1. Policy Statement & Management Commitment

EMC-Engineers/Scientists is committed to full compliance with all applicable export control laws. We prohibit any transaction that violates the U.S. Export Administration Regulations (EAR)[1], the International Traffic in Arms Regulations (ITAR)[2]

2. Regulatory Frameworks

Wassenaar Arrangement (WA)[3]: Although the WA is a voluntary multilateral regime, its “List of Dual-Use Goods and Technologies” is the basis for US control lists. EMC-Engineers/Scientists will treat all WA-listed items as controlled, requiring a license or valid exception.

3. Internal Compliance Procedures

Product Classification: Every technical product, software, or piece of technology must be classified against the U.S. Commerce Control List (CCL)[4]. This includes checking for new 2025/2026 controls on quantum computing and high-end AI chips.

• End-User Screening: All parties to a transaction must be screened against the U.S. Consolidated Screening List.
• End-Use Verification: For dual-use equipment, the company will require an End-Use Certificate (EUC)[5] to ensure items are not diverted for unauthorized military applications.
• Intangible Technology Transfers (ITT): Knowledge transfers via email, cloud servers, or technical briefings are considered “exports” under US law.

4. Licensing & Reporting Requirements

• Semi-Annual Reporting: In accordance with 15 CFR § 743.1, the company will submit semi-annual reports to the U.S. Bureau of Industry and Security (BIS) for specific items controlled under the Wassenaar Arrangement[6].

5. Recordkeeping & Audits

• All export-related documentation (licenses, shipping papers, EUCs) must be maintained for a minimum of five years for US records as per local statutory requirements.
• Annual internal audits will be conducted to verify that classification lists and screening protocols are current with the latest 2026 regulatory updates.

6. Violations & Penalties

Failure to comply may result in severe civil and criminal penalties, loss of export privileges[7], and disciplinary action up to termination of employment. Employees are required to report any suspected violations to the Export Compliance Officer immediately.

[1] The Export Administration Regulations (EAR) are a set of federal rules governed by the Bureau of Industry and Security (BIS) under the U.S. Department of Commerce. They regulate the export, re-export, and transfer of most commercial and “dual-use” items—goods, software, and technology that have both civilian and military applications. Please contact EMC for more detailed information.

[2] The International Traffic in Arms Regulations (ITAR) is a set of U.S. government rules (22 CFR parts 120–130) that control the manufacture, export, and temporary import of defense-related articles, services, and technical data. Authorized by the Arms Export Control Act (AECA), it is administered by the Directorate of Defense Trade Controls (DDTC) under the Department of State. Please contact EMC for more detailed information.

[3] The Wassenaar Arrangement (WA) is a voluntary, multilateral export control regime that promotes transparency and greater responsibility in the transfer of conventional arms and dual-use goods and technologies. Its goal is to prevent destabilizing accumulations of these items, particularly by states of concern or terrorists. Please contact EMC for more detailed information. Please contact EMC for more detailed information.

[4] The U.S. Commerce Control List (CCL) is an inventory of sensitive “dual-use” items (commodities, software, and technology with both commercial and potential military applications) that are subject to U.S. export controls. Maintained by the Bureau of Industry and Security (BIS) within the Department of Commerce, its purpose is to advance U.S. national security and foreign policy objectives by regulating the export and re-export of these items. Please contact EMC for more detailed information.

[5] United States (BIS-711): For items subject to the Export Administration Regulations (EAR), the standard form is the BIS-711 Statement by Ultimate Consignee and Purchaser. This form collects data on the final user and the intended application of the items. Please contact EMC for more detailed information.

[6] In 2026, semi-annual reports required by 15 CFR § 743.1 (Wassenaar Arrangement) must be submitted to the Bureau of Industry and Security (BIS) for exports of items on the Sensitive List. Submission Deadlines: due twice a year based on the six-month period in which the export occurred. The list of Controlled items under the Wassenaar Arrangement (WA) are updated annually, with the most recent list reflecting agreements made at the December 2025 Plenary. These items are divided into two primary categories: the Munitions List and the List of Dual-Use Goods and Technologies. Where to Submit: Reports can be submitted using one of the following methods: Email (Preferred): Send reports to WAreports@bis.doc.gov.; Mail/Courier: Deliver two (2) copies via courier to Bureau of Industry and Security, U.S. Department of Commerce Attn: “Wassenaar Reports”, Room 2099B, 14th Street and Pennsylvania Ave. NW., Washington, DC 20230; Facsimile: Send to (202) 482-3345 or (202) 482-1373, marked Attn: “Wassenaar Reports”. Reporting Requirements: Each page must be labeled with the exporting company’s name and address at the top. For each export, include the Export Control Classification Number (ECCN), the number of units (one unit for initial technology exports), and the country of ultimate destination. You must maintain accurate supporting records for these exports in accordance with 15 CFR part 762. Do not report exports to Wassenaar member countries identified in Supplement No. 1 to Part 743. Please contact EMC for more detailed information.

[7] This warning refers to the mandatory adherence to United States export control laws and regulations. Failure to comply with these federal mandates can result in severe repercussions for both individuals and organizations.

As of January 2026, the specific consequences for non-compliance include: Civil (Administrative) Penalties such as Fines: Monetary penalties are adjusted annually for inflation. For the Export Administration Regulations (EAR), the maximum administrative penalty as of early 2025 was $374,474 per violation (or twice the value of the transaction, whichever is greater); Seizure and Forfeiture: The government may seize the goods involved in the violation, along with any vessels, aircraft, or vehicles used for the illegal export. Loss of Export Privileges: Individuals or businesses can have their ability to export goods or technology suspended or revoked entirely. This “debarment” or “denial of privileges” prevents participation in any transaction subject to these regulations. Criminal Penalties: Criminal sanctions are typically reserved for “willful” or “knowing” violations. Imprisonment: Individuals can face up to 20 years in federal prison depending on the severity and the specific law violated (e.g., EAR, ITAR, or IEEPA). Criminal Fines: Organizations can be fined up to $1 million per violation, or five times the value of the exports. Other Consequences can be Debarment from Government Contracts, Revocation of Licenses and/or Administrative Sanctions (this can include the loss of federal research funding for universities and negative public disclosure that causes permanent reputational damage).

Compliance remains a critical risk management issue in 2026, particularly for sensitive technology transfers such as advanced AI chips. To ensure compliance, businesses often consult the Bureau of Industry and Security (BIS) or the Directorate of Defense Trade Controls (DDTC). Please contact EMC for more detailed information.