1. EXPORT ADMINISTRATION REGULATIONS (EAR) Research and Economic Development MAY 28, 2013 John Jacobs

2. Classification Process If EAR Applies, What Next? The EAR Categorization Process STEP 1: With the PI’s help, the Facility Security Officer must classify the type of technology or science being developed on the Commerce Control List (CCL) by determining the Export Control Classification Number (ECCN)

3. Commerce Control List Contains lists of items subject to licensing authority of BIS Each entry has its own Export Control Classification Number (ECCN) Five alpha-numeric characters example 3D Items listed in terms of technical parameters

4. ECCN Breakdown Example: 3D101 3 – Category D – Product Group 1 – Reason for Control 0 – Relates to Reasons for Control 1 – Used for Numerical Ordering

5. Ten Categories In The CCL (0 - 4) 0 - Nuclear Materials, Facilities & Equipment, and Miscellaneous 1 - Materials, Chemicals, Microorganisms & Toxins 2 - Materials Processing 3 - Electronics Design, Development and Production 4 - Computers, are broken down into Hardware and Software

6. Ten Categories In The CCL (5 – 9) 5 - Telecommunications & Information Security 6 - Sensors and Lasers 7 - Navigation and Avionics 8 - Marine (ships & vessels) 9 – Aerospace and Propulsion Equipment This represents the first number of the ECCN

7. Product Groups A - Equipment, Assemblies & Components B - Production, Test & Inspection Equipment C - Materials (raw) D - Software E - Technology These are the only letters used within the ECCN

8. Finding The ECCN Review general characteristics (technical parameters) of items to arrive at Category and Product Group Match characteristics of item with ECCN and subparagraph HINT: Check the CCL alphabetical index

9. General Prohibitions, Part 736 STEP 2: Check General Prohibitions, there are 10 Prohibit certain exports, re-exports, and other conduct, without a license, license exception or determination that no license is required General Prohibitions 1-10 apply to items having a specific ECCN General Prohibitions 4-10 apply to items that are EAR99 (not found on the CCL)

10. General Prohibitions 1-3 Apply only if your item is classified under an ECCN: 1.Export and re-export of controlled items to listed countries 2. Re-export and export from abroad of foreign-made items incorporating more than a de minimis amount of controlled U.S. Content 3. Re-export and export from abroad of the foreign produced direct product of U.S. technology and software

11. General Prohibition Continued 4 - 7 Apply if your item is classified under a specific ECCN or is “EAR 99”(items not found on the CCL=usually no license required) 4. Engaging in actions prohibited by a denial order (check denied persons/entities lists) 5. Export or re-export to prohibited end-uses or end users (e.g., chemical and biological warfare) 6. Export or re-export to embargoed or special destinations 7. Support of proliferation activities

12. General Prohibitions Continued 8-10 8. In-transit shipments and items to be un-laden from vessels or aircraft 9. Violation of any order, terms, and conditions 10. Proceeding with transactions with knowledge that a violation has occurred or is about to occur If Prohibitions don’t apply, look for Exceptions

13. License Or Exception? STEP 3: Try to find the exception! Using the CCL, check for reasons for control: Look at the “Reason for Control” section directly under the category heading and License Requirements. E.g.: Reason for control: NS, MT, AT Match specific controls to Country Chart column Look for an “X” in Commerce Country Chart

14. License Or Exception? If an “X” is present, look under the “License Exceptions” category below the “Control(s)” section If no license exception available, license must be obtained (4-6 weeks to process)

15. AT = Anti - Terrorism CB = Chemical & Biological weapons CC = Crime Control CW = Chemical Weapons Convention EI = Encryption Item FC = Firearms Control MT = Missile Technology NP = Nuclear Proliferation NS = National Security RS = Regional Stability SI = Significant Item SS = Short Supply UN = United Nations SL = Surreptitious Listening Reasons For Control

16. Common License Exceptions LVS – Limited Value Shipments o Pertains to Country Group B o Identified by “LVS: $(value)” on the CCL (e.g.: LVS: $5000) GBS – Group B Shipments o Pertains to Country Group B o Identified by “GBS: Yes” on the CCL

17. Common License Exceptions CIV – Civil End-Users o Pertains to Country Group D-1 o Identified by “CIV: Yes” on the CCL o National Security controlled items only TSR – Restricted Technology and Software o Pertains to Country Group B o Identified by “TSR: Yes” on the CCL o National Security Controlled Items only o Written Assurance – Letter can be written stating software will not be released to nationals of certain country groups (e.g. D:1 and E:2)

18. Common License Exceptions TMP - Temporary Exports and Re-exports o Tools of trade o Replacement parts o Exhibition and demo o Inspection and calibration o Assembly in Mexico o To US subsidiary, affiliate or facility in Country Group B o Beta test software o Return to US within 1 year

19. Deemed Export Exceptions CIV: Civil End Use o Applies to deemed exports for 3E001/3E002 technology o Requires Foreign National Review (FNR) TSR: Technology/Software Under Restriction o Applies to technology/software under national security only for country group “B” nationals o Requires Letter of Assurance APP – Computers o Applies to deemed exports for 4D001/4E001 software and technology. (FNR required)

20. Questions? Export Controls Officer fso@uncc.edu Office Phone 704.687.1877 http://www.research.uncc.educompliance-ethics