Foundations of U.S. Export Compliance for U.S. Practitioners

Course Summary:

This training—designed for members of your export compliance team—aligns with the Tier 4 requirements outlined in Element 5 of the DDTC ITAR Compliance Program Guidelines.

This export practitioner awareness course introduces learners to the six primary areas of U.S. trade compliance that they may be involved in: jurisdiction and classification, regulated activities, authorizations, authorization management, export clearance, and trade compliance programs. The course provides an overview of these areas in relation to the relevant U.S. compliance regimes, including the Export Administration Regulations (EAR), the International Traffic in Arms Regulations (ITAR), and Office of Foreign Assets Control (OFAC)-administered sanctions and embargoes.

The training identifies key activities and definitions within the trade compliance environment to foster understanding of the learner's role in trade compliance.

Users will receive a Certificate of Completion from the Schar School of Policy and Government at George Mason University upon successfully finishing this course.

Course Outline:

Introduction to the Foundations of U.S. Export Compliance

Regulatory Background

• The Arms Export Control Act
  – Layout of the ITAR
  – DDTC Registration
• The Export Control Reform Act
  – Other Statutory Provisions, Executive Orders, and Presidential Documents
  – How the EAR is Structured
• Office of Foreign Assets Control: Introduction

Definitions

• Overview of Key Definitions
  – EAR §15 772.1 "Proscribed person"
  – EAR 772.1 "You"
  – ITAR §120.56: Release
  – ITAR §120.55: Access Information
  – Release of Technology or Software
  – ITAR §120.51: Reexport
  – EAR §734.14 "Reexport"
  – ITAR § 120.52: Retransfer
  – EAR §734.16: Transfer (in-country)
  – ITAR §120.53: Temporary Import
  – Temporary Export Under the ITAR
  – ITAR §120.54 Activities That Are Not Exports, Reexports, Retransfers, or Temporary Imports Under the ITAR
  – EAR §734.18: Activities That Are Not Exports, Reexports, or Transfers
  – ITAR §120.32: Defense Service
  – ITAR §120.36: Significant Military Equipment
  – ITAR §120.58: Subject to the Export Administration Regulations
  – EAR §772.1 "Dual use"
  – EAR §772.1 "Military commodity"
  – ITAR §120.34: Public Domain
  – ITAR §120.67: Empowered Official
  – ITAR §120.64: Regular Employee
  – ITAR §120.65: Foreign Ownership and Foreign Control

An Introduction to Activities Regulated by the U.S.

Overview of End-Use and End-User Considerations

• ITAR Restrictions
  – Eligibility for Approvals: ITAR §120.16
  – Interpreting ITAR §§126.1(d) and (e)
• EAR Restrictions
  – General Prohibitions (Denied Persons & Red Flags Indicators)
  – Embargoed or Sanctioned Destinations under the EAR
  – End-Use and End-User Controls Under EAR Part 744
  – Restrictive Trade Practices and Boycotts
• OFAC Restrictions
• OFAC Regulations
• OFAC's 50 Percent Rule
• Restricted/Denied Party Screening

Types of Items and Activities Regulated by the U.S.

•  Subject to the EAR
  – Information and Software Not Subject to the EAR
•  Identifying Technical Information
  – What is ITAR Technical Data? (What is EAR Technology? & Marking Technical Information)
• Internal Activities
• Deemed Exports and Reexports
• Post-Export Activities
  – De Minimis Rule
  – Foreign-Produced Direct Product Rule
• Brokering: An Introduction
  – Brokering Definitions
  – Registration of Brokers
  – Approval Requirements for Brokers
  – Brokering Reports

An Overview of Jurisdiction and Classification

The United States Munitions List

The Commerce Control List

Methods of Classification Determination

Introduction to the Order of Review

• Specially Designed
• Documentation and Reassessment

Authorizations

ITAR Authorizations

• ITAR Licenses
  – DSP-5 License
  – DSP-61 License
  – DSP-73 License
  – DSP-85 License
  – Open General Licenses
• Overview of Part 124 Agreements
• Exemptions: ITAR §120.15

EAR Authorizations

• EAR Licenses
• Validated End-User
• EAR License Exceptions
• NLR
• Paragraph (x) of the USML
• EAR99

Managing Your Authorization

Review of Approved Authorization

Complying with License Provisos and Limitations and License

Conditions

Tracking of Activities

Best Practices for Authorization Management

Recordkeeping

ITAR Recordkeeping and Reporting: An Introduction

• ITAR Recordkeeping Requirements
• Reports Required by the ITAR ( Part 130 Requirements & Summary of the Congressional Certification Requirement)
• EAR Recordkeeping Requirements

Export Clearance Overview

• Shipping Documentation
• Electronic Export Information

Trade Compliance Program Overview

Regulatory Guidance on Elements of an Effective Trade Compliance Program

•  Topics to be Addressed in a Trade Compliance Program

 Industry/Peer Best Practices for Trade Compliance Programs

Potential Violations

Identifying and Disclosing Potential Violations

What Constitutes a Violation Under the ITAR?

• Penalties for ITAR Violations
• Voluntary Disclosures of ITAR Violations to the U.S. Department of State (Filing a Voluntary Disclosures Under the ITAR)

What Constitutes a Violation Under the EAR?

• Penalties for EAR Violations
• Voluntary Self-Disclosure of EAR Violations to BIS

Managing Disclosures

• Identifying When a Disclosure Should be Made
• Handling Disclosures When Third Parties Commit a Violation With Your Product or Technical Information
• Tracking Implementation of Corrective Actions

Compliance and Enforcement Actions

Debarment/Ineligibility Status

Conclusion