The rules applying to the export or transfer of sensitive technology from and within the UK, including applicable EU and US regulations. The analysis is particularly relevant to universities as well as research bodies and companies.

1. UK Export Controls:
Technology
Richard Tauwhare, Green Light Exports Consulting UK
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2. Context
 International law requires controls on the transfer of goods,
software and technology to prevent WMD proliferation, misuse of
conventional weapons or security equipment
 all EU countries maintain a system of export and transfer controls
 US imposes controls on transfers of US-origin military and dual-use
technology to non-US persons. Apply within and outside US.
 Great majority of work at UK universities is exempt. But some
university research projects – particularly those involving applied
research or industry collaboration - need an export licence to
carry out certain activities
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3. Universities & Research Bodies
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 Export controls can potentially apply to academics and researchers in a wide
range of subject disciplines. But science and engineering are most
commonly affected, since their work in the wrong hands – e.g. rogue
governments, terrorists - could lead to the advancement of programmes of:
 Nuclear weapons and nominally civil nuclear programmes clandestinely
supporting nuclear weapons ambitions
 Biological weapons
 Chemical weapons
 missiles and UAVs capable of delivering WMD
 Advanced conventional weapons
 Controls have increasing importance as global proliferation and security risks
increase, and as universities increasingly engage in international
collaboration and outreach, and establish campuses and projects abroad

4. Penalties
 Export Controls impose legal obligations. Failure to
comply is punishable by:
 withdrawal of licences
 fines
 in serious cases, criminal prosecution - of the
institution and/or individuals. Up to 10 years jail
 Even minor cases can severely damage reputation, with
potentially serious and wide-reaching negative impacts
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5. Issues
1) Definitions
2) What is controlled
3) US Controls
4) How to comply
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6. 1) Definitions
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7. Technology
 Technology = ‘specific information necessary for the development,
production or use of goods or software’
 May be in forms such as:
 Blueprints, CAD files, plans, diagrams
 Models, formulae, tables
 Engineering specifications and designs
 Manufacturing instructions, test results
 Manuals and instructions for installation, operating and repair
 Technology required for the development, production or use of
controlled goods remains under control even when applicable to
non-controlled goods
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8. ‘Export’
Export can take place via physical or electronic means:
 by being shipped or freighted overseas (including carriage
of a laptop on a trip for example); or
 any electronic transfer (fax, email, telephone, text
messaging, or video-conferencing) from within the UK to a
person or place abroad. Can include:
 a UK person opening their emails abroad
 online courses open to non-UK persons overseas
 information held on servers accessible by non-UK
persons overseas
 transmission by telephone if the technology is read out
so as to achieve the same result as if the recipient had
read it
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9. ‘Transfer’
 controls apply to transfers within the UK by any means
when the transferor has been informed or is aware that
the technology is intended for WMD purposes outside the
EEA
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10. 2) What is
controlled
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11. What is Controlled?
Researchers need to determine ‘What is the end use of the research?’
and ‘Is it necessary for the development, production or use of any
item covered by export controls?’ These items are defined in 3 ways:
1) Listed Items: goods, software and technology which is included on one of the lists of
controlled items
 All Military and sensitive Dual-Use items (generally, civil technology which
could be used for WMD purposes): require a licence for export anywhere outside
the UK
 Less sensitive Dual-Use items: require a licence for export anywhere outside
the EU
2) End-Use Controls: apply to any item, listed or not, which may be used for WMD:
licensable to anywhere outside UK
3) Sanctioned End-Users: governments, organisations and individuals who are subject
to sanctions: exports of some items are prohibited, others require a licence
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12. Checking the UK & EU Lists
 A consolidated list of all UK and EU control lists is
published on the gov.uk website
 Searches can be carried out by using the full lists
or, alternatively, by registering to use the Goods
Checker tool to check for items on the lists
 Or a ‘rating enquiry’ can be sent to the Export
Control Organisation for a judgement on the
licensability of an item for export
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13. UK Control Lists:
Where Technology is Controlled
 UK Military List
 ML22: technology for military goods or software
 UK National Dual Use Lists:
 PL80001c: explosives-related
 PL9005b: telecoms to Iran
 PL9008c: vessels, components, related goods, software
 PL9009c: aircraft, components and related goods
 EU Dual Use List:
 Sub-category E contains technology controls on the development,
production or use of items in that Category
 Some others contain additional controls on specific technology
 ‘Annex IV’ lists items of particular sensitivity, requiring a licence for
anywhere outside the UK, including within the EU
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14. Exemptions
Controls do not apply to listed software or technology if it is:
 already in the ‘public domain’
 ‘basic scientific research’
 needed for installing, operating, maintaining and repairing
controlled items that have already been authorised for export
 the minimum needed to install, operate, maintain and repair non-military
items, even if this information could have a military use
 the minimum necessary for a patent application
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15. Exemptions: Public Domain
 “available without restriction upon further
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dissemination (no account being taken of restrictions
arising solely from copyright)”
 NOT to be “in the public domain” could mean it:
 needs to be bought from a supplier who controls
the supply;
 requires registration;
 is restricted for access by certain people only;
 is subject to Government security classifications
(e.g. commercially confidential information, Official
Secrets Act, etc.)

16. Exemptions:
Basic Scientific Research
 “experimental or theoretical work undertaken principally
to acquire knowledge of the fundamental principles or
phenomena or observable facts and not primarily
directed towards a specific practical aim or objective”
 Most university work comes under this definition so falls
outside export controls unless End Use Controls or
Sanctions apply (see below)
 some types of work will not qualify as basic research,
typically:
 Applied research
 ‘commercially viable’ research
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17. End-Use Controls
 Controls apply to any item (listed or unlisted) if an exporter has been either
 informed or
 is aware of or
 suspects
 … that the item to be exported is intended for “use in connection with the
development, production, handling, operation, maintenance, storage, detection,
identification or dissemination of chemical, biological or nuclear weapons or
other nuclear explosive devices, or the development, production, maintenance or
storage of missiles capable of delivery such weapons”
 End-use controls override the exemptions above
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18. End-Use Controls
 “informed”?
 an exporter will be notified by the ECO in writing about a
potential WMD use.
 “aware”?
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 a WMD intention has been made known to the exporter by the
importer or end user or by any other means.
 “suspect”?
 A mere theoretical possibility does not amount to suspicion. But if
there are specific reasons for suspicion, the exporter should
contact ECO for advice. In some cases, exporters are required
by law to make reasonable enquiries to be satisfied that there is
no WMD purpose.

19. End-Use Controls:
Technical Assistance
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 If the person giving technical assistance which is not part
of an export or a technology transfer is informed or is
aware that the assistance is to be used for WMD
purposes, a licence is required (which is unlikely to be
granted) covering:
 Technical assistance related to WMD end-use made
by any means (including face-to-face discussions and
demonstration) ;
 Technical assistance related to a WMD end-use made
within the UK or by UK persons outside the EU (where
the end-user is outside the EU).

20. Sanctions
Sanctions can impose:
 Absolute prohibition of the export of certain items. This usually applies to
items in the consolidated Military and Dual Use Lists but can go wider e.g.
banning the export of oil production equipment
 licensing requirement for certain items not previously controlled
 end use controls if the exporter knows that the goods are destined for use
with, or in relation to, a sanctioned activity, including for military use in a
country subject to an arms embargo
 restrictions on the activities of named individuals, companies or
organisations. For example they may require states to refuse visas (travel
ban); freeze assets; prohibit trading with those individuals. UK lists of such
persons are maintained by HM Treasury. US lists of Denied Parties are
maintained by the Treasury, State and Commerce Depts.
Sanctions override the exemptions above
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21. 3) US Controls
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22. US Controls Applicable in UK
 control the transfer of relevant technology from US persons
to all foreign nationals (so-called “deemed exports”)
regardless of potential end-use
 US controls have extraterritorial effect. Penalties for non-compliance
can be severe
 3 main regimes:
 ITAR: International Traffic in Arms Regulations, overseen
by the State Department
 EAR: Export Administration Regulations, overseen by the
Commerce Department
 Sanctions, Asset Freezes: overseen by the Treasury
Department
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23. ITAR – What Items are Covered
 Applies to all items on the US Munitions List (USML). Covers
all sensitive military items and related technical data. Also
includes some items which are not designed for military use
 Includes items of non-US origin but produced using ITAR-controlled
data or defence services
 If you are in any doubt whether an item is subject to ITAR,
non-US persons may request clarification from the US State
Department (known as a ‘Commodity Jurisdiction’ request)
 access to any ITAR item must be strictly limited only to
authorised individuals. Includes emails, servers, laptops.
Imposes a substantial administrative burden. Consider
whether you are prepared to accept this before agreeing to
receive the item/data
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24. ITAR – What Activities are Covered
 Controls physical and intangible export, re-export, transfer, release
of items to a non-US person and release to a non-authorised person
outside the US
 Re-export = transfer to new use, end user or destination of any item
containing any article on USML, including software and tech data.
Guidance: ‘making the material available for access’
 Technical data = Information required for the design, development,
production, manufacture, assembly, operations, repair, testing,
maintenance or modification of defense articles. In any form
including oral
 Defense services = furnishing of assistance (including training) to
foreign persons, whether in the US or abroad, in the design,
development, etc of defense articles; or the furnishing to foreign
persons of any controlled technical data
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25. ITAR – Technology Exemptions
 Similar to UK/EU (though with slightly different
definitions):
 basic marketing information
 general scientific principles
 public domain (information which is ‘published and
generally accessible to the public’)
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26. ITAR – Deemed Export
 Transfer of technical data to a non-US national, wherever it takes
place (in the US, the UK or elsewhere) is deemed to be an export
 ITAR-controlled technical data may only be passed to (or be
accessible by) an authorised person in an authorised place for an
authorised purpose
 Authorisation for such exports - typically a ‘Technical Assistance
Agreement’ (TAA) - will specify all foreign parties to receive the
specified data, both from the US to a foreign ‘licensee’ and any
further transfer onward to a ‘sub-licensee’
 Typically specifies the nationalities of people receiving access to
the data – including any dual or third country nationals.
Restrictions apply to nationals from outside NATO, EU, Australia,
NZ and Japan.
 No clear definition of nationality but takes account of both
citizenship and country of birth, with emphasis on the latter for
‘Prohibited Countries’ such as Iran, Syria, Sudan, Cuba and North
Korea
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27. EAR – What Items are Covered
 The Export Administration Regulations cover all items listed in the Commerce Control List (CCL).
 Mostly Dual-Use. But also less sensitive military items which US is in the process of moving from
ITAR to ease the restrictions on them
 Technology = specific information necessary for the "development", "production", or "use" of a
product. Can be technical assistance (instruction, skills training, working knowledge, consulting) or
technical data (e.g. blueprints, plans, models, formulae, tables, designs, manuals)
 Some listings specify that controls apply to technology which is required for the development,
production or use of a controlled product, even if that technology is applicable to a product
controlled at a lower level
 Items not listed are classified as EAR99 and remain subject to some controls eg to embargoed
destinations
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28. EAR – ‘De Minimis’
 If a non-US item incorporates over 25% US content (based on its
‘fair market value’), its re-export is subject to EAR rules
 10% - 25%: EAR applies only for re-export to embargoed countries
(Iran, Syria, Sudan, Cuba, DPRK)
 Under 10%: EAR does not apply except for ‘600 Series’ items
(formerly ITAR-controlled military items) to embargoed countries
 If using de minimis for technology, you must submit a one-time
report to the Commerce Department explaining your calculation
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29. EAR - Exemptions
 Similar to UK and to ITAR. EAR does not apply to
technology and software which is:
 published - includes information and software
generally accessible to the interested public free
of charge or at a price that does not exceed the
cost of reproduction and distribution.
 fundamental research
 educational information
 patent applications
 NB Certain encryption software cannot be made
publicly available
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30. EAR – Licences
 For many combinations of item/destination, no licence is
required. See the CCL and Country Chart
 Many others are eligible for ‘Licence Exceptions’ (similar to
UK Open Licences). See the CCL. Specific to technology
are:
 TSU (Technology and Software Unrestricted) - for
technical data related to sales, operations
 TSR (Technology and Software Restricted) – for less
sensitive destinations, requires a written assurance from
the recipient
 EAR licence: if required, non-US persons can apply on-line
to the Commerce Department using SNAP-R
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31. EAR – Deemed Export
 Broadly the same as for ITAR (except EAR generally
applies the definition of nationality to be the most recent
country of citizenship)
 ‘No Licence Required’ and ‘Licence Exception’ rules
apply - e.g. controls do not apply if the citizenships of
individuals with access to the controlled technology are
all of destinations for which no licence is required
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32. EAR – Catch-All Controls
Similar to UK/EU End-Use controls. Prohibits or requires licences for
exports/re-exports of US-origin items to or for:
 a prohibited party: any individual or entity included in US denied
party lists
 embargoed destinations: Cuba, Iran, Sudan, Syria and North
Korea
 Proliferation of WMD: if you know or suspect (“have reason to
know”) or the US Department of Commerce informs you
 military end-uses in China: if you know or have reason to know
 Diversion risk (‘Red Flags’): you must investigate and resolve any
suspicions in writing before proceeding. Best practice is to use
standardised end-use/user forms to be signed by the customer (see
below). NB You may not take any action if you know or have reason
to know that a violation has or is about to occur
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33. 4) How to
Comply
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34. Internal Compliance Programme
A compliance programme for exporters of technology, like those for
exporters of goods, needs to be tailored to the work of the university or
body concerned. Ideally it should include:
a) Policy statement of commitment to compliance, endorsed,
championed and regularly reinforced at senior level, setting the
culture and making available necessary resources. Integral part of
Research Conduct or Ethics Policy
b) Procedures to identify any proposed activities which are prohibited
or require a licence; to apply for licences; and to keep the
necessary records. Tailored to risk level. Integrate into project
funding and initiation processes
c) People clearly assigned responsibilities for compliance, with a
central source of advice, oversight, review and up-dating
d) Awareness and Training to ensure all relevant staff are aware of
the responsibilities applicable to them
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35. Main Types of UK Export Licence
 Open General Export Licences: defined goods, destinations and
conditions specified in published licences
 Open Individual Export Licences: specific goods to specific
destinations, not quantity-specific
 Standard Individual Export Licences: specific quantity of
specific goods to specific end user.
 SIELs for goods also authorise the export of the minimum
technology required for their installation, operation,
maintenance and repair, to the same destination and end-user
 For solely technology exports, these licences can continue for
the life of a project and cover all technology exports within it
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36. Open General Licences -
Technology
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 3 technology-specific OGELs with wide coverage:
 Technology for military goods
 Technology for Dual Use items
 Access overseas to software and technology for military
goods: individual use only
 Generally, these list the specific items which are or are not
permitted and which countries are not covered. No annual
reporting is required

37. Record Keeping
 For all exports subject to licences, keep records of:
 What technology and software is being exported
 Where and to whom it is being exported
 Who is conducting the transfers
 Dates over which these activities take place
 ECO guidance: “….we are not requiring records to be kept of
every email to a particular end-user if a transfer takes place
over a prolonged period. It is sufficient to identify the
technology transferred, the dates between which it was
transferred, and the identity of the end-user.”
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38. Compliance Audits
Any body registering to use an OGEL or being granted an Open Individual
Export Licence or a Standard Individual Export Licence for electronic transfers
of software or technology will be subject to periodic audits by the Export
Control Organisation. They will check:
 Your understanding of export control legislation as it relates to your
situation.
 how you comply with these controls
 Your systems to ensure all the appropriate people are trained and kept
up-to-date
 if applicable, your knowledge of the ratings of any technology you are
exporting (ideally written down).
 Your procedures (ideally in writing) to ensure technology or software
which need a licence are covered by one, and the person who is
transferring or exporting it knows the licence conditions.
 Your records and systems
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39. US Controls
 Should be integrated into compliance programme
 require all potential suppliers of items which is subject to
any US controls to inform you in advance
 Before accepting any US-controlled item, check and
agree all conditions on the US supplier’s export licence
or (for ITAR) Technical Assistance Agreement
 Ensure you have mechanisms in place to comply with all
the US requirements
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40. US Controls - Certification
 US suppliers or their subsidiaries may seek some form of
certification from UK bodies as a condition of supply
 These can be over-comprehensive and ask the UK body
to give undertakings which it cannot realistically enforce
(e.g. ‘not to engage in any direct or indirect research
which has or may have military application’)
 Reasonable undertakings include not to use the imported
technology:
 for any military-related purpose
 Not to re-export/disclose it to non-authorised persons
and to seek appropriate authorisation before doing so
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41. Tips
 If an email contains licensable technology, highlight it in the subject line
 If your laptop contains licensable technology, do you need to take it
abroad?
 Include export control requirements in your travel authorisation process
 Give staff standard letters on licensing requirements, to carry with laptops
 Ask partners and customers for advice on the regulations in their country
 Use the flow charts below (Source: Export Control Organisation)
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42. Flow Chart: Basic Awareness
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44. Thank you -
Any questions?
Richard Tauwhare
Green Light Exports Consulting
Email: richard@greenlightexports.co.uk
Web: www.greenlightexports.co.uk
Phone: +44(0)770 311 0880
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