EXPORT CONTROLS BASICS

1. EXPORT CONTROLS BASICS Office of Research Integrity University of Texas At San Antonio Javier Garcia Senior Research Compliance Coordinator

2. The Goals of this Module: • Provide a broad general overview of Export Control regulations which you must comply when carrying out your duties and responsibilities at UTSA. • Review the processes and procedures to ensure that University activities are conducted in compliance with export control regulations. • Identify where to go for help Next

3. Overview of Export Control • “Export Controls” refers collectively to those U.S. laws and regulations that govern the transfer of controlled information or technologies and services to foreign persons and/or foreign countries. • Protect national security • Advance U.S. foreign policy objectives and priorities • Prevent terrorism • Prevent the proliferation of weapons of mass destruction (WMD) by any means • Fulfill U.S. international obligations (e.g., UN sanctions, Australia Group) CBP Enforce all EC Laws EAR/CCL* “Dual-Use Items” Export Control Regulations • Nuclear Technology • Nuclear Material/Equipment OFAC* Economic & Trade Sanctions/Embargos ITAR/USML* Defense Items & Services, Technical Data *Click the Agency’s symbol for more information Next Previous

4. What constitutes an Export?ITAR 120.17, EAR 734.2(b) • Physical Exports – an actual shipment or transmission out of the Unites States, including the sending or taking a controlled item or a defense article out of the United States in any manner; • Visual or other inspection by non-U.S. persons of controlled items or defense article that reveals technology or source code subject to export control or technical data to a non-U.S. persons; or • Oral or written exchanges with Non-U.S. persons of technology, source code or technical data in the United States or abroad. • Deemed Exports – Releasing or otherwise transferring "technology", source code or technical data to a non-U.S. person in the United States; • Defense Service – Furnishing assistance in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles; • Providing a service or conducting any type of transactions with embargoed countries and individuals and/or entities listed on the "Prohibited Parties Lists". • Re-Exports – A shipment or transmission of a U.S.-origin item or technology from one foreign country to another foreign country; Next Previous

5. “Deemed” Exports Deemed exports are the primary area of export control exposure for the university • Any “release” or transfer of technology, software or information to a non-U.S. person within the U.S., – treated same as export to that country. • “Release” includes: (1) visual inspections; (2) oral exchanges; (3) emails; and (4) use abroad of information acquired in U.S. • Includes information necessary for “development, “production”, “use”– information about the operation, installation, maintenance, repair, overhaul, and refurbishing of a controlled item. • Residency status is important: (1) permanent residents (green card holders) and (2) “protected immigrants” have same right to access controlled technology or technical data as U.S. citizen Next Previous

6. Examples of Controlled Items • International Traffic in Arms Regulations (ITAR) – controlled items • Satellite Technology • Global Positioning Systems (GPS) • Unmanned Aerial Technology (e.g. Piccolo Ground Control Station, Gimbal Sensors) • Night Vision Technology • Navigation Systems • Sonar and Radar Systems • Military Equipment / Software • Infrared Cameras (FLIR) • Export Administration Regulation (EAR) – controlled items • Specified Lasers • Specified Laboratory Equipment • Encryption Technology • Sensors • Propulsion Systems • Infectious Agents, Toxins and Chemicals • Certain Materials for the Manufacture of Controlled Goods Previous Next

7. University Activities Subject to Export Controls • In addition to activities involving military items or weapons, export control directly impact the university’s ability to: • Receipt and/or use of export controlled items (commodities, software, and technology, defense article, technical data); material or proprietary information from other parties, including sponsor agencies or collaborators; • Teach and collaborate with non-U.S. persons inside or outside the U.S. (research, field work or course instruction); • Conduct research that restricts publication or participation by non-U.S. persons; • Employ non-U.S. faculty, staff, and students; • Visits or tours of non-U.S. persons through research areas and/or any other UTSA facility; • Travel outside the U.S.; • Ship or take controlled items, technology (e.g. unpublished, proprietary information or restricted information) or technical data overseas; • Conduct International financial transactions as a result of providing or receiving payments involving a foreign entity. Next Previous

8. ORI’s Role in Export Controls • Monitors and implements export control policies and maintains associated records as required. Educate the campus community to be aware of how the regulations may apply • Screen grants; foreign visitors, contracts, travel, purchasing, shipping; and any other activities in which export controls are most likely to arise • Certify all shipments outside of U.S. • Determine if an export license* is required: • Shipping • Deemed export (H1-B, Other non-U.S. Visitors, etc.) • Apply for Commodity Jurisdiction/Classification • Request Export License *Click here for more information on “EXPORT LICENSE” Next Previous

9. Faculty and Staff Responsibilities • All University faculty, staff, and administrators have a fundamental responsibility for ensuring their activities are in compliance with the law, as well as monitoring the activities of those under their oversight or supervision. • Export control laws are not intuitively obvious • Become familiar with situations that may involve export control regulations • Contact ORI if you believe that export controls may apply to an activity Next Previous

10. Basic Export Control Compliance Procedures • Traveling outside of United States • Taking UTSA equipment and/or participating at conference or meeting • Shipping or taking material overseas • Material Transfer Agreements • International Collaboration / Research Abroad • Conducting financial transactions with foreign individuals or entities • Purchasing or receiving equipment or technology for the research (e.g. Lab equipment may be subject to ITAR) • Hosting a Non-U.S. person’s visit Next Previous

11. Travel Outside of U.S. • A license could be required depending on what you are taking and the country you are traveling to • A license or technical assistance agreement would be required if you were providing a “defense service” to a Non-U.S. person • A defense service means the furnishing of assistance (including training) to a Non-U.S. person relative to a defense article. It also includes furnishing any technical data relative to a defense article. • In most cases, if you need to work abroad, a license exception or exemption is available! • EAR: “TMP” or “BAG” (UTSA Certification of Temporary Export Form) • An exception/exemption is not needed if you are taking a “clean” laptop to countries other than Cuba, Syria, Iran, North Korea, or Sudan • Items and software should be evaluated before travel • Remember OFAC regulations is about doing business with certain people or entities (International Collaboration) Next Previous

12. License Exception TMP (Temporary Exports) UTSA Certification of Temporary Export • UTSA faculty and personnel can ship or hand-carry certain “tools of the trade” to perform UTSA-related fundamental research and/or educational activities to most countries, provided • the property will remain under their “effective control” throughout their stay abroad, and • it will be returned to the U.S. within 12 months or will be consumed/destroyed abroad *Click here for information on “Routing for Traveling outside of U.S.” Next Previous

13. Shipping Outside of U.S. • Many items require export licenses or other government approvals to ship outside of the U.S. • License exception or exemption • Any item valued at $2500 or greater may require an Electronic Export Information submission to the Bureau of Census • EAR Export Determination: • Export Control Classification Number (ECCN) • Technical performance characteristics • Type of control • End-User and End-Use • ITAR Export Determination: • Export of U.S. Munitions List Items and Technologies is restricted to all destinations • Very few, narrow exemptions or exceptions *Click here for information on “Routing for Shipping Materials outside of U.S.” Next Previous

14. Transactions with Individuals or Entities Outside of the U.S. • Services provided or payments to entities/persons on the Prohibited Parties Lists could result in fines • Includes payments to entities in the U.S. or abroad • Payment to foreign entity should raise a red flag! • All International individuals and entities must be screened against the U.S. Government’s published Prohibited Parties Lists • ORI reviews all foreign purchases orders (under $15,000), ProCard purchases, potential vendors, and agreements / contracts. *Click here for information on “Routing for International Transactions (POs, ProCard, Agreements, etc.).” Next Previous

15. Purchasing or Receiving Controlled Items or Technology • Departments are responsible for preventing export violations (deemed export rule) • Department must request a letter from vendor stating that: • Equipment is/is not control by the EAR or ITAR • If control, request the commodity classification • Items intended for use abroad: • ORI must screen foreign recipients and destinations • ORI will determine is an export license is required • Items intended for use on U.S. locations: • Technical data listed on the USML and subject to ITAR also requires an export license. • For items listed on the CCL and subject to EAR, • The transfer of technology or source code relating to the use (i.e., operation, installation, maintenance, repair, overhaul and refurbishing) of equipment may be controlled in certain circumstances Next Previous

16. Non-U.S. Visitors • Responsibility of all departments, centers, faculty, researchers, and administrators at UTSA intending to invite or host international visitors to notify ORI of their intent and request the approval of such visit before the arrival of the international visitor (J1, H1B, Visiting Scholar, Agreements, etc.). • H1B I-129 Certification: U.S. Citizenship and Immigration Service (USCIS) requires a certification as to whether the beneficiary (visa applicant) will require an export license to access export controlled item, technology or technical data. • If license is required, the department certifies and ORI assist with the implementation of a TCP until the university receive the license. • All Other Visits: • Department submit a request via email for a restricted party screening prior to the visit. • Departments are responsible for notifying ORI if the non-U.S. visitor will have access (whether verbal, written, electronic, and/or visual) to export controlled items, technology or technical data during the visit. • TCP may be required to protect technology (Deemed Export). *Click here for information on “Routing for Non-U.S. Visitors Request” Next Previous

17. The cost of noncompliance • EAR • Criminal: $50K to $1 million or 5 times value of export, whichever is greater, per violation, 10 years imprisonment • Civil: revocation of exporting privilege, fines $10K-$120K per violation • ITAR • Criminal: Up to $1 million per violation and 10 years imprisonment • Civil: seizure and forfeiture of article, revocation of exporting privilege, up to $500,000 fine per violation • Examples of Violations • University of Tennessee Professor Found Guilty on 18 Counts of Export Violations (View Article) • Bureau of Industry and Security (BIS) entered into a $115,000 civil penalty settlement agreement with Intevac, Inc. International Trade Laws News, Feb 25, 2014. (View Article) Next Previous

18. Applicable Policies & Regulations Previous Next • Federal • The International Traffic in Arms Regulations (ITAR), 22 CFR §§ 120-130, Department of State Regulations • Export Administration Regulations (EAR), 15 CFR §§730-774, Bureau of Industry and Security, Department of Commerce • Sanctions Programs and Country Information, Office of Foreign Assets Control (OFAC) • 10 CFR Part 810, Department of Energy National Nuclear Security Administration (NNSA) • 10 CFR Part 110, Nuclear Regulatory Commission (NRC) 10 CFR Part 110 • University of Texas System • UTS173, Export Controls • Related UTSA • HOP 10.01, Export Controls • UTSA Export Control Compliance Standard Operating Procedures (SOP) • Export Control Objectionable Clauses

19. Understand Your Role Understand the Regulations Work with ORI and Other Departments Control Access Getting Your Arms Around Export Controls “Export Controls are critical to achieving our national security and foreign policy goals. To enhance our enforcement efforts and minimize enforcement conflicts, executive departments and agencies must coordinate their efforts to detect, prevent, disrupt, investigate and prosecute violations of U.S. export control laws, and must share intelligence and law enforcement information related to these efforts to the maximum extent possible, consistent with national security and applicable law.” – Executive Order 13558 – Export Enforcement Coordination Center (E2C2), November 9, 2010 Next Previous

20. Summary • Export Controls apply to all international University activities not just to shipping materials/equipment overseas. • If your research includes international activities • An Export Control Activity Assessmentwill need to be done to determine if an export license is needed. • For additional information, please visit our website at http://research.utsa.edu/oric/export. • Assistance is readily available to help you determine your export control compliance requirements. • Contact Javier Garcia at 458-4233, export@utsa.edu Next Previous

21. You have completed the Export Control Training ModuleYou are welcome to review the other training modules.Please click the “Training Completed” button below to acknowledge that you have completed the export control awareness training and understand your responsibilities with regards to Export Control regulations and laws. TRAINING COMPLETED

22. Other Areas of Concerns

23. Export License Application Process • If a license is required, it only means that you must obtain the necessary U.S. government approval and build the time for obtaining a license before exporting or transferring any controlled item / technology • EAR – not too complicated, can apply electronically, no fee • Deemed Export license required for non-U.S. persons working with certain controlled proprietary technology • License needed to ship certain goods/technologies including data outside the U.S. (Commodity Classification, EAR99) • ITAR – very complicated and expensive • DSP-5/Technical Assistance Agreement required for Non-U.S. persons working with export controlled technology/defense service • Technology Control Plan required • OFAC – application by letter, no fee *Click the “Return” button to go back to the “ORI Roles” slide Return

24. Why Compliance is so Important • University of Tennessee Professor Found Guilty on 18 Counts of Export Violations Satterfield, Jamie. 2008. “Retired UT Prof guilty; case gained national attention.” www.knoxnews.com (accessed on March 22, 2010). Next

25. Academic Enforcement • 2014, University of Michigan medical researcher prosecuted for sending MRI coil to Iran. Assembly of coils that generates radio signal to permit imaging of part of body in the coil • 2013, NYU researchers bribed by China Govt for NIH MRI grant tech • 2013, UMASS Lowell CAR shipped EAR99 atmospheric device to Pakistan Space & Upper Atmosphere Research Commission(Entity List) $100k fine, fine suspended • 2010, Perm Res. researcher stole Dow pesticide secret for Hunan Normal Univ. student to publish journal. 7 years, 3 mon. • 2004, Texas Tech Prof. imported plague bacteria. 2 years, $50k civil / $250k criminal • 1998, FAU Prof export thermal camera to Syria. Pretrial diversion Return

26. Export Controls – Agency Responsibilities (1 of 4) • Commerce Department: Commercial and “Dual-Use” Items (the Export Administration Regulations or “EAR”) • Licensing: Bureau of Industry and Security (“BIS”) • State Department: Defense and Space-related Technologies (the International Traffic in Arms Regulations or “ITAR”) • Licensing: Directorate of Defense Trade Controls (“DDTC”) • Treasury Department: Trade Sanctions for Services to Countries, Institutions or Individuals Subject to Prohibitions • Licensing: Office of Foreign Assets Control (“OFAC”) • Defense Department: active role in ITAR/EAR decisions • Licensing: Defense Trade Security Administration (“DTSA”) • Specific exports also covered by other agencies and regulations, such as dangerous pathogens and nuclear-related exports Next

27. EAR – Basic Operational Coverage (2 of 4) • Regulates items designed for commercial purpose but that can have military and security applications (e.g., sensors, computers, pathogens, test equipment, materials) • Provides certain General Prohibitions for all exports • Also covers “re-export” of “U.S.-origin” items outside United States because U.S. legal jurisdiction follows the item or technology worldwide – wherever it is located • Additional “Catch-all” category for items “subject to the EAR” but not on CCL going to certain countries or individuals which require a license Next Previous

28. EAR / Commerce Control List (CCL) (3 of 4) • Covers dual-use items: 9Commerce Control List (CCL) categories of different technologies covering equipment, tests, materials, software and technology (includes information, technical data and technical assistance) • 0. Nuclear Materials, Facilities & Equipment & Miscellaneous • 1. Materials, Chemicals, “Microorganisms” & Toxins • 2. Materials Processing • 3. Electronics • 4. Computers • 5. Telecommunications and Information Security • 6. Sensors and Lasers • 7. Navigation and Avionics • 8. Marine • 9. Aerospace and Propulsion Next Previous

29. EAR/ Commerce Control List (CCL) (4 of 4) • EAR controls are technology-specific, country-specific and, sometimes, entity- or person-specific • All equipment, chemicals, reagents, toxins/pathogens or microorganisms must be reviewed by ECCN: • Category 1: Materials, Chemicals, Microorganisms and Toxins (102 pages) • Category 2: Materials processing (81 pages) • Equipment includes items such as fermenters, centrifugal separation, cross-flow filtration, freeze drying equipment, etc. • Covers certain human, animal and plant materials and equipment including certain genetically modified material • Each ECCN contains: (1) reasons for control; (2) cost thresholds; (3) units (volume or mass); and (4) related controls • Also controls on certain computers, software, servers and IT increasingly used in life sciences research • Also cover Material Transfer Agreement exchanges and terms! *Click the Return button to go back to the “Overview of Export Controls” slide Return Previous

30. Export Controls – ITAR/ State Dept. (1 of 2) • Covers military items (“munitions” or “defense articles”); 21 categories and few exemptions • Regulates goods and technology designed for military purposes • Includes all space-related technology and research – Category XV, Spacecraft Systems and Associated Equipment • Creates “defense articles” (includes technical data which encompasses software unlike EAR) and “defense services” (certain information to be exported may be controlled even if in public domain) related to covered articles • Covers some university research as “defense services” • Increasing ITAR application to university activities • Determines regulatory authority for new technologies through Commodity Jurisdiction process Next

31. Export Controls – ITAR/ State Dept.(2 of 2) • The following categories of defense articles and services are included on the ITAR Munitions List (USML): • Firearms / Ammunition • Artillery projectors and armaments • Launch vehicles, guided missiles, ballistic missiles, rockets, torpedoes, bombs, and mines • Explosives, propellants, incendiary agents, and their constituents • Vessels of war and special naval equipment • Tanks and military vehicles • Aircraft and associated equipment • Military training equipment / Auxiliary military equipment • Protective personnel equipment • Military electronics • Fire control, range finder, optical and guidance and control equipment • Toxicological agents and associated equipment • Spacecraft systems and associated equipment • Nuclear weapons, design, and testing equipment • Classified articles, technical data and defense services not otherwise enumerated • Directed energy weapons • Submersible vessels, oceanographic and associated equipment • Miscellaneous articles not listed above with substantial military applicability and which were designed or modified for military purposes. Return Previous *Click the Return button to go back to the “Overview of Export Controls” slide

32. Export Controls – OFAC Restrictions • U.S. economic sanctions focus on the transaction with the end-use or country rather than the technology • OFAC administers embargoes and sanctions • Prohibitions on trade with countries such as Iran or Cuba – includes conference sponsorships • Travel restrictions – e.g., Cuba • Covers payments, services, honoraria and anything else of “value” • OFAC prohibits payments or providing “value” to nationals of sanctioned countries or specified entities/persons even if their country is not subject to sanctions • OFAC prohibitions are separate from ITAR/EAR and may “trump” them • Sanctions/licensing requirements may differ • Multiple lists must be checked for EAR/OFAC/ITAR compliance • Obligation to check multiple lists -- e.g., “Specially Designated Nationals and Blocked Persons List” Return *Click the Return button to go back to the “Overview of Export Controls” slide

33. Routing for Traveling outside of U.S Note: For BIS classification other than EAR99, a license/TMP will be required to ship material outside of U.S. *Click the “Return” button to go back to the “License Exception TMP” slide Return

34. Routing for Shipping outside of U.S Note: For BIS classification other than EAR99, a license will be required to ship material outside of U.S. *Click the “Return” button to go back to the “Shipping Outside of U.S.” slide Return

35. Routing for PBOs (POs under $15,000) Note: PB4s (POs over $15,000) must go through the Purchasing Department. They do restricted party screening and contact ORI if there are any export control questions. Next

36. Routing for ProCard Purchasesfrom Non-US Vendors Next Previous

37. Routing for VP2s from Non-US Vendors Next Previous

38. Routing for Agreementswith Non-US Vendors *Click the “Return” button to go back to the “Transactions with individuals or Entities Outside of U.S.” slide Return Previous

39. Routing for Non-U.S Visitors Request *Click the “Return” button to go back to the “Non-U.S. Visitors” slide Return