Export/Import Guide: Published by the Customs Team and the Export Working Group | Export/Import Control & Compliance

Export/Import Guide Introduction

This guide is provided by the Export Working Group (EWG) to furnish information and assist you with the preparation of documentation and materials for export from, or import to, the Laboratory. Members of the Export Working Group include those groups with export control responsibilities. The Guide contains explanations of Laboratory export/import policies and procedures.  The Guide is to be used in conjunction with IMP 805.0 Export Control.

Some of  documents are in Portable Document Format (pdf) requiring Acrobat Reader for viewing. Note: You may have to print some of the pdfs to read them clearly.

Forms

Custom Team Forms can be found at: http://int.lanl.gov/tools/forms/customs.shtml

Classification Office Forms can be found at: http://int.lanl.gov/tools/forms/publica.shtml

Background

The export control system of the United States is very complex. The legal basis is federal statutes and implementing agency regulations, Executive Orders of the President, and U.S. treaty obligations. Enforcement is primarily by the Department of Commerce and the U.S. Customs and Border Protection, Department of the Treasury. It should be noted that most export-controlled items are controlled not just by our government but by many other countries. The same controls that apply to Los Alamos usually apply in some form or another to our colleagues in the European Union, Russia and Japan, to name a few.

Los Alamos National Laboratory has played and continues to play a leading role in the development of nuclear non-proliferation export controls. The Laboratory advises the government on what should be controlled or decontrolled; assists in international negotiations to achieve effective uniform controls; and provides technical advice to the Department of Energy on specific licensing cases.

The Department of Commerce lists the reasons for export control as: Anti-Terrorism, Chemical & Biological Weapons, Crime Control, Chemical Weapons Convention, Encryption Items, Firearms Convention, Missile Technology, National Security, Nuclear Nonproliferation, Regional Stability, Short Supply, United Nations Embargo, Significant Items, and Surreptitious Listening.

Distribution of Export & Import Responsibilities

The Customs Team, (505) 665-2194, is responsible for obtaining licenses, commodity and software classifications, designating license exceptions, preparing shipping documents, approving all exports of commodities and software from the Laboratory, and maintaining central records of commodity and software exports. The Customs Team also prepares all entry documentation for clearing imports to the Laboratory and reviews all requests to transfer or excess property for weapons-related/proliferation-sensitive concerns.

The Classification Office, 667-5011, is responsible for decisions on technical data and Lab-developed software to be exported and assisting requesters in the use of applicable license exceptions and their conditions.

The Mail Services Team, 667-4166, is responsible for monitoring outgoing mail to foreign countries and ensuring mail to embargoed countries has Division-level approval.

Foreign Visits & Assignments, 667-1572, is responsible for foreign visitors. The release of export-controlled information to a foreign visitor in the United States is a deemed export.

Customs

Most of the countries that Laboratory requesters travel to have import and export regulations. It is important to keep this in mind when traveling through Customs with Laboratory materials and equipment.

Governing Regulations

Department of Commerce (15 CFR 730-774)
Department of State (22 CFR 120-130)
Foreign Assets Treasury Controls (31 CFR 500-590)
Alcohol, Tobacco and Firearms (27 CFR 47, 55, 178, 179)
Nuclear Regulatory Commission (10 CFR 110)
Department of Energy (10 CFR 810)
Drug Enforcement Agency (21 CFR 1300-1399)
U.S. Customs and Border Protection (19 CFR 1-199)
U.S. International Trade Commission (19 CFR 200-299)
International Trade Administration (19 CFR 300-399)
Bureau of Census (15 CFR 30-199)

Violations

Failure to comply with U.S. export control laws can result in criminal sanctions, including imprisonment, administrative sanctions, and civil penalties. Please see Exhibit E. Violators of customs laws can incur fines, penalties and seizure and forfeiture of imported merchandise.

Appendix

The appendix contains information on: licenses, documentation requirements, nuclear-related commodities, end-uses, end-users and activities, defense articles and services, and missile and chemical/biological weapons end-uses/users, and end-use/end-User guidance and red flags.

Search

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Training

On-line training is available for the following subjects: exporting commodities, exporting software, exporting information (technology), hosting foreign nationals, importing, high risk property, and exporting under the International Traffic in Arms Regulations (ITAR). Click on courses.

Anyone involved in any of the above subjects must take this training. You will receive EDS credit for taking any of these courses.

Exporting Commodities

Export

To "export" commodities means to transfer equipment, material, software or technology from the United States via any of the following: mail, e-mail, fax, shipment, drop shipment, or hand-carry.

Circumvention

Any attempt by an employee to circumvent the Laboratory procedures (see IMP 805.0) for compliance with export control laws and regulations may lead to disciplinary action, up to and including termination. In addition, the Laboratory may decline to provide assistance if an employee encounters legal difficulties as a result of willful noncompliance with the policy.

Lessons Learned - Technology

Professor Is Convicted Of Sharing Technology

By Carrie Johnson, Washington Post Staff Writer

A federal jury in Knoxville, Tenn., convicted a retired university professor on
conspiracy, wire fraud and export control charges yesterday for improperly sharing sensitive technology with students from China and Iran. 

Plasma physicist J. Reece Roth, 70, faces more than a decade in prison when he is sentenced early next year. Prosecutors say the professor emeritus at the University of Tennessee exchanged restricted military data with foreign research assistants and traveled overseas with electronic versions of sensitive materials on his laptop computer.

The case is the latest in a series involving the Arms Export Control Act. It also is among the first in which the government sought to punish a defendant for distributing scientific know-how rather than equipment to foreigners studying at universities with military research contracts.

Roth worked with a Knoxville technology company on a pair of U.S. Air Force contracts to develop plasma-based guidance systems for the wings of unmanned vehicles from 2004 to 2006, according to court papers. The drones are used in surveillance and to house weapons. This year, the company, Atmospheric Glow Technologies, and another scientist there pleaded guilty to related charges.
In recent years, law enforcement authorities and intelligence experts have warned that military secrets could be compromised in university settings and other seemingly benign environments. They point to heightened interest from China and the Middle East.

"The illegal export of such sensitive data represents a very real threat to our national security, particularly when we know that foreign governments are actively seeking this information for their military development," said J. Patrick Rowan, acting assistant attorney general for national security.

Lessons Learned - Commodities

• Soon after the LANL Customs Office was established, a Laboratory staff member was detained by the police in the United Kingdom. He was not allowed to take his computer into the country because the proper arrangements had not been made. The computer was shipped back to the Laboratory.
• An example of circumvention occurred when a group insisted on making its own arrangements for export of equipment going to a time-critical experiment in Canada. Although the equipment reached the border, Canadian Customs would not let the equipment continue until a bond had been set up to guarantee that the equipment would be exported back to the United States upon completion of the experiment.
• Do not ship Laboratory equipment or material with your household goods if you are going on a change-of-station out of the United States. Laboratory property must be shipped separately.

Customs Team

The LANL Customs Team has the expertise to make exporting as easy as possible for Laboratory requesters. Please contact the Customs Team (505) 665-2194, customs@lanl.gov, for all your exporting needs.

Required Forms

To ship commodities (material or equipment) (on loan, change of station or permanently) to a foreign country, you must prepare a Shipping Request (SR).

To hand-carry commodities back and forth with you on foreign travel, you must prepare a Property Transport Request (PTR).

If you are only taking a cryptocard with you on foreign travel, a Smartcard/Cryptocard Foreign Travel Form is required.

Property Concerns

All property concerns must be taken care of before Laboratory property is exported. Please see the Property Management Manual.

Hand-Carried Items

Hand-carried items should be treated as if they were being shipped. A Property Transport Request (PTR) should be used and should state that the items (including non-bar coded items) are to be hand-carried. The PTR should be used when the items are leaving and returning with an employee.

Use the SR when hand-carrying items that will not be returned to the Laboratory. The hand-carried items must be reviewed for any license requirements and shipping documents must be prepared before the items are taken out of the country.

Every country’s customs regulations are different and problems may be encountered when employees attempt to hand-carry material and equipment overseas. Note: Some countries have strict rules regarding the import of encryption software. LANL travelers have not reported any problems to the Customs team from taking encryption software on their laptops into foreign countrie. In that case, the foreign country is not importing the software.

Temporary Exports/Special Arrangements

Many commodities exported from the Laboratory are returned to the Laboratory. If items are being exported temporarily, the foreign destination’s laws may require special arrangements. For example, a Certificate of Origin or NAFTA Certificate may be required, or a bond may be requested to guarantee the items will be eventually exported.

Licensing

The LANL Customs Team, located at 125 Central Park Square, (505) 665-2194, is responsible for obtaining the proper license (see the Appendix) or designating the appropriate license exception or symbol for all commodities before export. It is best to give the Customs Team as much notice as possible to ensure that any special documentation required is in order. Obtaining a license is a cumbersome process that can take more than three months. Licensing usually involves interagency review by the Departments of Commerce, Defense, Energy, State, and the Defense Threat Reduction Agency. You may be contacted by any of these agencies for more information.

Licensing determinations are based on:

The commodity to be exported (An example is that some software containing encryption is controlled by Department of Commerce (DOC) under 5D002 of the Commerce Control List and may need a license depending on its destination.).

The country to which the item will be exported (In most cases you will need a license for export to North Korea ".. whose government has repeatedly provided support for acts of international terrorism.").

The end-use and the end-user of the commodity (Licenses are required if the end-use is a nuclear explosive activity, an un safeguarded nuclear activity, and certain safeguarded or un safeguarded nuclear fuel cycle activities, or activities involving missiles or chemical/biological weapons. Exports to facilities involved in those activities will also need a license, regardless of the end-use.).

Depending on jurisdiction, your export may require authorization from DOE (10 CFR 810) or a license from the:

Department of Commerce, for items on the Commerce Control List (15 CFR 774). Computers, cameras, chemicals, and electronics are examples of items controlled by DOC. Over 90% of the Laboratory's exports fall here.

Department of State, for Munitions List items (22 CFR 121) including defense articles, defense services and most satellites and associated equipment.

Nuclear Regulatory Commission, for materials and equipment under 10 CFR 110. Source and byproduct materials fall here.

Foreign Travel

Taking Items that will not Return to the Laboratory

When an employee goes on travel and takes Laboratory equipment out of the U.S. that will not return with the traveler, they must prepare a Shipping Request (SR). Check the box on the Shipping Request (SR) and state the appropriate property disposition (Government Furnished Property (GFP), Loan, etc.). Property disposition must be approved by Property Management before an export takes place. Provide the address of the foreign location where the item(s) will be located and a contact name and telephone number at that location(s).

Property disposition must be approved by the Property Disposition Team, 665-8079,before you leave on foreign travel. See the Property Management Manual. See also Know Before You Go.

The person authorizing the shipment and the Property Administrator must sign the SR for exports of property-numbered items.

Export requests must be provided to the Customs Team well in advance of the departure date. 

Items Returning to the Laboratory License/License Exception Condition

If the property will return with the traveler, a Property Transport Request (PTR) should be used. The PTR can be made valid for two years if the traveler frequently takes the same equipment (i.e., a laptop computer) to pre-approved locations. Contact the Customs Team, customs@lanl.gov to change/update locations or equipment.

Note: Laboratory property is NOT household goods and cannot be exported with your household goods if you are going on a change-of-station outside the U.S.

The Customs Team, located at 125 Central Park Square, 665-2194, is responsible for obtaining the proper license (see the Appendix) or designating the appropriate license exception or symbol for all commodities before export. It is best to give the Customs Team as much notice as possible to ensure that any special documentation required is in order.  Obtaining a license is a cumbersome process that can take more than three months.

Conditions of licenses and license exceptions must be strictly adhered to. You may be asked to sign a form stating you will follow all of the conditions of the license exception that the Customs Team uses for your export. This is often done for temporary exports - when you take your laptop on travel for example. Failure to follow these conditions is a violation of both Laboratory procedures and U.S. export regulations.

Declaration

When returning from foreign travel it is important that you declare all articles acquired abroad and in your possession at the time of your return to the U.S. This includes:

• Articles that you purchased abroad, gifts presented to you while abroad, repairs or alterations made to any articles taken abroad and returned,
• Items you have been requested to bring home for another person.
• All articles hand-carried into the United States by any individual require declaration to U.S. Customs at the port of first arrival. See the section on importing for shipping your property back to the Laboratory.  Never pack personal items with scientific equipment you intend to ship or hand-carry back into the U.S.

Exporting Software

Export

To export software means to make software source code (or executable code if the software contains encryption) available to a foreign national either in or outside of the United States by any means.

LA-CC Number

No Laboratory-developed software may be distributed without an LA-CC number. To obtain a LA-CC number, submit the Software Release Form to the Classification Office. Note: Public domain software is not the same open source software.  Any software which a LANL worker wishes to release in the open source must be disclosed to the Technology Transfer Division using Form 1713. 

Commercialization

All Laboratory employees developing software should take into account its availability for commercialization and follow the licensing process for such as called out in the Technology Transfer web site.

Public Dissemination

Laboratory-developed software which is to be publicly disseminated, as determined by line management (or by the funding agency in the case of software directly related to a defense article under the ITAR) and indicated on the Software Release Form, may be exported to any destination after assignment of the LA-CC number. No software that contains encryption or provision for adding encryption can be disseminated without the approval of the Customs Team, (505) 665-2194. (Note that exports to countries listed here of publicly-available technical data or software require division-level approval on the Request for Export Control Designation and/or Embargoed Country Approval Form. See Embargoes below.

Restricted Software

Restricted software is any Laboratory-developed software which is not to be publicly disseminated. This software may be intended for controlled distribution to other government agencies or contractors or to be shared for commercialization and/or program development purposes through license agreements executed through the Technology Transfer Division.

For restricted software, the Classification Office will coordinate with the LA-CC requester and the Customs Team to determine the appropriate Export Control Commodity Number (ECCN) or U.S. Munitions List catetory. The ECCN or USML category is needed to determine the licensing requirements for export of the software under the regulations of the Department of Commerce or State. After an ECCN/USML category has been designated or obtained from the appropriate regulatory agency, each export of restricted software must be approved by the Customs Team.

Commercial Software

Commercially available software is generally controlled by the Department of Commerce and may require a license depending on where you are sending it. Some off-the-shelf software (like Windows NT) contains encryption and an export license is required to certain destinations. Contact the Customs Office for any export of commercial software.

Shipped/Hand-Carried Software

Software being hand-carried or shipped to a foreign destination must be approved by the Customs Team. List any software you are taking on laptops or other computers on the Shipping Request (SR) or Property Transport Request (PTR).

Software Distributed Electronically

Laboratory-developed software that is not publicly available and is to be distributed over the Web or via e-mail must be approved by the Customs Team before the distribution takes place. A Software Export Approval Form for Electronic Distribution must be submitted to and approved by the Customs Team before each export of restricted software.

Conference Distribution

If you are distributing software at a conference, please use the Export Approval Form for Software Distribution at Presentations Conferences form.

Exporting Information

Technology

Technology is specific information necessary for the development, production, or use of a product. It may take the form of "technical assistance" or "technical data."

Technical Assistance and Defense Service

Technical assistance is any method of transmitting technical information other than simply providing written material. Technical assistance may take forms such as instruction, presentations, skills training, working knowledge, or consulting services. As an example, a Laboratory employee assisting in setting up radiation monitoring equipment at a Russian nuclear facility is providing technical assistance. If the technical information falls under the International Traffic in Arms Regulations (ITAR), the transfer may be considered a defense service.

Publicly-Available Information

The Export Administration Regulations (EAR) exempt from licensing requirements information which is in the public domain or which is the result of fundamental research (see definitions below). That is, information falling in these categories may be exported to all destinations except to the countries listed herein.  Division-level approval is required for publicly available information requested for export to an embargoed/sanctioned country on on the Request for Export Control Designation and/or Embargoed Country Approval form. See Embargoes below.

The ITAR controls technical data related to the design, engineering, development, production, processing, manufacture, use, operation, overhaul, repair, maintenance, modification or reconstruction of defense articles. The ITAR exempts technical data that is in the public domain or has been approved for public release by the funding government agency.

A few examples of Laboratory technical data which are not publicly available or fundamental research data are:

• Classified information
• Unclassified Controlled Nuclear Information (UCNI)
• Proprietary Information
• Protected CRADA Information
• LA-CP reports

Exports

Any communication of technology (technical data or technical assistance) to a foreign national is an export, whether it takes place in the U.S. or abroad. Technology that is provided to a foreign national verbally, by mail, e-mail, telephone or facsimile, or through computer networking is an export. Observation of equipment or process operation by a foreign national may comprise an export of technology if significant details are revealed.

License Symbol TSPA/License Exceptions

The symbol for exporting technical data that is publicly available is TSPA (Technical Data & Software Publicly Available), and there are two more license exceptions (TSR and TSU) which do not require a license from the Department of Commerce for data that is not available to the public. TSPA authorizes an employee to export to all destinations those technical data that have been made available to the public in any form or that are intended for public release. This includes published books, reprints, all unclassified and non-sensitive Laboratory-released publications (e.g., LA-URs, LALPs, LA-series reports that are not marked as classified or having limited distribution), papers "approved for release" with intent to publish, and fundamental research not restricted by the government.

Export requests not determined to be under TSPA or general correspondence must be referred to the Classification Office at 667-5011.

The letters "TSPA" (Technology and Software Publicly Available) shall be placed on the lower left-hand corner of the envelope for mailing, or at the end of the subject line for e-mail and faxes for exports of publicly available technology or software. This marking should not be placed in an automatic signature block. The point is to ensure the sender has considered the export requirements for each message.

Procurement Specifications

Procurement specifications that contain technical data may be subject to export controls and should be referred to the Classification Office at 667-5011 before release.

Correspondence

The designation "correspondence" must be used when you mail non-technical or administrative information (e.g., hotel reservations, thank you notes, checks for registrations, visa documents). The "correspondence" designation cannot be used if any technical data are enclosed. If a mailing contains both technical data and correspondence, it is treated as technical data. Transmissions which contain only administrative information, and no technical data, shall have the word "Correspondence" placed in the lower left-hand corner of the envelope for mailing, or at the end of the subject line for e-mail and faxes.

Unclassified Controlled Nuclear Information (UCNI)

Any export of information determined to contain Unclassified Controlled Nuclear Information (UCNI) must be approved by the appropriate DOE Program Office. Call the Classification Office at 667-5011 for assistance.

Embargoes

Even though openly published information is typically exempt from export control, Laboratory policy does not support interaction with the countries listed here. Simply put, Government resources shall not be used to reproduce, mail, ship, or e-mail any correspondence, openly published literature, or fundamental research to these countries.  That said, rare exceptions may be made if all of the following conditions are met:

·       The interaction is not otherwise prohibited by law.
·       There is a legitimate, specifically identified programmatic need.
·       Explicit Division Leader approval is documented on Form 1667 at:
        http://enterprise.lanl.gov/forms/1667.pdf.
·      A copy of the approved form, along with the information sent (by mail, e-mail or fax) is sent to the Mail Services Team, MS A190, 667-4166, 667-9124(fax).

Note:  Of course, transferring any technology even in the form of a casual conversation, e-mail or the like, may constitute an export of technology or providing technical assistance to a foreign national.  All technology transfers to a foreign national require approval.  Please address any questions or comments to the Customs Team at 665-2194 or customs@lanl.gov.

Assistance

For assistance with determination of the appropriate export designation for technical data, contact the Classification Office at 667-5011. For assistance with procedures for mailing technical information abroad, contact the Mail Services Team at 667-4166.

For assistance in determining what information foreign visitors at the Laboratory are permitted to have, contact Foreign Visits & Assignments at 665-1572.

Imports

All imported equipment and materials require clearance through U.S. Customs. Most also require the payment of duty. The Customs Team clears many of the imports for the Laboratory (including those from Canada and Mexico).

LANL as Customs Broker

The Laboratory acts as its own broker for all imports whether purchased, borrowed, or returned. All shipments are handled on a case-by-case basis, contact the Customs Team at (505) 665-2194. or customs@lanl.gov for instructions.

Duty

• Is temporary (will remain at the Laboratory less than one year - although this can be extended), duty-free under the Harmonized Tariff System, duty-free under a special program, has duty-free status by grant from the U.S. Treasury and the Department of Commerce, or
• Is a return of commodities previously exported from the Laboratory, by any means, where we have proof of export,

the requesting group will have to pay duty and processing fees to get the imported commodities released from U.S. Customs, unless other arrangements have been made. The Laboratory Purchase Order number (if applicable) and contact's name and telephone number should appear on the invoice sent with the shipment. The Customs Team will call the Laboratory contact for information regarding classification, type of entry, etc., if this is not clear.

Temporary Imports

If a commodity is:

• being imported for testing, experimentation, etc,
• will be here less than one year, and
• will not be altered in any way,

the Customs Team may be able to set up a Temporary Import Bond (TIB). One condition of a TIB is that the imported materials be returned or disposed of (under U.S. Customs’ supervision) within one year from the date of importation. It is possible to get an extension if the Customs Team is notified well in advance of the expiration of the year’s deadline. If the conditions of a TIB are not met, the requester will have to pay twice the amount of duty due at the time of import so it is very important to inform the Customs Team BEFORE you do anything with the imported material/equipment. Some materials (e.g., chemicals) that will be consumed during an experiment and would otherwise be subject to duty may be brought in under a TIB. The Customs Team must be notified that the commodity will be consumed before entry is made.

When you are ready to export or destroy ANY PART of a commodity imported under a TIB for ANY REASON, including repair/replacement, you must notify the Customs Team immediately and reference the TIB number on the SR.

Declaration

All articles brought into the United States by any individual require declaration to U.S. Customs at the port of first arrival. Never pack personal items with scientific equipment you intend to ship or hand-carry back into the U.S.

Lessons Learned

A contractor for another Laboratory tried to smuggle goods into the United States with his Laboratory equipment. Upon inspection, U.S. Customs found alcohol, furs, and other foreign goods that had not been declared. Because the contractor did not declare these items: the Laboratory’s equipment was seized and was not released for several weeks; the party involved was asked to take leave without pay for a period of time; the Laboratory’s imports were inspected more often than before the incident, which causes delays in receiving needed equipment; and the Laboratory faced potential fines for violation of import regulations.

An employee who was on a change-of-station out of the country shipped some Laboratory property with his household goods. There was no record of the export and it was not approved by the Customs Office. During the employee's absence, his group needed the equipment and when he tried to ship the property back to the Laboratory the group was required to pay duty on the equipment because there was not proof that it was U.S. made or that it had been exported.

Customs Team

The Customs Team, 665-2194, can assist you with consumption entries, T.l.B.s, duty-free entries, special requests, etc. It is best to give the Customs Team notice as far in advance as possible in order to get your import released in an expeditious manner. Occasionally, special documentation (e.g., FDA Certificate, TSCA certification, Certificate of Origin) will have to be obtained from the country of export before your import can be released from U.S. Customs. The Customs Team is pleased to offer its services to you for all of your importing/exporting needs.

Foreign Visitors

Badge Requirement

All foreign national visitors or assignees must present to the Badge Office a valid passport, I/94, U.S. Visa documents, or a US PRA card. If the guest is on a U.S. Temporaroy Visa, supporting documents must also be presented upon arrival. The visit request must be approved in DIVA before a badge can be issued.

Technical Hosts

Laboratory employees acting as technical hosts for foreign visitors working at the Laboratory are responsible for, and will be held accountable for, following Laboratory and Department of Energy guidance for foreign visits and assignments. A technical host must be a US citizen.

Sensitive Information (including Export-Controlled Information)

Technical hosts must ensure that the foreign visitors they are responsible for do not have access to unclassified sensitive information, unless approved by DOE. Export-controlled technical data and software are sensitive. Questions about whether specific types of information are sensitive, and what precautions are appropriate, should be addressed to the Counterintelligence Team at 665-2448. See also the "DOE Guidelines on Export Control and Nonproliferation (pdf)"

Non-secure Areas/Non-Sensitive Subjects

Division Leaders and Group Leaders can approve foreign visits to non-secure areas to discuss non-sensitive subjects by using the Database for International Visits and Assignments (DIVA).

Secured Areas or Sensitive/Unclassified Subjects Requires DOE Approval

Foreign Visits & Assignments requests six weeks notice to get approval from DOE for foreign visitors coming to secured areas or to discuss sensitive/unclassified subjects. As soon as you know a visitor will need access to these areas, contact FV&A at 665-1572 for assistance.

Cleared Foreign Visitors

Official foreign visitors who hold access clearances recognized by the DOE are processed by Badge Office Personnel at 667-5587. The host must complete the Official Visitor Request Form 1745.

TR-CI

TR-CI has accountability for the Foreign Visits and Assignments Program at the Laboratory. Please call TR-CI, 665-1572, for any questions you may have regarding foreign visitors.

High Risk Property

The Lab's Property Management group requests the help of all employees who want to get rid of weapons-related or proliferation-sensitive property. It is important to let your Property Administrator know if the property you are salvaging is considered "high risk" (see definitions, policies and procedures at: http://sup.lanl.gov/property/pmm/high_risk.shtml).

High risk property is not released to the general public, but it can be transferred to other federal agencies and commercial entities if they have a bona fide need for the property. Note that nuclear weapons design and test equipment, including components and material, is considered high risk property. You may be asked to sign a High Risk Certification Form or Excess/Salvage Form attesting that your excess property is not high risk and is suitable for public release.

On-line training is available at: http://www.hr.lanl.gov/bus/15240/default.asp. For more information, please call your Property Administrator for assistance or contact the Customs Team at 665-2194. or customs@lanl.gov.

Exhibits

• Exhibit A - Definitions
• Exhibit B - Estimated Time Frames (no longer applicable)
• Exhibit C - Preparing Mail/Facsimiles/E-mail
• Exhibit D - Export Working Group (pdf)
• Exhibit E - Penalties for Violations

Exhibit A - Definitions

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Exhibit C - Preparing Mail/Facsimiles/E-Mail of Technical Data & Correspondence to be sent to Foreign Countries

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Mailings:

The Laboratory requires that all mail addressed to a foreign destination bear the correct license designation or the correspondence designation for the contents of the envelope in the bottom left-hand corner of the outer envelope. Please follow the instructions below:

� Use a plain Laboratory envelope.
� Type mailing address on mailing label and affix to envelope. Supply Mail Services with the addressee’s telephone
number if you require Express Mail.
� Write TSPA or CORRESPONDENCE on the lower left corner of the envelope. If Express, please indicate above
Export Designation.
� Type your name, group, and mail stop as the return address.
Note: Mail without a return address will be destroyed if the sender cannot be clearly identified.
� Seal envelope and forward to the Mail Services Team, MS A190. Mail going to an embargoed country is an exception— in this case leave envelope open for photocopying.
� If sent to an embargoed country, division approval is required. See information below.
Embargoed Countries: For a list of embargoed countries, go to the Customs Team Page.

All foreign mailings that do not have the proper addresses, return addresses, and export designations will be returned to the sender for corrections or destroyed if the sender is unknown.

Fax/E-mail:

Type or print the appropriate export license designation or "correspondence" on your fax cover sheet or in the subject line of your electronic mail.

A copy of the approved form, along with the information sent (by mail, e-mail or fax) must be sent to the Mail Services Team, MS A190, 667-4166, 667-9124(fax).

Exhibit E - Penalties for Violations

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Criminal Sanctions

Laboratory: Maximum sentence is $1,000,000 if (a) there is a "willful" violation or (b) there is a failure by a licensee to disclose knowledge of a diversion to a communist country for military or intelligence purposes. Otherwise, the maximum for a "knowing" violation is the higher of $50,000 or five times the value of the export(s). Individuals: Maximum sentence is $250,000 and imprisonment of up to 10 years if there (a) is a "willful" violation or (b) there is a failure by a licensee to disclose knowledge of a diversion to a communist country for military or intelligence purposes. Otherwise, the maximum for a "knowing" violation is $50,000 and up to five years imprisonment.

The Comprehensive Crime Control Act gives a court the authority to increase the Export Administration Act’s (EAA) criminal penalties substantially.

Civil Penalties

A civil monetary penalty not to exceed the amount set forth in the Export Administration Act may be imposed for each violation, and in the event that any provision of the EAR is continued by International Emergency Economic Powers Act or any other authority, the maximum monetary civil penalty for each violation shall be that provided by such other authority.

Administrative Sanctions

Denial Orders:

Denial Orders are administrative sanctions that have the effect of denying the sanctioned party any U.S. export privileges and any access to U.S.-origin goods and technology, from any source, for a specified period of time or indefinitely. The Customs Team is responsible for checking all consignees against the denial lists currently in effect. It is a violation of the Export Administration Regulations for any person or firm anywhere in the world to supply any U.S.-origin goods or technology to, or finance or otherwise service or participate in, any transaction in which a denial order party may have an interest or from which that party may benefit contrary to the terms of the denial order.

Seizure:

Commodities or technical data which have been, are being, or are intended to be exported or shipped from or taken out of the U.S. in violation of the Export Administration Act (EAA) or of any regulation, or license issued under the EAA are subject to being seized and detained, as are the vessels, vehicles, and aircraft carrying such commodities or technical data. Seized commodities or technical data are subject to forfeiture.

Appendix

• Licenses;
  • License Exceptions
• Documentation Requirements;
• Nuclear-related Commodities, end-uses, End-users and Activities;
• Defense Articles and Services, and Missile and Chemical/Biological Weapons End-uses/users;
• End-use/End-user Guidance and Red Flags.

Licenses

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Commerce Department Export Licenses

An export license is issued by the Bureau of Industry and Security (BIS), Department of Commerce, for the export of commodities under its licensing jurisdiction. The Bureau of Industry & Security and inter-Agency Reviewers (the Departments of Defense, Energy, State, and the Defense Threat Reduction Agency) use certain standards in order to be able to determine whether to grant or deny export license applications. The reviews include such factors as:

• Whether the commodities, software, or technology to be transferred are appropriate for the stated end-use and whether that stated end-use is appropriate for the end-user;
• The types of assurances or guarantees given;
• Whether the importing country is a party to the Nuclear Non-Proliferation Treaty and has all of its nuclear activities, facilities or installations under International Atomic Energy Agency safeguards; and
• The capabilities and objectives of the missile and space programs of the recipient country.

License Exceptions

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License exceptions are established by the U.S. Department of Commerce permitting export within the provisions prescribed in the Export Administration Regulations. No written authorization is required for using a license exception, and no document is issued by Commerce as a precondition to use a license exception. Many Laboratory commodities can be exported under a license exception or are classified "NLR" (no license required).

Some 15 different license exceptions currently exist for exports. Exemptions also exist for some exports under the ITAR. The Customs Team is responsible for authorizing the appropriate exception/exemption for all Laboratory exports of commodities not requiring a license.

Nuclear Regulatory Commission Export Licenses

The Nuclear Regulatory Commission (NRC) licenses certain exports of nuclear material and equipment. The Customs Team applies for licenses when no general license is applicable.

State Department Licenses/Technical Assistance Agreements

Certain Laboratory exports of defense articles and services are under the jurisdiction of the Department of State, Office of Defense Trade Controls. In order to obtain a State Department license, an exporter of defense articles/services is required to register with the State Department as an exporter of arms. LANS has registered and the Customs Team is responsible for obtaining all licenses, Technical Assistance Agreements and amendments thereto.

Denied Parties

All facilities and end-users that the Laboratory exports to require checks against published lists to ensure they are not a denied party or a facility of concern. If a facility is unknown to the Customs Team, you may be asked to fill out a Nuclear Controls Checklist (pdf) or a checklist to identify if the facility is working with missiles or chemical or biological weapons. See also Know Your End-Use/End-User Guidance and Red Flags below.

Documentation Requirements

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Licensing Support Documentation

Most export license applications and specific re-export authorization requests must be supported by documents that provide information concerning the disposition abroad of the goods and/or technology intended for export or re-export. Upon request, the Customs Team, 665-2194, will inform you if special documents are required and will help you obtain those documents. Documents that may be required are:

Statement by Ultimate Consignee and Purchaser

If required (call the Customs Team, (505) 665-2194, for assistance), the foreign consignee must sign the statement and return it to the Customs Office for submission with the license application. The statement assures the BIS that the foreign consignee is fully aware of all responsibilities for representations made to BIS and for the disposition of the licensed commodities or technology only in those foreign countries where the BIS has specifically authorized disposition.

Import of End User Certificate

Import or End-User Certificates support license applications for items controlled for national security reasons or for items sent to the destinations listed below:

• Argentina Australia Austria Belgium Bulgaria China (PRC) Czech Republic Denmark Finland France Germany Greece Hong Kong Hungary India Ireland (Republic of) Italy Japan

  Korea (Republic of) Liechtenstein Luxembourg Netherlands New Zealand Norway Pakistan Poland Portugal Romania Singapore Slovakia Spain Sweden Switzerland Taiwan Turkey United Kingdom

The foreign consignee must get the International Import Certificate from the government of the country of import and then transmit it to the Customs Office.

Delivery Verification

Delivery Verification (DV) Certificates may be required by BIS as a condition of a license. DVs are required on a very selective basis when items controlled for national security purposes are exported to certain countries

Nuclear-related Commodities, End-uses, End-users and Activities

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Nuclear Proliferation Controls

The Nuclear Non-Proliferation Act of 1978 requires the President to publish procedures regarding the control by the Department of Commerce over export of items under its jurisdiction that could be of significance for nuclear explosive purposes. The Nuclear Regulatory Commission administers regulations governing the export of nuclear material and equipment. The Department of Energy governs certain activities involving nuclear reactors and other nuclear fuel cycle facilities. The Commerce Department restricts exports to certain nuclear end-uses and end-users.

Department of Energy Authorization Required

A specific authorization by the Secretary of Energy is required before:

• Production Activities
  Engaging directly or indirectly in the production of special nuclear material (plutonium, uranium-233, or uranium enriched above 0.711 percent by weight in the isotope uranium-235) in any of the countries listed in 10 C.F.R. 810 (call the Customs Office (505) 665-2194., for current information);
• Technology
  Providing sensitive nuclear technology for an activity in any foreign country. Sensitive nuclear technology means any information which is not available to the public, that is important to the design construction, fabrication, operation, or maintenance of a uranium enrichment or nuclear fuel reprocessing facility or a facility for the production of heavy water.
• Activities Involving Reactors and Facilities
  Engaging in or providing assistance or training in any of the following activities with respect to any foreign country:

a. designing production reactors, accelerator-driven subcritical assembly systems, or facilities for the separation of isotopes of source material (uranium or thorium, other than special nuclear materials or ores that contain by weight 0.05 percent or more of uranium or thorium, or any combination of these); or special nuclear material (enrichment); chemical processing of irradiated special nuclear material (reprocessing); fabrication of nuclear fuel containing plutonium; or the production of heavy water,

b. constructing, fabricating, operating, or maintaining such reactors, accelerator-driven subcritical assembly systems,  or facilities,

c. designing, constructing, fabricating, operating or maintaining components especially designed, modified or adapted for use in such reactors, accelerator-driven subcritical assembly systems, or facilities,

d. designing, constructing, fabricating, operating or maintaining major critical components for use in such reactors, accelerator-driven subcritical assembly systems, or production-scale facilities, or

e. training in the activities of paragraphs (3)(a) to (d) of this section.

• Nuclear Regulatory Commission Required Information
  The Nuclear Regulatory Commission has export licensing authority for: special nuclear material, source material, byproduct material, deuterium, nuclear grade graphite, and nuclear reactors and components, and plants and components for enrichment, reprocessing, fuel fabrication and heavy water production.

If a request to export nuclear material or equipment does not meet the provisions for an NRC general license, a license must be obtained. You must include the name of the end-user (if different than consignee); an end purpose code; and a material type code and weight on the Shipping Request. You must include information on the end purpose. The Customs Team will assist you with getting a license or designating a general license.

Department of Commerce Restrictions

Nuclear Explosive Activities

Un safeguarded Nuclear Activities
The Department of Commerce has restrictions on certain nuclear end-uses and end-users. The Laboratory must apply for a license if the item(s) to be exported, or the end-user is involved directly or indirectly in any of the following activities:

Nuclear explosive activities, including research on or development, design, manufacture, construction, testing or maintenance of any nuclear explosive device, or components or subsystems of such a device.

Activities including research on, or development, design, manufacture, construction, operation, or maintenance of any nuclear reactor, critical facility, facility for the fabrication of nuclear fuel, facility for the conversion of nuclear material from one chemical form to another, or separate storage installation, where there is no obligation to accept International Atomic Energy Agency (IAEA) safeguards at the relevant facility or installation when it contains any source or special fissionable material (regardless of whether or not it contains such material at the time of export), or where any such obligation is not met.

Safeguarded and Unsafeguarded Nuclear Activities
Safeguarded and un safeguarded nuclear fuel cycle activities, including research on or development, design, manufacture, construction, operation or maintenance of any of the following facilities, or components for such facilities:

• Facilities for the chemical processing of irradiated special nuclear or source material;
• Facilities for the production of heavy water;
• Facilities for the separation of isotopes of source and special nuclear material; or
• Facilities for the fabrication of nuclear reactor fuel containing plutonium.

If the facility is unknown to the Customs Team, facility personnel will be asked to fill out the Nuclear Controls Checklist (pdf)

Defense Articles and Services, and Missile and Chemical/Biological Weapons End-uses and End-users

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Defense-related Items and Services
Occasionally, the Laboratory has reason to export defense-related items or services as defined in the U.S. Munitions List (see below).  The following should be taken into consideration when requesting the export of defense articles or services.

• Arms Export Control Act.
  The Arms Export Control Act (AECA) authorizes controls primarily on exports that are deemed to be inherently military in character. The AECA authorizes the control of exports of defense.

• International Traffic in Arms Regulations
  The State Department exercises its export control authority over these defense articles and services under the International Traffic in Arms Regulations (ITAR) (22 C.F.R. S 120 et seq). The ITAR contains the U.S. Munitions List.
• U.S. Munitions List
  The Directorate of Defense Trade Controls (DDTC) formerly the Office of Munitions Control (OMC), Department of State, designates which articles and services are deemed to be "defense articles" and "defense services" by determining (1) whether an article or services is inherently military in character, or (2) whether the article or service was specially designed, modified or engineered for military applications. If an article or service is designated a defense article or defense service, it is placed on the U.S. Munitions List (22 C.F.R. 121).
• Categories of Defense Related Items
  Some of the categories of articles designated as arms ammunition, and implements of war are:
  • firearms, artillery and projectors, ammunition, launch vehicles, guided missiles, ballistic missiles, rockets, torpedoes, bombs, and mines, explosives, propellants, and incendiary agents and their constituents, vessels of war and special naval equipment,tanks and military vehicles, aircraft, spacecraft, and associated equipment, military training equipment, protective personnel equipment;
  • military and space electronics,
  • fire control, range-finder, optical and guidance and control equipment, auxiliary military equipment,toxicological agents and equipment and radiological equipment, nuclear weapons design and test equipment, spacecraft systems, including most satellites, and associated equipment, and
  • submersible vessels, oceanographic and associated equipment.

  Technology associated with the above listed categories is also controlled.

• Special Approvals
  Most exports of this type require special approvals through the Department of Energy, Department of State, and other agencies. Some of these exports are for special programs that have a pipeline in place for shipment. Please call the Customs Team, 665-2194, as soon as you think you may have need to export a defense article/service.
• Federal Firearms Regulations
  The Department of Treasury, Bureau of Alcohol, Tobacco and Firearms (BATF) governs the importation of firearms and ammunition into the United States. Before making arrangements to import any such items, contact the Customs Team at 665-2194.
• Department of Commerce Restrictions

  Missile and Chemical/Biological End-Uses and End-Users

  The Department of Commerce has restrictions on certain missile and chemical/biological weapon end-uses and end-users. The Laboratory must apply for a license if the item(s) to be exported, or the end-user is involved directly or indirectly in any of the following activities:
  • The design, development, production or use of missiles.
  • The design, development, production, stockpiling, or use of chemical or biological weapons.

  If the facility is unknown to the Customs Office, requesters will be asked to fill out the Missile Technology Checklist/Chemical & Biological Weapons Screen.

Know Your End-Use/End-User Guidance and Red Flags End-Use/End-User Focus

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• Various requirements of the Export Administration Regulations (EAR) are dependent upon a person’s knowledge of the end-use, end-user, ultimate destination, or other facts relating to a transaction or activity. These provisions include the non-proliferation related "catch-all" sections and the prohibition against proceeding with a transaction knowing that a violation of the EAR has occurred or is about to occur.
• License Requirements
  The EAR currently require export licenses when the exporter knows or has reason to know that the items will be used in the design, development, production, or the use of missiles, or in the design, development, production, stockpiling, or use of chemical or biological weapons. A license also is required when an exporter knows or has reason to know that an item will be used directly or indirectly in a nuclear weapons related activity, or when an exporter is informed that the export involves an unacceptable risk of diversion to any of the aforementioned activities anywhere in the world.
• Exporter Responsibility
  The EAR require the exporter to know their customer. Even uncontrolled items may require specific Commerce Department approval in the form of a license when a particular transaction raises proliferation concerns. Exporters who ship items that would otherwise be eligible for a license exception may be held liable under the EAR and could lose their export privileges and be fined or criminally prosecuted if they make the wrong decisions.

  The following screening elements should be used to meet the EAR end-use/end-user requirements:
  

High Risk of Diversion (Red Flags)

• Is the end-user reluctant to offer information about the end-use of an item?
• Does the product’s capabilities fit the end-user’s line of business? (For example, a small bakery places an order for several sophisticated lasers).
• Is the item incompatible with the technical level of the country to which the product is being shipped? (For example, semiconductor manufacturing equipment would be of little use in a country without an electronics industry.)
• Does the end-user have little or no business background?
• Is the end-user willing to pay cash for a very expensive item when the terms of sale call for financing?
• Is the end-user unfamiliar with the item’s performance characteristics but still wants the item?
• Are routine installation, training or maintenance services declined by the end-user?
• Are delivery dates vague, or are deliveries planned for out-of-the-way destinations?
• Is a freight forwarding firm listed as the item’s final destination?
• Is the shipping route abnormal for the item and destination?
• Is the packaging inconsistent with the stated method of shipment or destination?
• Is the end-user evasive or unclear about whether the purchased product is for his/her sole use, export or re export?

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