SPARC Meeting April 15 2010 Compliance Summary

SPARC Meeting April 15, 2010: Compliance

Summary of Topics to be Discussed 1. Research & Educational Exclusions/Exemptions i) Fundamental Research Exclusion ii) Educational Exclusion iii) Bona Fide Full Time Employee License Exemption 2. Impact of Visiting Foreign Scholars on Campus 3. New Immigration Information: I-129 Form & Proposed Deemed Export Language 4. Foreign Travel: Laptops & Other Portable Electronic Devices: Risks & Solutions 5. New Features That Can Be Added to UNC Subscription 6. Automated Screening Services: Options & Benefits

Fundamental Research Exclusion Defining Fundamental Research (EAR 734. 8): “Fundamental research” is basic and applied research in science and engineering, where the resulting information is ordinarily published and shared broadly within the scientific community. Information resulting from the research and the tools you use to conduct the research are two very separate and distinct things and need to b treated as such. FRE is not an all encompassing exclusion.

Fundamental Research Exclusion Does NOT Mean You Are Off The Hook It is essential to distinguish from the information or product that results from fundamental research from the conduct that occurs within the context of fundamental research. FR: May 31 2006, Volume 71, Number 104

Steps to Export Compliance 1. Determine the Nature of Your Export – What is the Jurisdiction? 2. Classify Your Item with an Export Control Classification Number (ECCN) to See if a License is Required. If yes, it is at this point when you can then determine if a License Exemption/Exclusion is available. http: //www. bis. doc. gov/licensing/exportingbasics. htm 3. Screen The End-Users Involved in Your Transaction as Well as the Country of Destination or Origin. 4. Check to Ensure the End-Use of Your Export Will Not Effect National Security, Foreign Policy or U. S. Economic Interests.

Educational Information Exclusion The Educational Information Exclusion applies to EAR & ITAR: General science, math and engineering commonly taught at schools and universities. EAR: Information conveyed in courses listed in course catalogues and in their associated teaching labs of any academic institution. (15 C. F. R. 734. 3(b)(3)(iii), 734. 9, 22 C. F. R. 120. 10(5))

Bona Fide Full Time Employee License Exemption Applies to ITAR and not the EAR: Unclassified technical data provided to bona fide fulltime regular employees of U. S. institutions of higher learning with permanent abodes in the U. S. throughout their employment. • Must inform employee in writing not to transfer to other foreign nationals • Does not apply to students with F-1 Visas or others with Visas allowing only part-time work • Does not apply to nationals of ITAR prohibited or embargoed countries (22 C. F. R. 125. 4(b)(10))

Society for International Affairs – Spring Conference SIA: Defense Trade Licensing Conference April 26 – 27, 2010 Las Vegas, Nevada Partnering with Academia – ITAR Compliance and Universities Industry and University perspectives on addressing export requirements in University programs. (DDTC, Industry and University Speakers) 45 Minutes

Impact of Visiting Foreign Scholars on Campus 1. What Department(s)/Buildings Will They Be Accessing? 2. Will They Be Unsupervised at Any Point? 3. Will They Be Exposed to Any Controlled Information or Technologies? 4. How Long Will They Be At Your Campus? 5. Any Controls in Place to Ensure No Deemed Export Issues?

Form I-129 H-1 B Data Collection: Proposed Language – April 9 th Deadline to Comment http: //www. regulations. gov/search/Regs/home. html#search. Results? Ne=11+8+8053+8098+807 4+8066+8084+1&N=0 Check supporting materials and search for "I-129. “ http: //www. regulations. gov/search/Regs/home. html#document. Detail? R=0900006480 a 8 fa 15

Form I-129 H-1 B Data Collection: Proposed Language – April 9 th Deadline to Comment I-129 Table of Changes - January 28, 2010 OMB No. 1615 -0009 Document ID: USCIS-2006 -0028 -0011 Docket ID: USCIS-2006 -0028 Deemed Export Acknowledgement (to be inserted on Page 4): Certain H-1 B, L-1 and O-1 A nonimmigrant beneficiaries must have a Deemed Export License issued by the U. S. Department of Commerce to be eligible for the employment being sought through the submission of a Form I-129. The petitioner must submit evidence that a review of the deemed export license requirements has been completed, as set forth by Title 15, Code of Federal Regulations (CFR), Export Administration Regulations (EAR) Part 734. 2 the Deemed Export Rule as regulated by the U. S. Department of Commerce. The EAR and guidance on deemed exports may be found at www. bis. doc. gov/deemedexports. (https: //www. visualcompliance. com/bis_ear/734. pdf) You must indicate whether or not a deemed export license is required on Page 6, Part 7 of Form I-129. If a deemed export license is not required, indicate whether or not the technology is subject to the EAR. If the technology is subject to the licensing requirements of the EAR, identify the Export Control Classification Number (ECCN) of the technology the alien will have access to as a result of employment with your organization. If a deemed export license is required, provide a copy of the U. S. Department of Commerce approved license and document the license number. Indicate whether this was the result of a self-classification or formal U. S. Department of Commerce commodity classification (if so, provide Commodity Classification Automated Tracking System (CCATS) number).

Foreign Travel: Laptops & Other Portable Electronic Devices: Risks & Solutions 1. What electronic devices are being taken? (anything that leaves the border is an export) 2. Any information on devices contain proprietary information? 3. Any equipment being exported foreign travel/research? 4. Who will be exposed to items or information being exported? 5. Faculty attending conferences? What is the conference about? 6. If presenter, is the information really in the public domain?

Foreign Travel: Laptops & Other Portable Electronic Devices: Risks & Solutions Temporary Imports, Exports, and Reexports (TMP) This License Exception authorizes various temporary exports and reexports; exports and reexports of items temporarily in the United States; and exports and reexports of beta test software. See EAR 740. 9 for scope, restrictions, and eligibility details. Includes details on “Tools of the Trade” and “Effective Control”. Effective Control. You maintain effective control over an item when you either retain physical possession of the item, or secure the item in such an environment as a hotel safe, a bonded warehouse, or a locked or guarded exhibition facility. Retention of effective control over an item is a condition of certain temporary exports and reexports. EAR 772 – Definition of Terms

Foreign Travel: Reviews/Policies & Forms Compliments of: Alison Henry, Assistant Director, Research Compliance University of South Alabama ahenry@usouthal. edu Direct: (251)460 -6509 1. Travel Review Request - (92) Pages 2. USA International Travel Review Policy – (8) Pages (includes Temporary Export Certification) 3. Steps to Review of International Travel - (1) Page

Export Control Review Form WESTERN KENTUCKY UNIVERSITY EXPORT CONTROL REVIEW FORM Compliments of: Paul J. Mooney, M. S. T. M Compliance Coordinator Office of Sponsored Programs, Western Kentucky University College Heights Blvd. #11026 Bowling Green, KY 42101 -1026 Phone: 270. 745. 2129 ~ Fax: 270. 745. 4211 Paul. Mooney@wku. edu ~ http: //www. wku. edu/research

Possible Addition to UNC System Subscription Existing UNC System License: $50, 340. 00 Compliance Manager (additional $14, 340. 00): Includes: 1. RPS & ECCN/USML Audit (record retention 5 -7 years min. ) 2. Dynamic Screening (daily auto rescreening functionality) 3. Libraries: ECCN Groups & Classification Archive 4. Inclusions (personalized white list) 5. Email & Escalation Manager

Dynamic Screening Reports There are two types of dynamic screening reports: 1. Email Header: Subject: Dynamic Screening Results (This is a daily summary report that only administrators receive) 2. Email Header: Subject: Daily RPS Dynamic Screening Alert (This is a report that will be sent to both the administrator and user that performed the initial search when results need to be reviewed) All reports are emailed from: report@visualcompliance. com ***Please add to safe senders list***

Dynamic Screening Results (Daily Summary - Administration Report) Visual Compliance Daily RPS Dynamic Screening Summary – UNIVERSITY XYZ Date: Wednesday, January 06, 2010 (Date report was sent to institution administrator(s)) Time: 3: 18: 53 AM EST (Time report was emailed to institution administrator(s)) The Dynamic Screening produced 8 new matches. (number of new matches found based on audit log information stored compared to the new daily additions to government lists) Total Number of User Accounts Screened: 11 (indicates number of registered users included in this report for your institution) Total Number of Users with New Matches: 1 (indicates number of users where a new match was found based on audit history ) Total Number of Records Screened: 718 (indicates number of combined audit records screened for all registered users for your institutions account ) Total Number of Matches Found: 8 (repetitive from the first line – it is the same thing) (number of new matches found based on audit log information stored compared to the new daily additions to government lists)

e. Customs: (4) Automated Screening Options For high volumes of screening transactions, there are (4) automated screening options offer by e. Customs: 1. Batch: one time or periodic scrub of database(s). Price is based on the number of entities screened. 2. Enterprise Integration Manager (EIM): e. Customs hosted integrated solution for real time screening transactions. Price is based on the number of entities screened per year. 3. Continuous Compliance: e. Customs hosted, you can upload of initial batch file(s) which are rescreened daily and checked for additions to the government lists. Price based on number of entities in the file sent and any additions per year. 4. On Premise: client hosted integrated screening includes both Continuous Compliance & Enterprise Integration Manager (EIM) for a set annual fee which includes unlimited screening transactions. Ideal for state systems.

Option #1: Batch Screening To ensure that there are no Batch Screening provides for one -time screening of any size of file in a batch. This is useful in situations where a database of names needs to be screened all at once and entering them into the Visual Compliance website requires too much effort. Files are sent to e. Customs To ensure that there are no foreign nationals on any government “watch” lists and to ensure that they are not from a sanctioned or embargoed where they are screened and results made available country. It is important to remember to screen your sponsor & vendor’s database for entities that may be on any lists also. usually within 24 hours. The source file must be a pipe ("|") delimited text file (. txt) or sent in an excel (. xls) file. Batch screening results can be returned to you in either Text or HTML format. Frequency of screening can be: one time, monthly, quarterly, annually. .

Option #2: Enterprise Integration Manager Hosted by e. Customs • The Restricted Party Screening (RPS) process can be directly integrated into virtually any system that contains entities that need to be screened. This is useful in high volume screening situations where manual screening on the Visual Compliance website can be time consuming. • Screening is performed in real time with results input back into the system where the request was generated. The screening service is hosted by e. Customs Enterprise Integration Manager (EIM) or located on site operating on your own servers as required (On Premise/Client Hosted option).

Option #3: Continuous Compliance The Continuous Compliance service will continually check your batch files to ensure compliance with the Government watch-lists. Batch files can be submitted to e. Customs as a Text file, or in a specific Excel format. The client’s batch file will be screened against all of the current lists available in Visual Compliance. Over time the client can add new customer names to their file. e. Customs will process the initial batch and sort the output into three files. You will receive a ‘Green’ file of unmatched names. You will receive a file with Sanctioned and Embargoed countries listed. The third file will have the positive matches sorted by the severity of the alert. After this initial run your Batch file will rescreened every day. An email will be generated outlining the status of your file.

Option #4: On Premise/Client Hosted • The Client Hosted solution has two separate services: • 1. Continuous Compliance: this is a desktop application for the management and processing of lists against Restricted Party Screening groups. The administrator prepares the lists in a text delimited file. Which can be imported, deleted or appended to or from existing databases. These batch files are scrubbed on a daily basis against the additions to the government lists. • 2. Enterprise Integration Manager Restricted Party Screening is an integrated programming method that performs your RPS screening requirements automatically and in real time, as charged by your ERP or other business systems. • This solution is ideal for multiple system requirements i. e. State Systems. Each campus can integrate multiple databases to automate screening with no impact on price as this is the only option with a set annual fee.

Pricing Structure of (4) Automated Options: 1. Batch: One time batch set up fee: $1, 500. 00 XXX Annual Transactions = $ Annual Price 2. EIM: One time license fee & system integration charge: $6, 500. 00 XXX Annual Transactions = $ Annual Price 3. Continuous Compliance: One time set up fee: $1, 500. 00 Annual support fee: $2, 000. 00 XXX Annual Transactions = $ Annual Price 4. On Premise/Client Hosted: One-Time License Fee: $34, 995. 00 One-Time Integration Fee: $5, 995. 00 Annual Updates & Support: $43, 995. 00 ------------ First Year Cost: $84, 985. 00 Cost for Each Following Year: $43, 995. 00 ***Please Note: Client to provide number of transactions in order for exact pricing to be provided***