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National SecurityAKA Economic Espionage
AKA Technology Theft AKAExport Control

• Export Control Training brought to you by
• Scott Fong
• aka
• The Compliance Officer
• aka
• The Subcontracting Officer

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1. Purpose of the Training
Reason 1 Protect the UARC and the University

• Bad Press
• Loss of Exporting Privileges
• Organizational Civil and Criminal Penalties
  (lawsuits, fines up to 1 million, time in Jail)
• Unhappy Sponsors
• No More UARC ? No More Jobs

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1. Purpose of the Training
Reason 2 Protect Yourself

• Personal Criminal and Civil Liabilities
• Criminal Fines up to 1,000,000 and/or up to 10
  years in jail (ITAR) for each violation
• Civil Fines up to 500,000 for each violation

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1. Purpose of the Training
Reason 3 What one can do for ones Country

• Following the law feels good. You can sleep
  better at night knowing that the FBI wont come
  knocking on your door.
• Keeps dangerous technology out of the hands of
  those who would use it against the United States.
• Protects Americas military advantage in
  technological superiority.
• Ensures American know-how benefits American
  companies, employees, consumers, and economy.

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1. Purpose of the Training
Reason 4 Teach you to identify export concerns

• Intent is not to teach you how to be export
  control officers.
• Intent is to train you to identify situations
  when export control laws may or may not apply.

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1. Purpose of the Training
Reason 5 Establish the Goal of this training

• Our Goal today is to educate UARC staff on
  applicable laws, identify when project
  information may be export controlled, and
  instruct such staff to involve the UARC
  Compliance Officer before possible export
  controlled information is exported. note
  italics

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2. What is Controlled?

• Export of certain goods, services, information
  are controlled by three government agencies
• U.S. Department of State
• Office of Defense Trade Controls (ODTC)
• U.S. Department of Commerce
• Bureau of Industry and Security (BIS)
• U.S. Department of the Treasury
• Office of Foreign Assets Control (OFAC)

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2. What is Controlled?

• International Traffic in Arms Regulation (ITAR)
• Administered by the U.S. Department of State,
  Office of Defense Trade Controls
• Regulates the export of defense articles and
  defense services
• Defense Article Any item or technical data
  designated in U.S. Munitions List or those items
• Specifically designed, developed, configured,
  adapted, or modified for a military application
  and does not have 1) predominant civil
  applications, or 2) performance equivalent (form,
  fit, function) to an article or service used for
  civil applications (e.g. AA batteries).
• Specifically designed, developed, configured,
  adapted, or modified for a military application,
  and/OR has significant military or intelligence
  applicability such that control under this
  subchapter is necessary. (e.g. GPS technology or
  Dialysis/Atomic triggers).
• Technical data is information which is required
  for the design, development, production,
  manufacture, assembly, operation, repair,
  testing, maintenance or modification of defense
  articles. This includes blueprints, drawings,
  photographs, plans, instructions, and
  documentation.

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2. What is Controlled?

• ITAR continued
• Defense Service The furnishing of assistance or
  training in the design, development, engineering,
  manufacture, production, assembly, testing,
  repair, maintenance, modification, operation,
  demilitarization, destruction, processing, or use
  of Defense Articles.
• U.S. Munitions List List of designated defense
  articles and defense services subject to ITAR
  export control
• Category XV of the U.S. Munitions List is of
  special concern to UARC personnel Spacecraft
  Systems and Associated Equipment.
• FAR Summary
• List is not dispositive. A Commodity
  Jurisdiction Procedure exists to obtain a
  determination from the Office of Defense Trade
  Controls for articles or services not listed.
• Dont forget the EAR and OFAC lists.
• When in doubt, contact your UARC Compliance
  Officer.
• For more information on ITAR, go to
  http//pmdtc.org/reference.htm.

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2. What is Controlled?

• Export Administration Regulations (EAR)
• Administered by the U.S. Department of Commerce,
  Bureau of Industry and Security (BIS)
• Regulates the export of dual-use items and
  items with solely civil uses.
• Items subject to EAR are listed in the Commerce
  Control List (CCL)
• 10 categories of export controlled items in the
  CCL
• Nuclear Materials, Facilities, Equipment and
  Miscellaneous
• Materials, Chemicals, Microorganisms Toxins
• Materials Processing
• Electronics Design, Development and Production
• Computers
• Telecommunications Information Security
  (encryption)
• Sensors and Lasers
• Navigation and Avionics
• Marine
• Propulsion Systems, Space Vehicles and Related
  Equipment.

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2. What is Controlled?

• EAR cont.
• The 10 CCL categories are further subdivided into
  5 Product Groups
• Systems, Equipment and Components
• Test, Inspection and Production Equipment
• Materials
• Software
• Technology
• Example Computers are a category in the
  Commerce Control List. Computer exports are
  regulated on several levels, called Product
  Groups, by the EAR. It might be possible to
  export a Dell computer system for example (i.e.
  product groups A, C, and D), but not possible to
  export instructions/technical data on how to
  fabricate the computer and its parts (product
  group E), or the equipment necessary to
  manufacture or test the computer (product group
  B).

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2. What is Controlled?

• EAR Cont.
• EAR Summary
• All items of US origin or design, regardless of
  actual geographical location, is subject to the
  EAR unless there is a listed exclusion, or item
  is subject to the jurisdiction of another federal
  department or agency (e.g. U.S. Department of
  State)
• Commerce Control List can be extremely confusing
  to find the ECCN (Export Control Classification
  Number) for the technology you wish to export.
  Even if you are certain the item is not listed on
  the CCL, there are still 10 additional General
  Prohibitions to consider before exporting without
  obtaining a license from BIS. On top of this,
  there are specific persons, organizations, and
  countries to which you cannot export.
  Conclusion Do not conduct your own EAR export
  determination without help from the UARC
  Compliance Officer and/or BIS.
• Dont forget the FAR and OFAC lists.
• When in doubt, contact your UARC Compliance
  Officer.
• For more information, go to http//www.access.gpo
  .gov/bis/ear/ear_data.html

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2. What is Controlled?

• U.S. Department of the Treasury
• Office of Foreign Assets Control (OFAC)
• Enforces economic and trade sanctions and
  embargoes against targeted foreign countries,
  terrorists, international narcotics traffickers,
  and those engaged in the proliferation of weapons
  of mass destruction.
• Specially Designated Nationals (SDN) Blocked
  Persons List (updated frequently)
• Some sanctioned countries include Burma, Cuba,
  Iran, Liberia, North Korea, Sudan, Syria, and
  Zimbabwe.
• Summary Even if the EAR and FAR do not prohibit
  export, 1) verify the OFAC SDN List and
  sanctioned country lists do not include the
  foreign entity receiving the proposed export, and
  if they do, then 2) ensure the scope of the
  sanction/embargo doesnt include the technology
  to be sent. Coordinate all foreign exports
  through your UARC Compliance Officer.
• For more information, go to http//www.treas.gov
  /offices/enforcement/ofac/

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3. What is an Export?

• An export occurs anytime an item or information
  is exchanged
• Physical shipment or electronic transmission
  (phone, fax, email) to foreign destinations or
  foreign persons
• Releasing information in any format accessible to
  foreign persons (formal or informal
  conversations, pictures, internet, etc.)
• Performing technical assistance, training,
  repair, or other services for, or on behalf of,
  foreign persons or entities, whether in the U.S.
  or abroad.
• Shipping items or data of U.S. origin from one
  foreign country to another foreign country (a
  re-export).
• Sending money to a sanctioned foreign country.
• Shipping or transferring items/data to another
  U.S. person with knowledge that an export
  violation will occur is tantamount to a
  prohibited export (end use).

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3. What is an Export?

• U.S. Persons vs. Foreign Persons
• U.S. persons are
• Lawful Permanent Residents (U.S.
  citizen/national, legal immigrants w/green card)
• Protected Individuals (in the U.S. as a
  designated asylee/refugee, or temporary resident
  under amnesty), unless such protected individuals
  fail to apply for citizenship w/in 6 months of
  eligibility, or have not been naturalized w/in 2
  years of application.
• Entities incorporated to do business in the U.S.
• Foreign Persons are everyone else.
• Foreign businesses doing business in the U.S. but
  not incorporated in the U.S. are foreign persons.
• Dual-Citizens
• Generally, the individual will be treated as a
  foreign national of the most sensitive country to
  which they hold citizenship. Dual-citizens who
  hold U.S. citizenship are sometimes treated as
  U.S. persons, depending on the applicable law or
  agency.

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3. What is an Export?

• Deemed Exports
• - Nothing leaves the country, but information is
  impermissibly exchanged within our borders in
  violation of export laws. A deemed export is
• A release within the U.S.,
• Of technology or source code,
• Which is subject to export regulations,
• To a foreign person.
• ( such a release is deemed to be an export to
  the home country of the foreign person.)
• Examples of Deemed Exports
• Tours of laboratories
• Foreign nationals employed in certain RD (e.g.
  Alt II tasks)
• Foreign students/scholars conducting research
• Hosting foreign scientists
• Discussing Alt II work with foreign persons

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3. What is an Export?

• Summary
• Providing access to, or assistance with,
  controlled items or information to foreign
  persons without authorization from the
  appropriate branch of U.S. government is illegal.
• Exporting within U.S. borders is possible, called
  deemed exports, and subject to the same
  penalties as shipping outside U.S. borders.
• Foreign businesses and corporations are
  considered foreign persons.
• Shipping an item or providing information or a
  service to someone with knowledge that an export
  violation will occur is a violation of export
  control laws.

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4. Exclusions and Licenses

• Exclusions Types of technical data/information
  not subject to export controls
• Public Domain - publicly available information
  and software, published for sale, in public
  libraries, open conferences, and any work cleared
  by U.S. government agency for unlimited public
  release. (e.g. non-proprietary information)
• Educational Information general scientific,
  mathematical, or engineering principles commonly
  taught in colleges and universities.
• Patents FAR information contained in patents
  available at any patent office EAR information
  in a patent application and authorized for filing
  in foreign countries by US Patent and Trademark
  Office.
• Fundamental Research this exemption only
  applies to
• Technical data that
• arises during or results from fundamental
  research (basic and applied),
• the results of which are ordinarily published and
  shared broadly within the scientific community,
  and
• have no restrictions on publication,
  dissemination, or access (other than for
  protection of proprietary information).

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4. Exclusions and Licenses

• Licenses
• If no exception or exclusion applies, then a
  license is required for the export or deemed
  export of controlled items, information, or
  services.
• Obtained from BIS or ODTC as applicable.
• Coordinated by UARC compliance officer, UC Office
  of the President, and Sponsor (NASA).
• Can take several weeks to several months to
  obtain a license.

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5. Conclusion

• By now, the following should be apparent
• Alt I Tasks Export control laws do not apply
• fundamental research (technology readiness level
  (TRL) still low)
• no access or foreign national restrictions
• work cleared by NASA for unlimited public release
• Alt II Tasks Might include export controlled
  items
• Export controlled items/data will be identified
  in the task if known (current export
  determination not always available)
• In general, foreign nationals are not allowed on
  task without prior approval and a technology
  control plan
• Publication/dissemination/release of information
  restricted by NASA
• A Data Management Resource (DMR) is provided to
  all UARC task managers detailing specific data
  handling requirements for each task.

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Contact Info

• UARC Compliance Officer
• Scott Fong
• Phone [phone]
• Fax [phone]
• Email scott.fong_at_adm.ucsc.edu
• NASA Research Park
• Building 19, Room 1088
• P.O. Box 7, M/S 19-26
• Moffett Field, CA 94035