1. Implementation of a University Export Compliance Management Program Adilia F. Koch

2. Elements of a University Export Compliance Program Elements of an EC Program for your University Upper Management Commitment Determine High Risk Areas Develop Best Practices Restricted Party Screening Internal Audit – Training & Education – Focused Training for High Risk Areas and/or – Focused Training Based on Role & Responsibility – Export Compliance Personnel/Empowered Official Someone on your campus needs to know the rules, have authority to stop a shipment and ability to report violations

3. Export Compliance doesn’t come cheap. It’s the price of doing business in the international arena. Price of non-compliance can result in negative publicity, put your endowment at risk, result in penalties & fines – – $250,000 to $1,000,000 – Criminal offenses can result in imprisonment

4. Export Compliance Management Program: Where do you start? Risk Assessment – Should be conducted under the direction of your Office of General Counsel to invoke the “Attorney-Client Privilege” and “Attorney Work Product” protection. – Identify most likely areas of high risk on campus: Sponsored Research – Problematic Clauses – FRE language may be jeopardized Procurement – Potential exports of technology with RFP or RFQs (foreign procurements) Mailing and/or Shipping & Receiving – Export of hardware, software or technology

5. Best Practices Work with the process owners in developing best practices Start with the higher risk areas Conduct frequent assessments and audits to make sure its working Outreach conduct campus process owner visits to work out the kinks

6. Be ready to implement stop measures right away. Once you become aware of potential areas of high risk, you will need to implement changes as quickly as possible to minimize the exposure. Seek legal advice. Violations? Disclosures? The folks in the Office of General Counsel will be your new best friends. Have your wallet ready... you may also need to seek outside counsel.

7. Awareness Training Conduct Awareness Training – Group Sessions – One-on-one with faculty, if necessary – On-line training Use various media’s depending on what works best for your campus and budget

8. Assessment & Audit: Is your program working? Don’t write a process or procedure you cannot implement Internal audit review --- thumbs up! Conduct regular assessments to ensure program is working – Audit vs. assessments --- they’re not the same

9. Resources Nunn-Wolfowitz Report Export Compliance Management Program - BIS Seminar

10. Contact Adilia F. Koch Director of Export Compliance California Institute of Technology

11. Contact Info Adilia F. Koch Director of Export Compliance California Institute of Technology adilia.koch@caltech.edu Phone: (626) 395-4469 Fax:(626) 795-4571

12. QUESTIONS Q&A