1. DON’T LET THIS HAPPEN TO YOU!!! University Professor Sentenced to FEDERAL Prison Professor John Reece Roth: formerly of the University of Tennessee

2. EXPORT CONTROL & ITAR International Traffic in Arms Regulations Dr. Carla Raineri Padilla Fayetteville State University Fayetteville, N.C.

3. Agencies Involved:  Dept. of State (ITAR)  Dept. of Commerce: Bureau of Industry and Security- BIS (Export Control)  Dept. of Treasury: Office of Foreign Assets Control OFAC economic & trade sanctions against targeted 1.Foreign Governments 2.Individuals 3.Practices (i.e. illegal embargoes)

4. Other Agencies Involved:  Dept. of Energy  Nuclear Regulatory Commission  Dept. of Commerce-Patent & Trade Office  Dept. of Interior  Food & Drug Administration  Dept. of Commerce- Bureau of Census  DHS- Border & Transportation Security  DHS- US Customs Service

5. Why are Exports Controlled?  National Security  Foreign Policy  Anti-Terrorism  Crime Control  Regional Stability  Non-proliferation  Nuclear Weapons  Chemical/Biological Weapons  Missiles/Rocket Systems & UAV

6. “Subject to the EAR” 15 CFR §734.2(a) Items and activities under regulatory jurisdiction of the EAR Items on the Commerce Control List (CCL) Some items located outside of the United States (depends on the % US items and the country its going to)

7. “Subject to the EAR” cont. US Persons and Foreign Persons (ANY Person in the U.S. is a U. S. Person!!!) ALL Items in the United States except: Publicly available technology and software (Excluding- Encryption)

8. EXPORT REEXPORT (RETRANSFER): Shipment or transmission of items subject to the EAR from one foreign country to another ITEM: 1.Commodity 2.Software 3.Technology (IP)

9. “Knowledge” Includes: Positive knowledge that a circumstance exists or is substantially certain to occur An awareness of a high probability of its existence or future occurrence KNOW = reason to know = reason to believe

10. 3 Questions You Must Ask 1.What is the item/technology? 2.Where or to whom is it going? 3.What is the end use?

11. Dept of Commerce: Office of Export Enforcement Export enforcement- task is to prevent the export of U.S. goods and technology that may be used by rogue states or terrorists to make chemical, biological or nuclear weapons Dual–Use Commodities

12. Dual-use Telecom Relay DeviceTriggered Spark Gap Civilian use- office equipment Military use- IED triggers Civilian use- hospital equipment Military use- detonator for nuclear bomb

13. “FRE”- Fundamental Research Exclusion NSDD 189 Basic and applied research in science & engineering, the results of which ordinarily are published & shared broadly within the scientific community, as distinguished from proprietary research & from industrial development, design, production, & product utilization, the results of which ordinarily are restricted for proprietary or national security reasons.

14. U Research is NOT “FRE” if: 1.Publication restrictions 2.Side-deals, such as NDA’s 3.Sponsor approval is required prior to publication 4.Security Clearance Required

15. U Research is NOT “FRE” if: 5.Government Contract involves ITAR 6.Transfer of Defense Services 7.“Use” of Controlled Equipment by a foreign national-May require a license, even if the research is otherwise “FRE” 8.Encryption Technology NOTE: Include the price of a CCL export license if you are writing a grant that requires the tech be shared with foreign nationals or occurs in a foreign country

16. U of Massachusetts at Lowell: “Use” of Controlled Equipment in Fundamental Research BIS charged U Mass with violations of the Export Control Act for the export of EAR 99, atmospheric testing device. Device was used by the space and Upper Atmospheric Research Commission in Pakistan for Fundamental Research Charged May 2013- currently in litigation

17. Release of Technology Release of technology can occur through: 1.Visual inspection 2.Oral exchange 3.Application of Knowledge

18. Deemed Exports Deemed Export  release of technology or software source code to a foreign national in the United States. Considered an export to the home country of the foreign national Rule does not apply to: – Permanent resident aliens – Protected individuals

19. Deemed Export Rule “Deemed Export Rule”: The obligation to get a license before releasing controlled technology to a foreign person Release of controlled technology to foreign persons in the U.S. are “deemed” to be an export to the person’s country or countries of nationality.

20. Deemed Exports Currently Targeted: Biotechnology Pharmaceuticals Nanotechnology Quantum Computing Advanced Materials Communication & Encryption Technology Weapons Systems yet Unclassified

21. ITAR US Munitions List 1- Firearms, Close Assault Weapons and Combat Shotguns 2- Guns and Armament 3- Ammunition/Ordnance 4- Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines 5- Explosives and Energetic Materials, Propellants, Incendiary Agents and Their Constituents 6- Surface Vessels if War and Special Naval Equipment 7- Ground Vehicles 8- Aircraft and Related Articles 9- Military Training Equipment and Training 10- Protective Personnel Equipment and Shelters

22. USML- cont. 11- Military Electronics 12- Fire Control, Range Finder, Optical and Guidance Control Equipment 13- Materials and Miscellaneous Articles 14- Toxicological Agents, Including Chemical Agents, Biological Agents and Associated Equipment 15- Spacecraft Systems and Associated Equipment 16- Nuclear Weapons, Design and Testing Related Items 17- Classified Articles, Technical Data, and Defense Services Not Otherwise Enumerated 18- Directed Energy Weapons 19- Gas Turbine Engines and Associated Equipment 20- Submersible Vessels and Related Articles

23. FSO Facility Security Officer US DoD: Defense Security Service http://www.cdse.edu/resources/resources- fso.html

24. SCIF Sensitive Compartment Information Facility Must be US Government accredited Minimum Requirements defined in “Community Directive (ICD) 705/IC Technical Specification” http://www.ncix.gov/publications/policy/docs/ICD_7 05- Sensitive_Compartmented_Information_Facilities.pdf http://www.fas.org/irp/dni/icd/ics-705-ts.pdf

25. DoD and ITARS Grants Contracts Subcontract- watch flow-down requirements

26. If you do get a Sensitive Grant 1.FSO 2.SCIF 3.DO NOT have foreign nationals in the lab 4.Check security clearance requirements for your personnel 5.Do not take any technology outside of the country 6.Check with your Export Control Officer

27. DON’T LET THIS HAPPEN TO YOU!!! University Professor Sentenced to FEDERAL Prison Professor John Reece Roth University of Tennessee Sentence to 4 years in federal prison for Violations of Export Control Laws How did the Plasma Guidance System he developed end up in Chinese Drones? Roth took reports and related studies in his laptop to China in 2006 while attending conferences Roth had two foreign research assistants, 1 from Iran and 1 from China, working on secure research projects- He had been told by U. Export Control Officer they could not be in the lab.

28. DON’T LET THIS HAPPEN TO YOU!!! University Professor Sentence to FEDERAL Prison Dr. Thomas Campbell ButlerSparked Bioterrorism Scare 30 vials of Yersinia pestis went missing from his lab. Causal organism of Bubonic Plague He had illegally exported them to U of Tanzania for research and lied about the export Convicted on 47 counts Formerly: Chief of Infectious Disease Texas Tech University

29. Other Universities 2009 Georgia Institute of Technology’s restricted access course on US Weapons Tech was accidentally uploaded to the Web and available for view for 15 days Viewed by individuals in 36 countries, including China and Iran

30. Theft of Trade Secrets U of Buffalo’s Technology Incubator- Amherst Yi Liu- PhD in Mechanical Engineering 24 Oct 2013 – 7 count indictment for theft of trade secrets Maximum possible penalty 60 years & $3,500,000 fine

31. How to get Around Problems: For subawards/subcontracts- check you flow down Do not accept awards with publication restrictions

32. If you want to get a sensitive grant of contract but it is outside of normal University Procedures Use your universities Research Corporation 501(c)(3)

33. 1. Voluntary Compliance Programs 2. If you want to use a foreign national in export controlled work (not ITAR) get a license BIS Note: Generally not granted for individuals from  China  Syria  North Korea  North Sudan  Iran How to make BIS happy

34. Penalties Export Control Violations University: up to $1,000,000 or 5X the value of the violation Individual: $250,000 up to 10 years or both Revocation of licenses ITAR Violations University: up to $1,000,000 Individual: $250,000 up to 10 years or both Revocation of licenses

35. Methods Used to Target Technology Hacking Unsolicited emails Compromise of laptop while traveling overseas Downloading information from your network Visiting Scientific and Research Delegations Attending/Hosting Conferences Front Companies Relocating R & D facilities overseas Circumventing Export Control Laws Liaisons with Universities that have ties to Defense Contractors Recruiting by Foreign Intelligence Services

36. Questions

37. Carla Raineri Padilla cpadilla@uncfsu.edu 910.672.1569 Fayetteville State University 1200 Murchison Road Fayetteville, NC 28301

38. Handy Dandy Web Addresses State Department Compliance Program Guidelines: http://www.pmddtc.state.gov/compliance/docu ments/compliance_programs.pdf