[co-author: Andrea Fraser-Reid]

The U.S. Department of Commerce’s Bureau of Industry and Security has published a compliance note on voluntary self-disclosure trends and a compendium of export compliance resources targeted to the academic community. The materials build on the Academic Outreach Initiative announced in June 2022 to assist academic institutions to address national security risks while maintaining an open and collaborative research environment.

On August 14, 2024, the U.S. Commerce Department Bureau of Industry and Security (BIS) issued a press release regarding its activities and initiatives related to compliance and enforcement of export control laws involving academic research institutions. BIS highlighted the work of the Academic Outreach Initiative launched in 2022, provided resources helpful to the community, and cited a number of issues in play in recent voluntary self-disclosures and enforcement actions. This press release and materials also put colleges and universities on notice to assess their export control risks and their compliance programs.

Academic Outreach Initiative

BIS launched this initiative in June 2022. BIS stated that the purpose was to “help academic institutions maintain an open, collaborative research environment in a way that also protects them from national security risk, and it includes strategically prioritized engagement, the assignment of outreach agents to prioritized institutions, background briefings, and trainings.” Academic Outreach Initiative

Trends in Voluntary Self-Disclosures Related to Academia to Inform Improvements to Export Compliance Plans Compliance Note

BIS issued a new compliance note, entitled Trends in Voluntary Self-Disclosures Related to Academia to Inform Improvements to Export Compliance Plans. BIS states that the compliance note “details conduct commonly disclosed by academic institutions over the past ten years that constitutes export control violations. The document also highlights actions universities can take to address and prevent these violations, including enhanced training programs and improved internal controls.”

The compliance note provides information on export control risks and the related corrective actions that universities have implemented to address these risks and prior export control violations. BIS provides these “lessons learned” from voluntary self-disclosures (VSD) in the last ten years that were submitted as well as from enforcement actions resulting in fines and other penalties such as audit requirements. BIS highlights the following export control risks:

• Export of certain chemicals, microorganism, toxins and biological agents (at least 12 VSDs)

• Transactions with Entity List parties (at least 9 VSDs)

• Deemed Exports (at least 9 VSDs) involving technology related to electronics, telecommunications and information systems and aerospace and propulsion. BIS noted that 4 cases involved Iranian citizens who were not U.S. Persons within the meaning of the Export Administration Regulations.

• Temporary Imports, Exports, Reexports and Transfers (2 VSDs), including improper use of License Exception TMP

• Electronic Export Information system entry mistakes (6 VSDs), including failure to file in the Automated Export System and undervaluing items.

• Recordkeeping errors, including failure to maintain records for five years or incomplete records (3 VSDs)

Resource list

BIS also published a list of resources to help colleges and universities called a Compendium of Resources. BIS states that it “offers a comprehensive guide to export compliance tools, including informational and vetting resources, BIS-specific resources, and examples of recent enforcement actions. These tools should help academic institutions integrate export control requirements into everyday operations for professors, students, staff, and visitors, which in turn helps minimize the risk of violations.” Of particular note, the compendium includes the Australian Strategic Policy Institute’s China Defence Universities Tracker as well as providing links to information from Canada, the UK, and The Netherlands. The document highlights recent enforcement actions including those related to biological materials and genetic elements.

Impact on colleges and universities

The BIS initiative coupled with additional outreach, guidance and resources indicates that BIS wants to educate the academic community regarding export compliance risks and also hold institutions accountable for failure to implement adequate compliance programs. Examples of corrective actions and detailed points regarding screening and identification of specific biological materials will allow university personnel to communicate these priorities to senior leadership and key functions at the institutions. Universities also will not be able to state in the future that they were not aware that these kinds of export compliance issues were present in the academic setting.

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