si`s export compliance program

Report

Export Compliance Officer (ECO)
◦ Position was created in 2013
◦ ECO is located at SAO, Cambridge, MA
◦ Responsible for both SAO and SI export
compliance issues
◦ Located in Sponsored Programs and
Procurement Department
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
Directorate of Defense Trade Controls, US Dept. of
State
Bureau of Industry and Security, US Dept. of
Commerce

Office of Foreign Assets Controls

Bureau of Census
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US Dept. of State, Directorate of Defense Trade Controls
◦ Regulates defense articles, subassemblies, parts and technology,
including spacecraft systems and associated equipment, electronics,
including certain focal plane detectors, chemical and biological agents
and equipment.

SI Actions:
◦ Obtain licenses for exports of controlled equipment
◦ Obtain license or restrict collaboration with foreign sponsors or
affiliates for ITAR-controlled programs
◦ Ensure conference topics and venue qualify as fundamental research
◦ Secure labs, computer networks, and mobile devices if working on
export-controlled projects
◦ Screen all (?) SI-affiliated persons and visitors against Denial Lists
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
Bureau of Industry and Security, US Dept. of Commerce
regulates “dual use” commercial items, production equipment, software and
technology. These are items that have a strategic purpose with respect to national
security, foreign policy, missile technology, proliferation, regional stability and crime
control

SI Actions
◦ screen awards with international sponsors, collaborators, foreign travel, purchase
of equipment for controlled items on Commerce Control List
◦ Obtain export licenses for equipment and deemed exports (EAR NDA may be
available)
◦ Screen against denial lists and for boycott of Israel
◦ Ensure we comply with missile technology restrictions
◦ Comply with country sanctions for equipment exports
◦ Ensure conference topics and venue qualify as fundamental research
◦ Maintain audit trail for five years
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Office of Foreign Assets Controls
◦ licenses all exchanges and financial transactions with sanctioned
countries

SI Actions
◦ identify any projects with sanctioned countries: Cuba, Iran, North
Korea, Sudan, Syria and determine if we can participate and, if yes,
whether an export license is required
◦ Screen all sponsors against Specially Designated Nationals List
(include blocked persons from other countries such as Columbia,
Mexico, Yemen, among others.)
◦ Comply with financial sanctions relating to these countries
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
US Dept. of Commerce, Census Bureau

Reports export clearance and trade statistics
 SI Actions
o Ensure Registrars are trained in Foreign Trade Regulations
◦ Review freight forwarder records and Fed Ex accounts to ensure proper
Electronic Export Information (EEI) filing in Automated Export System
◦ Ensure a record is maintained for five years
◦ Verify information on EEI filing is correct
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1.
What is it? And does it need a license?
◦ If so, from DDTC or BIS?
 Is the item on a list for control? (US Munitions List of Commerce Control
List)
 Other regulatory concerns - Is it hazardous (X-ray, lithium batteries,
solvents, magnetic), regulated for medical (FDA) or other reasons?

2. Is the value of the export over $2500 or is the item
subject to an export license?

The export needs to be filed in the Bureau of Census Automated Export
System. The shipping company can do it for SI but we need to get the filing
number and a copy for our records. Also required for Puerto Rico and
some US possessions.
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3. Who is receiving it?
◦ We need to check the name against the government denial lists

4. Where is it going?
◦ Is the item going internationally or to a US possession like Puerto Rico?
◦ Make sure the country is not subject to trade restrictions (e.g., Cuba, Iran,
North Korea, Sudan and Syria)
5. Make sure all activities comply with the license
conditions

◦
Equipment, dollar value, parties involved, return, and reporting to US
Government
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Directly:
 SPP, Engineering, PIs and PMs,
NASA Travel Coordinator, Fellowships
Program



Support:
IT, Procurement, HR, Facility
Managers, Accountable Property
Officer, Shipping and Receiving
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
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Finance and Administration, Under Secretary
for Science
OSP, OIR, OGC, OCON, HR, CIO, Fellowships
and Internships
Registrars, Research Centers, NASM, NZP
Traveling Exhibits Dept., SI Retail
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SPP sent email to PIs
Spring 2012 asking if
their contract was
controlled
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Compiled list of
“possible” ITAR/EAR
Controlled programs
PI responded and
provided names of
persons, if working on
controlled programs
ECO reviews programs
with non-US persons
first. Screened names
and nationalities
Any
hits?
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(See next page for sample)
No
SPP- add PeopleSoft
flag for proposals/
awards with export
control clause
Yes
Resolve hit. (Remove
person if true hit.)
End
Do
new awards,
federal projects, IR&D
have export control
clause or controlled
instruments?
Yes
No
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ECO - Manager of SPP
Review new proposals and
awards (grants, federal,
IR&D). Add candidate
programs to “Possible
controlled programs list”
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ECO contacts PI
to meet with
Classification Team.
ECO provides PI/PM
“Controlled Items” List
PI meets with
Classification Team
to discuss US ML
and CCL to classify
Is program
ITAR or EAR
Controlled?
PIs reviews list of
“Controlled Items”
from US Munitions List,
(US ML) & Commerce
Control List (CCL)
1
No
ECO - Remove from
“Possible Controlled
programs” list
Yes
2
2
ECO - Flag as
ITAR or EAR
in attributes in
PeopleSoft.
ECO Work on TCP issues:
lab space, approve
persons working on
program, IT privileges.
Apply for export license, if
necessary
Complete program
classification form and
TCP report
Are
there other similar
projects or using
same eqt?
No
End
Yes
1
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ECO provide export
checklist to gather
details
PM/PT contacts ECO
about export
1
Export
Controlled?
Yes
ECO alerts Accountable
Property Officer about
export
ECO- Ensure license,
screen against. Denied
Persons. Complete
invoice and Shipper’s
Letter of Instruction per
EAR/ITAR.
ECO
Work with freight forwarder to
lodge license.
Accountable Property Officer
assists with shipment
1
2
No
Yes
2
Export clearance
filing?
ECO
Makes sure filing is
correct per Foreign Trade
Regs, file for 5 years.
Accountable Property
Officer - file export docs for
5 years. End
No
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Foreign Travel
Coordinator or traveler
copies ECO on travel
request
1
ECO receives
answer
ECO reviews abstract,
country, if program is
controlled, if open
conference, export
control clause
ECO sends abstract to
conference approval
team
Yes
Does sponsor
need to approve?
Request traveler to
contact sponsor for
any limitations on
topic or approval.
1
2
No
2
Traveler receives
approval or limitations.
forwards sponsor’s
response to ECO -
ECO - Advises traveler
not to discuss ITAR
controlled topics in
detail. Reminder of
mobile device policy.
Traveler signs form.
ECO - Advise Foreign
Travel Coord. that
conference is approved
File form for 5 years
* This is the current process and will be modified in
the future
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
Goal is to prevent violations

Demonstrate “Due Diligence”
◦ Apply for all required export authorizations and explain provisos to
PIs and project personnel.
◦ Ensure that proper records are created and maintained
(Classification, conference approval, export license shipping
documents, export clearance filings.)
◦ Ensure security measures for laptops and other mobile
◦ devices are followed, especially when traveling abroad
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