Export Control Laws, International Terrorism and UT Research: The Business Manager's Role James P. Trempe, Ph.D. Senior Director for Research Administration Jeff Busch, Ph.D. Export Control Officer

 Export controls are federal laws that regulate the export of sensitive technologies, equipment, software, biological agents, and related data and services to anyone, including U.S. citizens, or to foreign nationals or representatives of a foreign entity on U.S. soil for reasons of national security and protection of trade. What are Export Controls?

What Laws are we addressing? EAR: Export Administration Regulations; US Department of Commerce – Bureau of Industry and Security (BIS) ITAR: International Traffic in Arms Regulations; US Department of State – Office of Defense Trade Controls OFAC: Office of Foreign Assets Control; US Department of Treasury

Goals of U.S. Export Controls Protect national security Advance U.S. foreign policy objectives and priorities Combat international terrorism Prevent the proliferation of weapons of mass destruction (WMD) by any means – nuclear, chemical, biological, missiles, etc.

“Export” - a tangible shipment of an item, information or software outside of the U.S. “Deemed Export” – release or transmission of controlled technology or information to foreign nationals within the U.S. –Restricted by EAR/ITAR. –Applies to a research assistants and students –Applies to visiting foreign researchers –Applies to U.S. citizens visiting a foreign country What are “Exports”?

A foreign national is everyone other than a: U.S. citizen; permanent resident alien (green card holder); or “protected individual” (refugee/someone with asylum) A business that is not incorporated in the U.S. is considered a foreign person. Who is a “foreign national”?

After the events of 9/11 there has been a heightened level of awareness and scrutiny of all export activities. Federal agencies are increasingly focused on Universities and their compliance with export regulations. Universities are expected to police their own. Export Controls apply to all international University activities, not just sponsored projects involving controlled information or technology. Export Controls apply regardless of the funding source. Export Control and University Research

Potential areas of non-compliance: –Collaborations/discussions with foreign national collaborators and students especially when involving proprietary information –Taking or shipping items or transferring technology that is controlled, to a foreign country or foreign national –Travel to foreign countries (including fieldwork) –Technology and material transfers –Performing defense services Export Control and University Research

Non-compliance with export regulations can lead to: –substantial and severe criminal and monetary penalties imposed on both individual researchers and institutions. Civil: Fines (up to $1M) and forfeitures Criminal: Fines and incarceration –Loss of federal funding –Loss of export privileges –Bad press Violations and Penalties

–U. Tenn. Professor, J.Reece Roth was found guilty of over a dozen violations of the Arms Export Control Act. –He provided controlled information to two foreign graduate students. –He carried information about the project on a computer while traveling in China. –He was sentenced to 4 years in prison. J. Reece Roth

What is controlled? International Traffic and Arms Regulations (ITAR) –Listed on the US Munitions List (USML) Includes toxicological, biological and chemical agents –Anything with a substantial military application or related to satellites –Includes both research on defense articles and training or assistance in developing defense articles

What is controlled? Export Administration Regulations (EAR) –Dual Use Technologies –Export and re-export of all US origin items –Organized on the Commodity Control List (CCL) 0. Nuclear materials, facilities, equipment 1. Chemicals, microorganisms, toxins 2. Materials processing 3. Electronics design, development, production 4. Computers 5. Telecomm. and information security 6. Sensors and lasers 7. Navigation and avionics 8. Marine 9. Propulsion systems, space vehicles

Exclusions and Exceptions All is not bad news: I. Fundamental Research Exclusion (FRE) II. Educational Information Exclusion III. Public Information Exclusion

Office of Foreign Asset Controls Regulations (OFAC) Purpose: to implement US foreign policy Imposes trade sanctions aimed at controlling terrorism, drug trafficking and other illicit activities; sanctions vary by country Depending on the country, OFAC may prohibit the following interactions with sanctioned countries and their nationals, as well as listed entities/individuals-US and foreign: travel, making payments, taking computers, cell phones, PDAs, Providing services of value (Exceptions for peer review for professional journals only – enhancements such as editorial assistance outside of such peer review is prohibited) Collaborating or contracting

Foreign Travel Traveling to certain destinations with any of the following items may require an export license: –laptop computers, –web-enabled cell phones and other electronics containing encryption hardware or software and/or proprietary software –scientific equipment –controlled, proprietary or unpublished data in any format An export license will be required to take any items to or through any U.S. sanctioned country (e.g., Iran, Syria, Cuba, Sudan and North Korea).

Countries of Concern ITAR –Prohibited Countries: Belarus, Cuba, Iran, North Korea, Syria, Venezuela and Vietnam –Arms Embargoes: Burma, China, Liberia, Somalia and Sudan –UN Embargoes: Côte d'Ivoire. Democratic Republic of Congo, Iraq, Iran, Lebanon, Liberia, North Korea, Rwanda, Sierra Leone, Somalia and Sudan EAR –Terrorist Supporting Countries Cuba Iran North Korea Sudan Syria

Countries of Concern OFAC Sanctions –Travel, financial transactions, exports/imports with these countries may be illegal. This includes scientific collaborations!! –Such interactions with individuals on the OFAC Specially Designated Nationals and Blocked Persons (SDN List) are illegal. –Balkans, Belarus, Burma, Côte d’ivoire, Cuba, Iran, Iraq, Liberia, North Korea, Sudan, Syria, and Zimbabwe

Do Export Controls apply to my work? The following list of questions is designed to help you determine if Export Controls may apply to your research: 1.Does the research involve military, weapons, defense, chemical or biological weapons, encryption technology & software, space or other dual-use items or export restricted technologies? 2.Does the research involve the transfer or shipment of equipment, materials or funding out of the U.S.? 3.Does the research involve collaboration with foreign colleagues (including graduate students) either here at UT or abroad? 4.Does any part of the research take place outside of the U.S. (e.g. field work)? 5.Does any part of the research involve the receipt or use of Export Controlled information or items provided by a third party?

Do Export Controls apply to my work? 6. Are there any contractual restrictions on publication or access to or dissemination of the research results? 7. Does the research involve the shipment or transfer of materials, money or any other type of collaboration with foreign nationals from a sanctioned or embargoed country (i.e., Iran, Cuba, Syria, Sudan, or North Korea)? 8. Do you have any reason to believe that the end-user or the intended end-use of the item or information violates any existing export controls? If you answered yes to any of the proceeding questions than the research may be subject to Export Controls and an assessment will need to be done. Contact the Export Control Administrator at for more information.

The RSP office is here to help! Review of all sponsored research grants and contracts to ensure University compliance with federal Export Control laws. Assist the PI in resolving Export Control issues, –Licensing to allow foreign nationals access –Contract negotiation to allow for open access to the project. Assist the Principal Investigator in the development of the Technology Control Plan. Maintain a centralized database of all documentation relating to a Export Controlled-research project.

UT Export Control Website

What is the role of the PI? The PI is responsible for: Indicating on the Proposal Submission Form that the proposed work is, or may be, regulated by Export Control laws. Formulation of a Technology Control Plan for management of controlled data, information, technology, equipment, etc.Technology Control Plan Ensuring that all personnel exposed to Export Controlled projects complete the Acknowledgement of Briefing form.Acknowledgement of Briefing Contacting Jeff Busch at (419) or for help with determining whether any export control restrictions may apply to the research.

What is the role of the Business Manager? You can help us protect the University by maintaining awareness of: –the research projects in your area. –foreign shipments of equipment, samples, data. What is the destination country of the shipment? –foreign travel of faculty Contact Jeff Busch at (419) or for help with determining whether any export control restrictions may apply to the

Summary Export Control regulations apply to all University research activities, not just to shipment of equipment or research materials overseas. If your research includes international activities an Export Control assessment will need to be done to determine if an export license(s) is needed. Assistance is readily available to help you determine your export compliance requirements. Contact the Research and Sponsored Programs office: MC , HSC