Regulations, Policies, and Procedures
Research, export controls & trade sanctions
The following memo regarding Research, Export Controls, and Trade Sanctions was sent by Keith Moffat, Deputy Provost for Research. For information and guidance on these matters or to discuss export controls please contact Carol Zuiches, Director of University Research Administration, and Glenn McKeown, Associate General Counsel.
Memo from Keith Moffat, Deputy Provost for Research
TO: Deans, Directors and Chairs
FROM: Keith Moffat, Deputy Provost for ResearchSubject: Research, Export Controls, and Trade Sanctions
Date : December 1, 2004
CC: Mary Ellen Sheridan and Glenn McKeown
The University of Chicago is committed to the creation and dissemination of knowledge. Our faculty, staff and students conduct research and scholarly inquiry intended for wide distribution and benefit to the public. By policies established by the Board of Trustees, no research or sponsored activity may be undertaken by any University investigator that permits third party approval of publication or otherwise restricts the public sharing of results. The dissemination of the results of federally-funded, fundamental research has commonly been restricted only by security classification in accordance with a national security decision directive (NSDD 189)* issued during the Reagan presidency and reaffirmed by the Presidents National Security Advisor Condoleezza Rice in November 2001. Since classified research may not be conducted at the University of Chicago, research conducted at the University has been, for the most part, exempt from export controls.This situation is now changing. Since September 11, 2001, the effort to balance national security concerns and open communication in the academic community has been subject to increased scrutiny, and the understanding of activities that may be controlled and persons who are affected has broadened significantly. Export controls may restrict certain access to and dissemination of information and tangible items, and may limit the individuals who may have access to controlled information. Exports can include both the shipment of materials to another country AND/OR the disclosure of controlled information to foreign nationals who are legally in the United States. The regulations governing export controls are implemented by the U.S. Department of Commerce through its Export Administration Regulations (EAR trade protection), by the U.S. Department of State through its International Traffic in Arms Regulations (ITAR national security), and by the U.S. Treasury Department through its Office of Foreign Asset Control (OFAC). Research on campus that was once thought to be exempt from export controls and trade sanctions may now be considered in a much more stringent light by the federal government. If a research activity is ineligible for exemption, licensing and/or other export control requirements of the Departments of Commerce, State and/or Treasury apply.
The Office of Foreign Asset Control (OFAC) administers and enforces economic and trade sanctions against foreign countries, individuals and organizations identified as terrorists or international narcotics traffickers, or involved in or supportive of activities related to the proliferation of weapons of mass destruction. Individuals may not provide technologies or services to countries on OFACs list of embargoed entities or to specifically designated persons (http://www.treas.gov/offices/enforcement/ofac/sdn/index.shtml) without first obtaining licenses from OFAC and the State or Commerce Departments. It might be thought that there are no situations in which OFAC controls would apply to research conducted at the University of Chicago. Unfortunately this is not so. Under OFAC regulations Iran is identified as a country that supports terrorists, so field research in Iran proposed by researchers at the Oriental Institute required a license. The license was ultimately approved but restricted the research equipment that the investigators could take with them to Iran. For example, the transport of laptop computers and global positioning satellite (GPS) equipment was barred. Similarly, the Commerce Department maintains the Commerce Control List that includes items such as commodities, software and technology subject to export licensing authority. Recently a colleague in a foreign country requested that a University of Chicago investigator share (as required under NIH grant provisions) a bacterial strain used as a research tool. Although the bacterium was on the Commerce Control List, in this instance Commerce determined that the University did not need a license as the bacterial toxin was not included. But Commerce did remind us that we need to check with them before shipping any item on the controlled list overseas.
It now becomes essential for Principal Investigators to consider whether their research, on and off campus, may be affected by the enforcement of these regulations and whether a license must be sought. Export controls are statutorily-based and do not have to be cited specifically in an award document to apply to your research. The penalties for noncompliance with these regulations can be quite severe, including loss of research support, loss of the Universitys export privileges, significant fines, and imprisonment. Areas of particular sensitivity include space-related technology and research; dual-use goods (i.e. goods with a commercial and military application) including scientific equipment such as a fermenter; technology and software (such as organisms that could be considered bioterrorist agents, GPS equipment accessible by foreign nationals from embargoed countries, and laptops with modern encryption technology); and travel to embargoed countries for field research or conferences.
Mary Ellen Sheridan, Director of University Research Administration, and Glenn McKeown, Associate General Counsel, are available to meet with department chairs and faculty to present information and guidance on these matters and to discuss export control issues with researchers. The URA web site also has more detailed information about export controls, applicability and the license process at: http://researchadmin.uchicago.edu/regulations/federal_exportandtrade.shtml.
While these concerns may appear arcane and inconsistent with research in a university setting, I assure you that the federal agencies charged with compliance with these regulations expect full compliance with all applicable export controls. Researchers at our peer institutions are receiving a similar message from my counterparts. Since these regulations affect all research universities, we are working individually and collectively through Washington associations (such as the Association of American Universities and the Council on Governmental Relations) to ensure that they do not significantly affect academic research and international collaborative relationships. We believe that an appropriate balance can be achieved between the freedoms normally characteristic of university-based research and considerations of national security.
