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 ITAR governs the export of or information related to military, weapons and space related items and services (e.g., missiles, satellites, firearms, etc.) as enumerated on the US Munitions List (USML).
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.
Examples of the types of restrictive trade practices that are considered "participation" in a boycott include being asked to:
- refuse to engage in a business transaction with the boycotted country
- agree to not use certain "black-listed" suppliers
- provide information regarding current customers
- refuse to employ or otherwise discriminate against any U.S. person on the basis of nationality or origin
- certify that an item or shipment contains no items from a boycotted country
In principal, the anti-boycott regulations apply to any foreign boycott however, in practice, the primary target of these regulations is the Arab League's on-going boycott of Israel.
The University is required to promptly report any occurrences of restrictive trade practices to the government. Contact OSPRS at ext. 2978 if you believe that you have encountered any anti-boycott activities.
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.
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 faculty, staff or students 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.
*The Department of Commerce publishes information containing summaries of export enforcement cases.
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