Export Compliance and Administration

Process Owner

Senior Executive of Corporate Contracts

Purpose

This policy and procedure is implemented to ensure all GovC subsidiaries, employees, agents, and consultants acting on behalf of GovC comply with all U.S. export control laws.

Definitions

Arms Export Control Act: Chapter 39 of Title 22, Foreign Relations and Intercourse – Provides for control of exports and imports of defense articles and services, guidance of policy, etc.; designation of United States Munitions List; issuance of export licenses; condition for export; and negotiations information

Anti-boycott Provisions – Part of the Export Administration Regulations of the U.S. Department of Commerce that implement the "antiboycott" provisions of the Export Administration Amendments of 1977. These regulations discourage, and in certain circumstances prohibit U.S. persons from engaging in transactions that further, or support, any unsanctioned foreign boycotts directed against any country friendly to the U.S.

Broker – Broker means any person who acts as an agent for others in negotiating or arranging contracts, purchases, sales or transfers of Defense Articles or Services in return for a fee, commission, or other consideration. Brokering activities include financing, transportation, freight forwarding, or taking any other action that facilitates the manufacture export or import of a Defense Article or Service, irrespective of origin.

Defense Article – Defense Article means any item designated in the U.S. Munitions List. This term includes models, mockups, prototypes, development models, equipment, computers, software and other such items which reveal Technical Data directly relating to items designated in ITAR Sec. 121.1.

Defense Services – means furnishing assistance to Foreign Persons (including training) in the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of Defense Articles, whether in the U.S. or abroad; or furnishing any Technical Data to Foreign Persons, whether in the U.S. or abroad.

Empowered Official – A U.S. Person, directly employed by GovC International Corporation, empowered in writing by the COO to sign export license applications or make other export requests to the U.S. Government on behalf on GovC International Corporation. See 22 C.F.R. Chapter 1, Subchapter M Part § 120.25 for complete definition.

Export – An Export occurs when Goods or Technical Data are shipped or transmitted out of the U.S., or when Technical Data is released to a Foreign Person, including Foreign Person employees and visitors, as well as foreign companies and governments, whether in the U.S. or abroad.

Export Administration Regulations (EAR) – The regulations published by the U.S. Department of Commerce that define the export controls applicable to U.S.-origin commodities and Technical Data under its jurisdiction.

Export Control Classification Number (ECCN) – The number assigned to every product exported from the U.S. This number identifies the category, product group, type of control, and country group level of control for the product.

Export Determinations – Final decisions rendered by the Executive Director, Corporate Export Control concerning the export control requirements for any Export based on a considered review of the facts, circumstances and regulations applicable to the proposed Export.

Foreign Person – The EAR and ITAR define "Foreign Person" as any person who is not a citizen or national of the U.S., or who has not been lawfully admitted for permanent residence in the U.S.

Goods – means any natural or man-made substance, material, equipment, or manufactured product, component or part designated on the EAR's Commerce Control List. It also includes firmware and related tools, such as computers, editors, test case generators, etc.

International Traffic in Arms Regulations (ITAR) – The regulations that control the export and import of defense articles and defense services.

Office of Foreign Assets Control (OFAC) Regulations – Office of the Department of Treasury, which issues regulations that enable enforcement of economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction.

Restricted Parties Lists – Listings published and updated frequently by various U.S. agencies containing companies, foreign entities, and/or individuals restricted from engaging in any export activities.

Re-export – means any shipment or transmission of items subject to export regulations from one foreign country to another foreign country or transfer to an end use, end user, or destination not previously authorized.

Services – means furnishing assistance to Foreign Persons (including training) in the design, engineering, development, production, processing, manufacture, use, operation, overhaul, repair, maintenance, modification, or reconstruction of Goods, whether in the U.S. or abroad; or furnishing any Technical Data to Foreign Persons, whether in the U.S. or abroad.

Technical Data – controlled by the ITAR is defined as follows:

1. Classified information or software relating to Defense Articles and Defense Services, and information covered by an invention secrecy order; and

2. Any unclassified information required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of Defense Articles. This includes, information in the form of blueprints, drawings, photographs, plans, instructions, and documentation.

3. This also includes software directly related to Defense Articles. Software includes but is not limited to the system functional design, logic flow, algorithms, application programs, operating systems, and support software including source code.

Technology – is defined by the EAR, as specific information, necessary for the development, production or use of a product, which takes the form of "Technical Data" or "Technical Assistance":

1. "Technical Data" includes blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals and instructions written or recorded on other media or devices such as disks, tapes, or read-only memories.

2. "Technical Assistance" includes instruction, skills training, working knowledge, or consulting Services, and may involve the transfer of Technical Data.

United States Munitions List (USML) – A list of items published by the Department of State considered to be Defense Articles and Defense Services subject to export control.

U.S. Person – The EAR, ITAR and OFAC regulations generally define "U.S. Person" as any person who is a U.S. citizen, or a permanent resident alien of the U.S.

Policy

GovC is fully committed to establishing and maintaining an effective and comprehensive internal program to monitor compliance with laws and regulations regarding exports and re-exports of Defense Articles, Goods, Technical Data, or Services.

GovC’s Export Compliance Program guides the conduct of all GovC operations and employees. GovC employees are responsible for obtaining and maintaining a working knowledge of the export control laws and regulations that pertain to their job responsibilities. Employees are also required to participate annually in export compliance training hosted by GovC University or provided by the Compliance organization.

Responsibilities

President and Chief Operating Officer (COO)

Provides overall direction and guidance on all export control compliance issues.

Executive Director, Corporate Export Control

Export Empowered Official, and is therefore legally empowered to sign license applications or other requests for approval on behalf of GovC.

Issues Export Determinations for all Exports.

Determines applicability of foreign export control laws and regulations.

Works with Business Unit Export Administrators to prepare export licenses and other requisite approvals and/or authority to export in accordance with the export control laws.

Works with Business Unit Export Administrators to ensure compliance with and effectiveness of GovC’s Export Compliance Program.

Identifies the proper classification of all Defense Articles, Goods, Software, Technical Data, and Services with respect to exports.

Prepares Commodity Jurisdiction Requests for confirmation of export jurisdiction, or Classification Requests for confirmation of ECCNs.

Periodically reviews the BUs to ascertain compliance with export procedures/policies, develops corrective action plans to correct any deficiencies and/or adds new controls for meeting regulatory changes.

Develops and publishes guidance and templates for standardized marking of export-controlled items to include Technical Data, marketing materials, proposals, white papers, or other related documents.

Business Unit Export Administrators

“Export Administrator” for a business unit.

Distributes the Export Determinations made by the Executive Director, Corporate Export Control.

Works with Executive Director, Corporate Export Control to obtain all required export licenses for the business unit prior to any Export.

Guides and assists the employees of the business unit with training and support.

Identifies export requirements for the business unit and ensures compliance with the export regulations and GovC’s policies and procedures concerning all export control issues.

Establishes business unit procedures for identification, receipt, and tracking of export-controlled items.

Legal

Administers the preparation, submission, and archiving of corporate DDTC registrations and submits change notifications to the DDTC within 5 days of any changes. R

Provides advice and guidance as needed.

Monitors ITAR, EAR and OFAC regulation changes and provides support to draft policy updates and revisions as necessary.

Coordinates and directs any investigation or disclosure of U.S. export controls violations.

Human Resources

Prescreens potential employees against current Restricted Parties Lists prior to extending offers of employment.

Security

Provide security classification guidance to each business unit in accordance with NISPOM requirements for all exports.

Ensures all Security personnel responsible for visitor control screen foreign national visitors against current Restricted Parties Lists prior to granting access to GovC facilities.

Coordinates with Export Compliance Assurance Group and the Defense Security Service (DSS) for the export of classified materials.

Develops and maintains security measures for technology control during GovC employment and/or visit of foreign persons.

Information Systems

Works with Business Unit Export Administrators, Executive Director, Corporate Export Control, HR, and Security to create and administer Technology Control Plans (TCPs) for individual sites.

Business Development and Program Management

Ensures that proposals, marketing and trade show materials, and related marketing activities comply with GovC export compliance requirements including item marking of export-controlled items, licensing, reporting, and record keeping.