What is an “Export”?

An export is:

• The removal or transfer from the U.S. of any commodity or technical information, whether for sale, demonstration exchange or discussion. This includes personal baggage, laptop computers, samples and software.
• The disclosure in any manner of any technical data (including software) or other information to any “foreign person,” irrespective of whether that disclosure is made in the U.S. or elsewhere. (Note: A “foreign person” is an individual who is neither a U.S. citizen, permanent U.S. resident nor immigrant alien who has the right to reside and be employed in the U.S.), and
• The rendition of a service to or for the benefit of a non-U.S. person, irrespective of whether such service is rendered in the U.S. or elsewhere.

Export Compliance Officer (ECO)

Epsilon Systems’ ECO is the individual responsible for managing Epsilon Systems’ Export Compliance Program, conducting export training, assisting with export determinations and applications for export authorizations and conducting internal audits.

Contact the Epsilon Systems’ Export Compliance Officer.

Employee Responsibility/Company Manual

All Epsilon Systems employees are required to:

• Comply with all provisions of the ITAR, the EAR, the Export Compliance Manual, and other instructions, verbal and written, issued by the Export Compliance Officer (ECO).
• Ensure that technical data or services are not communicated to a Foreign Person in any way, including oral, visual or electronic (computer, facsimile, telephone), by hand carrying or shipment, unless an applicable export authorization or license exists.
• Request export licenses in a manner that allows sufficient time to both prepare and acquire approval from U.S. State Department and/or U.S. Department of Commerce.
• Report to the ECO or the President any activities by employees, suppliers, or customers that may be in violation of U.S. Government export laws.
• Ensure proper execution of the material shipping order (MSO) when exporting hardware. Obtain authorization from the ECO when exporting technical data and coordinate these efforts, as necessary with the ECO.

In addition, all Epsilon Systems employees are encouraged to read in its entirety the Epsilon Systems’ Export Compliance Manual. The constant changes within the field of export compliance require employees to consistently review the content of this website.

Sanctions that may be imposed against Epsilon Systems for export violations include the denial of export privileges, preclusion from government procurement opportunities, and substantial civil fines. Criminal sanctions may include heavy fines levied against Epsilon Systems, its subsidiaries and culpable individual employees, as well as the imprisonment of individual employees. In addition, many of the countries in which Epsilon Systems and its foreign affiliates conduct business impose significant restrictions on the import and export of goods, technology and services. In view of the consequences of export violations, the response of Epsilon Systems to employee misconduct in this area may extend to and include the immediate suspension and separation of Epsilon Systems from employees who violate the law.

Which Federal Agencies Oversee Federal Export Compliance Regulations?

Federal regulations are promulgated and enforced by:

• U.S. Department of State - International Traffic in Arms Regulations (ITAR)
• U.S. Department of Commerce - Export Administration Regulations (EAR)
• Department of U.S. Treasury’s Office of Foreign Assets Control (OFAC)

ITAR

• ITAR regulates the manufacture, temporary import and export of defense articles, the export of defense services and technical data related to defense articles and defense services. ITAR, administered by Directorate of Defense Trade Controls (DDTC) – an arm of the U.S. Department of State, is the regulatory authority for the export and temporary import of defense articles, defense technical data and defense services, including all classified items and data. Defense articles, defense services, and defense technical data must be licensed or exempted from licensing requirements by DDTC prior to export from or temporary import into the United States. A copy of the updated set of regulations is available at https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_itar_landing.
• The first essential step in export compliance is to determine whether the commodity or information under review is subject to control under ITAR. ITAR always “trumps” the U.S. Department of Commerce’s Export Administration Regulations (EAR). If the item in question is on the ITAR Munitions List or otherwise may be viewed as being “specifically designed, adapted, or modified” for military use, it is under the
exclusive jurisdiction of the U.S. Department of State. Only if the ITAR classification is negative may the Company rely on EAR procedures.
• To determine if your product/service is a defense article, technical data, or defense services – please contact the Epsilon Systems’ Export Compliance Officer.

EAR

• EAR is administered by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and cover exports, re-exports and re-transfers of commercial (dual use) commodities, services and technical data that are not governed by export controls administered by the U.S. State Department or other agencies. A copy of the updated set of regulations is available at: https://www.bis.doc.gov/index.php/regulations/export-administration-regulations-ear
• Before exporting goods and/or electronic data, Epsilon Systems must determine whether a product needs an export license issued by BIS if a license exception applies or if that item may be shipped as “No License Required” (NLR).
• To determine if your product/service is a defense article, technical data, or defense services – please contact the Epsilon Systems’ Export Compliance Officer.

OFAC

• The OFAC prohibits the participation in any financial or commercial transaction by Epsilon Systems and its U.S. or foreign affiliates with certain countries and nationals thereof designated by U.S. Treasury unless appropriate licenses are obtained. No transaction of any kind is permitted between Epsilon Systems or any of its employees or affiliates and any entity located within Cuba, Iran, Sudan, or Syria. The list of countries covered by OFAC embargoes often changes. In addition, transactions between Epsilon Systems and certain entities located in China, India, Iraq, Israel, North Korea, Pakistan, and Russia are subject to special limitations imposed by both U.S. Department of State and/or U.S. Department of Commerce. Please see https://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx for a full list of U.S. sanction programs.
• Any solicitation to conduct a transaction with any of these countries or their nationals must be reported immediately to the Epsilon Systems’ Export Compliance Officer and may not be dealt with in any manner unless expressly approved by the ECO.

Red Flags: When Might an Export Violation be Occurring?

1. The customer or purchasing agent is reluctant to offer information about the end use (or end-user) of a product.
2. The product’s capabilities do not fit the buyer’s line of business. For example, a small bakery places an order for several sophisticated lasers.
3. The product ordered is 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.
4. The customer has little or no business background. For example, financial information is unavailable from normal commercial sources and corporate principals are unknown by trade sources.
5. The customer is willing to pay cash for a very expensive item when the terms of the sale call for financing.
6. The customer is unfamiliar with the product’s performance characteristics but still wants the product.
7. Routine installation, training or maintenance services are declined by the customer.
8. Delivery dates are vague or deliveries are planned for out-of-the-way destinations.
9. A freight forwarding firm is listed as the product’s final destination.
10. The shipping route is abnormal for the product and destination.
11. Packaging is inconsistent with the stated method of shipment or destination.
12. When questioned, the buyer is evasive or unclear about whether the purchased product is for domestic use, export, or reexport.
13. Customer uses only a “P.O. Box” address or has facilities that appear inappropriate for the items ordered.
14. Customer’s order is for parts known to be inappropriate, for which the customer appears to have no legitimate need (e.g., there is no indication of prior authorized shipment of system for which the parts are sought).

Am I Dealing with an Export Compliance Issue?

You are dealing with an export control issue when:

• Considering the shipment of goods/technical data overseas.
• Meeting with non-US citizens (whether in the US or abroad) to discuss potential business opportunities.
• Working or supervising work on a Foreign Military Sales (FMS) contract.
• Hiring a green card holder or permanent resident alien.

How do I Get Approval to Export?

Fill out the Export Compliance Review Sheet and follow the instructions. The Export Compliance Department will immediately process your request.

It’s most prudent and recommended that all Epsilon Systems employees not travel internationally with their laptops and other portable electronic devices. If you absolutely must travel internationally with portable electronic devices, you will probably not need an export license as long as the equipment is always under your immediate control and returns to the US. Regardless, Epsilon Systems’ policy strictly prohibits employees from traveling with technical data on their portable electronic devices.

“Technical Data” includes information required for the design, development, engineering, manufacture, production, assembly, testing, repair, maintenance, modification, operation, demilitarization, destruction, processing or use of defense articles. This includes information in the form of blueprints, drawings, photographs, plans, instructions and documentation. Under ITAR, Technical Data may also include certain classified information as well as information covered by an invention secrecy order and software directly related to defense articles. ITAR does not control general scientific, mathematical, or engineering principles commonly taught in schools.

To determine if the material on your laptop constitutes technical data, please contact the Epsilon Systems’ Export Compliance Officer.

Again, if you absolutely must travel internationally with a portable electronic device, please read the International Travel with Laptop policy document and complete the International Travel Laptop document before traveling internationally with your personal laptop/cell phone. Please complete this document if you’re traveling internationally with a laptop/cell phone owned by Epsilon Systems. Carry your signed waiver with you and show it to any US immigration agents who ask to logon to your laptop.

Also, please contact the Epsilon Systems’ Export Compliance Officer before departing.

Theft of Laptops During Travel

Your information is far more vulnerable to theft while traveling abroad than in the United States. Please review the below information to better equip yourself against the dangers of laptop theft while traveling internationally.

Tips

• Hotel Rooms

  Many foreign government security or intelligence services conduct “bag operations” to surreptitiously gain entrance to your hotel room. Often with the assistance of hotel staff, foreign government security personnel enter hotel rooms for the sole reason of searching the laptop of a hotel guest.

  • While in the shower or asleep, engage both the dead bolt and the privacy latch or chain on the hotel room door;
  • While leaving the room, make a mental or written note of how you left your suitcase or other personal property;
  • Use encryption to protect sensitive computer files and never leave a laptop with sensitive information on it in the room unattended.
  • If you determine that an item is missing, conduct a thorough search prior to reporting the incident to hotel security. The incident should be reported to the local police, if necessary.
• Airports and Trains

  Airports, railroad terminals, and trains are easy targets for pickpockets and thieves. Laptop theft is especially prevalent in airports because of large crowds, hectic schedules, and weary travelers.

  • Be on alert to any sudden diversions when traveling, especially when transiting transportation terminals.
  • Never leave your laptop unattended, especially when proceeding through the security X-ray machines.
  • If victimized, report theft immediately to the authorities and be able to provide make, model, and serial number of your laptop.

The FCPA makes it unlawful to bribe foreign government officials to obtain or retain business.

• Who - Applies to any individual, firm, officer, director, employee, or agent of a firm and any stockholder acting on behalf of a firm.
• Corrupt intent - Person making or authorizing the payment must have a corrupt intent, and the payment must be intended to induce the recipient to misuse his official position to direct business wrongfully to the payer or to any other person.
• Payment - Prohibits paying, offering, promising to pay (or authorizing to pay or offer) money or anything of value.
• Recipient - Prohibition extends only to corrupt payments to a foreign official, a foreign political party or party official, or any candidate for foreign political office.
• Business Purpose Test - Prohibits payments made in order to assist the firm in obtaining or retaining business for or with, or directing business to, any person.

If you are concerned that you are at risk of violating the FCPA, please contact please contact the Epsilon Systems' Export Compliance Officer.