Managing Export
Compliance at U.S.
Universities
Elizabeth Peloso
University of Pennsylvania
March 6, 20201

Many agencies regulate export
controls in the U.S.

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Federal Agencies andRegulations
Federal Agency

Enforcing Authority

Regulation

Controlled Items andActivities

Area of Oversight

Department ofState

Directorate of Defense
Trade Controls (DDTC)

International Trafficin Arms Regulations(ITAR)

U.S. Munitions List (USML)
22 CFR §§ 120-130

Technologies with inherently
military properties; defense
articles and defense services

Department ofCommerce

Bureau of Industry andSecurity (BIS)

ExportAdministration
Regulations (EAR)

Commerce Control List
(CCL)
15 CFR §§ 730-774“Dual use” items; mostcommercial items, certain
military items not controlled
under the ITAR

Department of
the Treasury

Office of Foreign Assets
Control (OFAC)

OFAC regulations

Embargoes and sanctioned
countries; restrictedindividuals and entities
31 CFR §§ 500-599

Prohibits transactions ofvalue with, and/or providing
services to, certain countries
and individuals

Department ofEnergyNational Nuclear
security Administration(NNSA)

DOE regulations

10 CFR § 810

Assistance to foreign nuclear
activities

What is an Export ?
• Shipment of goods out of the United States• U.S. origin materials to another country• U.S. origin materials from one foreign country to another, orfrom a foreign country back to the U.S. (re-export)• Electronic transmission out of the United States• Any media (phone, fax, email, chat programs, cloud)• Release of technology to a foreign national in the United States(deemed export)• Lab tour, presentations and discussions
at meetings, etc.

How does something become“export controlled”?
Generally, throughControlled items
or technologies• Subject toregulationand found on
a control list
(USML or CCL)

Destination• Especially:• Cuba• Iran• N. Korea• Sudan• Syria

End Use• Weapons
proliferation,acting withknowledge ofa violation

End User• Specially
DesignatedNationals(SDNs), otherrestricted
parties,military
units/forces

Fundamental Research“Fundamental Research means basic and appliedresearch in science and engineering, the results ofwhich ordinarily are published and shared broadly
within the scientific community, as distinguishedfrom proprietary research . . . the results of which
ordinarily are restricted for proprietary or national
security reasons.”-National Security Decision Directive 189

Research funding in the U.S.
• Most universities receive the majority of researchfunding via grants and contracts from the federal
government.
• National Institutes of Health• National Science Foundation• Department of Defense• DARPA• Office of Naval Research• Army Research Office• The terms of the grant/contract help in determining
if fundamental research applies.
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Fundamental Research and Export
Controls• For most areas if:• There are no restrictions on the publication of theresults of the research• There are no restrictions on participation based onnationality
Then, the results of the research are not export controlled• For Department of Defense funded if:• The sponsor determines the research is fundamental inwritingThen, the results of the research are not export controlled

8Not all research without publication
restrictions is uncontrolled
Existing
Information orTechnology

University Research
Activities

Research Results

If the pre-existing information is in the public domain, and there are no restrictions on
who may participate, then the entire project is fundamental research.
If the pre-existing information is in the public domain but there are restrictions on who
may participate, then the research activities are controlled, even though the results may
be freely published.
If the pre-existing information is not in the public domain (proprietary), then it iscontrolled, and the activities using that information are controlled, even though theresults may be freely published.

9Export Compliance Programs at
U.S. Universities• Management commitment to compliance• Professional staff with in-depth knowledge of
regulations that apply to the institution• Process to review and verify foreign partners,
visitors, shipments, etc.
• Tools to identify when controls apply• Training to different university stakeholders• Use of Technology Control Plans for export
controlled research
10Technology Control Plans• Describe:• Why the controls are needed• Where the controlled items/ activities will occur• How the controls will be implemented• Who will have access to the controlled information or items• When the controls will be removed• Agreed upon by research team and compliance office• Routine monitoring and review of adherence by export
control compliance staff

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Export Compliance at Penn
• Many web-based resources for the community
including• Compliance manual• Decision trees• Training• Systemized approaches for• Contract review• International shipping• Obtaining licenses when required• Recordkeeping

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Export Compliance at Penn
• It takes a village• Committee with representatives from across theuniversity• Many with the ability to screen visitors and visa
applicants• Collaborative approach between school level
information security and central export controls office• Single point of contact when export control issues
are identified

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Concerns about Foreign Influence– not just export controls• U.S. government has identified several areas of
emerging technology that are key for national
security. Examples include:• Quantum computing, Artificial Intelligence,• Tension between academic openness and national
security concerns• What is the role of universities in protecting
research in these areas?

• Disclose funding and collaborations with federal funders• Complying with restrictions when imposed14

Penn resources• Export compliance manual• Decision trees

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