11/1/2015 Agency Jurisdiction Process Agency Jurisdiction Advisory Agencies DOC Export Controls and Civil Part 810 Department of Nuclear technology and Departments of Energy services related to the Commerce, Defense, production of Special State, and the NRC Nuclear Trade Nuclear Material Part 110 Nuclear Regulatory Nuclear equipment and Departments of Commission (NRC) material Commerce, Defense, State, and Energy Export Department of Dual-use items listed on Departments of Administration Commerce the Commerce Control Defense, Energy, and Regulations List State presented by Alex Lopes Director, Office of Nonproliferation and Treaty Compliance 1 11/1/2015 Bureau of Industry and Security Bureau of Industry and Security U.S. Department of Commerce U.S. Department of Commerce Commerce Jurisdiction NP Controlled Exports (nuclear power related items) Jan 2014-Sep 2015 • Balance of plant – turbines, generators, • Over 45,000 exports valued at over $3.2B switching gear, pipes and valves • Approximately $2.9B exported NLR • Health and safety equipment – radiation • Approximately $239M exported under BIS detection and monitoring, fire safety, facility license security • Top ECCNs: 3A292; 2A291; 1C210; 1C202; • General infrastructure, telecommunications, 2B230; 3A233; 2B201; 1C234; 1C230; 2A290 tools and maintenance equipment • Top Destinations • Materials and Manufacturing Equipment ̶ South Korea; Japan; China; Germany; UK; UAE; France; Mexico; Taiwan; Netherlands 2 11/1/2015 Commerce Jurisdiction List Based Controls (NSG dual-use items) • ECCN 2B231 Pressure Transducers (2B230) – Used for pressure measurement in a multitude of industrial processes as well as in the uranium • Heading hexafluoride gas in the centrifuge process for isotope separation Vacuum pumps having all of the following characteristics. Mass Spectrometers (3A233) – Determine a. Input throat size equal to or greater than 380 mm composition of chemical samples as well as the b. Pumping speed equal to or greater than 15 m3/s chemical make-up of uranium, plutonium, etc c. Capable of producing an ultimate vacuum better than 13.3 mPa Machine Tools (2B001) – Product manufacturing • Reason for Control in virtually every industry including nuclear explosive device components and uranium NP1, AT 1 enrichment equipment 3 11/1/2015 End Use Restrictions Apply Implementation • Section 744.2 (Catch- • “Knows” provision All /EPCI) • Restricted end uses • “Is Informed” provision ─ Nuclear Explosive • “U.S. Persons” provision Activities • Crossover provision ─ Unsafeguarded Nuclear Activities ─ Specific Nuclear Activities Heavy Water Production, Isotope Separation…. 4 11/1/2015 Not Subject to Section 744.2 Entity List A number of entities known to be involved in certain nuclear • Mining and milling operations activities are included on the Entity List, which requires a • Fusion reactors (Tokamak and ITER) license where one otherwise would not be required • Most trade with IAEA safeguarded facilities • Naval nuclear propulsion (744.5) 5 11/1/2015 End-Use/End–User End-Use/End-User Based Controls Based Controls Recently, we received an export inquiry for stainless steel pipe I am a distributor of college textbooks. for use in a nuclear power plant I often get requests from foreign customers in China. for textbooks on nuclear engineering Should I be worried about Part 744 controls? Do I need to apply for a license under Part 744.2 of the EAR? 6 11/1/2015 Deemed Export Rule Nationality • The obligation to determine whether a license is required before releasing controlled technology or source code to a • Commerce Dept. looks to a foreign foreign national is informally referred to as the “deemed person’s most recent country of export” rule. citizenship or permanent resident • The release of controlled technology or source code to a foreign national in the U.S. is “deemed” to be an export • Exempted from the Deemed Export to the home country or countries of the foreign national. Rule ̶ A person granted U.S. citizenship ̶ A person granted permanent residence status (i.e. “ Green Card” holders) ̶ A person granted status as a “protected individual” under 8 U.S.C. 1324b(a)(3). 7 11/1/2015 Deemed Reexport • What is the “relationship” of this “new QUESTIONS ? foreign national”? • How was the transaction licensed? [email protected] • Were specific country restrictions imposed? • Could license exception APR or other [email protected] permissive re exports apply? 8 .