Export Compliance: Export License Procedure

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I. Purpose

To ensure that all exports are analyzed for license requirements, and if required, export licenses are obtained from the appropriate government agencies. The purpose of this procedure is to standardize and facilitate the prior review and approval of SAO's exports that may be subject to the International Traffic in Arms (ITAR) - or Export Administration Regulations- (EAR) - restricted goods and technology.

If items or data are hand carried or checked onboard an aircraft, please also review Policy and Procedure for Traveling with Equipment and Research-related Materials.

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II. Definitions

  • Applicant - company or organization that is registered with the Directorate of Defense Trade Controls (DDTC) or Bureau of Industry and Security (BIS) to file license applications through the internet using their secure license portals.
  • Bureau of Industry and Security (BIS) - Agency in the Department of Commerce that processes dual use and commercial license applications for export.
  • Category - the section of the US Munitions List where the item to be exported is classified. Category XV is Space-related items, Category XII is infrared and optics. The Commerce Control List has Categories 0 - 9.
  • Commerce Control List (CCL) - A list of items under the export control jurisdiction of the Bureau of Industry and Security, U.S. Department of Commerce. Note that certain additional items described in part 732 of the EAR are also subject to the EAR. The CCL is found in Supplement No. 1 to part 774 of the EAR
  • D-Trade 2 - portal used by the DDTC to file export license applications.
  • End-user information - both DDTC and BIS require detailed end-user information about where the item or technology will be used and by whom and for what purpose.
  • Export Administration Regulations (EAR) - regulations set forth in 15 CFR Parts 730 - 774 over the export of commercial, dual-use, strategic and other items subject to foreign policy controls.
  • Export Control Classification Number (ECCN) - 5-digit alphanumeric number assigned to dual-use or commercial items, production and test equipment, materials, software and technology that are controlled for export by an export regime or US government.
  • Electronic Export Information - filing made electronically to the Bureau of Census through their Automated Export System to report exports under an export license or license exception/exemption or valued over $2500.
  • Foreign Consignee - foreign party with whom SAO has direct relationship and/or contractual agreement.
  • International Traffic in Arms Regulations (ITAR) - 22 CFR Parts 120 - 130, regulations issued by the Political and Military Affairs office of the US Department of State governing the registration, authorization of transfer and enforcement of these regulations related to items, services and technical data designated as defense articles.
  • Registration Number - the number assigned to SI in their registration letter from the Directorate of Defense Trade Controls (DDTC), US Department of State. It is a government agency so it starts with a G and needs to be listed on the license.
  • Schedule B Number - US-only number (10 digits XXXX.XX.XXXX format) that identifies the item for the purposes of calculating our balance of trade. Only used for exports.
  • Significant Military Equipment (SME) - certain defense articles preceded by an asterisk in the US Munitions List. Technical data directly related to the manufacture or production of any defense articles enumerated in any category that are designated as SME shall itself be designated SME.
  • SNAP-R - portal used by the BIS to file export license applications.
  • Technical Assistance Agreement (TAA) - export license issued by the US State Department to authorize discussions and technology transfers of item on the US Munitions List that are on-going to approved partners.
  • US Munitions List (US ML) - Part 121 of the ITAR that consist of items, services and related technical data that are designated defense articles and defense services pursuant to 38 and 47(7) of the Arms Export Control Act (22 U.S.C 2778 and 2794(7)).
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    III. Responsibilities

    • Export Compliance Officer (ECO)
    • Principal Investigators (PI)
    • Program Managers (PM)

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    IV. Reference

    SAO's Company ID number with the Dept. of Commerce is S384411

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    V. Procedure

    1. The ECO works with PIs and PM to complete the ITAR/Export Determination Checklist with the facts of the transaction. Through communications with the PI and PM, the ECO or ECO-backup determines the

    • items to be exported
    • program and purpose of the export
    • parties and countries involved
    • value and origin of the equipment
    • length of time the equipment is staying and if it is coming back.
    See form XXX ITAR/Export Determination ECO-1 and Export Checklist. ECO-2

    2. The ECO reviews the ITAR US Munitions List and EAR Commerce Control List to determine the category and/or Export Control Classification Number. The ECO communicates with the PI or PM to identify if the item to be exported meets the parameters of listed items and if a license is required. The ECO then reviews any license exceptions or exemptions that might apply. The ECO completes the ITAR/EAR license determination.

    3. If no exception/exemption applies, the ECO completes the appropriate export license application form, (ITAR or EAR), for temporary or permanent export. For this, the ECO requires the PI to provide the quantity, description, brochure or technical specifications and value of the shipment.

    4. The ECO determines what supporting documents need to be attached to the license application to comply with the government's review of the transaction, such as

    • end-user statement
    • for foreign national license: visa, passport, resume, job description
    • import certificate for EAR licenses valued at over $50,000 to countries listed in 748.9
    • statement of work
    • contract or purchase order
    • sample technical data or drawings

    NOTE 1: Guidelines for applying for licenses are on the DDTC website and are detailed in Part 123 and 124 of the ITAR. DDTC licenses must be signed by an empowered official with a digital certificate and submitted by an approved submitter on the D-Trade license portal.

    NOTE 2: EAR license preparation procedures are described in Part 748 of the EAR and the license is submitted through the Bureau of Industry and Security license portal called SNAP-R. http://www.bis.doc.gov/snap/index.htm A user manual for SNAPR is posted on the SNAPR site. Submitters must have an approved SNAPR-R ID but no digital signature is required.

    5. Prior to submission, the draft of the license is sent to the PI and PM for review, comments and their approval. Once approved, the license forms, pdf versions and unsigned forms are placed in the shared drive V:7 Export Controlled Awards.

    6. If the license is a Technical Assistance Agreement (TAA) with hardware associated with it, the PI or PM must provide a description and dollar value of the exported hardware, whether it is permanent or temporary (coming back). The ECO provides the prepared license or TAA draft and transmittal letter to all proposed signatories prior to submission to DDTC for their consent or proposed revisions.

    7. For ITAR licenses, the ECO "validates" the license form, and then signs the license digitally before uploading. For EAR licenses, the ECO checks for errors and submits.

    8. If the license has provisos by the Dept of Defense, the ECO reviews the provisos and communicates them to the PI and PM prior to acceptance and license issuance.

    9. The ECO ensures that the PM and PI receive a written copy of provisos and are informed how to show evidence of complying with them.

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    VI. Records

    The following are considered export compliance records to maintain for five years:

    • Emails or other communications about the proposed export
    • License applications sent to the appropriate government agencies with supporting documents
    • Approved licenses with provisos

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