Briefing on Export Control Regulations Wayne State University Office of the Vice President for Research

What are Export Controls? Federal regulations that control the conditions under which certain information, technologies, and commodities can be transmitted overseas to anyone, including U.S. citizens, or to a foreign national on U.S. soil.Federal regulations that control the conditions under which certain information, technologies, and commodities can be transmitted overseas to anyone, including U.S. citizens, or to a foreign national on U.S. soil. Export control laws apply to a broad range of University activities and may have a substantial impact on WSU’s academic and research programsExport control laws apply to a broad range of University activities and may have a substantial impact on WSU’s academic and research programs

Regulatory Agencies Department of Commerce Department of Commerce  Export Administration Regulations (EAR)  Department of State  International Traffic in Arms Regulations (ITAR)  Department of Treasury  Office of Foreign Assets Control (OFAC)

What Areas of Universities are Affected by Export Control Regulations?  Research  Engineering, medicine, nursing, pharmacology, sciences, et al.  Education and Training  Computing and Information Technology  Technology/Material Transfer  Grants and contracts  Visiting Scientist and Scholars  International Travel  International Study Programs  Purchasing  Shipping  Environmental Health and Safety  International collaborations Other areas of vulnerability?

Key Terms  Foreign National  Deemed Exports  Use  Dual Use  Fundamental Research Exemptions/Exclusions

Foreign National Any person who is not a lawful permanent resident of the U.S. (a U.S. citizen, a legal permanent resident [green card holder] or under U.S. asylum protection) Any person who is not a lawful permanent resident of the U.S. (a U.S. citizen, a legal permanent resident [green card holder] or under U.S. asylum protection) Any foreign corporation or other entity or group that is not incorporated or organized to do business in the U.S. Any foreign corporation or other entity or group that is not incorporated or organized to do business in the U.S. Any foreign government Any foreign government

Deemed Export The transfer of goods, technology or source code within the United States to a Foreign National The transfer of goods, technology or source code within the United States to a Foreign National Includes oral, visual or written disclosure (i.e. laboratory tours, websites, s, research collaboration and oral exchanges of information) Includes oral, visual or written disclosure (i.e. laboratory tours, websites, s, research collaboration and oral exchanges of information) Applies to disclosures to research assistants, students, visiting foreign researchers, and U.S. citizens visiting a foreign country Applies to disclosures to research assistants, students, visiting foreign researchers, and U.S. citizens visiting a foreign country

Use Equipment operation, installation, maintenance, repair, overhaul, refurbishing Equipment operation, installation, maintenance, repair, overhaul, refurbishing If all 6 activities are present then some foreign nationals may be restricted with regard to “use” of equipment If all 6 activities are present then some foreign nationals may be restricted with regard to “use” of equipment

Dual Use Any technology or information that has both a military and civilian use Examples include: computers, software code, microorganisms and toxins, electronics, sensors, lasers, and telecommunications

Fundamental Research “Basic and applied research in science and engineering, the results of which ordinarily are published and shared broadly within the scientific community as distinguished from proprietary research and from industrial development, design, production and product utilization, the results of which ordinarily are restricted for proprietary or national security reasons”. (NSDD-189) *May not apply to ITAR-controlled items

Components of Fundamental Research Information that is generally accessible to the interested public: Periodicals, books, print, electronic and other media formsPeriodicals, books, print, electronic and other media forms LibrariesLibraries Open conferencesOpen conferences Released by instruction in catalog coursesReleased by instruction in catalog courses Associated teaching laboratories of academic institutionsAssociated teaching laboratories of academic institutions Public information available on a patent applicationPublic information available on a patent application

Fundamental Research Exclusion The Export Control Regulations do not apply to Fundamental Research The Export Control Regulations do not apply to Fundamental Research Approximately 90% of all research falls under the Fundamental Research exclusion.Approximately 90% of all research falls under the Fundamental Research exclusion.HOWEVER Export Controls do apply if the University accepts any contract that Export Controls do apply if the University accepts any contract that Requires the exclusion of Foreign Nationals from participation (i.e. a license may be required)Requires the exclusion of Foreign Nationals from participation (i.e. a license may be required) Restricts publication or disclosure of research results more than 90 days (e.g. for sponsor review)Restricts publication or disclosure of research results more than 90 days (e.g. for sponsor review) Approval differs from reviewApproval differs from review

Employment Exclusion No license is required in order to share controlled technical information with a foreign person who:  Is a full-time, bona fide university employee AND  Has a permanent address in the US while employed, provided that person Is not a national of a country to which exports are prohibited, and Is not a national of a country to which exports are prohibited, and Is advised in writing not to share controlled information with other foreign persons. Is advised in writing not to share controlled information with other foreign persons. * ITAR only

Education Exclusion  No license is required to share with foreign persons “information concerning general scientific, mathematical or engineering principles commonly taught in universities or information in the public domain.”

Sanctions and Penalties Individual and institutional Individual and institutional CriminalCriminal  Up to $1 million for a university  Up to $1 million for individuals per violation  Up to 20 years imprisonment - EAR  Up to 10 years imprisonment - ITAR  Civil  Seizure and forfeiture of controlled item(s)  Up to $500,000 fine per violation  Revocation of exporting privileges

Do These Regulations Really Apply to University Activities? Former University of Tennessee Professor John Reece Roth begins serving a 4 year prison sentence for sharing military research data. Posted: Tuesday, February 1, 2012 Department of Justice – U.S. Attorney William C. Killian, Eastern District of Tennessee As a UT professor, Dr. J. Reece Roth obtained an U.S. Air Force (USAF) contract to develop plasma actuators. During the course of that contract he allowed two foreign national students access to exported controlled data and equipment which violated the Arms Export Control Act (AECA). In September 2008, Dr. J. Reece Roth was convicted of conspiracy, wire fraud, and 15 counts of exporting “defense articles and services” without a license. On January 18, 2012 all of his appeals were denied and he is currently serving time in a federal prison.

Department of Commerce (EAR) Examples of Restrictions* Technology (specific information necessary for development, production or use of a product) Technology (specific information necessary for development, production or use of a product) Technical Data (i.e. blueprints, diagrams, formulae, manuals and instructions etc.) Technical Data (i.e. blueprints, diagrams, formulae, manuals and instructions etc.) Use (operation, installation, maintenance, repair, overhaul and refurbishing) Use (operation, installation, maintenance, repair, overhaul and refurbishing) advanced materials, telecommunications, microelectronics, encryption, optoelectronics, biotechnology, computing advanced materials, telecommunications, microelectronics, encryption, optoelectronics, biotechnology, computing * Lists are subject to change

Department of Commerce (EAR) Additional Restrictions Country Country Control of items based on technical parameters and country of ultimate destination.Control of items based on technical parameters and country of ultimate destination. Denied Persons Denied Persons Persons denied export privileges, in whole or in part.Persons denied export privileges, in whole or in part. Denied Entity Denied Entity Organizations identified as engaging in activities related to the proliferation of weapons of mass destruction.Organizations identified as engaging in activities related to the proliferation of weapons of mass destruction. Depending on the item, a license may be required to export to an organization on the Entity List even if one is not otherwise required.Depending on the item, a license may be required to export to an organization on the Entity List even if one is not otherwise required.

Examples of Restricted Countries Terrorism concerns Terrorism concerns Cuba, Iran, North Korea, Syria and SudanCuba, Iran, North Korea, Syria and Sudan Trade sanctions against transactions of value* Trade sanctions against transactions of value* Cuba, Balkans, Iran, Iraq, Libya, North Korea, Burma, Liberia, Sudan, Syria, Zimbabwe*Cuba, Balkans, Iran, Iraq, Libya, North Korea, Burma, Liberia, Sudan, Syria, Zimbabwe*  Includes provision of services (i.e. surveys and interviews; training; marketing and business services).  Sanctioned countries are subject to change.

How Is the University Affected by Export Control Restrictions? The University may be required to obtain prior approval from State, Commerce, and/or OFAC for: The University may be required to obtain prior approval from State, Commerce, and/or OFAC for: Foreign nationals to participate in researchForeign nationals to participate in research Collaborating with foreign nationals/entitiesCollaborating with foreign nationals/entities International travelInternational travel Sharing research (verbally or in writing) with Foreign NationalsSharing research (verbally or in writing) with Foreign Nationals Before allowing material transfer to designated persons or countriesBefore allowing material transfer to designated persons or countries *if exception/exemption is not applicable

Export Control Reform In August 2009 the President initiated an interagency review of the U.S. export control system, which calls for fundamental reform of the current system in order to enhance U.S. national security and strengthen our ability to counter threats by: Focusing on the threats that matter most Increasing business with our Allies Strengthening the U.S. defense industry by reducing current incentives to foreign manufacturers who typically seek alternative designs to avoid purchasing U.S. parts and components regulated by U.S. export controls. The Administration is implementing the reform in three phases: Phases I and II reconcile various definitions, regulations, and policies for export controls, all the while building toward Phase III. Phase III will create a single control list, single licensing agency, unified information technology system, and enforcement coordination center. On April 16, 2013, a major milestone in Export Control Reform was reached as the first pair of rules implementing Export Control Reform were published.

Summary Export Control Regulations have far- reaching implications on everyday University activities Export Control Regulations have far- reaching implications on everyday University activities Many units (administrative, academic, research) of the University are affected Many units (administrative, academic, research) of the University are affected Compliance with regulations requires a university-wide oversight program Compliance with regulations requires a university-wide oversight program Non-compliance with regulations places the University and its personnel at risk of fines and/or imprisonment Non-compliance with regulations places the University and its personnel at risk of fines and/or imprisonment

Please visit our website for additional information at: or Contact Us Export Control & Regulatory Compliance Office Office of the Vice President for Research 5057 Woodward Ave, Suite 2317 Detroit, MI Phone: