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Deemed Exports – U.S. Export Regulations & Technical Information

Oregon Room, Bldg, 2, One World Trade Center, 121 SW Salmon Street, Portland, OR 97204
121 SW Salmon Street
Portland, OR 97204, US (map)



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Controversy over the last year concerning the publishing of a Dutch scientist’s research on smallpox points up the strategic concerns with the availability of sensitive information. Most companies recognize that U.S. export control laws apply to shipments of products or technical data out of the United States to another country.

Some companies still do not realize, however, that the sharing of technology or source code with a foreign national is also an export – even when the foreign national is within the United States. Under the "deemed export rule" in the EAR - Export Administration Regulations (or parallel prohibitions under the International Traffic in Arms Regulations - ITAR, which applies to exports of military items) , a transfer of technology or source code (except encryption source code) is "deemed" to be "an export to the home country or countries of the foreign national."

This rule has important implications for any company that employs foreign nationals or has business dealings with foreign companies. Universities can be covered if hosting foreign nationals, sharing research or if involved in academic exchanges. Recent revisions to U.S. Citizenship and Immigration Services' regulations require human resources personnel to have an understanding of the implications of a “Deemed Export” and understand when the employer/institution might be required to restrict a foreign national's access to any technology until a “Deemed Export” license is obtained. Companies that violate the rule with respect to transfers of commercial or dual use technology and software risk civil and criminal fines, potential loss of export privileges, and negative publicity.

This afternoon program will provide an overview of the deemed export regulations, proposed revisions and measures and practices necessary to comply with the rules. The presentation will cover the exceptions to the regulations and suggests ways in which to structure a compliance program so that company, university and research staff are aware of the regulations and their responsibilities. Presenters will include attorneys from Dorsey & Whitney, Ater Wynne and the Export Compliance Manager from Oregon Health Sciences University.

Scott Goddin Director U.S. Commercial Service-Portland Tel. 503-326-3001/5156 (direct) [email protected]