Drexel and U'S' Export Controls: Compliance, Education and Awareness

1
Drexel and U.S. Export Controls Compliance,
Education and Awareness

• Part of the
• Drexel Export Control Compliance
• and Education Program

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U.S. Export Controls Basic Principles

• Export controls apply to certain goods, material,
  tests, software and technology (including related
  information and technical data)
• sent to other countries
• transferred WITHIN the U.S. to certain foreign
  nationals (deemed exports)
• A wide-range of high-technology items and
  associated technologies at Drexel are subject to
  U.S. export controls - BUT key exclusions and/or
  exceptions for universities often apply
• There are severe penalties for violations for
  Drexel and for individual faculty, staff and
  students

3
Goals of U.S. Export Controls

• Protect national security
• Advance U.S. foreign policy objectives
• Combat terrorism
• Prevent the proliferation of weapons of mass
  destruction (WMD)

4
Increasing Government Focus On Export Control at
Universities

• Growing government concern with university
  security issues and the openness of American
  universities in the post-9/11 world
• U.S. government has made it clear in last few
  years that university and individual PI export
  control compliance are non-negotiable
• More export control audits of university research
  programs and PI activities often as part of
  normal government auditing procedures

5
Export Control and Drexels Commitment to
Compliance

• Drexels Compliance Statement and Position
• Drexel adheres to a policy of strict compliance
  with all applicable U.S. export control laws.
• Drexel believes that education and awareness by
  the Drexel community of all U.S. export control
  laws is critical to compliance.

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Whats Covered?

• U.S. export control regulations, technology
  control lists and entity/person denial lists
  restrict the release to foreign nationals in the
  U.S. and abroad of certain
• Controlled Critical technologies
• both civilian dual-use and military-focus
• Technical Data and Software Code
• (especially encrypted)
• Equipment and research tools
• Chemicals and biological materials
• Other materials and information, and
• Services of value to certain countries, entities
  or individuals

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Export ControlsAgency Responsibilities

• Treasury Department Trade Sanctions for Services
  to Countries, Institutions or Individuals Subject
  to Prohibitions
• Commerce Department Commercial and Dual-Use
  Items (the Export Administration Regulations or
  EAR)
• State Department Defense and Space-related
  Technologies (the International Traffic in Arms
  Regulations or ITAR)
• Defense Department Interacts with above agencies
• Specific exports also covered by other agencies
  and regulations, such as dangerous pathogens and
  nuclear-related exports

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What Constitutes an Export?

• Physical Exports (mail or travel)
• Digital Transmissions (esp. e-mail)
• Other Disclosures or Releases
• verbal or visual
• lab visits abroad or in U.S.
• Deemed Exports transfers within U.S. to certain
  foreign nationals

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Whats a Deemed Export?

• Deemed exports include release or transfer of
  technology or source code to a foreign national
  within the U.S. (FNUS)
• Note that permanent U.S. residents (green card
  holders) and protected immigrants have same
  right to controlled information as U.S. citizen
• Unless exemption applies, any transfer of
  export-controlled technology to a non-permanent
  resident FNUS is subject to U.S. jurisdiction and
  may require the prior approval of U.S. government
  (a license)
• Includes use technology such as information
  about operation, repair, maintenance and
  refurbishing of export controlled-equipment or
  tools

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Consequences of Non-Compliance with U.S. Export
Control Laws

• Violations can result in
• severe criminal and civil penalties for
  individuals
• millions of dollars in fines
• extended jail sentences
• the denial of government funding
• the loss of exporting privileges
• damage to individual and institutional
  reputations
• threats to national security

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Export Controls -- Key Areas for University
Compliance Focus

• Deemed exports research projects with foreign
  nationals on campus (students, post-docs and
  visiting researchers and scholars without green
  cards)
• Sponsored research contracts, terms and
  conditions
• Corporate and university subcontracts
• Master sponsored research agreements
• Federal government funding
• International research collaborations, centers
  and projects
• Any of the above in the context of defense
  services and defense-related research

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Export Controls at DrexelKey Areas of Science

• THIS IS NOT A COMPREHENSIVE LIST
• Electrical engineering, integrated circuits,
  encrypted software, high performance computing,
  advanced telecommunications
• Applied physics esp. lasers and other equipment
• Nanotechnology and new materials ex. composites
  and ceramics
• Life Sciences and Chemicals (including Drexels
  academic medical center)
• Advanced avionics and Space-related technologies
  and prototypes
• Sophisticated machine tool technologies and
  bearings
• Encrypted software and high performance
  engineering

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Many Drexel Activities are Subject to Export
Controls But Most Should Not Require Government
Licenses

• Most research and teaching on campus qualifies
  for an exclusion and/or exemption from licensing
• Therefore, it is important that all conditions
  for these exclusions and/or exemptions are met
  and are vigorously protected

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Fundamental Research Exemption

• The Fundamental Research exclusion (FRE) provides
  the basis for exempting most on-campus university
  research from export control licensing
  requirements
• FR exemption covers
• (1) information (not items)
• (2) resulting from basic and applied research
  in science and engineering
• (3) at an accredited institution of higher
  education (EAR) or higher learning (ITAR)
• (4) located in the United States
• (5) that is ordinarily published and shared
  broadly within the scientific community

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Publication Restrictions

• In nearly all cases, research results generated
  at Drexel should be freely publishable, with two
  exceptions
• Sponsors may be allowed a short period of time
  (no longer than 90 days) to
• remove any of their confidential information from
  the proposed publication / presentation
• note any patentable subject matter they may have
  an option to and work to facilitate patent
  filings
• Certain limited exceptions may also apply to
  defense-related work conducted at the ACIN
  facility

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Educational Information Exemption

• EAR Information taught in catalog-listed
  classes, and released in associated teaching
  laboratories, at accredited institutions of
  higher learning are exempt from export licensing
• HOWEVER, the same information transferred to a
  foreign national outside class may require a
  license
• ITAR only covers general science, math and
  engineering principles in the public domain that
  are taught at schools, colleges and universities

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If a License is Required, Plan Ahead

• It is not the end of your research if a license
  is required
• Simply obtain the necessary approvals BEFORE any
  controlled item/technology is exported by any
  means
• Contact the Office of Research or Office of the
  General Counsel for assistance
• Typical time frame is 30-60 days

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Where Do I Go For Help?

• To the list of individuals on the next slide
• To the links to government sites and resources in
  Appendix B
• To the Office of Research website for
  informational resources and interactive export
  control tools (soon to be updated)
• HOWEVER, individuals are personally responsible
  for knowing and understanding the laws
  ignorance is not a defense

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Key Contact Offices and Persons for the Drexel
Community

• Dr. Kenneth J. Blank Vice Provost for Research
  and Drexels Empowered Official for export
  control purposes
• Margaret Vigiolto - Associate Vice Provost for
  Research Administration
• Timothy J. Raynor Assistant General Counsel

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Appendix ANine Examples of When an Export
License May Be Required

• 1. You need to ship or hand-carry abroad research
  equipment, biological samples, engineering
  prototypes, encrypted software or laptops with
  certain research data or proprietary software
• 2. You plan to disclose a sponsors controlled
  proprietary information to a foreign national in
  the U.S. or anyone outside the U.S. as part of a
  project or collaboration
• 3. You see possible red flags that a foreign
  national recipient/end-user of information to
  whom you are disclosing or releasing may be
  violating U.S. export laws, including
  re-exporting controlled technology or
  information without prior U.S. government
  approval

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Appendix ANine Examples of When an Export
License May Be Required

• 4. The export or service involves defense,
  military, weapons, space or commercial dual-use
  items and technologies on one of the U.S. export
  control lists
• 5. You are presenting information at an
  international symposium or meeting that is not
  open to the public or that limits registration
  and/or note-taking
• 6. One of the key licensing exclusions and/or
  exemptions does not apply (ex. FRE and
  publication)
• 7. You are providing any service or anything of
  value to a sanctioned country, entity or
  individual on OFAC lists

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Appendix ANine Examples of When an Export
License May Be Required

• 8. You are working with commercial or research
  equipment, components and applications that
  involve foreign national restrictions via
• Licensing Agreements
• Confidentiality Agreements
• Material Transfer Agreements
• 9. You are dealing with any item or technology
  that
• Was designed or modified specifically for
  military or defense uses
• Involves outer-space, such as satellites or
  launch systems
• Provides a defense service, or
• Relates to the design, development, production or
  use of weapons of mass destruction

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Appendix BUseful Government Web Links

• Bureau of Export Administration www.bis.doc.gov
• Denied Persons List www.bis.doc.gov/DPL/Default.sh
  tm
• Entity List www.bis.doc.gov/Entities/Default.htm
• Unverified List www.bis.doc.gov/Enforcement/Unveri
  fiedList/unverified_parties.html
• EAR Regulations Online www.access.gpo.gov/bis/ear/
  ear_data.html
• Office of Foreign Assets Controls
  www.ustreas.gov/offices/eotffc/ofac
• List of Specially Designated Nationals and
  Blocked Persons www.ustreas.gov/offices/eotffc/ofa
  c/sdn/index.html
• Directorate of Defense Trade Controls
  www.pmdtc.org
• List of Debarred Parties http//www.pmdtc.org/deba
  r059.htm
• Department of Defense http//www.defenselink.mil/
• Technology Security Administration
  www.dtsa.oso.mil
• U.S. Customs and Border Protection
  www.customs.ustreas.gov
• Department of Energy www.doe.gov
• Nuclear Regulatory Commission www.nrc.gov
• Food and Drug Administration - www.fda.gov
• U.S. Government Printing Office -
  www.gpoaccess.gov