Campus Programs

1. Campus Programs Grassroots Suggestions for Your First Steps in Export Compliance NCURA Regional Conference April 27, 2008

2. Why Export Compliance? It’s the law! 15 CFR 700 - 799

3. Common examples of at-risk Sponsored Program Activities • Sponsored research agreements • International collaborations • Equipment and materials purchase and surplus (particularly defense articles) • Equipment usage • Material Transfer agreements • Nondisclosure agreements • Software licenses • Contract Services agreements • Payments to foreign nationals • Fund transfers to foreign countries • Equipment shipments to foreign countries for loan or field work • Information transfers to foreign countries • Foreign Travel • Foreign student admissions

4. WHY DO WE NEED AN EXPORT COMPLIANCE PROGRAM? • To ensure we comply with the requirements of the law; • To make the campus aware of the law and their responsibilities; • Train faculty, staff and students what the law is about and how it affects them; • The Government is looking for consistency in business practices

5. Goals of a compliance program • Comply with regulations; • Prevent problems before they occur; • Proactively correct problems; • Minimize risk

6. Best Practices; Elements of a Compliance Program • Assign to a high-level person within the company the overall responsibility for the program; • Assign to other specific person the day-to-day operational responsibility for the program; • Devote adequate resources to the program;

7. Best Practices continued: • Demonstrate and communicate to all staff that the university shall comply with the program at all levels; • Have a method to allow faculty, staff and students to report breaches of the policy/law (i.e. hotline); • Be prepared to investigate reports of policy/law breaches;

8. Best practices continued: • Design a program that is tailored to the University’s needs. Look for weak spots and regularly re-evaluate the program: • Ensure that all personnel are familiar with the program and understand its importance (i.e. training and literature); • Use written materials that are relatively simple, straightforward and user friendly. Avoid densely legalistic materials that no one reads or remembers;

9. Best practices continued • Use Human Resource policies and procedures to encourage, reward and enforce compliance; • When hiring new employees include steps which consider their past record of conduct; and last but not least, • Integrate ethics and compliance as part of the organization’s culture and include it as a regular agenda item.

10. Compliance has 3 Basic Components • Policy - Documented • People • Program or Procedures

11. Policy and Documentation • Develop and publish a University centric policy to state its commitment to comply with export laws and regulations; • Develop a “Letter to Faculty” : • Our emphasis on this policy • The importance of this policy to the University; and • The consequences if the policy is not followed. • Demonstrate Management commitment via leadership, time, money and personnel required to develop and maintain an effective compliance program.

12. People: Resources and Roles Defined. • Name Empowered Official(s) • Define clear roles and responsibilities for supporting personnel • Dedicate a FTE for an Export Manager Appointment • Identify organizational supporting roles: • OCG; pre and post award oversight/review • Attorneys, allies to EO & resource to manager • Purchasing • Develop champions in each department through Campus and create a cohort group of the champions

13. Export Manager Responsibilities: • Propose and implement essential program elements to ensure compliance; • Risk Assessment (initial and continuing) • Documentation • Self Assessments, internal audits, self reporting, hot-line calls, record keeping, license applications, Technology control Plans, Technical Assistance Agreements, etc. • Develop, implement and monitor Training & Web-based Resources; • Screening activities for departments, research, people (using Visual Compliance and other tools);

14. Export Manager Responsibilities, continued: • Internal and external reviews/audits; • Faculty and Staff awareness; • Work with Human Resources to incorporate export responsibilities in job descriptions, performance evaluations, disciplinary actions, etc. where applicable; • Notification processes, such as self-reporting for both internal and external purposes; • Advocacy

15. RECURRING EFFORTS • Regulatory environment changes / updates • Licenses and other approvals • Commodity Jurisdiction & Classification • Export Control Research Tracking • Training • Self-Assessment

16. The Big Why! • “The four factors that increase the ultimate punishment of an organization are 1) the involvement in or tolerance of criminal activity; 2) the prior history of the organization; 3) the violation of an order; and 2) the obstruction of justice.” • “The two factors that mitigate the ultimate punishment of an organization are: 1) the existence of an effective compliance and ethics program; and 2) self-reporting, cooperation, or acceptance of responsibility.” • * US Sentencing Guidelines, Chapter 8, Sentencing of Organizations

17. SAMPLE POLICIES

18. MIT “Research Policy Guideline Export Control Laws and Regulations It is MIT policy to comply fully and completely with all United States export control laws and regulations, including those implemented by the Department of Commerce through its Export Administration Regulations (EAR) and the Department of State through its International Traffic in Arms Regulations (ITAR) as well as those imposed by the Treasury Department through its Office of Foreign Assets Control (OFAC).”

19. MIT “14.2 Open Research and Free Interchange of Information It is the policy of the Institute, therefore, that every research project within the academic structure of MIT (excluding Lincoln Laboratory) that requires a classification on the research process, classification as to the source of funds, classification of the research results, or imposition of other restrictions on publication or access must receive the prior approval of the Provost, who shall seek the advice of the Faculty Policy Committee and will inform the committee of all approvals. When unrestricted research at MIT is important to the national security, appropriate efforts will be made to ensure that relevant government agencies are informed of the results at the same time as are others in the scholarly community. “

20. STANFORD • “This policy addresses issues related to: • shipping tangible items overseas, • sharing proprietary, confidential or restricted information or software code with foreign nationals at Stanford, • interactions with embargoed or sanctioned countries, organizations or individuals. • Federal regulations related to these topics are complex and changing. Individuals at Stanford are therefore encouraged to contact Stanford's Export Control Officer whenever they expect to be involved with any of these issues. “ • Steven Eisner, Export Control OfficerOffice of the Dean of ResearchBuilding 60, Main Quad, MC: 2064Stanford University(650) 724-7072, steve.eisner@stanford.edu

21. "The University of California at Berkeley is committed to maintaining a teaching and research environment that is open for the free exchange of ideas among faculty and students in all forums—classrooms, laboratories, seminars, meetings, and elsewhere. Such an environment contributes to the progress of research in all disciplines. There can be no fundamental limitation on the freedom to publish as the result of accepting extramural research support." - UC Berkeley Policy Guidelines Governing Openness and Freedom to Publish