Visual Compliance:
July 23rd UC Campus
Training & Query
Examples
Outline of UC System Training PowerPoint
Slides # 3 to #7: Background on Visual Compliance
Slides #8-11: UC Classification Examples
Slide #12: Libraries/Classification Archive
Slide #13: Restricted Party Screening Examples
Slides #14-15: Restricted Party Screening Examples – Case Links
Slides #16-19: Schedule B & AES (Automated Export System)
Slide #20: Authorities Contact Information
Slide #21: UC System Points of Contact for Assistance
Visual Compliance:
Strengthened Compliance Process
The VISUAL COMPLIANCE™ RESEARCH EDITION gives you tangible benefits that
include:
● Positive screening returns emailed directly from the RESEARCH EDITION to all
who need to know, including university administrators and legal counsel
● Strengthened compliance system with up-to-date and efficient export
classification and Restricted Party Screening processes
● Usage Audit Reporting features to prove compliance
● Raises the level of compliance at your university as well as enhances your
ability to make your export compliance workflow an efficient and sophisticated
process
Visual Compliance:
Efficient “Deemed Export” Classification
The VISUAL COMPLIANCE™ RESEARCH EDITION provides universities with a
Deemed Export classification process that allows you to determine which of
your research projects and educational activities should be considered
“controlled,” right down to specific items of equipment, materials and
substances, and technology.
The solution offers multiple search options, with pertinent results on your
controlled items returned in seconds, together with such details as export
license requirements and exceptions, and reasons why controls are needed.
Visual Compliance:
Comprehensive Restricted Party Screening
The VISUAL COMPLIANCE™ RESEARCH EDITION can screen entities who have
dealings of any kind with your university. These entities include students, faculty
staff, researchers, sponsors and their associates, suppliers and vendors, even
visiting scholars.
With the RESEARCH EDITION, you can maintain a high level of compliance with
laws that further the national security objectives of the U.S. Government. The
solution does have other uses such as finding out if suppliers have been
blacklisted by the authorities, if individuals are wanted by law enforcement
agencies, or if students have delinquent educational loans.
Visual Compliance:
Effective “Schedule B” Classification
After completing your Deemed Exports Classification and Restricted Party
Screening, VISUAL COMPLIANCE™ RESEARCH EDITION rounds off your compliance
procedure with a built-in Schedule B resource that allows you to find and classify
your items against the HTSUS (Harmonized Tariff Schedule, United States), which
is required for mandatory license and manifest documents covering all exports and
deemed exports originating from the U.S.
Using the Schedule B functionality, you can easily search for your HTSUS code by
keyword, phrase, or by section and chapter, with results accompanied by Section
and Chapter notes, as well as U.S. Rulings where appropriate.
Visual Compliance: Proving Your
Compliance to Federal Authorities
Proving that your compliance system is effective and reliable across your entire
organization is as important as performing the screening process on a particular
individual or classifying specific items according to ECCN and/or ITAR rules.
Being able to provide such proof demonstrates to federal government agencies
that key university staff – from administrators and legal counsel to research
project supervisors and associates – are strictly following the compliance
procedures that have been laid down for them.
Record Keeping: EAR762
https://www.visualcompliance.com/bis_ear/762.pdf
http://www.access.gpo.gov/bis/ear/pdf/762.pdf
Classification Example #1:
Laptops & Foreign Travel
Tools of the Trade License Exception (TMP): refer to Reasons for Control icon in Visual Compliance
http://www.bis.doc.gov/encryption/lechart1_sec508.htm
Please be careful as you can use this as a license exception BUT, you need to understand
what “effective control” means.
Effective control. You maintain effective control over an item when you either retain
physical possession of the item, or secure the item in such an environment as a hotel safe, a
bonded warehouse, or a locked or guarded exhibition facility. Retention of effective
control over an item is a condition of certain temporary exports and re-exports – See
EAR772 for Definition of Terms.
You cannot leave it in your hotel room when you go to dinner, for example BUT you also
need to classify the item first, before you can determine if you can use this as a license
exception.
Laptop Inspections Legal, Rare, Essential by U.S. Customs
http://www.cbp.gov/xp/cgov/travel/admissibility/labtop_inspect.xml
Dell Laptops (for example):
Contact Manufacturer for Assistance
http://www1.ca.dell.com/content/topics/global.aspx/about_dell/values/regulatory_c
ompliance/reg_compliance?~ck=ln&c=ca&cs=cabsdt1&l=en&lnki=0&s=bsd
Contact Details for Regulatory Compliance Website
For any questions related to Product Safety, EMC or Ergonomics, please send an e-mail
to Regulatory_Compliance@dell.com.
Additional Compliance Information
The World Wide Trade Compliance Organization (WWTC) is responsible for managing
Dell’s compliance to import and export regulations, including product classification.
Classification data for Dell manufactured systems is provided within the productspecific, system Product Safety, EMC and Environmental Datasheet.
For any questions related to import/export classification of Dell products, please send an
e-mail to US_Export_Classification@dell.com
Classification Example #2
Engineering Export to Canada
Item: Molecular Beam Epitaxy Unit
Destination: Canada
Department shipping: Engineering
ECCN: 3B001
Outcome: No controls for the destination of Canada
Key Word Search Used: Molecular
(4) ECCN’s Returned When “Exact” Search Used
Classification Example #3:
Physics & Astronomy Export to China
Item: Digital Signal Processor (DSP 56309 – Motorola), speed of 100
million instructions per second, 200 Mhz clock rate, greater than 40 MHz
allowed
Destination: China
Department shipping: Physics and Astronomy
ECCN: 3A001
Outcome: Item is available for purchase in China, advised PI to purchase
it there instead of shipping.
Key Word Search Used in VCRE: Digital Signal
(5) ECCN’s Returned When “Exact” Search Used
Libraries & Classification Archive:
Upload Equipment Inventory
eCustoms can upload any list of equipment to the classification archive (libraries) at no charge,
if you subscription to this feature.
Above is a sample template of some of the information that is to be received in an excel
spreadsheet. A copy of the template to perform an upload is available upon request.
Restricted Party Screening Examples
Financial Transactions (for foreign travel):
1. Bank of Maskan, Iran – General Supplies Purchased
2. Agricultural Development Bank, Zimbabwe - PO #ZIMB125-96 – Seed & Fertilizer
3. Al-Barakaat Wiring Service, Minneapolis, Minnesota
Vendors/Collaborators:
4. Valtex International Corporation, California – Vendor of Laboratory Equipment
5. Performance Medical Supplies, Australia – Vendor of Physical Therapy Equipment
6. Baltic State Technical University, Russia - International Collaboration – Faculty of Physics and
Mechanics – Agreement – Flight Simulators
7. Infocom Corporation, Inc., Texas, USA – Vendor of Internet Technologies/Computer Company
8. Data Physics Corporation, San Jose California – Vendor of signal processing solutions
9. Suntek Microwave, Inc. Newark CA – Vendor of Instrument Manufacturing for Measuring and
Testing Electricity and Electrical Signals
Contractors:
10. Chi Mak - Engineer for Paragon Power, L3 Communications
11. Dongfan Chung – Engineer for Rockwell, Boeing
12. Xiadong Sheldon Meng – Software Contact/Employee for Quantum 3D
13. Consolidated Contract Nursing – Nursing Firm, Cleveland Ohio
14. JS Engineering – Mechanical Engineers, Gardena California
Restricted Party Screening Examples:
Case Links #1
Valtex International Corporation
http://www.bis.doc.gov/news/2005/valtexaug_03_05.htm
http://efoia.bis.doc.gov/exportcontrolviolations/e863.pdf
Performance Medical Supplies
http://efoia.bis.doc.gov/exportcontrolviolations/e935.pdf
Infocom Corporation, Inc
http://www.bis.doc.gov/news/2006/doj01_25_06.htm
https://bxa.ntis.gov/whatsnewcgi.html?filename=infocomcorp.asc
Data Physics Corporation
http://www.usdoj.gov/usao/ut/press/releases/False%20Claims%20Act%20HFB%20case.pdf
http://efoia.bis.doc.gov/exportcontrolviolations/e973.pdf
Suntek Microwave, Inc
http://www.bis.doc.gov/news/2004/sunteckmay04.htm
http://efoia.bis.doc.gov/exportcontrolviolations/e816.pdf
Restricted Party Screening Examples:
Case Links #2
Dongfan Chung:
http://losangeles.fbi.gov/dojpressrel/pressrel09/la071609.htm
http://http://www.cbsnews.com/stories/2009/07/16/national/main5165462.shtml
http://www.cnn.com/2009/CRIME/07/16/california.espionage.conviction/indexhtml
http://vzw.cnn.mlogic.mobi/cnn/ne/crime/detail/333028/full;jsessionid=B958A4ECC626AF0D5BA8F09
4DB58C8BA.live7i
http://news.yahoo.com/s/ap/20090716/ap_on_re_us/us_economic_espionage
Chi Mak:
http://losangeles.fbi.gov/dojpressrel/pressrel09/la071609.htm
http://www.cnn.com/2005/US/11/15/spy.charges/index.html
http://www.cnn.com/2008/CRIME/03/24/us.china.agent/index.html
http://www.newser.com/tag/1881/1/chi-mak.html
Xiadong Sheldon Meng
http://www.usdoj.gov/criminal/cybercrime/mengCharge.htm
http://www.wired.com/threatlevel/2008/06/economic-espion/
What is Schedule B & When Is it Required?
Schedule B: Statistical classification of domestic and foreign commodities exported from
the United States.
Automated Export System (AES): The Electronic Export Information (EEI) contained in
the AES is confidential and is to be used solely for official purposes authorized by the
Secretary of Commerce under Title 13 United States Code, Section 301 and Title 15, Code
of Federal Regulations, Part 30.91. The collection of EEI by the Department of Commerce
has been approved by the Office of Management Budget.
The items being shipped requires Schedule B numbers when the items are valued over
$2,500.00 per Schedule B (includes EAR99 items i.e.. pallet of cotton mittens/gloves), or
when a license is required.
***Please familiarize yourself with Title 15, Part 30 of the US Census Bureau for full
requirements and exceptions:
http://www.access.gpo.gov/nara/cfr/waisidx_02/15cfr30_02.html
AES Filing – Electronic Submissions Mandatory
Effective June 2, 2008 –
The EEI has a dual use. The information collected by the Census Bureau is used for statistical purposes while the
Bureau of Industry and Security and other export enforcement agencies uses it for export control and enforcement
purposes (§30.60).
http://www.census.gov/foreign-trade/www/
AES Filing – Electronic Submissions Mandatory
What is the Harmonized Tariff Schedule (HTS)?
An organized listing of goods and their duty rates, developed by the U.S. International Trade Commission, and used by the
United States as the basis for classifying imports.
The Schedule B, which is administered by the U.S. Census Bureau, is used to classify exports.
What is a Schedule B number?
The Statistical Classification of Domestic and Foreign Commodities Exported from the United States. These 10-digit
commodity classification numbers are administered by the U.S. Census Bureau and cover everything from live animals and
food products to computers and airplanes. To find a Schedule B number please contact the Commodity Analysis Branch,
Foreign Trade Division, Census Bureau at 800-549-0595, option 2.
What is the system for classifying commodities?
The Harmonized System is a method of classifying goods for international trade developed by the Customs Cooperation
Council (now the World Customs Organization). All import and export codes used by the United States are based on the
Harmonized Tariff System.
Why is filing Electronic Export Information (EEI) mandatory?
Public Law 107-228 authorized the Secretary of Commerce, with the concurrence of the Secretary of State and the Secretary
of Homeland Security, to publish regulations mandating that all persons who are required to file export information under
Chapter 9 of Title 13, United States Code file such information through the Automated Export System (AES).
What are export controls?
Export controls are administered by the Bureau of Industry and Security (BIS) in the U.S. Department of Commerce, and are
described in detail in the official publication U.S. Export Administration Regulations (EAR). Whenever there is any doubt
about how to comply with export regulations and licensing procedures, the Department of Commerce officials or qualified
professional consultants should be contacted for assistance at 202-482-4811.
http://www.census.gov/foreign-trade/regulations/faqs/index.html#whatisaschedulebnumber
What Data Elements are Required on the
Electronic Export Information (EEI)? (§ 30.6)
Mandatory
• Shipment Reference Number (SRN)
• USPPI Identification and Address Information
• Ultimate Consignee Identification and Address Infor.
• Filing Option Indicator
• Date of Export
• Country of Ultimate Destination Code
• Mode of Transportation (MOT) Code
• Carrier ID
• Conveyance Name/Carrier Name
• Port of Exportation Code
• U.S. State of Origin Code known
Related Company Indicator
• Domestic/Foreign Origin Indicator
• Routed Export Transaction Indicator
• Export Information Code (EIC)
• Line Number
• Schedule B/HTSUSA Number)
Commodity Description
• Quantity/Unit of Measure (Primary)
• Shipping Weight
• Value of Goods
• License Code/License Exemption
• Hazardous Material Indicator
• In bond Code
• Shipment Filing Action Request indicator
• Line Item Filing Action Request Indicator
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Conditional
Authorized Agent Identification and Address Information
Intermediate Consignee Identification and Address Information
Port of Unlading Code
Quantity/Unit of Measure (Secondary)
Export Control Classification Number (ECCN)
Export License Number/CFR Citation/Authorization
Symbol/Kimberley Process Certificate Number
Directorate of Defense Trade Controls (DDTC) ITAR
Exemption Number
DDTC Registration Number
DDTC Significant Military Equipment (SME)
Indicator
DDTC Eligible Party Certification Indicator
DDTC USML Category Code
DDTC Unit of Measure (UOM)
DDTC Quantity
DDTC export license line number
Transportation Reference Number (TRN)
Entry Number
Foreign Trade Zone Identifier
Used Self-propelled Vehicle Information
• Vehicle Identification Number (VIN)/Product Identification # (PIN)
• Vehicle ID Qualifier
• Vehicle Title Number
• Vehicle Title U.S. State Code
More details found at: http://www.census.gov/foreign-trade/regulations/faqs/index.html#requiredelements
``
Authorities Contact Information
Office of Defense Trade Controls Licensing: Key Personnel
http://pmddtc.state.gov/about/key_personnel.html
BIS Program Offices - Export Administration
Office of Exporter Services (OExS):
http://www.bis.doc.gov/about/programoffices.htm
U.S. Depart. Of the Treasury: Office of Foreign Assets Control
http://www.treasury.gov/offices/enforcement/key.shtml
http://www.treasury.gov/offices/enforcement/ofac/contacts.shtml
UC System Export Control Points of Contact
Luanna K. Putney, Ph.D., CHC, CCEP
Director of Research Compliance
UC Office of Ethics, Compliance and Audit Services
1111 Franklin Street
Oakland, CA 94607-5200
Phone: 510-987-0028 (office); 510-914-5206 (work cell)
Email: luanna.putney@ucop.edu
Kimberly Smith, CRA
Research Compliance/Privacy Analyst
University of California, Office of the President
Office of Ethics, Compliance & Audit Services
1111 Franklin St., 5th Floor
Oakland, CA 94607-5200
Phone: (510) 987-0519
Fax: (510) 287-3334
Email: Kimberly.Smith@ucop.edu
Please contact Luanna or Kim for more information on any export compliance related questions.
For information on how to access Visual Compliance or sign up for use, contact Catherine Bond
at cbond@ecustoms.com for a list of “campus administrators who have the ability to register
users.