export administration regulations (ear) classification process

26
EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

Upload: linda-hicks

Post on 03-Jan-2016

71 views

Category:

Documents


4 download

DESCRIPTION

EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS. 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 - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

EXPORT ADMINISTRATION REGULATIONS (EAR)

CLASSIFICATION PROCESS

Page 2: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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://w3.access.gpo.gov/bis/ear/ear_data.html

Page 3: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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

Page 4: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

ECCN BREAKDOWNEXAMPLE: 3D101

• 3 – Category

• D – Product Group

• 1 – Reason for Control

• 0 – Relates to Reasons for Control

• 1 – Used for Numerical Ordering

Page 5: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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

Page 6: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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

Page 7: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

PRODUCT GROUPS• A = Equipment, Assemblies &

Components

• B = Production, Test & Inspection Equipment

• C = Materials (raw)

• D = Software

• E = Technology

Page 8: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

I found the ECCN!

Page 9: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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

Page 10: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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)

Page 11: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

GENERAL PROHIBITIONS 1-3Apply only if your item is classified under an

ECCN:1. Export and re-export of controlled items to listed

countries2. 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

Page 12: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

EAR 99-what???

Page 13: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

GENERAL PROHIBITIONS 4-10Apply 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

Page 14: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

GENERAL PROHIBITIONS, 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

Page 15: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

LICENSE OR EXCEPTION UNDER EAR?

• 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

Page 16: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

LICENSE OR EXCEPTION UNDER EAR, Continued

• 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)

Page 17: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

REASON 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• XP=Computers

Page 18: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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

Page 19: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

COMMON LICENSE EXCEPTIONS,Continued

• 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)

Page 20: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

COMMON LICENSE EXCEPTIONS,Continued

• 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

Page 21: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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)

Page 22: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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.

Page 23: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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

Page 24: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

EXERCISE – Part 1OSU is 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.1Trimble GPS units: ECCN 7A994

Page 25: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

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?

Page 26: EXPORT ADMINISTRATION REGULATIONS (EAR) CLASSIFICATION PROCESS

Kay EllisOklahoma State University

(405) [email protected]

http://www.research.okstate.edu