EXPORT ADMINISTRATION REGULATIONS (EAR) - PowerPoint Presentation

Slide1

EXPORT ADMINISTRATION REGULATIONS (EAR)

Research and Economic Development

MAY 28, 2013

John JacobsSlide2

Classification Process

If

EAR

Applies, What Next?

The

EAR

Categorization Process

STEP

1:

With the PI’s help, the

Facility Security

Officer

must classify the

type of

technology

or

science

being

developed on the

Commerce

Control

List (CCL) by determining

the Export

Control Classification Number

(ECCN)Slide3

Commerce Control List

Contains

lists of items subject to licensing

authority

of

BIS

Each

entry has its own Export Control

Classification

Number (ECCN

)

Five

alpha-numeric characters example

3D

Items listed in terms of technical parameters Slide4

ECCN

Breakdown Example: 3D101

3

– Category

D – Product Group

1 – Reason for Control

0 – Relates to Reasons for Control

1 – Used for Numerical Ordering Slide5

Ten Categories In The CCL

(0 - 4) 0 -

Nuclear Materials, Facilities &

Equipment,

and Miscellaneous

1 -

Materials, Chemicals, Microorganisms

&

Toxins

2 - Materials

Processing

3 -

Electronics Design, Development

and

Production

4 -

Computers, are broken down into

Hardware and

SoftwareSlide6

Ten Categories In The CCL

(5 – 9)5 - Telecommunications

& Information Security

6 - Sensors

and Lasers

7 - Navigation

and Avionics

8 - Marine

(ships & vessels)

9

– Aerospace and

Propulsion Equipment

This

represents the first number of the ECCNSlide7

Product Groups

A - Equipment, Assemblies & Components B

- Production

, Test & Inspection Equipment

C

-

Materials (raw)

D

-

Software

E

-

Technology

These

are the only letters used within

the

ECCNSlide8

Finding The ECCN

Review general characteristics

(technical

parameters) of items to arrive

at

Category

and Product Group

Match characteristics of item with ECCN

and

subparagraph

HINT: Check the CCL alphabetical index Slide9

General Prohibitions, Part 736

STEP 2: Check General Prohibitions, there are 10

Prohibit certain exports, re-exports, and

other

conduct

, without a license, license exception

or

determination

that no license is required

General Prohibitions 1-10 apply to items

having

a

specific ECCN

General Prohibitions 4-10 apply to items

that

are

EAR99 (not found on the CCL) Slide10

General Prohibitions 1-3

Apply only if your item is classified under an ECCN:

Export and re-export of controlled items

to

listed

countries

2. Re-export

and export from abroad

of

foreign-made

items incorporating more

than

a

de minimis

amount of controlled U.S. Content

3. Re-export

and export from abroad of

the

foreign

produced direct product

of

U.S

. technology and software Slide11

General Prohibition Continued 4 - 7

Apply if your item is classified under a specific ECCN or is “EAR 99”(

items

not found

on

the

CCL=usually no license

required

)

4. Engaging

in actions prohibited by a denial

order (check

denied

persons/entities lists)

5. Export

or re-export to prohibited end-uses or

end users

(e.g

., chemical and biological warfare)

6. Export

or re-export to embargoed or

special destinations

7. Support

of proliferation activities Slide12

General Prohibitions Continued 8-10

8. In-transit shipments and items to be un-laden from vessels

or aircraft

9. Violation

of any order, terms, and conditions

10. Proceeding

with transactions with

knowledge

that

a violation has occurred or is about to

occur

If Prohibitions don’t apply,

look for Exceptions Slide13

License Or Exception?

STEP 3: Try to find the exception!

Using

the CCL, check for reasons for control:

Look

at

the “Reason for Control” section directly

under

the

category heading and License

Requirements.

E.g

.: Reason for control: NS, MT,

AT

Match

specific controls to Country Chart

column

Look

for an “X” in Commerce Country Chart Slide14

License Or Exception?

If an “X” is present, look under the “License Exceptions” category

below

the

“Control(s

)” section

If

no license exception available, license must

be

obtained

(4-6 weeks to process) Slide15

AT = Anti - Terrorism

CB = Chemical & Biological weaponsCC = Crime ControlCW = Chemical Weapons

Convention

EI = Encryption Item

FC = Firearms Control

MT = Missile Technology

NP = Nuclear

Proliferation

NS

= National Security

RS = Regional

Stability

SI

= Significant Item

SS = Short Supply

UN = United Nations

SL = Surreptitious Listening

Reasons For Control Slide16

Common License Exceptions

LVS – Limited Value Shipments

Pertains

to Country Group

B

Identified

by “LVS: $(value)” on the

CCL

(e.g

.: LVS: $5000)

GBS – Group B

Shipments

Pertains

to Country Group

B

Identified

by “GBS: Yes” on the CCL Slide17

Common License Exceptions

CIV – Civil End-UsersPertains to Country Group D-1

Identified by “CIV: Yes” on the CCL

National

Security controlled items only

TSR – Restricted Technology and

Software

Pertains

to Country Group B

Identified

by “TSR: Yes” on the

CCL

National

Security Controlled Items only

Written Assurance – Letter can be written stating

software

will

not be released to nationals of certain

country

groups (e.g

. D:1 and E:2) Slide18

Common License Exceptions

TMP - Temporary Exports and Re-exports

Tools

of trade

Replacement

parts

Exhibition

and demo

Inspection

and calibration

Assembly

in Mexico

To

US subsidiary, affiliate or facility in

Country Group B

Beta test

software

Return to US within 1 year Slide19

Deemed Export Exceptions

CIV: Civil End Use

Applies

to deemed exports for 3E001/3E002 technology

Requires

Foreign National Review (FNR)

TSR: Technology/Software Under Restriction

Applies

to technology/software under national security

only

for country

group “B” nationals

Requires

Letter of Assurance

APP – Computers

Applies

to deemed exports for 4D001/4E001

software

and

technology. (FNR required) Slide20

Questions?

Export Controls Officer fso@uncc.edu Office Phone 704.687.1877

http

://www.research.uncc.educompliance-ethics