ISO 9001:2008 CERTIFIED

Transit Case and Rack System Integration

COMPLIANCE WITH U.S. EXPORT CONTROL LAWS

Welcome and thank you for your interest in complying with U.S. export control laws.

If you are exporting or reexporting Chassis Plans products, U.S. export controls apply and it is your responsibility to ascertain your compliance obligations. All Chassis Plans products are dual use commercial/military but that does not exclude these products from applicable export control laws.

Failing to comply with U.S. export control laws has the potential to ruin your business!

Please note that U.S. export controls can remain in force as products and technology are re-exported to different parties and places around the world.

For an overview of U.S. export control laws and compliance factors, please see the following headings. Full information is available at the Bureau of Industry and Security (BIS) website.

The Law
U.S. export controls are intended to promote the national security, foreign policy, nonproliferation, and short supply interests of the United States. The scope and extraterritorial reach of the regulations is quite broad. U.S. export controls apply to:

• export of commodities, technology, and software (object and source code) from the United States.
• transfers of technology and source code to foreign nationals around the world
• re-exports of U.S. origin commodities, technology, and software to foreign countries
• foreign-manufactured goods derived from U.S. technology

While the export controls of the past were designed to stem the spread of U.S. technological advances to Cold War adversaries, today's export controls focus on reducing the proliferation of weapons of mass destruction and combating illegal diversion of goods and technologies.

The Export Administration Act of 1979 (EAA), authorizes the President to control exports. The Export Administration Regulations (EAR) [15 C.F.R. 730 et. Seq.] implement the EAA and are administered by the Commerce Department, Bureau of Industry and Security (BIS). The EAA expired in August 1994. However, the President has invoked the International Emergency Economic Powers Act to keep the EAA and the EAR in effect.

BIS controls "dual-use" items that have civilian end uses but can be utilized for military or proliferation (nuclear, missile, chemical/biological warfare) applications.

Penalties For Violating Export Laws
There are civil and criminal penalties for violating U.S. export laws. Civil penalties can include: steep fines and/or loss of export privileges. Criminal penalties for willful violations currently include: possibility of imprisonment and fines of $1 million per violation or five times the value of the export, whichever is greater.

Collateral effects of violations can result in adverse publicity, exclusion from participation in U.S. Government contracts, and restrictions on importing into the United States.

Proposed bills for a new Export Administration Act recommend that civil penalties include fines of $1 million per violation for civil offenses, the greater of $10 million or 10 times the value of the export for criminal offenses, and possible life imprisonment for multiple violations or aggravated circumstances.

Export Prohibitions
Unless authorized by a U.S. export license or a license exception, it is unlawful to export or reexport an item that is subject to the Commerce Department's Export Administration Regulations (EAR) if any of the following prohibitions apply.

General Prohibition 1: No export or re-export of an item that is controlled by the U.S. Commerce Department and when the EAR states that a license is required.

General Prohibition 2: No export of any item made outside the U.S. that incorporates U.S. - origin commodities, software, or technology that is controlled to the export destination if that item:

• incorporates more than the de minimis amount of controlled U.S. content as defined in the EAR.
• is controlled for a reason indicated in the applicable export control classification number AND
• is shipping to a destination that would require an export license as shown in the country chart of the EAR

General Prohibition 3: No export of an item manufactured abroad to Cuba, Libya, or a destination in Country Group D:1 (Supplement No. 1 to part 740 of the EAR) if the item:

• is the direct product of technology or software that requires a written letter of assurance AND is subject to national security controls as stated in the EAR
• is subject to national security controls AND is the direct product of a plant or component of a plant, where the plant or component is a direct product of technology that requires a letter of assurance

General Prohibition 4: No export in violation of a denial order issued under part 766 of the EAR.

General Prohibition 5: Under the Enhanced Proliferation Control Initiative, export to an end user or for an end use involving nuclear, missile, or chemical biological weaponry (as defined in part 744 of the EAR) is prohibited unless authorized by the U.S. Government. This prohibition is triggered if you "know" or even "have reason to know" of such end users or uses.

General Prohibition 6: No Export to Embargoed Countries

General Prohibition 7: No assistance with activities (e.g. financing, contracting, service, support) that promote proliferation of nuclear, missile, or chemical biological weaponry as defined in part 744 of the EAR.

No rendering of technical assistance to persons outside the U.S. to develop or manufacture outside the U.S. certain encryption items as identified in the EAR.

General Prohibition 8: No export through or in transit through Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, Cuba, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Laos, Latvia, Lithuania, Mongolia, North Korea, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Vietnam.

General Prohibition 9: No violation of orders, terms, or conditions of a license or license exception.

General Prohibition 10: No sale, transfer, export, reexport, financing, order, purchase, loan, or servicing of any item subject to the EAR with knowledge that a violation of the EAR, order, license, license authorization has occurred, is about to occur, or is intended to occur.

*This summary of the export prohibitions is intended as a general resource but should not be taken as official legal authority. For full, current, official regulatory details, consult the U.S. Export Administration Regulations (15 CFR Parts 730-774).