994 Windows Servers 2003 Standard Edition: ECCN 5D992.b.1 Trimble GPS units: ECCN 7A994

25. EXERCISE – Part 2 • What are some of the issues? • What are the license requirements for each piece of equipment? • Are there any license exceptions? • Is a license required to ship? • If an Iraqi researcher (in the U.S.) was working with the development, production, or use of the technology associated with 7E994, would a deemed export license be required?

26. Kay Ellis Oklahoma State University (405) 744-9995 kay.ellis@okstate.edu http://www.research.okstate.edu