Export Control Regulations
The U.S. Departments of State, Commerce, and Treasury are the primary administrative branches of the government charged with the implementation and enforcement of export regulations. Each of the Departments is responsible for different areas of the export controls though it is important to note that jurisdiction on some items may be shared by more than one Department.
The U.S. Department of State
The Department of State, through the Directorate of Defense Trade Controls (DDTC) administers the International Traffic in Arms Regulations (ITAR) (22 CFR §§120-130). The ITAR governs the export of or information related to military, weapons, and space related items and services (e.g., missiles, satellites, firearms) as enumerated on the U.S. Munitions List (USML).
The U.S. Department of Commerce
The Department of Commerce, through the U.S. Bureau of Industry and Security (BIS), administers the Export Administration Regulations (EAR) (15 CFR §§730-774). The EAR controls the export or transfer of “dual use” items. Dual use items are those that have a potential military as well as commercial or civilian application (e.g., GPS units, centrifuges, mapping software). In general, any item made in the U.S., or made outside the U.S. but with U.S. parts, technology, software, or know-how will be subject to regulation under the EAR unless the item is solely under another agency’s jurisdiction (e.g., ITAR controlled). While almost every item located in the U.S. is subject to the EAR, only a very small number of items actually require an export license.
In addition to controlling dual use items, the EAR also prohibits U.S. participation in certain restrictive trade practices and foreign boycotts. The anti-boycott provisions of the EAR prohibit any U.S. person or business from participating in any non-U.S. sanctioned foreign boycott.
The U.S. Department of the Treasury
The Department of the Treasury, through the Office of Foreign Assets Control (OFAC) (31 CFR §§500-599) is responsible for enforcing all U.S. embargoes and sanctions programs. Special care must be taken when dealing with sanctioned and embargoed countries. In some cases, all activities are subject to strict licensing requirements and in many cases, licenses will not be granted.
U.S. Embargoes and Sanction Programs
The U.S. export regulations restrict imports and exports to certain destinations without a U.S. Government authorization (called "license").
- Embargoes sanctions (CRIMEA - REGION OF UKRAINE, CUBA, IRAN, NORTH KOREA, SUDAN, and SYRIA) prohibit ALL transactions (including imports and exports) without a license authorization.
- Targeted sanctions prohibit certain exports of items, data and/or software without a license authorization.
Step-by-step review:
- Consult the OFAC sanctions programs for any international transaction/activity (shipments, travels, visitors, etc.). For the most current countries information, please visit the U.S. Department of Treasury website.
- If the export involves an item/activity controlled under the EAR or the ITAR, you must consult, in addition to the OFAC sanctions programs, the lists of embargoed and sanctioned countries administered by the EAR or the ITAR.
Results:
If your transaction/export involves an embargoed or sanctioned country, please contact the Office of Trade Compliance prior to proceeding and with as much advance notice as possible.
EAR | OFAC | ITAR |
Embargoed countries: | Embargoed countries: | (a) Prohibited countries: (c) U.N. Arms Embargoed countries: Burma, Côte d'Ivoire, Congo, Eritrea, Iraq, Iran, Lebanon, Liberia, Libya, North Korea, People's Republic of China, Somalia, The Republic of the Sudan |
Targeted sanctions countries: | Targeted sanctions countries: | (f) to (v) special policy: |
Military End-Use/End-User licensing requirements: |
Prohibited Parties:
| Prohibited Parties:
| Prohibited Parties:
|
| Proliferation activities | Proliferation activities | |
| Other Red Flags | Other Red Flags | Other Red Flags |
Red Flags:
The U.S. export regulations prohibit proceeding with any transaction if the exporter detects something suspicious or that indicates an illegal activity might occur. In such case, the exporter is required to investigate and clear the red flags before proceeding.
BIS provides a list of Red Flag indicators.
Penalties for Non-Compliance with Export Controls
Fines for non-compliance with export controls are quite severe and can be levied at both the individual as well as the university. In addition to significant monetary fines and lengthy prison sentences, the potential loss of all federal funding and loss of export privileges would be crippling to the university. University personnel may not transfer any items, information, technology or software contrary to U.S. export control laws or the university’s policy on Export Control.
Violations under the EAR can bring civil penalties of $10,000 to $120,000 per violation and criminal penalties of $50,000 to $1 million per violation along with up to 10 years in prison.
Violations under the ITAR can bring civil penalties of $500,000 per violation and criminal penalties of up to $1 million per violation along with up to 20 years in prison.
Violations under OFAC regulations can bring civil penalties of $250,000 per violation and criminal penalties of up to 20 years in prison.