EAR/OFAC Export Controls e-Seminar Modules
(for U.S. Companies)
Module 1
Overview of the EAR
- What exports controls are and why they exist
- How various agencies regulate and control activities
- U.S. export control policy & primary regulations (ITAR/EAR/OFAC)
- What these main agencies have jurisdiction over
Module 2
Regulated Activities
- Exports, reexports, transfers (in-country), U.S. person activities
- Defining U.S. person and foreign person
- Deemed exports and reexports
- Non-U.S. Activities under the EAR (intro to De Minimis and Foreign Direct Product Rules)
- Activities that are not regulated by the EAR
Module 3
Classification
- What is classification for the EAR
- Items subject to the EAR: commodities, technology, and software
- Examples of exports for technology and software
- Items not subject to the EAR; “Publicly Available”
- Fundamental research / educational information / patent applications
- The Commerce Control List: its organization, categories, and product groups
- Export Control Classification Numbers (ECCN): structure and sections
- “Specially Designed” definition, (a) and (b) paragraphs, & examples
- Order of Review / EAR99 determination
- ECCN Classification Tips
- Requesting an Official Classification
Module 4
No License Required (NLR)
- No License Required (NLR) in the EAR context
- How to determine if your export is eligible for NLR
- Understanding the Reasons for Control for a given ECCN
- Using the Commerce Country Chart
- Additional Reasons for Controls not addressed in the Commerce Country Chart (Parts 742 and 746)
- Understanding the De Minimis Rule and Foreign Direct Product Rules
Module 5
License Exceptions
- Defining license exceptions
- Two types of license exceptions
- ECCN-based license exceptions (STA, GBS, LVS, TSR, ENC)
- Situation-based license exceptions (RPL, GOV, TSU, TMP, etc.)
- Restrictions on all license exceptions
Module 6
End Use & End User Controls
- Restricted parties / embargoed countries/proliferation activities
- Military End-Use/User (Belarus, Burma, Cambodia, China, Nicaragua, Russia, and Venezuela)
- BIS Affiliates Rule (50% rule)
- Red flags, EAR General Prohibitions & anti-boycott rules
Module 7
Licenses
- What licenses are and when they are needed
- Reasons for applying for a license
- SNAP-R / electronic filing
- Tell the story of your application: who, what, how
- Additional application support documents
- License review process /issuance
- Terms and conditions
Module 8
Export Clearance
- Who is Responsible for Compliance?
- Foreign Trade Regulations (FTR) & Automated Export System (AES)
- When AES is required / AES filing exemptions and when exemptions do not apply
- FTR: parties to the transaction
- Standard and routed export transaction
- Bill of lading / airwaybill requirements
- Commercial invoice requirements
- Special requirements for 600-Series and 9X515
- Destination Control Statement (DCS)
Module 9
Compliance Programs
- Compliance defined
- Who is responsible for compliance? Why have a compliance program?
- Elements of an effective Export Compliance Program (ECP)
- Evidence of effective compliance
- How to get started and key considerations when building an ECP
- Internal and external resources to build an ECP
- OFAC, BIS, Nunn-Wolfowitz task force
- Best practices and tips for building your ECP
Module 10
Enforcement
- What constitutes a violation under the EAR
- Definitions and examples of both civil and criminal violations
- Which agencies are involved with enforcing the EAR
- Potential penalties and consequences involved with violations
- Voluntary self-disclosure (VSD)
- Factors influencing BIS fines and penalties
- Key considerations in administrative sanctions