1. Export Compliance Basics
An Export Compliance Overview
Developed by Laurel Dean
Export Compliance Officer

2. Nuts & bolts of export rules
Export Compliance Overview
Nuts & bolts of export rules

3. Export Compliance Overview- Basics
Overview of Export Controls
The U.S. Government actively regulates, and in some cases, restricts the export of certain information, items or technologies deemed to be critical to the interests of national security, economy and/or foreign policy.

4. Export Compliance Overview- Agencies
The term “Export Controls” refers collectively to those U.S. laws and regulations that govern the transfer of controlled information or technologies to foreign nationals and/or foreign countries.
There are 3 primary federal agencies that oversee and enforce export controls:
State Department
International Traffic in Arms Regulations (ITAR)
Governs military, weapons, and space related technologies.
Commerce Department
Export Administration Regulations (EAR)
Governs technologies with dual uses (those with both military and commercial applications or strictly commercial applications).
Treasury Department
Office of Foreign Assets Control (OFAC)
Governs transactions with countries subject to U.S. embargo, boycott, or trade sanctions.

5. Export Compliance Overview- Basics
General Rules
It is unlawful to export to a denied or restricted party (prohibited end user) without an appropriate export authorization.
Individuals and entities (both domestic and foreign) may be listed on one of the lists maintained by the Department of State, Department of Commerce, and/or the Department of the Treasury. All interactions with these individuals are prohibited without a license.
It is unlawful to perform, direct, or facilitate an export for a prohibited end use.
Applies to weapons of mass destruction, chemical & bio weapons, nuclear technology.
ALL work related to a prohibited end use (including Fundamental Research) requires extensive due diligence and usually requires a license.
It is unlawful to export to a foreign person or entity without an appropriate export authorization.
All exports require either an authorization (internal determination that the export is allowed without a license), or an export license.

6. Export Compliance Overview- Definitions
Sanctioned & Prohibited Countries & Entities
Comprehensive sanctions (applies to all individuals/entities/transactions related to that country):
Iran
Syria
Cuba
North Korea
Targeted sanctions (applies only to the indicated individuals/ entities/ transactions). These are numerous, but a few examples include:
Russian oil & gas interests
Lebanese individuals who support specific causes
Government officials in Cote d’Ivoire
Prohibited Parties
Debarred Persons (ITAR), Denied Parties List (EAR), Entity List (EAR), Specially Designated Nationals (OFAC), others

7. Export Compliance Overview- Definitions
Foreign Nationals/Entities
Foreign Nationals are persons who:
Are not U.S. Citizens
Are not permanent resident aliens of the U.S. (i.e., they do not have a Green Card)
Are not in the U.S. as a refugee or with asylum status
Foreign Entities are:
Those businesses, organizations, and governments that are not incorporated or organized to do business in the U.S.

8. What constitutes an export?
Export Compliance Overview- Definitions
What constitutes an export?
TAKE HOME MESSAGE:
Export controls apply to more than military items.
They impact university work in a variety of ways!
An export occurs whenever controlled technology and/or an item, commodity, biologic, or software, is sent out of the U.S. to a foreign person.
A “deemed” export occurs whenever controlled technology and/or source code is transferred to a foreign person in the U.S.

9. Export Compliance Overview- Definitions
A Few Ways We Might Export (Accidentally)
UNC person/department engages with a sanctioned or prohibited party
FN receives controlled information from an outside party
FN receives/ uses controlled source code
FN participates in controlled research (the research is controlled because of a contractual publication restriction that wasn’t caught)
FN takes a controlled item/material/equipment/ biologic out of the country
UNC person ships a controlled item/material/equipment/biologic to a UNC FN who is doing research abroad
UNC person ships a controlled item/material/equipment/biologic to a foreign sponsor or collaborator
UNC person develops items/materials/equipment/source code on a fundamental research project, and releases it to foreign parties

10. Export Compliance
In addition to activities involving military items or weapons, it is critical to note that many normal, everyday University activities are subject to Export Controls including:
Traveling overseas on University business (e.g., conferences, conducting field work, international symposia)
Traveling with some types of equipment including laptops, web-enabled cellphones, or other items
Research collaborations with foreign nationals (here in the U.S. or aboard)
Delegations visiting prohibited entities
Visits or tours of research facilities by foreign nationals
Usage of equipment & materials to conduct research
Research involving controlled biologics
Any type of contractual and/or financial relationship with an embargoed or sanctioned person/country
Providing financial assistance to anyone that is considered a blocked or sanctioned party, or a specially designated national
Receiving money or items from a prohibited individual
TAKE HOME MESSAGE:
Export controls apply to more than military items.
They impact university work in a variety of ways!

11. Export Compliance Overview- Exclusions
Technology Exclusions from Export Control
Research is exempt from export controls when any one of the following three exclusions apply:
Although research may be exempt from Export Controls under these exclusions, the University must demonstrate that the appropriate export control reviews were performed.
Public Information Exclusion
Educational Information Exclusion
Fundamental Research Exclusion

12. Export Compliance Overview-Exclusions
Technology Exclusions from Export Control
The Public Information Exclusion covers any information that is already published or out in the public domain. Information in the public domain is not subject to Export Controls. Examples include:
Information in the public domain is not subject to Export Controls and no license is required to share information with foreign nationals in the U.S. or abroad.
Books, newspapers, pamphlets
Publically available technology and software
Information presented at conferences, meetings or seminars open to the public
Information included in published U.S. patents
Websites freely accessible to the public

13. Export Compliance Overview- Exclusions
Technology Exclusions from Export Control
The Educational Information Exclusion covers information commonly taught in universities via instruction in catalog courses and/or through the associated teaching laboratories.
Information that qualifies as Educational Information is not subject to Export Controls and no export license is required to share information with foreign nationals in the U.S. or abroad.

14. Export Compliance Overview-Exclusions
Technology Exclusions from Export Control
The Fundamental Research Exclusion applies to any basic or applied research in science or engineering where the resulting information is ordinarily published and broadly shared in the scientific community.
Research performed as Fundamental Research is not subject to Export Controls and no export license is required to share information with foreign nationals in the U.S. or abroad.
It is important to note that the fundamental research exclusion only covers the “results” of research.
It does not cover actual materials, items, equipment, and/or biologics involved in or resulting from the research. Export Controls and licensing requirements may still apply to these items.

15. Export Compliance Overview-Exclusions
Fundamental Research Exclusion
For research to qualify as Fundamental Research, all of the following must be true:
There can be NO restrictions on publication
There can be NO access or dissemination restrictions
The research must be based at an accredited U.S. institution
Many of these restrictions are not easy to spot, and may even be incorporated by reference. Thorough and experienced contract review and negotiation is critical!

16. Export Compliance Overview
The Cost of Non-Compliance
Following the events of 9/11 there has been a heightened level of awareness and scrutiny of all export activities with a growing emphasis on enforcement.
Federal agencies are increasingly focused on universities and their compliance with export regulations.
Non-compliance with export regulations can lead to substantial and severe criminal and monetary penalties imposed on both individual researchers and institutions.
Export compliance regulations carry individual liability!
The severity of the fine/penalty depends on many factors including which regulations were violated, the extent of the violation and more importantly the intent of the violation.

17. Export Compliance Overview
The Cost of Non-Compliance
Department of State – Violations against the International Traffic in Arms Regulations (ITAR):
CIVIL FINES
Fines of $500,000 per violation
Suspension/debarment from Government contracts
Loss of export privileges
CRIMINAL PENALTIES
Up to $1,000,000 per violation
Up to 10 years in prison

18. Export Compliance Overview
The Cost of Non-Compliance
Department of Commerce – Violations against the Export Administration Regulations (EAR):
CIVIL FINES
Fines of $10,000 to $120,000 per violation
Suspension/debarment from Government contracts
Loss of export privileges
CRIMINAL PENALTIES
$50,000 to $1,000,000 per violation
Up to 10 years in prison

19. Export Compliance Overview
The Cost of Non-Compliance
Department of Treasury – Violations against U.S. sanctions or embargoes administered by the Office of Foreign Assets Control (OFAC):
CIVIL FINES
Fines of $500,000 per violation
Suspension/debarment from Government contracts
Loss of export privileges
CRIMINAL PENALTIES
Up to $1,000,000 per violation
Up to 10 years in prison

20. Export Compliance Overview
The Cost of Non-Compliance
Non-compliance can also lead to:
Significant harm to the integrity and reputation of the University
This can also affect our ability to get & retain sponsors, collaborators, and faculty
Loss of export privileges
Loss of federal funding
Loss of industry funding
Additional and/or more restrictive Ts&Cs in federal awards, which also must flow down to sponsors
Impact on ability to retain/ obtain foreign national visas
Increased scrutiny from other agencies
False Claims Act suits
Requirements to implement specific compliance program

21. Hiring Foreign Nationals
Your export compliance responsibilities as a supervisor or department chair

22. Foreign Nationals PI/ Supervisor Responsibilities:
Educate yourself and your lab staff around export compliance regulations
Educate the foreign national: what are the rules, and why do they apply?
Answer questions in the I-129 Export Questionnaire accurately and to the best of your knowledge
Ensure that the foreign national does not engage in export-controlled work without an export authorization or license
Ensure that the foreign national does not have access to export- controlled items, materials, equipment, biologics, technology, or software if a license would be required
Comply with the requirements of any Technology Control Plan, Biologics Control Plan, or Facility Plan for your laboratory
Communicate any questions or concerns to the Export Compliance Officer

23. Hiring Foreign Nationals
Department Chair Responsibilities:
Educate yourself and your faculty around export compliance regulations
Thoroughly review all I-129 Export Questionnaires for your department
Work with the Export Compliance Officer to determine labs/ equipment/ biologics/ software in your department that are highly controlled under export regulations
Work with the Export Compliance Officer to implement controls around highly controlled labs/ equipment/ biologics/ software; Ensure that department faculty are aware of these controls
Make faculty aware of new foreign national faculty and post-docs coming into the department; discuss ways to integrate these individuals while still complying with export regulations
Communicate any questions or concerns to the Export Compliance Officer

24. https://research.unc.edu/export-control/
Contact Information
Laurel C. Dean, JD T C