2. Glocalization: Assisting Researchers and Facilitating International Collaborations Susan Wyatt Sedwick, PhD, CRA Associate Vice President for Research Director, Office of Sponsored Projects The University of Texas at Austin

3. Learning Objectives Participants will: – Gain awareness of good practices and tools available to research administrators to expedite the subaward process – Recognize the unique issues that can arise in foreign collaborations related to audits, payments and taxation – Discern the issues that require review for export controls compliance

4. Good science anywhere is good for science everywhere. Subra Suresh, Director National Science Foundation

5. Why collaborate? Extension campuses Global perspectives Access to – Expertise – Research subjects – Research sites

6. Common Ground Environmental sustainability Renewable/clean energy International security issues Accessibility to quality health care Response to national disasters Educational reform Budget constraints

7. Foreign Initiatives Emergence of research universities in the Middle East UK and EU Grant Programs Australian Innovation Programmes Asia – National Research Foundation of Korea – Taiwan’s Aim for the Top University Project – China’s 1000 Talents Program – HKUST curriculum overhaul and aggressive western recruitment

8. Trust Researchers Declaration of 2010 Bottoms-up initiative collected 13000+ signatures from researchers in ~45 countries Mutual trust and responsible partnering Appropriate levels of accountability Effective, reliable and stable funding principles Tolerable risks are vital for innovation

11. Glocalization Tailoring products and services to conform with local laws, customs or consumer preferences.

12. Challenges Language Currency/Exchange rates Cultural nuances and practices Taxation Insurance/Safety and security Subrecipient monitoring Governing/applicable law Dispute resolution/arbitration Accounting and audit Distance

13. Issues in International Negotiations Compliance issues – Human subjects – Animal care and use – Biosafety – Export controls Technology and material transfers Subawards US Anti-boycott laws

15. Assessing Risk Stanford University/University of Minnesota Risk Assessment Tool http://www.ncura.edu/content/misc/ncura_tv /submonitoring0909/docs/UMN_Subrecipient RiskAnalysisTemplate.xls http://www.ncura.edu/content/misc/ncura_tv /submonitoring0909/docs/UMN_Subrecipient RiskAnalysisTemplate.xls

17. Negotiation Considerations Prevailing language (English) Currency via wire transfer (Dollars) Invoicing and financial reporting Dispute resolution (International Chamber of Commerce) Travel warnings/restrictions Effort reporting Compliance Partnerships/Joint Ventures Payment

18. Payment Terms Incoming award from foreign entity Outgoing subaward to foreign entity Up-front payment Residual hold for final report Wire transfers (OFAC)

19. Template Agreements For Assistance Agreements (grants and cooperative agreements) utilize the FDP Subaward template http://sites.nationalacademies.org/PGA/fdp/P GA_063626 http://sites.nationalacademies.org/PGA/fdp/P GA_063626 Coming soon – FDP Subcontract template DO NOT CHANGE THE FDP templates except as allowed

20. Subrecipient Monitoring Review audit findings (if any) – Follow up on corrective action items Level of scrutiny should be commensurate with – Complexity of the project – Percentage of work being performed (dollars) – Amount of award – Identified risks Ongoing monitoring of activities – Use of Federal Audit Clearinghouse and FDP website – Ongoing contact – Review reports – Site visits as appropriate – Desk or on-site audits, as warranted

21. 20 Compliance Guidance COGR’s Managing Externally Funded Research Programs: A Guide to Effective Management Practices Responsible Conduct of Research (RCR) NCURA’s publications – Regulations and Compliance – Managing Federal Grants – Sponsored Programs Administration: A Guide to Effective Strategies and Recommended Practices

22. COGR Good Practices Internal communication mechanisms Processes for foreign visitors Export controls policy and procedures Travel risk policy

23. COGR Good Practices International Transactions – Governing law – Compliance Issues International conventions/host country requirements Export controls compliance Human subjects protections Animal use and care – Material transfers – Dispute resolution – Visa considerations – Special considerations (e.g. Trafficking of persons) – Termination/exit strategies – Volatility of the locale – Anti-bribery/Anti-boycott

24. COGR Good Practices Taxation – Legal guidance – Consultation with unit responsible for tax filings – Tax burdens – who pays “Permanent estalishment” Value-added tax (VAT)

25. Export Controls Laws, Regulations and Sanctions International Traffic in Arms Regulations (ITAR) US Department of State, Department of Defense Trade Controls (Munitions List) Export Administration Regulations (EAR) – US Department of Commerce, Bureau of Industry Security (Commerce Controls List) Office of Foreign Assets Controls (OFAC) – US Department of Treasury (Specially Designated Nationals)

26. What is controlled? Items on the Munitions List Includes both research on defense articles and training or assistance in developing defense articles Technical data related to the manufacture or production of defense articles Anything with a substantial military application or related to satellites ITAR Dual-use commercial products EAR Transactions of value to prohibited parties OFAC

27. Risks for Universities Collaborations/discussions with foreign national collaborators and students especially when involving proprietary information Taking or shipping items or transferring technology that is controlled to a foreign country or foreign national Performing defense services Visiting scientists Travel to foreign countries including fieldwork Technology and material transfers

28. Patents Domestic patent application must be filed no later than one year after a public disclosure ~ first to invent Provisional or fast track patent that provides protection for one year Foreign patents must be filed prior to public disclosure ~ first to file

29. Visiting Scientists/Scholars VSAs – Scholars – Scientists Non-citizens Length of visit Access Export Issue

30. Resources EUROPA – European Union’s portal website http://europa.eu/index_en.htm Richey, J.B. (1993) Crafting Contracts of International Projects. http://www.ncura.edu/content/educational_programs/si tes/51/handouts/Th_130_245PM_I6.pdf http://www.ncura.edu/content/educational_programs/si tes/51/handouts/Th_130_245PM_I6.pdf NCURA’s International Neighborhood DHHS International Compilation of Human Subject Research Protections http://www.hhs.gov/ohrp/international/intlcompilati on/intlcompilation.html

31. Questions