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Export Compliance ITAR 2 of 3

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Export Compliance ITAR 2 of 3

  1. 1. <ul><li>EAR </li></ul><ul><li>(Export Administration Regulations) </li></ul><ul><li>BIS </li></ul><ul><li>(Bureau of Industry & Security) </li></ul><ul><li>U.S. Dept. of Commerce </li></ul>
  2. 2. <ul><li>International Traffic In Arms Regulations </li></ul><ul><li>U.S. State Department </li></ul><ul><li>Directorate Of Defense Trade Controls </li></ul>
  3. 3. Complying with U.S. Export Controls Bureau of Industry and Security Department of Commerce
  4. 4. <ul><li>A shipment out of the United States </li></ul><ul><li>An electronic transmission out of the United States </li></ul><ul><li>Release of technology to a foreign national in the United States </li></ul><ul><ul><li>Technology – specific information necessary for the “development”, “production”, or “use” of a product </li></ul></ul>
  5. 5. Commodity Software Technical Data
  6. 6. <ul><li>A shipment of a U.S. origin item from one foreign country to another </li></ul><ul><li>A shipment of a foreign produced item containing U.S. origin parts, from one foreign country to another </li></ul><ul><li>Shipment from one foreign country to another of an item manufactured abroad based on U.S. origin technology </li></ul>
  7. 7. <ul><li>National Security </li></ul><ul><li>Foreign Policy </li></ul><ul><ul><li>Crime control </li></ul></ul><ul><ul><li>Anti-terrorism </li></ul></ul><ul><ul><li>Regional Stability </li></ul></ul><ul><li>Non Proliferation </li></ul><ul><ul><li>Nuclear weapons </li></ul></ul><ul><ul><li>Chemical/biological weapons </li></ul></ul><ul><ul><li>Missiles </li></ul></ul>
  8. 8. <ul><li>Designed to implement the Export Administration Act </li></ul><ul><li>Apply to “dual use” items </li></ul><ul><ul><li>Items that can be used in both commercial and military/strategic applications </li></ul></ul><ul><ul><li>Also apply to items that have solely civil uses </li></ul></ul><ul><ul><li>Other agencies have jurisdiction over some exports </li></ul></ul>
  9. 9. <ul><li>Code of Federal Regulations </li></ul><ul><ul><li>15 CFR 730-774 </li></ul></ul><ul><li>Available on-line: </li></ul><ul><ul><li>http://www.access.gpo.gov/bis/ear/eardata.html </li></ul></ul><ul><li>Order from Government Printing Office </li></ul><ul><ul><li>866-512-1800 (toll-free) </li></ul></ul><ul><ul><li>http://www.access.gpo.gov/bis/earorder.html </li></ul></ul>
  10. 10. <ul><li>The release of technology or source code subject to the EAR to a foreign national in the United States is “deemed” to be an export to the home country of the foreign national. </li></ul>
  11. 11. <ul><li>Situations that can involve release of U.S technology or software include: </li></ul><ul><li>Tours of laboratories </li></ul><ul><li>Foreign national employees involved in </li></ul><ul><li>certain research, development, and </li></ul><ul><li>manufacturing activities </li></ul><ul><li>Foreign students or scholars conducting </li></ul><ul><li>research </li></ul><ul><li>Hosting of foreign scientist </li></ul>
  12. 12. <ul><li>Depends primarily on what you are exporting and what country it is going to </li></ul>
  13. 13. <ul><li>Contains lists of items subject to licensing authority of BIS </li></ul><ul><li>Each entry is called Export Control Classification Number (ECCN) </li></ul><ul><ul><li>Five alpha-numeric characters </li></ul></ul><ul><li>Items listed in terms of technical parameters </li></ul>
  14. 14. <ul><li>BIS home page </li></ul><ul><li>www.bis.doc.gov </li></ul><ul><li>On-line EAR </li></ul><ul><li>www.gpo.gov/bis </li></ul><ul><li>E-mail notifications </li></ul><ul><ul><li>Seminars </li></ul></ul><ul><ul><li>Regulatory changes </li></ul></ul>
  15. 15. <ul><li>Export Administration Offices: </li></ul><ul><ul><ul><li>Northern California (408) 998-8806 </li></ul></ul></ul><ul><ul><ul><li>Southern California (949) 660-0144 </li></ul></ul></ul><ul><ul><ul><li>Washington, D.C. (202) 482-4811 </li></ul></ul></ul><ul><li>Export Enforcement Offices: </li></ul><ul><ul><ul><li>Northern California (408) 998-4204 </li></ul></ul></ul><ul><ul><ul><li>Southern California (949) 251-9001 </li></ul></ul></ul><ul><ul><ul><li>Nationwide (800) 424-2980 </li></ul></ul></ul>
  16. 16. <ul><li>What is my item? </li></ul><ul><li>Where is it going? </li></ul><ul><li>Who will receive it? </li></ul><ul><li>What will be the end-use? </li></ul>
  17. 17. <ul><li>Ask the Manufacturer </li></ul><ul><li>Submit a formal classification request to BIS </li></ul><ul><li>Self Determine: Work with your company engineer </li></ul>
  18. 18. <ul><li>Check the Commerce Control List (CCL) alphabetic or numeric index </li></ul><ul><li>Review general characteristics of item to arrive at Category and Product Group </li></ul><ul><li>Match characteristics of item with ECCN and subparagraph </li></ul>CCL BIS
  19. 19. <ul><li>If an item subject to the EAR does not fall within a specific ECCN, it is designated as EAR99. </li></ul><ul><li>In most cases, the export of an EAR99 item can be completed using the license authorization NLR (No License Required), </li></ul><ul><li>but … </li></ul><ul><li>Check the General Prohibitions for possible licensing requirements. </li></ul>
  20. 20. BLANK CD’s Automobile User’s Manual
  21. 21. EAR 99 CONCERNS <ul><li>1. EMBARGOED / </li></ul><ul><li>SANCTIONED </li></ul><ul><li>IRAN </li></ul><ul><li>SUDAN </li></ul><ul><li>CUBA </li></ul><ul><li>SYRIA </li></ul><ul><li>NORTH KOREA </li></ul><ul><li>LISTS TO CHECK </li></ul><ul><li>DENIED PERSONS </li></ul><ul><li>UNVERIFIED </li></ul><ul><li>ENTITY </li></ul><ul><li>SPECIALLY DESIGNATED NATIONALS </li></ul><ul><li>DEBARRED </li></ul><ul><li>NONPROLIFERATION SANCTIONS </li></ul><ul><li>END USE / </li></ul><ul><li>END USER </li></ul><ul><li>NUCLEAR </li></ul><ul><li>CHEMICAL / </li></ul><ul><li>BIOLOGICAL </li></ul><ul><li>MISSILE TECH </li></ul>
  22. 22. <ul><li>SNAP-R enables exporters to submit license applications, commodity classification requests, and related support documentation directly to BIS via the internet in a secure environment </li></ul><ul><li>SNAP-R is provided at no cost </li></ul>
  23. 24. <ul><li>Protect National Security and Foreign Policy Goals </li></ul><ul><ul><li>Prevention and Detection in Partnership with Industry </li></ul></ul><ul><ul><li>Investigation and Prosecution </li></ul></ul><ul><ul><li>Domestic and International Law Enforcement Cooperation </li></ul></ul>
  24. 25. <ul><li>“ Willful Violations” </li></ul><ul><ul><li>$1 Million fine for individuals and/or </li></ul></ul><ul><ul><li>Ten years imprisonment </li></ul></ul><ul><ul><li>$1 Million or five times the value of the exports involved for firms </li></ul></ul>Criminal Penalties
  25. 26. <ul><li>Decide whether there are “Red Flags” </li></ul><ul><li>If there are “Red Flags”, inquire further </li></ul><ul><li>Do not self-blind </li></ul><ul><li>Reevaluate transaction </li></ul>Mr. BLOW EM UP You can trust me!
  26. 27. <ul><li>The customer or its address is similar to one of the parties found on the Commerce Department's [BIS's] list of denied persons. </li></ul><ul><li>The customer or purchasing agent is reluctant to offer information about the end-use of the item. </li></ul><ul><li>The product's capabilities do not fit the buyer's line of business, such as an order for sophisticated computers for a small bakery. </li></ul>
  27. 29. <ul><li>Reinforces senior management commitment </li></ul><ul><li>Provides structure and organization for processing export transactions </li></ul><ul><li>Provides written instructions </li></ul><ul><li>Communicates red flag indicators </li></ul><ul><li>Identifies transactions that could be an end-use/end-user concern </li></ul><ul><li>Streamlines process </li></ul><ul><li>Enhances accountability for export control tasks </li></ul><ul><li>Protects against inadvertent violations of the EAR </li></ul>HOW?
  28. 30. <ul><li>Understand the Export Administration Regulations </li></ul><ul><li>Identify risks and areas of concern </li></ul><ul><li>Gather information about customers </li></ul>
  29. 31. <ul><li>Introduces regulations and policies </li></ul><ul><li>Communicates changes </li></ul><ul><li>Reinforces knowledge </li></ul>Export Compliance Training
  30. 32. <ul><li>Antiboycott laws require U.S. firms to refuse to participate in foreign boycotts that the U.S. does not sanction. </li></ul><ul><li>You are required to report each boycott-related request you receive. </li></ul><ul><li>Office of Antiboycott Compliance </li></ul><ul><li>Phone: (202) 482-2381 </li></ul><ul><li>Website: bis.doc.gov/AntiboycottCompliance </li></ul>
  31. 33. <ul><li>BIS home page </li></ul><ul><li>www.bis.doc.gov </li></ul><ul><li>On-line EAR </li></ul><ul><li>www.gpo.gov/bis </li></ul><ul><li>E-mail notifications </li></ul><ul><ul><li>Seminars </li></ul></ul><ul><ul><li>Regulatory changes </li></ul></ul>
  32. 34. <ul><li>Code of Federal Regulations </li></ul><ul><ul><li>15 CFR 730-774 </li></ul></ul><ul><li>Available on-line: </li></ul><ul><ul><li>http://www.access.gpo.gov/bis/ear/eardata.html </li></ul></ul><ul><li>Order from Government Printing Office </li></ul><ul><ul><li>866-512-1800 (toll-free) </li></ul></ul><ul><ul><li>http://www.access.gpo.gov/bis/earorder.html </li></ul></ul>
  33. 35. <ul><li>Export Administration Offices: </li></ul><ul><ul><ul><li>Northern California (408) 998-8806 </li></ul></ul></ul><ul><ul><ul><li>Southern California (949) 660-0144 </li></ul></ul></ul><ul><ul><ul><li>Washington, D.C. (202) 482-4811 </li></ul></ul></ul><ul><li>Export Enforcement Offices: </li></ul><ul><ul><ul><li>Northern California (408) 998-4204 </li></ul></ul></ul><ul><ul><ul><li>Southern California (949) 251-9001 </li></ul></ul></ul><ul><ul><ul><li>Nationwide (800) 424-2980 </li></ul></ul></ul>

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