Transfer of Lab Equipment to
Canada, Lessons Learned From My
First Export Control Review
Kathleen Reneau Lorenzi, CPCM
Senior Grants and Contracts Specialist
Office of Sponsored Projects
The University of Texas at Austin
Tuesday, May 9, 2006 Export Review - Lessons Learned 1
This presentation is a true story but the names have not been
changed to protect the guilty parties,
Do not assume the presenter is an expert or that everything I did
was perfect! I stumbled through my first experience just like
everyone else. Hopefully I/we will do a better job on the next one
because we learn from shared experiences.
Questions are allowed at any time, if anyone in the room knows
the answer, feel free to join in.
If a question cannot be answered, presenter will research the
question to the best of their ability and share with you the
information found in a follow-up email (please leave your
business card with the question written on the back)
Tuesday, May 9, 2006 Export Review - Lessons Learned 2
You attended the BIS export course and the NCURA conference track on Export
Regulations. In these classes you worked through practice classifications using the
EAR. In fact, the theory of it all is making a bit of sense and you think you have a pretty
good handle on things.
Now, you are back at the ranch (e.g. your OSP office). The Director comes into your office
and informs you that you are the designated “expert” on export and a PI is transferring his
lab to another university outside the country. You are provided a list of equipment that he
intends to transfer and donated to the Canadian university and you are instructed to do the
export review . Oh, by the way, there is a probability that the PI wants to take with him a
few hundred chemicals that he has collected over the years. And a second “Oh, and by
the way,” is added - this is a high-profile, priority project on the VPR’s radar so it has to be
done ASAP. Suddenly, you realize that the list of equipment is extraordinarily insufficient in
the amount of information you need to do a classification! It is not like the classification
exercise – it’s not easy much less straightforward! Now what do you do?
Welcome to the reality of practical application of the EAR, a case study in
the practical application of your newly acquired knowledge.
Tuesday, May 9, 2006 Export Review - Lessons Learned 3
Elem Owner Purchase
Inv Nbr Nbr Acq Date Description Amnt Code Code Unit Code Account
1 703798 1 11/18/1999 COMPUTER, DELL W/MICROSOFT WINDOWS 1,689.00 U U 0260087 1497500980
2 706194 1 MHZ
9/10/1999 COMPUTER, PC; INGRAM BT0 P111 450 1,921.04 U U 0260087 1800031950
706194 2 9/13/1999 COMPUTER, PC INGRAM BTO P111 450MHZ11.5 U U 0260087 1800031950
706194 3 9/13/1999 COMPUTER, PC; INGRAM BTO P1111 450MHZ60 U U 0260087 1800031950
3 711694 1 23,405.80
3/1/2000 UNILAB, W/GAS PURIFICATION SYSTEM & ACCESSORIES U U 0260087 2074855056
711694 2 549.71
3/13/2000 UNILAB, W/GAS PURIFICATION SYSTEM - FREIGHT U U 0260087 2074855056
4 735807 1 1/4/2001 COMPUTER, GRAPHITE IBOOK 1,859.99 U U 0260087 2674014150
5 759939 1 12/19/2002 COMPUTER,OPTIPLEX GX260 ORIG= 759937 1 1,647.01 U U 0260087 1497501280
6 766999 1 12/13/2004 M1400 TABLET PC 1.1GHZ 2,809.69 U U 0260087 3020516251
7 767000 1 WXGA U
2/2/2005 1 1 221-6395 I700M,725,1.6GHZ,2MB,12.11,197.00B PAGENKOPFUCPU 0260087 1917164151
8 767001 1 12/10/2004 DELL LATITUDE X300 LAPTOP 2,071.06 U U 0260087 1917164151
9 772914 1 1,381.52 U U
2/27/2004 LATITUDE 0505,D505,1.20GHZ CELERON M, 14.1XGA, ENGLISH(221-30260087 2604251250
10 775914 1 22,100.00
7/15/2004 176809000: BREEZE HPLC SYSTEM WITH DETECTOR; U U 0260087 2604251280
775914 2 7/15/2004 176809000: BREEZE HPLC SYSTEM WITH 114.95DETECTOR; U U 0260087 2604251280
775914 3 2,112.55
8/6/2004 176809000: BREEZE HPLC SYSTEM WITH DETECTOR; U U 0260087 2604251280
11 776431 1 7/16/2004 DELL DIMENSION 2400 CPU 757.15 U U 0260087 2674053950
Inactive Inventory Items due to threshold:
12 736835 EVAPORATOR, 2,727.00 U U
13 737769 PUMP 2,395.00 U U
14 744108 VESSEL, 1,967.20 U U
“….and don’t forget about the chemicals…”
Tuesday, May 9, 2006 Export Review - Lessons Learned 4
Where do you start?
Tuesday, May 9, 2006 Export Review - Lessons Learned 5
You are not alone - Look for allies to add in
the process and share the fun…
Who needs be included?
Dean / Department Chair
Environmental, Safety and Health Official
The list may vary from place to place depending on the equipment
that needs to be reviewed and the processes of the organization.
Tuesday, May 9, 2006 Export Review - Lessons Learned 6
Determine who needs to do what (aka - define
roles and responsibilities).
Principal Investigator – describe equipment, provide specifications, give
you a physical tour of the equipment
Dean or Department Chair – approve the donation/sale of the equipment
and removal from inventory
Environmental, Safety and Health Official – review equipment for
contamination and review list of chemicals to determine exportability.
Property/Inventory – Identification of property, transfer out of inventory
and/or transfer of title.
Inventory Accounting – remove from inventory and determine current
Purchasing – purchase history (who, what, when & how much)
Risk Management – insurance for shipping
Tuesday, May 9, 2006 Export Review - Lessons Learned 7
Determine if any agreements exist that may
affect this transfer:
Any contact or agreement that identifies or defines the
equipment transfer (i.e. MOA between University presidents,
agreement for sale/transfer.)
Who pays the cost of shipping and insurance?
Source of funds for the purchase of equipment – Does the
university actually own the equipment (is the title clear) or is it
dispositioned to us under a federal contract or grant.
Tuesday, May 9, 2006 Export Review - Lessons Learned 8
Find a good freight forwarder!!!!!
Do you have any idea about the amount of paper work
that is required to ship a piece of equipment out of the country?
For example just to name a few – US Shipper’s Export Declaration,
Destination Control Statements, NAFTA Certificates of Origin, invoices
To make matters worse, all countries have their own set of documents that
are required for equipment entering or leaving a country. Have an expert
help you with this.
Tuesday, May 9, 2006 Export Review - Lessons Learned 9
Now the real fun begins….
Let’s play, classification roulette…
Let’s start with identifying what it is we are trying to
Tuesday, May 9, 2006 Export Review - Lessons Learned 10
11-18-99 Computer, Dell, Microsoft with Windows $1689.00
09-10-99 Computer, PC, Ingram BTO P111 450MHZ $1921.00
09-13-99 Computer, PC Ingram BTO P 111 450MHZ $11.50
09-13-99 Computer, PC Ingram BTO P 111 450MHZ $60.00
01-04-01 Computer, Graphite IBook $1859.00
12-19-02 Computer, Optiplex GX260 Orig=759937-1 $1647.01
12-13-04 M1400 Tablet PC 1.1 GHZ $2809.69
02-0-05 1 1 221-6395 1700M.725,1.6GHZ,2MB,
12.1 WXGA B Pagenkopf CPU $1197.00
12-10-04 Dell Latitude X300 Laptop $2071.06
02-27-04 Latitude 0505,D505, 1.20GHZ CeleronM,
14.1XGA, English (221-3 $1381.52
7-16-2004 Dell Dimension 2400 CPU $757.97
It appears that we have a little problem with
standardization of equipment records…
What about current market value?
Tuesday, May 9, 2006 Export Review - Lessons Learned 11
Now, the Alpha Listing of Commerce Control Numbers (CCN)
provide the following classifications for computers:
Computer, electronic assemblies & equipment & components - 4A001, 4A003, 4A004, 4A994
Computer, electronic components 4A101
Computer, electronic components 4A102
Computer aided design (CAD) equipment for semiconductor
devices or integrated circuits 3B991.b.2.c
Computer-aided-design (CAD) software for IC's & semiconductors 3D003
Computer interconnect equipment 4A003.g
Computer/assemblies/components, neural 4A004.b
Computer/assemblies/components, optical 4A004.c
Computers, electronic assemblies, and related equipment and
components not controlled by 4A001 or 4A003 4A994
Computers, analog & analog ruggedized 4A101
Computers for fingerprint equipment 4A980
Computers, digital ruggedized 4A101
Computers/assemblies/components, systolic array 4A004.a
Computers, analog 4A001
Computers, digital 4A003
Computers, digital 4A004
Computers, digital 4A001
Computers, having information security characteristics 4A001.b
Computers, hybrid 4A102
Computers and electronic assemblies (hybrid), and specially
designed components therefor 4A994.k
Computers, with extended operating temperature range 4A001.a.1
Computers, radiation hardened 4A001.a.2
Tuesday, May 9, 2006 Export Review - Lessons Learned 12
CATEGORY 4 - COMPUTERS
Note 1: Computers, related equipment and “software” performing telecommunications or “local area network”
functions must also be evaluated against the performance characteristics of Category 5, Part 1
Note 2: Control units that directly interconnect the buses or channels of central processing units, “main storage” or
disk controllers are not regarded as telecommunications equipment described in Category 5, Part 1
N.B: For the control status of “software” specially designed for packet switching, see ECCN 5D001.
Note 3: Computers, related equipment and “software” performing cryptographic, cryptoanalytic, certifiable
multi-level security or certifiable user isolation functions, or that limit electromagnetic compatibility (EMC), must
also be evaluated against the performance characteristics in Category 5, Part 2 (“Information Security”).
4A – Systems, Equipment and Components
4B – Test Inspection and production Equipment
4C – Materials
4D – Software
4E – Technology
Ruled out ECCN designations for Category 3, Electronics B-Test, Inspections & Production Equipment, D Software
based on information on the PI’s website. PI’s interest is bio-chemistry.
Tuesday, May 9, 2006 Export Review - Lessons Learned 13
Classification of the personal and
laptop computers was identified
as ECCN 4A994.
How did I reach that conclusion?
I contacted the computer companies and they told me…
Tuesday, May 9, 2006 Export Review - Lessons Learned 14
3-1-2000 UNILAB, S/Gas Purification system and
3-12-2000 UNILAB, W/GAS Purification System
This is a what??
Actually, it is just a glovebox. Easy, right?
ECCN Category - Glove boxes 0B999
Category 0 – Nuclear Materials, Facilities, and Equipment (and
Tuesday, May 9, 2006 Export Review - Lessons Learned 15
0B999 Specific processing equipment, as follows (see List of Items
Reason for Control: AT
Control(s) Country Chart
AT applies to entire entry. A license is required for items controlled by this
entry to Iraq and North Korea for anti-terrorism reasons. The Commerce
Country Chart is not designed to determine AT licensing requirements for this
entry. See §742.19 and §746.3 of the EAR for additional information.
List of Items Controlled
Unit: $ value
Related Controls: N/A
Related Definitions: N/A
a. Hot cells;
b. Glove boxes suitable for use with radioactive materials .
Tuesday, May 9, 2006 Export Review - Lessons Learned 16
And, it gets better….
7-15-2004 17680900: Breeze HPLC System with detector $22,100.00
7/15/2004 17680900: Breeze HPLC System with Detector $114.95
8-6-2004 17680900: Breeze HPLC System with Detector $2112.55
What does HPLC stand for and what is a BREEZE?
HPLC – High Performance Liquid Chromatography
The manufacturer is Waters, a Canadian company out of Ontario.
Breeze is the title Water’s gave to the system for marketing purposes.
It falls into the category of: Laboratory – Analytical Instruments with an SIC
code of 3826
Thank you Google!
Tuesday, May 9, 2006 Export Review - Lessons Learned 17
Can I export a Canadian made piece of equipment from the
UT to Canada with out an export review?
Of course not! Familiarize yourself with the term re-
Back to the EAR data base and the alphabetical Index to the CCL
Nothing under Analytical anything… however, I found:
Chromatography analytical instruments 3A999.f
Category 3 – Electronics
Section A – Equipment
Subgroup 999 – Specific processing equipment,
Tuesday, May 9, 2006 Export Review - Lessons Learned 18
3A999 Specific processing equipment, n.e.s., as follows (see List of Items
Reason for Control: AT
Control(s) Country Chart
AT applies to entire entry. A license is required for items controlled by this entry to
North Korea for anti-terrorism reasons. The Commerce Country Chart is not
designed to determine AT licensing requirements for this entry. See §742.19 of the
EAR for additional information.
List of Items Controlled
Unit: $ value
Related Controls: See also 0B002, 3A225 (for frequency changes capable of
operating in the frequency range of 600 Hz and above), 3A233
Related Definitions: N/A
Tuesday, May 9, 2006 Export Review - Lessons Learned 19
a. Frequency changers capable of operating in the frequency range from 300 up to 600 Hz, n.e.s;
b. Mass spectrometers n.e.s;
c. All flash x-ray machines, and components of pulsed power systems designed thereof, including
Marx generators, high power pulse shaping networks, high voltage capacitors, and triggers;
d. Pulse amplifiers, n.e.s.;
e. Electronic equipment for time delay generation or time interval measurement, as follows:
e.1. Digital time delay generators with a resolution of 50 nanoseconds or less over time
intervals of 1 microsecond or greater; or
e.2. Multi-channel (three or more) or modular time interval meter and chronometry equipment
with resolution of 50 nanoseconds or less over time intervals of 1 microsecond or greater;
f. Chromatography and spectrometry analytical instruments.
Tuesday, May 9, 2006 Export Review - Lessons Learned 20
Elem Owner Purchase EAR / License
Inv Nbr Nbr Acq Date Description Amnt Code Code Unit Code Account ECCN# Req
1 703798 1 11/18/1999 Dell PC with W/MICROSOFT WINDOWS 1,689.00 U U 0260087 1497500980 4A994 NLR
2 706194 1 9/10/1999 Ingram Computer, PC; BT0 P111 450 MHZ 1,921.04 U U 0260087 1800031950 4A994 NLR
706194 2 9/13/1999 Ingram Computer, PC BTO P111 450MHZ 11.5 U U 0260087 1800031950
706194 3 9/13/1999 Ingram Computer, PC; BTO P1111 450MHZ 60 U U 0260087 1800031950
UNILAB, Glovebox with Gas Purification System &
3 711694 1 3/1/2000 Accessories 23,405.80 U U 0260087 2074855056 0B999 NLR
711694 2 3/13/2000 UNILAB, Glovebox - FREIGHT 549.71 U U 0260087 2074855056
4 735807 1 1/4/2001 Apple Computer - IBOOK G-4 1,859.99 U U 0260087 2674014150 4A994 NLR
5 759939 1 12/19/2002 Dell OPTIPLEX PC GX260 ORIG= 759937 1 1,647.01 U U 0260087 1497501280 4A994 NLR
6 766999 1 12/13/2004 Motion Computing M1400 Tablet PC 1.1GHZ 2,809.69 U U 0260087 3020516251 4A994 NLR
Dell Laptop-Inspiration 1 1 221-6395
I700M,725,1.6GHZ,2MB,12.1 WXGA B
7 767000 1 2/2/2005 PAGENKOPF CPU 1,197.00 U U 0260087 1917164151 4A994 NLR
8 767001 1 12/10/2004 Dell Laptop LATITUDE X300 2,071.06 U U 0260087 1917164151 4A994 NLR
Dell Labptop - LATITUDE 0505,D505,1.20GHZ
9 772914 1 2/27/2004 CELERON M, 14.1XGA, ENGLISH(221-3 1,381.52 U U 0260087 2604251250 4A994 NLR
176809000: Waters Inc. BREEZE High
PerformanceLiquid Chromatography (HPLC)
10 775914 1 7/15/2004 System with Detector; 22,100.00 U U 0260087 2604251280 3A999.f. NLR
176809000: Waters Inc. BREEZE HPLC System
775914 2 7/15/2004 piece part; 114.95 U U 0260087 2604251280
176809000: Waters Inc. BREEZE HPLC System
775914 3 8/6/2004 Accessory; 2,112.55 U U 0260087 2604251280
11 776431 1 7/16/2004 Dell PC - DIMENSION 2400 CPU 757.15 U U 0260087 2674053950 4A994 NLR
Agilent Technologies - Agilent 6850 Series Gas
12 unknown unknown Chromataograph unknown 26042512 3A999.f. NLR
Inactive Inventory Items due to threshold
EVAPORATOR Dr. Pagankopf described as "a
standard Rotary Evaporator for routine solvents" -
13 736835 unknown manufacturer unknown 2,727.00 U U unknown EAR99
PUMP - Dr Pagenkopf described as "a standard
14 737769 unknown Welch vacumn pump" 2,395.00 U U unknown EAR99
VESSEL - Dr Pagenkopf described as "a standard
15 744108 unknown hydrogenator" manufacturer unknown 1,967.20 U U unknown EAR99
Tuesday, May 9, 2006 Export Review - Lessons Learned 21
Information required to perform an export review
and complete an invoice/pro-forma invoice for
name and address of shipper as shown on the address label – include contact person
and phone number.
name and address of consignee, as shown on the address label – include contact
person and phone number to ensure prompt delivery
purchase order nor invoice number if applicable
Name and address of purchaser (importer) if different from the consignee – include
contact name and phone number
complete description of item being shipped
What is item made of and what is it used for; how can it be used?
Country of origin (where the item was manufactured)
Tuesday, May 9, 2006 Export Review - Lessons Learned 22
Export Review Information Continued:
Number of units, unit value and total market value of each item – for items of no
commercial value, a fair market value must be state for customs purposes.
Transportation charges and insurance
Total value of shipment including currency of settlement
Reason for export (i.e. donation of equipment for research as agreed upon in MOU
dated xxx between Dr. Juan Sanchez of UT and Dr. xxx of the University of xxx)
Terms of sale that define the charges included in the value on the invoice. For example
CIF is Cost, Insurance and Freight (know Incoterms – International Commercial Terms)
Number of packages and total weight
Shipper’s signature and date
Include the Destination Control Statement (DCS)
Tuesday, May 9, 2006 Export Review - Lessons Learned 23
Suggested Content for an Export Review Report:
• What is happening – why is the equipment being exported
• Where is the equipment going and for what purpose
• Provide EAR rating of country (i.e. Commerce Country Chart
listing, Country Group, membership in various treaties state in
• Develop chart on equipment, ECCN #s and determination of
• Who are the parties shipping the equipment – who will receive
• Location and condition of the equipment
Tuesday, May 9, 2006 Export Review - Lessons Learned 24
• Equipment title – who owns it, when was it purchased, what
funds were uses? Who has title? When will title pass? Who will
end up with Title?
• Description of Software that may be included with computers
• State type of information you received on which to base your
evaluation – what is the source of information and how much did
you have to rely on it to do you evaluation.
• Identify and describe any chemicals that may be involved in the
• State the [bad guy] lists reviewed, the search terms used in the
review and the date this review was performed
Tuesday, May 9, 2006 Export Review - Lessons Learned 25
Points to ponder:
First rule of government work – disclose and document
You need a good description of the equipment (what is it made of, how
can it be used…)
Age of the equipment is not a factor in making your ECCN or licensing
When the EAR refers to value of the equipment, they mean current
market value – not depreciated value.
The entity shipping the equipment has the responsibility for making
sure that the equipment arrives at the intended destination and is
accepted by the intended person.
Records of transactions subject to the EAR must be maintained for 5
Tuesday, May 9, 2006 Export Review - Lessons Learned 26
Points to Ponder continued…
For shipping, use the most secure and direct route to destination. IF it
has to stop enroute overnight in another country, make sure it is secure
Try to evaluate equipment as a system – not by piece parts.
Software is also subject to export control. Do an evaluation separate
from the hardware carrying the software.
Beware of the content of the documents in the computer – data of
documents may be export controlled.
When requesting classification help from a manufacturer, tell them
where the item is going. Ask for the person’s name and contact
information that you spoke with.
Watch for equipment that may be contaminated with toxic substances!
Tuesday, May 9, 2006 Export Review - Lessons Learned 27
What about the chemicals?
I teamed with EHS (love those guys!). They reviewed the
chemical list to determine what was in the PI’s inventory.
Inventory revealed that most chemicals were common and
inexpensive to purchase. The cost of shipping would greatly
exceed the value of the chemicals.
Toxic/Controlled chemicals the PI just had to have– EHS helped
with identification information, packing and gave custody of
chemicals to PI to let him worry about the export requirements
and cost of shipping.
Tuesday, May 9, 2006 Export Review - Lessons Learned 28
Please feel free to call me if you want to talk
about a challenge you are facing! We are all
in this together.
The University of Texas at Austin
Tuesday, May 9, 2006 Export Review - Lessons Learned 29