Although not in the news as much as sanction violations by banks, universities and research institutions have had their fair share of bad apples who violate export controls.
Deemed exports are not the traditional version of an export – where goods generally physically cross a border. Universities must take care to educate their employees that deemed exports occur anytime they share technology with foreign nationals – whether in the US or while abroad. Easier said than done!
What can you do to ensure your university maintains deemed export compliance?
First and foremost, you must familiarize yourself with export controls and regulations. The basis of a solid export compliance program – whether at a university or a corporation – is understanding where and when export controls apply to your industry.
In the case of universities and research institutions, spending time understanding deemed exports is particularly important.
Under export control regulations, the release of certain sensitive technology or source code to a foreign national in the United States is deemed an export to the home country of the foreign national. Specifically, deemed export occurs when a knowledgeable U.S. person makes technology available to foreign nationals by verbal communication, visual inspection, or in practical use within or outside the United States.
All universities must also establish a written export compliance management program. This program can then be distributed to employees and other relevant parties to the organization for their knowledge of responsibilities involved when dealing with deemed exports. Remember, “ignorance is not an excuse” especially when you’re facing hefty fines and subsequent bad PR after an employee violates export controls.
A final tip for universities’ export compliance is to facilitate the export compliance program through technology. Implementing export compliance need not be cumbersome. With the appropriate groundwork, every university can deploy a tech-based export compliance solution, which facilitates and dramatically improves the efficiency and accuracy of critical aspects of the process. Improved efficiency also enhances the likelihood that employees will comply consistently.
This educational white paper covers three key strategies all universities and research institutions must consider when creating, or enhancing, their export compliance program, as well as:
- Background for Deemed Exports, Controlled Technology, & Restricted Party Screening
- Best Practices for Implementing an Export Compliance Program
- Penalties for Non-Compliance, including Fines and Jail Time
- Technology Considerations to Automate the Export Compliance Process
- Links to Additional Educational Resources from Industry Experts