1. Export/Import Controls & Compliance Training for Faculty and Staff
1/2/2019
Grants Development Office

2. Areas of Discussion Export Control Facts Governing Agencies
Why is Export Control information important?
Export Control Facts
Governing Agencies
Definitions
Applicability of Export Controls
Exclusions
Cal Poly Policy
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3. Why is Export Control information important?
Export control regulations are intended to:
Prevent defense articles, services, or dual use commodities from harming the United States or its allies.
Prevent controlled articles from being transmitted in any way outside the U.S. or within the U.S. to foreign person (s), or knowingly cause or permit any other person to do so unless:
The export or service is lawfully made and is covered by the appropriate license, agreement, permit, exception, or exemption
Appropriate documentation has been prepared, maintained, and/or submitted to the cognizant government agencies, as applicable, to permit the export, import, or service
U.S. Government record-keeping requirements are satisfied
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4. Export Control (Cont.)
The U.S. Government restricts the release of the following information to foreign nationals in the U.S. and abroad through export regulation and embargoes:
critical technologies,
technical data/software code,
equipment,
chemicals/biological materials, and
other materials, information and services
Penalties for violating export control regulations include fines, loss of export privileges, personal liability to staff, and potentially irreparable damage to Cal Poly’s reputation
Potential fines include up to $1M for the University, $1M for individuals, and up to 10 years in prison
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5. Export Violations can be viewed at the BIS FOIA Web site
Trends
Increased focus on exports that can be used as terrorism tools
Increased focus on universities and on enforcement
FBI College and University Security Effort “CAUSE” Program and Academic Alliance
Increased focus on life sciences and biological materials.
Export Violations can be viewed at the BIS FOIA Web site
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6. Cal Poly’s Requirements:
To comply with all export laws and regulations in the US, and each foreign country in which we operate, except where the law of a foreign country may be inconsistent with U.S. law
Develop and disseminate training and compliance materials regarding Export Control to employees
Ensure that all Export/Import records are maintained in accordance with U.S. government regulations
Ensure all faculty, staff, and students understand their roles and responsibilities with regard to Export Control, including authorized agents, Export/Import Compliance License requirements (ECLPS), and shipping requirements
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7. Export Control Facts Exports include the following:
Shipment of a controlled item or good
Transmission (including fax, digital or hand-carried) of controlled information related to a controlled item
Release or disclosure (including verbal or visual) of any controlled technology, software or technical data either in the U.S. or abroad
Use or application of controlled technology on behalf of, or for the benefit of, any foreign person or entity, either in U.S. or abroad
Specific definitions, regulations and exemptions depend on the governing agency for the exported item
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8. Export Control Facts (Cont.)
The Government also utilizes the term “Deemed Export” to describe export of technology or source code when released to a foreign national within the U.S.
Release is making technology or software available to foreign nationals, either visually, orally or by practice or application, under guidance of persons with knowledge of the technology or software
Includes “use technology” – information on the operation, installation, maintenance, repair, overhaul, and refurbishing of controlled equipment and access to proprietary manual.
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9. Export Control Facts (Cont.)
Exports can occur when you provide foreign persons “access” to technical information. For example, by hosting a visitor, hiring a consultant, through use of outside legal/translation services, giving a campus tour of your laboratory, publishing technical data, making presentations, through casual conversations, and sending s, faxes, etc.
Export control obligations may exist if you provide data or commodities to a person or business and have reason to believe it will be passed on to a foreign country or person.
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10. Governing Agencies The Department of State
Several government agencies are involved in the regulation of exports; however, the U.S. Department of Commerce and the U.S. Department of State regulate most of our exports
The Department of State
Implements the International Traffic in Arms Regulations, known as (ITAR)
ITAR regulates permanent and temporary Export/Import of defense articles, space related technologies, and the performance of defense services on the United States Munitions List
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11. United States Munitions List (ITAR)
Category I    Firearms, Close Assault Weapons and Combat Shotguns Category II   Materials, Chemicals, Microorganisms, and Toxins Category III   Ammunition/Ordnance Category IV  Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines Category V  Explosives and Energetic Materials, Propellants, Incendiary Agents and Their Constituents Category VI  Vessels of War and Special Naval Equipment. Category VII  Tanks and Military Vehicles Category VIII  Aircraft and Associated Equipment Category IX   Military Training Equipment Category X   Protective Personnel Equipment Category XI   Military Electronics Category XII  Fire Control, Range Finder, Optical and Guidance and Control Equipment Category XIII  Auxiliary Military Equipment Category XIV Toxicological Agents, Including Chemical Agents, Biological Agents, and Associated Equipment Category XV  Spacecraft Systems and Associated Equipment Category XVI  Nuclear Weapons, Design and Testing Related Items Category XVII Classified Articles, Technical Data and Defense Services Not Otherwise Enumerated Category XVIII  Directed Energy Weapons Category XX  Submersible Vessels, Oceanographic and Associated Equipment
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12. Governing Agencies (Cont.)
The Department of Commerce
Implements the Export Administration Regulations, referred to as (EAR),
Regulates the export of commodities found on the Commerce Control List including dual use commodities (goods and services having both military and civilian uses)
These are items that are not inherently military in nature; they are primarily commercial items with potential military use
Keep in mind time factor in determining requirements and then applying for and receiving licenses - could be as long as days, depending on outside agency review
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13. How to Determine If You Need A License
License requirements are dependent upon: 
What you are exporting (item’s characteristics)
Where you are exporting (destination)
Who will receive your item(s) (end-user)
What your item will be used for (end-use)
The GDO and SPO will assist in making this determination with the assistance of a consultant if required
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14. Commerce Control List (EAR)
0        Nuclear Materials, Facilities & Equipment & Misc.
1        Materials, Chemicals, “Microorganisms”, and Toxins
2        Materials Processing
3        Electronics
4        Computers
5        Telecommunication & Information Security
6        Sensors and Lasers
7        Navigation and Avionics
8        Marine
9 Propulsion Systems, Space Vehicles & Related Equipment
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15. Governing Agencies (Continued)
The Department of the Treasury specifically administers both comprehensive and partial embargoes against various foreign countries.
Office of Foreign Assets Control (OFAC) enforces economic and trade sanctions against specific countries and individuals
Focus is on terrorists, narcotics traffickers, proliferation of weapons of mass destruction
Prohibited activities (examples):
Conducting surveys and interviews
Engaging services to develop informational materials
Engaging persons to support research activities
Providing marketing and business services
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16. Governing Agencies (Continued)
In addition to the U.S. Department of Commerce and the U.S. Department of State, these U.S. governmental agencies are also involved in the regulation of exports:
The U.S. Department of Homeland Security administers U.S. tariff and trade laws and enforces export/import laws and regulations.
The U.S. Department of Justice enforces laws and regulations relating to alcohol, tobacco products, firearms, explosives, and arson.
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17. When Do Export Controls Apply?
Export controls apply if the information/materials appear on either the International Traffic in Arms Regulations, known as ITAR Munitions List or the Export Administration Regulations, referred to as EAR, Commerce Control List.
ITAR places strict controls on the export of “defense articles” and “defense services.” Defense articles include any item or technical data on the United States Munitions List (USML), and defense services include the furnishing of assistance to foreign persons, whether or not in the United States, with respect to defense articles, and the furnishing of any technical data associated with a defense article
There are exclusions that cover work performed in academic institutions and a license is not required to disseminate information if an exclusion applies
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18. Exclusions Applicable to Universities
Fundamental Research
Public Domain
Educational Information
Employment
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19. Fundamental Research Exclusion
Is defined in the EAR and ITAR as
Basic and applied research in science and engineering where the resulting information is ordinarily published and shared broadly within the scientific community
University research will not be considered fundamental research if:
(i) The University or its researchers accept restrictions on publication of scientific and technical information resulting from the project or activity, or
(ii) The research is funded by the U.S. Government and specific access and dissemination controls apply.
Foreign nationals may participate in research projects involving export-controlled information on campus in the US only, provided foreign person is not restricted by OFAC
Transfer of export-controlled information including “Materials” or “Items” abroad, even to research collaborators, is still prohibited
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20. Exclusions (Continued)
Information that is in the Public Domain is not subject to export controls (ITAR) and (EAR) if already published through
(a) Libraries open to the public, including most University libraries
(b) Unrestricted subscriptions; news-stands, or bookstores
(c) Published patents
(d) Conferences, meeting minutes seminars, trade shows, or exhibits held in the US (ITAR) or anywhere (EAR) which are generally accessible to the public for a fee and without the hosts’ knowledge of or control of who visits or downloads software/information
Educational Exclusion from EAR and ITAR
Covers teaching to foreign nationals in the US or abroad general science, math , and engineering commonly taught in schools and Universities in formal course and in teaching laboratories of academic institutions – including information related to controlled Material or items
Does not cover controlled information conveyed outside the classroom or teaching lab of an academic institution
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21. Exclusions (Cont.) Employment exclusion may apply to individuals who:
(a) are full-time, bona fide university employees
(b) have permanent addresses in the U.S. while employed
(c) who are not nationals of embargoed or sanctioned countries
And,
(d) are advised in writing not to share controlled information with other foreign persons
Such persons are not considered foreign nationals under the ITAR
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22. Policy
All Cal Poly employees and students involved with a potential export must:
Be aware of and comply with all policies, procedures, laws, and regulations concerning Cal Poly Export/Import activities
Ensure that no controlled information or equipment is shipped outside the United States except with a license from the Department of State and utilizing an approved carrier (unless an exclusion applies, such as for a laptop computer used for fundamental research and under owner’s control at all times)
Always determine nationality of all collaborators, who they work for, and where they are located, before engaging in any controlled activity
Complete the annual certifications for taking laptops, cell phones, and PDA’s when traveling abroad
It is the responsibility of staff and faculty to ensure student compliance
1/2/2019

23. Policy (Continued)
Ensure NO shipments are made to a country subject to OFAC sanctions or embargoes
Not take chances or make assumptions, but consult with the Grants Development Office before engaging in Export/Import activities
Seek to protect the fundamental research exemption by negotiating the elimination of clauses that restrict
Publication
Access
Participation in research, teaching, or disclosure of results
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24. Question
Giving facility tours to students or employees of a foreign country may constitute an export. True or False?
True
False
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25. Answer
Giving facility tours to students or employees of a foreign country may constitute an export. Have your specific situation reviewed by the Grants Development Office
True
False
Ensure tours do not contain access to areas that contain export controlled material or technologies
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26. Question
Once a license is obtained for exporting certain equipment, and all of the equipment on the license has been exported, there is no need to obtain additional licensing authority to export the same equipment in the future. True or False?
True
False
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27. Answer
Each situation must be reviewed by the department of state licensing authority even if you intend to export the same equipment in the future.
False
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28. Question
You teach a graduate course on solid-state lasers which is listed in our course catalog. Many of the students are foreign persons. You need to obtain a license before this information is disclosed to foreign students?
True
False
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29. Answer
Release of information by instruction in catalog courses and course laboratories of academic institutions is not subject to EAR
True
False
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30. Question
You are traveling abroad to Germany as part of a Grant activity. Since it is not an embargoed country and you have no encrypted software on your laptop there are no restrictions on your travel
True
False
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31. Answer
Foreign Travel requires completion of the annual certification, for your laptop, cell phone, and PDA, that you are aware that they are to be tools of the trade only, as well as other limitations with regard to foreign travel stipulated in the certification.
True
False
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