EXPORT ADMINISTRATION REGULATIONS (EAR)CLASSIFICATION PROCESS

Export Controls OfficerOffice of Sponsored ProjectsThe University of Texas at Austin

THE EAR PROCESS – IF EAR APPLIES, WHAT NEXT?

STEP 1: PI must classify the type of technology or science being developed on the “Commerce Control List” by determining the ECCN – Export Control Classification Number

http://www.access.gpo.gov/bis/ear/ear_data.html

COMMERCE CONTROL LIST

Contains lists of items subject to licensing authority of BIS

Each entry is called Export Control Classification Number (ECCN)

(Five alpha-numeric characters)

Items listed in terms of technical parameters

ECCN BREAKDOWNEXAMPLE: 3D101 3 – Category

D – Product Group

1 – Reason for Control

0 – Relates to Reasons for Control

1 – Used for Numerical Ordering

TEN CATEGORIES IN THE CCL

(0 - 4) 0. Nuclear Materials, Facilities &

Equipment & Miscellaneous 1. Materials, Chemicals, Microorganisms &

Toxins 2. Materials Processing 3. Electronics Design, Development and

Production 4. Computers

TEN CATEGORIES IN THE CCL(5 – 9)

5. Telecommunications & Information Security

6. Sensors and Lasers 7. Navigation and Avionics 8. Marine (ships & vessels) 9. Propulsion Systems, Space Vehicles

and Related Equipment

PRODUCT GROUPS

A = Equipment, Assemblies & Components

B = Production, Test & Inspection Equipment

C = Materials (raw) D = Software E = Technology

I found the ECCN!

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

GENERAL PROHIBITIONS, PART 736

STEP 2: Check General Prohibitions

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)

GENERAL PROHIBITIONS 1-3

Apply only if your item is classified under an ECCN:

1. 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

EAR 99-what???

GENERAL PROHIBITIONS 4-10

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

GENERAL PROHIBITIONS4-10, Continued

8. Intransit shipments and items to be unladen 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

LICENSE OR EXCEPTION?

STEP 3: Try to find the exception!

Using the CCL check 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

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)

REASONS FOR CONTROL

AT= Anti-Terrorism CB= Chemical & Biological weapons CC= Crime Control CW=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

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

CIV – Civil End-Users Pertains to Country Group D-1 Identified by “CIV: Yes” on the CCL National Security controlled items only

COMMON LICENSE EXCEPTIONS

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)

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

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)

CLASSIFICATION EXERCISE

Find the ECCN and Reasons for Control for the following items - Start at beginning of Category and Product Group and move forward. Match technical parameters/descriptive text.

1. Integrated circuits radiation hardened to withstand a total dose of 5x103 Gy (Si) or higher.

2. Field programmable logic devices with a toggle frequency of 150 Mhz.

CLASSIFICATION EXERCISE

You have a PI who is working on a project with a colleague who lives in the Peoples Republic of China. As part of the research, the PI must send his colleague 20 microprocessors manufactured from a compound semiconductor and operating at a clock frequency of 50 Mhz. Is a license necessary? If yes, is there an exception available?

First: Find ECCN Second: Check Reasons for Control (license requirements) Third: Check Country Chart-look for “X” Fourth: If “X”, then a license is required unless---- Fifth: Look for exception; if none available, license IS

REQUIRED

EXERCISE – Part 1

The University is a subcontractor on a non-military project that is funded by USAID. The project will take place in Iraq and involves geographic mapping. Computers, software, and GPS units must be shipped to Iraq for the project and will not be returned to the U.S. Iraqi civilians as well as the PIs will be operating the equipment. The following items will be shipped:

Dell computers: ECCN 4A994Windows Servers 2003 Standard Edition: ECCN 5D992.b.1GPS units: ECCN 7A994

EXERCISE – Part 2

What are some of the issues? What are the license requirements for each piece of

equipment? Are there any license exceptions? Is a license required to ship? If an Iraqi researcher (in the U.S.) was working with

the development, production, or use of the technology associated with 7E994, would a deemed export license be required?

Questions?

Export Controls Officer osp@austin.utexas.edu

512-471-6424http://www.utexas.edu/research/osp/ECR&R.htm