EAR/OFAC Controls on Non-U.S. Transactions Agenda

U.S. Export Control Policies & Key Control Concepts
Comparison to International Regime
Why Should a Non-U.S. Company Comply?
What is Subject to Export Controls? Commodities, Software, Technology/Technical Data
Regulated Activities: Exports, Reexports, Transfers, Deemed Exports and Reexports, U.S. Person Activities
Primary U.S. Export Control Regulations
- International Traffic in Arms Regulations (ITAR)
- Export Administration Regulations (EAR)
- Office of Foreign Assets Control (OFAC) Sanctions Regulations
Extraterritoriality of Rules

STEP 1: Who Are You? How U.S. Rules Apply to Non-U.S. Companies and Non-U.S. Persons
- Controls on U.S. Persons & U.S. Subsidiary Activities
STEP 2: Sensitive U.S. Content Always Subject to Controls
- Introduction to Foreign Direct Products of U.S. Technology
- 600-Series and 9X515 ECCNs Sensitive Content
- United States Munitions List (USML) Content

STEP 3: U.S. Content De Minimis Rules
- De Minimis Rules for Hardware & Software
- Rule of Second Incorporation
- What is a Discrete Product for 2nd Incorporation?
- De Minimis Rules: Software With or in Hardware
- Software Bundling & Technology Reports
- Foreign Direct Product Rules: National Security, 9x515, 600 Series

STEP 4: Classification
- Part 1: Export Control Classification
  - Jurisdiction: Which Agency Has Authority?
  - EAR, Commerce Control List
  - Order of Review and Structure of ECCNs
  - Defining “Specially Designed,” The (b) Releases and Implications
  - How to Read ECCNs
  - ECCN Classification Tips and Understanding EAR99
  - Requesting an Official Classification
  - Working with U.S. Suppliers for Classifications
  - EAR Controls on Non-U.S. Military Items
- Part 2: Technology & Software Classification
  - Defining Technology / Reexport of Technology and Source Code
  - Reexport Examples of Technology and Software
  - Technology and Software Classification
  - Items Not Subject to the EAR, “Published” Software & Technology
  - Determining the ECCN of Technology and Software

STEP 5: “No License Required” Determination

– with EXERCISES WORKSHOP
- Steps to Arrive to NLR Determination
- Using the Commerce Country Chart to Guide in Determination
- NLR with an Example / EAR99 and NLR

STEP 6: License Exceptions
- Two Types of License Exceptions
- Country Groups / Restrictions on License Exceptions
- ECCN-based License Exceptions (GBS, LVS, STA )
- Situation-based License Exceptions (RPL, TMP, GOV, APR)
- Technology & Software License Exceptions (TSU, TSR, ENC, TMP)
- Foreign Direct Products / Controlled US Content & De Minimis (Reviews from Step 2 and 3)

STEP 7: End-Use and End-User Controls

– with EXERCISES WORKSHOP
- Restricted Parties; Embargoed Countries; Proliferation Activities
- Military End-Use/User Rule (Belarus, Burma, Cambodia, China, Nicaragua, Russia, & Venezuela
- Other Military End-Use/User Restrictions
- Red Flags, General Prohibitions, Antiboycott
- Applying for a Bureau of Industry & Security License
- Reasons for Applying for a License
- SNAP-R Electronic Filing / Tell the Story of Your Application
- Support Documents / Dual/Third Country Nationals

– with EXERCISES WORKSHOP

U.S. Sanctions & Export/Reexport Controls Overview; Specially Designated Nationals
Office of Foreign Assets Control: Smart Sanctions and Who These Rules Apply to
Embargoed Country Considerations and Destinations: Cuba, Iran, North Korea & Syria
Other OFAC Sanctions Programs
OFAC Licensing & Approval Policies
Important OFAC Sanctions Concepts

Why Have a Compliance Program?
Considerations & Procedural Approaches
- Internal & External Compliance Resources
- Where to Get Started
USG Compliance Program Recommendations & BIS Core Elements
- Management Commitment
- Risk Assessment
- Formal Written Compliance Program
- Ongoing Compliance Training & Awareness
- Compliance Throughout the Export Cycle
- Recordkeeping Regulatory Requirements
- Compliance Monitoring & Audits
- Handling Violations
- Corrective Action in Response to Export Violations
Practical Aspects of Successful Compliance
Automate Reexport Compliance
Other Considerations: Foreign National Employees/Visitors, Procurement, Information on Servers, Emails, Hand-Carry Exports
Keys to Long-Term Success