EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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EXPORT ADMINISTRATION REGULATIONS
(EAR)CLASSIFICATION PROCESS

• Export Controls Officer
• Office of Sponsored Projects
• The University of Texas at Austin

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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//www.access.gpo.gov/bis/ear/ear_data.html

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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

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ECCN BREAKDOWNEXAMPLE 3D101

• 3 Category
• D Product Group
• 1 Reason for Control
• 0 Relates to Reasons for Control
• 1 Used for Numerical Ordering

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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

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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

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PRODUCT GROUPS

• A Equipment, Assemblies Components
• B Production, Test Inspection
  Equipment
• C Materials (raw)
• D Software
• E Technology

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I found the ECCN!
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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

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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)

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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

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EAR 99-what???
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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

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GENERAL PROHIBITIONS4-10, 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 violation has occurred or is about to occur
• If Prohibitions dont apply, look for Exceptions

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LICENSE OR EXCEPTION?

• 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

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LICENSE OR EXCEPTION?

• 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)

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REASONS FOR CONTROL

• AT Anti-Terrorism
• CB Chemical Biological weapons
• CC Crime Control
• CWChemical Weapons Convention
• EI Encryption Item
• FCFirearms Control
• MTMissile Technology
• NPNuclear Proliferation
• NSNational Security
• RSRegional Stability
• SISignificant Item
• SSShort Supply
• UNUnited Nations
• SLSurreptitious Listening

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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 items only

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COMMON LICENSE EXCEPTIONS

• 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. D1 and E2)

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COMMON LICENSE EXCEPTIONS

• 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

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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)

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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.

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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

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EXERCISE Part 1

• The University is a 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
• GPS units ECCN 7A994

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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?

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Questions? Export Controls Officer
osp_at_austin.utexas.edu 512-471-6424http//www.
utexas.edu/research/osp/ECRR.htm