EXPORT CONTROLS

The U.S. Government regulates the WHAT IS EXPORT CONTROL The U.S. Government regulates the Transfer of Information Commodities Technology Software Strategically important to U.S. National Security, Economic Security, and/or Foreign Policy Concerns.

Three Primary Government Agencies Regulating Exports Department of Commerce Department of State Department of Treasury

NDSU EXPORT CONTROL POLICY It is the policy of the university that all personnel, including faculty, staff, students, visiting scientists and scholars, post-doctoral fellows, and all other persons retained by or working at the university comply with all U.S. laws and regulations as they relate to university activities including all export control regulations. As an accredited U.S. academic institution, the vast majority of the university’s activities are shielded from Export Controls under the Fundamental Research Educational Information Public Information Exclusions

NDSU EXPORT CONTROL POLICY In order to qualify as Fundamental Research, research must be conducted freely and openly with no restrictions on publication no restrictions on the participation or access by foreign nationals It is the university’s long-standing practice to pursue its teaching, research, and service missions in a free and open manner, allowing full participation in all educational and research opportunities by all foreign nationals and further, insisting on the unrestricted dissemination and sharing of research results with the global research community.

WHAT DO NDSU PERSONNEL NEED TO DO? EXPORT CONTROL In order to ensure compliance with export controls, it is critically important for university personnel to identify when their activities may trigger export controls. When export controls apply, individuals must take the appropriate steps to obtain any required governmental licenses monitor and control access to restricted information safeguard all controlled materials WHAT DO NDSU PERSONNEL NEED TO DO?

WHAT ACT MIGHT TRIGGER EXPORT CONTROL Science and Engineering Research Space Technology & Satellites; Missile Technology Nuclear Technology; Military or Defense Articles and Services; High Performance Computing; Encryption Technology Chemical/ Biological Weapons; Select Agents and Toxins Dual Use Technologies; Medical Lasers Research in export restricted science and engineering areas – examples include:

EXPORT CONTROL Overseas Travel High Tech Equipment Confidential Information Unpublished Information Proprietary Information Proprietary Data Traveling with certain types of high tech equipment including but not limited to advanced GPS units, scientific equipment, or with controlled, proprietary or unpublished data in any format may require an export license depending on your travel destination. See International Travel for more information.

EXPORT CONTROL Proprietary Confidential Controlled Information Items Outside Technology Not Protected Subject to Export Controls University activities involving the use of export controlled information, items, or technology received from outside the university are not protected under the Fundamental Research Exclusion and all research involving the use of export restricted technology is subject to all export controls.

Restriction On Sponsored Research EXPORT CONTROL Restriction On Sponsored Research Personal Publication Dissemination The vast majority of research done at the university is shielded from export controls under the Fundamental Research Exclusion. However, this protection is lost whenever the university or the researcher agrees to allow any restrictions on the publication, dissemination, or access to the research by foreign nationals.

EXPORT CONTROL Shipping Items Overseas Project Information Transfer Equipment Materials Technology All Subject to Export Control University activities that involve the transfer of project information, equipment, materials, or technology out of the U.S. by whatever means will be subject to export controls and may require export license(s) depending on the item, destination, recipient, and end-use.

International Transactions EXPORT CONTROL Financial Support International Transactions Payment of Funds Non U.S. Persons Abroad Blocked Entity Sanctioned Entity University activities that involve the international payment of funds to non-U.S. persons abroad need to be verified to ensure that the university is not inadvertently providing financial assistance to a blocked or sanctioned entity. Examples include providing support via a subcontract to a non-U.S. university or providing payments to research subjects in other countries. Contact ndsu.exportcontrols@ndsu.edu if your activity involves payment to persons or organizations outside the U.S.

EXPORT CONTROL International Collaborations International Presentations Foreign National Faculty Foreign National Students Foreign National Staff Visiting Foreign Scientist Foreign Collaborator(s) University activities that involve foreign national faculty, students, staff, visiting foreign scientists or collaborator(s), or other foreign entities (e.g., non-U.S. company, university or other organization) or research that will include travel to international conferences to present unpublished results may be subject to export controls especially if any of the foreign nationals are from embargoed or sanctioned countries. See International Collaborations for more information.

International Consulting Prohibited Professional Services EXPORT CONTROL International Consulting Prohibited Professional Services Iran Syria Cuba Sudan North Korea) Providing professional consulting services overseas, especially to embargoed or sanctioned countries (e.g., Iran, Syria, Cuba, Sudan and North Korea) is, in most cases, strictly prohibited.

WHAT HAPPENS IF WE VIOLATE THE EXPORT CONTROL LAWS? The consequences for noncompliance are very serious for both the University and the investigator (including fines up to $1,000,000 and/or imprisonment up to 10 years for individuals). These penalties apply to single violations; multiple violations in the same project can easily result in enormous penalties. Violations under the EAR (Export Administration Regulations) can bring civil penalties of $10,000 to $120,000 per violation and criminal penalties of $50,000 to $1 million per violation along with up to 10 years in prison. Violations under OFAC regulations (Office of Foreign Assets Control) can bring civil penalties of $250,000 per violation and criminal penalties of up to 20 years in prison. Violations under the ITAR (International Traffic in Arms Regulations) can bring civil penalties of $500,000 per violation and criminal penalties of up to $1 million per violation along with up to 20 years in prison.

Academia and Export Controls – Case Study Dr. J Reece Roth was the sub-recipient of an U.S. Air Force (USAF) contract to develop plasma actuators to control the flight of small, subsonic, unmanned, military drone aircraft. These activities are controlled by the Arms Export Control Act which forms the basis for the International Traffic in Arms Regulations (ITAR). The Arms Export Control Act prohibits the export of defense-related materials, including the technical data, to a foreign national or a foreign nation.

Academia and Export Controls – Case Study Cont. During the course of that contract, He allowed two foreign national students to access export controlled data and equipment. He exported some of the data from the contract by taking his laptop on a trip to China. He had difficulties with his email while visiting China so he had a foreign national graduate student email a report on the project to a Chinese colleague. He was convicted of: One count of conspiring with the prime contractor to unlawfully export 15 different “defense articles” to a citizen of the People’s Republic of China in violation of the Arms Export Control Act. He was charged with Fifteen counts of violating the Arms Export Control Act. One count of wire fraud.

EXPORT CONTROL Lessons Learned Criminal penalties are a possibility for violating export control laws and regulations. While the Fundamental Research Exclusion covers many of the research activities at a university, it does have limitations. Care must be taken to insure that export control data and/or technology is not taken out of the country without the proper permits/licenses in place.