Export Controls and Archeology Research Marie Hladikova, Export Control Director Office of Research Compliance
Legal Disclaimer The information contained in this presentation does not constitute legal advice and is designed for Boston University purposes only. For formal advice on any of the content in this presentation; contact the Bureau of Industry and Security; Directorate of Defense Trade Controls; Office of Foreign Assets Control; U.S. Census Bureau; US Customs and Border Protection or any other respective government agency or qualified legal counsel. Boston University researchers and employees should consult with the Export Control Director prior to contacting any regulatory agency.
Export Regulatory Compliance Overview
Definition of an Export Taking or sending an article, technology, data abroad or release of a source code to a foreign national in the US Provision of defense services (using military equipment) Release of controlled information to a foreign national in the U.S. or abroad
U.S. Export Regulations Export Controls are Largely Outlined in 3 Sets of Regulations: Export Administration Regulations (EAR) Exports of Commercial & Dual Use Items, Technology and Software International Traffic in Arms Regulations (ITAR) Exports of Military and Space Qualified Items, Technology, Software and Services Office of Foreign Assets Control (OFAC) Administers U.S. Economic Sanctions and Embargoes
Export Administration Regulations (EAR) Bureau of Industry and Security Cover commercial/consumer items U.S. items wherever located, even abroad Dual-use items (Export Control Classification Number) - items designed for commercial purpose that can have military applications (GPS, computers, sensors etc.) - covers goods and associated technology and software Access to controlled technology or source code by a foreign national in the U.S. (deemed exports) Any item in commerce has either ECCN or is classified EAR99 (unless it is military or space qualified item) http://www.bis.doc.gov
International Traffic in Arms Regulations (ITAR) Directorate of Defense Trade Controls Govern export of military & space qualified articles, technical data and defense services abroad or to a foreign national in the U.S. Any item, data or services specially designed, adapted, configured, modified for defense or space applications fall under the International Traffic in Arms Regulations All exports require an export license This includes some commercial articles such as GPS, reconnaissance equipment, space qualified equipment etc. www.pmddtc.state.gov
Economic Sanctions & Embargoes Office of Foreign Assets Controls Govern travel, collaborative activities, exports and financial transactions by US Persons wherever located Administer the Specialty Designated Nationals list (terrorist organizations & individuals engaged in terrorist activities) Sanctions Include: Balkan, Belarus, Burma, Cote d Ivoire, Cuba, Iran, Iraq, Lebanon, Liberia, Libya, North Korea, Somalia, Sudan, Syria, Yemen, Zimbabwe www.treas.gov/ofac
Archeology & Export Controls
International Travel & Research Some activities in the following countries are subject to a license: Cuba, Iran, Syria, Sudan, North Korea Research Activities Travel Conferences Temporary Exports of Equipment Publishing Activities Teaching Global Programs Global Operations State Department Travel Warnings Boston University International Travel Risk Policy
Controlled Equipment Purchasing equipment listed on the US Munitions List (ITAR) or on the Commerce Control List (ECCN) raises export control issues ITAR equipment taken abroad requires export authorization Equipment with a particular ECCN can be taken abroad on a temporary basis under a license exception Tools of Trade documents must be kept on file for 5 years from the date of export
International Travel & Equipment When you travel and take equipment, laptops, cell phones with you abroad, you may be asked by US Customs to provide proof of licensing exemptions It is a good idea to take a document that specifically outlines what it is that you are taking abroad, the classifications and exemptions from licensing and other export regulatory requirements License is likely required to take University Owned equipment to countries subject to US sanctions. US Customs may inspect your luggage and seize any equipment including your laptop.
Temporary Exports to Research Sites BAG Personal equipment You are traveling abroad on a temporary basis You own the item taken with you TMP Boston University owned equipment It will be returned to the US within 1 year It is a tool of trade that is used in a lawful research You will retain effective control of the item You will accompany the item or it will be shipped within 1 month before your departure You are not traveling to Cuba, Syria, Sudan, Iran, North Korea GPS/Laptop Checklist - http://www.bu.edu/orc/forms/export-control/ Does not apply to ITAR controlled equipment, laptops, GPS etc.
Temporary Exports - Carnet Allows for duty-free temporary entry into foreign country or the U.S. Great for samples, research equipment, demos, trade shows, tools of trade. Recognized in over 100 customs territories http://www.uscib.org/index.asp?documentid=1582 Penalties assessed if product isn t returned or is returned late Issued by U.S. Council for International Business - www.uscib.org University Export Control Director manages carnet applications.
Permanent Shipments Abroad Export of hardware, technology or software is always subject to export controls regardless of value or destination Permanent exports require full export regulatory analysis: What is it that you export (product controls) Where is it going (embargo destinations) Who will receive it (screen the entity against the denied lists) What will be the end use (weapons of mass destructions, nuclear end use, unmanned air vehicles etc.)
Denied Party Screening There are several lists that the US government compiles of entities and individuals that we are restricted from collaborating with - either completely or we need a license The following transactions should be screened: vendors, international collaborators, visitors, contractors, anyone that receives payments Principal Investigators certify screening on the PI Export Control Checklist (submitted to OSP with proposals) Prior to making any export shipments and payments you should screen the receiving individual or entity Link here for the Denied Party Lists
International Payments Screen all international vendors against the denied party lists Payments send to embargo destinations may be prohibited or subject to an export license Foreign Corrupt Practices Act (routine governmental payments are allowed). Some examples include: Payments to customs officials for expedited customs clearance Hosting and entertaining government officials for the purpose of securing funding for projects Doubling the fee for routine governmental review to secure approval
Marine Archeology Marine archeology activities are controlled by local laws in many countries (check the local laws prior to engaging in marine archeological activities) Majority of scuba diving equipment and gear is controlled under individual Export Control Classification Numbers When traveling abroad, document temporary exports and contact the University Export Control Director for assistance with determining export control classification BU diving team - http://www.bu.edu/orccommittees/dive/
Anti-Boycott Compliance Prohibits compliance with boycotts in which the U.S. does not participate (e.g., Arab boycott of Israel) Boycott requests may appear in: Contracts Letters of credit Purchase orders / invoices Oral communications Be alert to: Language referring specifically to Israel, blacklists or boycotts Requests for information on: business activity in specific countries; race, religion, sex, national origin Reporting Requirement
Logistics of Importing
Importing & Logistics US Customs and Border Protection regulate imports When you import into the US, you are required to hire a Customs Broker to clear the shipment through Customs You are encouraged to work with BU Customs Broker Documents required to process imports Commercial Invoice, Airway Bill or Bill of Lading, Packing List (large shipments), Power of Attorney Form (for a broker if not University broker) Any special import permits USDA, soil permits etc. You may be required to pay import duties in some cases.
Cultural Artifacts Import Restrictions International conventions on import and exports of certain archeological artifacts restrict the movement of specific items (check the country s specific restrictions prior to exporting archeological items) U.S. law may also restrict the importation of specific categories of art/artifacts/antiquities US Department of State Bureau of Educational and Cultural Affairs Immigration and Customs Enforcement - Cultural Heritage Investigations
Duty Exemption for Scientific Equipment Certain type of scientific equipment is exempt from duty requirements You must include form ITA-338P with the shipment to take advantage of the duty free treatment when you import equipment into the U.S. http://ia.ita.doc.gov/sips/appform.html Coordinate with the Customs Broker/Freight Forwarder prior to the import
Documentation Requirement There is a 5 year record retention requirement from the date of export or import. Keep the following documents for your records: commercial invoice, documents related to temporary exports abroad, documents related to equipment purchases, packing lists, import invoices, documents received from Customs, export licenses (if applicable) etc.
Violations Most violations happen inadvertently If you suspect a violation of either regulation, contact the University Export Control Director (Marie Hladikova), Associate VP for Research Compliance, or the Office of the General Counsel immediately so we can asses the situation and determine whether violation occurred Some regulations have mandatory reporting requirements
Reporting Violations There are no restrictions on who may report an alleged incident at Boston University. Anyone who has knowledge of such a deficiency is obligated to report it to Boston University officials. Under no circumstances will reporting such incidences in good faith be detrimental to an individual s standing within the organization. No person will be discriminated against or be subject to any reprisal for reporting, in good faith, a concern or violation of any export control regulations. Refer to Boston University s policy on reporting violations http://www.bu.edu/ethics/ethical-conduct.pdf
Penalties for Violation Fines Civil and/or Criminal Charges Imprisonment Legal Costs Negative Publicity Disruption of Research Activities Revocation of Exporting Privileges Debarment from U.S. Government contracting
Export Enforcement University Published Cases
University of Tennessee - UAV The violation: In 2009, Professor Roth from the University of Tennessee was sentenced to 48 months in prison for illegally exporting technical data subject to the ITAR. Professor Roth gave ITAR technical data to a Chinese and an Iranian student; downloaded his technical report to the Air Force from a Chinese colleague s computer while in China, gave lecture on Unmanned Air Vehicles development at a University in China and he traveled with ITAR data abroad. The University Export Control Officer warned Professor Roth that his activities violated the ITAR but he did not follow the advise and the University of Tennessee disclosed the violation. http://www.bu.edu/orc/files/2012/07/why-the-professor-went-to- Prison.pdf
Texas Tech University - Pathogens The Violation: On January 14, 2003, Dr. Thomas Campbell Butler, M.D., a professor at Texas Tech University in Lubbock, Texas reported to the FBI that thirty vials of a potentially deadly plague bacteria, Yersinia Pestis (the causative agent of human plague), were missing and presumed stolen from his research lab. The report sparked a bio-terrorism alert in west Texas. The investigation proved that Dr. Butler had illegally exported the Yersinia pestis which is a controlled item under the EAR and cannot be exported without the required export licenses from BIS. On January 15, 2003, Dr. Butler was arrested. Among the numerous charges of which Dr. Butler was found guilty at trial, two were export control related: making false, fraudulent and fictitious statements regarding the exports to federal agents and making an unauthorized export to Tanzania.
UMass Lowell Violation The Center for Atmospheric Research shipped uncontrolled (EAR99) devices to an organization on the Entity List in Pakistan in 2007 without required licenses; UMass Lowell was required to make this case public; UMass Lowell received $100,000 fine which will be suspended if UMass Lowell does not violate export controls over the next 2 years.
Boston University Resources The Export Control Director can help with the following: export & import classifications determining how export controls apply to a particular project/activity help with shipping documents and procedures training on all aspects of export compliance and int l shipping assist with import issues Online Resources: online export compliance manual http://www.bu.edu/orc/export/ online training http://www.bu.edu/orc/training/export-control/ news sections with export control updates http://www.bu.edu/orc/export/news/
Resources Available at Boston University Office of Sourcing & Procurement manages Boston University s Customs Broker http://vpfa-server18.bu.edu/helpconsole/bu%20procure-to- Pay%20Guide/Static/ordering_from_outside_the_u_s_.htm Office of the General Counsel can assist with export controls http://www.bu.edu/ogc/ ISSO can assist with visas for international visitors and scholars http://www.bu.edu/isso/ Global Programs can assist with global operations and activities http://www.bu.edu/globalprograms/ Technology Development can assist with Material Transfer Agreements and NDAs/CDAs - http://www.bu.edu/otd/ Environmental Health & Safety can assist with biological and hazardous shipments - http://www.bu.edu/ehs/
Contact Information Marie Hladikova, Export Control Director Office of Research Compliance Tel: 617-353-6753 Email: mhladiko@bu.edu Web: www.bu.edu/orc/export