U.S.

Department of Commerce
Bureau of Industry and Security
Overview of BIS
Export Control
Program
Bernard Kritzer
Director
Office of Exporter Services
Topics of Discussion
BIS Mission
Regulatory Overview
Educational Tools
Focus on Compliance
Deemed Exports
Export Control Reform
Bureau of Industry and Security
Bureau Mission: to advance U.S. national security
foreign policy, and economic interests
Statutory Authority: Export Administration Act
(EAA) of 1979, as amended; International
Emergency Economic Powers Act, as amended
Responsibilities: BIS is responsible for
implementing and enforcing the Export
Administration Regulations (EAR), which regulate
the export and reexport of most commercial and
dual-use items.
BIS Authority for Export
Controls
Export Administration Act (EAA) of 1979,
as amended
International Emergency Economic
Powers Act, as amended (IEEPA)
Export Administration Regulations
(EAR)
Implement the Export Administration Act
Apply to dual-use items
Civil as well as military use
Not primarily for weapons or military
related use
Broad jurisdiction but narrow licensing
requirements
Item: Commodity, Technology or Software
What is Subject to the EAR?
Scope of Commerce Controls
All items in the U.S. (regardless of origin)
Certain items located outside the U.S.
Certain activities of U.S. persons
Releases of source code or technology to
foreign nationals in the United States or abroad
(Deemed exports and reexports)
Why Does BIS Control Exports?
National Security
Foreign Policy
Anti-terrorism
Crime control
Regional Stability
Non Proliferation
Nuclear weapons
Chemical/biological weapons
Missiles
What Types Of Transactions
Does BIS Control Vs State?
BIS regulates exports, reexports and
certain transfers of items subject to
the EAR in addition to certain activities of U.S.
persons.
State regulates exports of a defense article/technical
data; the disclosing, by any means, or transferring a
defense article or technical data to a foreign
person in the United States or abroad; performing a
defense service on behalf of or for the benefit of a
foreign person in the United States or abroad
Broad jurisdiction BUT
narrow license requirements
Export Administration
Regulations (EAR)
Implement the Export Administration Act
Apply to dual-use and commercial items
Dual-use Items
Items that have both commercial and
military or proliferation applications.
This term is often used informally to
describe items that are subject to the EAR.
Commerce Control List ( CCL )
Part 774, Supplement No. 1
Contains lists of those items subject to the
licensing authority of BIS
Each entry is called an Export Control
Classification Number (ECCN)
Most items are described in terms of their
technical parameters
What does Export Control
Classification Number ( ECCN ) tell
us? Part 772
What items are controlled?
Why BIS controls the item?
Which destinations will require a license?
Country Chart in Supp. 1 to part 738,
What (if any) list-based license exception
applies?
The Structure of the ECCN
0 A 018
0 Category
A Product Group
018 Type of Control
Categories of the Commerce Control List
0
Miscellaneous & Nuclear Materials
1
Materials, Chemicals,
Microorganisms, and Toxins
2
Materials Processing
3
Electronics
4
Computers
5
Part 1-Telecommunication
5
Part 2-Information Security
6
Sensors & Lasers
7
Navigation & Avionics
8
Marine
9
Aerospace & Propulsion
Product Groups of the Commerce
Control List
A
Systems, Equipment & Components
B
Test, Inspection & Production Equipment
C
Materials
D
Software
E
Technology
Type of Controls Associated
w/Entry
0 National Security Reasons
1 Missile Technology Reasons
2 Nuclear Nonproliferation Reasons
3 Chemical & Biological Weapons Reasons
9
Anti-terrorism
Crime Control
Regional Stability
Short Supply
UN Sanctions
Surreptitious Listening
Most of the time related items are
grouped in series
Equipment,
assemblies
and
components
Test,
inspection
and
production
equipment
Software
Technology
Materials
Other Regulatory Agencies
US Dept. of State - Directorate of Defense Trade Controls
US Dept. of Treasury - Office of Foreign Assets Control
US Dept. of Energy
Nuclear Regulatory Commission
US Dept. of Commerce Patent & Trademark Office
US Department of Interior
Food and Drug Administration
U.S. Department of Commerce Bureau of the Census (trade
statistics and AES)
U.S. Department of Homeland Security Border and
Transportation Security
U.S. Customs Service (works with BIS to ensure compliance)
Deemed Exports
Release of technology or source code to a foreign
national in the U.S.
Considered to be an export to that persons home
country
Does not apply to:
U.S. citizens
Individuals granted permanent resident status
Protected individuals
Deemed Export Concerns
Deemed export rule was established in 1994 to address national
security issues relating to the transfer of sensitive technologies to
certain foreign nationals working on controlled technology within
the U.S.
The deemed export program balances two opposing concerns:
- The vital role of foreign nationals in U.S. industry and
academia, contributing to the strength of our industrial base
and our high-technology advantage, and ultimately our national
security.
- Foreign countries seek to illegally acquire controlled U.S.
technology that could be diverted to the development of
weapons programs.
Outreach and Education
Exporter Counseling Call Center
Web site www.bis.doc.gov
Contact e-mail
E-mail notification
Exporter Counseling
BIS Seminar Program
Annual Update Conference and Forum
Educational Resources
BIS Web site provides access to:
Export Control Basics
Online Training Modules
Most current version of EAR
Brochures and Publications
Past Webinars
Video Portal of Annual Update Conference
Export Management and
Compliance
Provide guidance on best practice export
compliance strategies to assist in the development,
or enhancement of compliance programs.
Review written compliance manuals and provide
recommendations on how to strengthen
compliance policies, procedures, and overall
program.
BIS Focus on Compliance
Through seminars and one-on-one telephone
counseling, BIS is available to answer questions and
assist in export compliance efforts.
Provide Special Comprehensive License (SCL)
counseling and evaluate SCL Internal Control
Programs.
Provide guidance and assistance on Validated End-
User (VEU) submissions and conduct compliance
reviews of VEU advisory opinion applications
Export Control Reform
Three Phases of Development
Phase I - This phase includes implementing specific
reform actions already in process and initiating review of
new ones.
Phase II - Results in a fundamentally new U.S. export
control system based on the current structure.
Phase III - completes the transition to the new U.S.
export control system.
Export Control Reform
Key Recommendations:
Single Control List
Single Primary Enforcement
Coordination Agency
Single Information Technology (IT) System
Single Licensing Agency
Export Control Reform
Details:
http://www.whitehouse.gov/the-press-
office/fact-sheet-presidents-export-
control-reform-initiative
Contact BIS
Office of Exporter Services
Washington, D.C. (202) 482-4811
Northern California (408) 291-4212
Southern California (949) 660-0144
Export Enforcement (800) 424-2980
Nine Field Offices in the U.S.