Restricted Party Screening (“RPS”) is a requirement under U.S. export control laws to ensure that a U.S. institution is not engaging in activities with sanctioned or denied entities or persons (“Denied Parties”), whether in the United States or abroad. The U.S. Government publishes various different lists containing Denied Parties. However, not all lists are created equal, as the prohibitions and requirements for each list are different. Engaging in activities with Denied Parties can result in both civil and criminal penalties for the institutions and individuals involved.
A positive match on a RPS List may indicate a:
- strict export prohibition
- specific export licensing or other requirement (e.g. obtain assurance statements, reporting, etc.)
- presence of a “red flag” requiring additional due diligence before proceeding with the engagement or transaction
One list that is of particular interest to Berkeley Lab is the Unverified List (“UVL”). Foreign persons (aka foreign entities or foreign nationals) who are parties to an export, reexport, and transfer (in-country) subject to the Export Administration Regulations (“EAR”) may be added to the UVL if the U.S. Bureau of Industry and Security (“BIS”) or federal officials acting on BIS’s behalf cannot verify the bona fides (i.e., legitimacy and reliability relating to the end use and end user of items subject to the EAR) of such persons because an end-use check, such as a pre-license check or a post-shipment verification, cannot be completed satisfactorily for reasons outside of the U.S. Government’s control. Therefore, the U.S. Government imposes additional requirements on U.S. institutions when engaging in activities with those foreign persons listed on the UVL. Foreign persons listed on the UVL can be removed from the UVL or moved to an Entity List by the U.S. Government at any point in time. Generally, all activities involving a person or entity on the Entity List require a specific export license and the licensing policy is a presumption of denial. The regulatory reference related to the UVL can be accessed here: 15 CFR §744.15
To balance this export control obligation, Berkeley Lab leadership has decided to limit engagements with UVL entities to those that are directly related to core Berkeley Lab’s key mission objectives.
What does this mean for you?
- Berkeley Lab must perform RPS on collaborators, partners, sponsors and others who you will be working with, and their entities using Descartes Visual Compliance Software and escalate any red flags or concerns to the Export Compliance Office at email@example.com.
- Request and obtain approval from the Divisional Leadership, Export Compliance Office, and Protective Services before proceeding with any engagements or transactions with individuals or entities on the UVL.
- Be prepared to wind down activities with individuals or entities on the UVL, if circumstances warrant.