1). The regimes require export licensing for  defense-related items and information, including data, except where  exclusions apply. The U.S. export control system places the onus on  universities and other exporters to understand and comply with the export  control regulations. State issues export licenses based on the U.S. The U.S. Munitions List contains 21 categories, covering items such as weapons,  chemical and biological agents, missiles, and both commercial and military  satellites. Universities Focus on Conducting Fundamental Research

According to most university officials, their institutions conduct basic and  applied science and engineering research in a wide variety of areas,  producing findings that are conducted, shared, and published openly  within a broad community that includes international students and  scholars. Several universities we interviewed stated that if they are  unsuccessful in negotiating the restrictive language out of those research  contracts they consider to be fundamental, they sometimes reject the  opportunity to participate in the research. In other cases, university officials stated they move export-controlled  work to off-campus facilities and laboratories administered by the  universities or the entity sponsoring the contract, where such research can  be better segregated and controlled. Efforts Undertaken by Universities to Understand and Comply with Export Control Regulations

According to a State official, U.S. export control regulations are designed  for “self-compliance.” For the academic community specifically, State  officials said that it is the universities’ responsibility to conduct due  diligence to determine whether their research activities are subject to  export laws, and to identify whether an export license is required for  foreign nationals within their purview. Officials confirmed that most  of these applications are received from industry. In addition to conferences and agency-provided training, both State and  Commerce maintain telephone help desks and Web sites for exporters to  obtain guidance on export controls. However, State and Commerce have taken few actions to coordinate their  outreach efforts to universities. Commerce and State Have Not Conducted Analysis to Identify whether Any Risk Exists to Export- Controlled Information at Universities

State and Commerce officials expressed concerns that despite the export  control exclusions for university research, the potential may exist for  foreign nationals to access controlled defense and dual-use technologies  and information on U.S. campuses. Given that much of the research  conducted at U.S. universities is federally funded, data from other  government agencies on the subjects of research conducted at academic  institutions could supplement data from Commerce and State. Since  government agencies place the responsibility for complying with export  control regulations on universities and other exporting entities, it is  essential that Commerce and State, the two agencies primarily charged  with administering export regulations, understand whether universities  correctly interpret and apply relevant export control policies and  regulations when deciding whether their research is subject to export  controls. Recommendations for Executive Actions

To improve the Department of Commerce’s oversight of export-controlled  information under its jurisdiction at universities, we recommend that the  Secretary of Commerce direct the Administrator of the Bureau of Industry  and Security to    strategically assess potential vulnerabilities in the conduct and  publication of academic research by becoming more knowledgeable  about research being conducted on university campuses and, in  consultation with other agencies, make use of available information on  technology development and foreign student populations at  universities to assess the extent to which research at universities may  be subject to export controls and    on the basis of this assessment of university research and foreign  student populations, improve interagency coordination, conduct  additional outreach, and improve guidance to ensure that universities  understand when to apply export controls. Appendix I: Scope and Methodology

To describe the nature of the research conducted at universities and  identify the steps they have taken to comply with government export  control regulations, we interviewed and obtained documentation from  officials at 13 universities in positions such as vice chancellor for research,  director of compliance, and general counsel.
Why GAO Did This Study

Foreign students and scholars have made substantial contributions to U.S. research efforts and technology development. However, according to a federal government intelligence assessment, foreign access to sensitive U.S. technology has imposed a significant but unquantifiable cost to the United States. Given this risk, GAO was asked to (1) describe the nature of the research at universities and identify steps they take to comply with export controls and (2) assess efforts by the Departments of Commerce and State--the key export control agencies--to determine the risk of export violations in university research. GAO reviewed Commerce and State export control programs and met with officials from 13 universities, selected based on their foreign student populations, applications for export licenses, and federal grants and contracts.

What GAO Found

The U.S. export control system requires export licensing for defense items and items that have both commercial and military applications, except where exclusions apply, such as those applicable to universities in some circumstances. The U.S. export control agencies place the onus on universities to understand and comply with the regulations. According to university officials we interviewed, their institutions focus almost exclusively on fundamental research--defined as basic and applied research in science and engineering, the results of which ordinarily are published and shared broadly within the scientific community. Such research is generally not subject to export controls. Universities we visited conduct research in such areas as nanotechnologies, computer security, and chemical engineering. To ensure their research remains in the public domain, university officials said they negotiate contract language to remove publication or other dissemination restrictions for research they consider to be fundamental. If export controls apply, university officials stated they sometimes involve only those students eligible to conduct the research under a license exclusion, to avoid the lengthy license application process. In other cases, they refer such work to off-campus associated facilities that can better regulate and control foreign national access to the research. Universities we visited indicated that government-provided training and guidance on export control regulations is limited in informing their efforts to manage and protect export-controlled information in the university environment. State and Commerce officials expressed concerns that universities may not correctly interpret and apply export regulations, given the large number of foreign students participating in research at universities and the relative lack of license applications from universities. Although federal internal control standards contain guidelines for agencies to conduct risk assessments, State and Commerce have not conducted an overall assessment of available trend data on technology development research and foreign participation in such research at U.S. universities to identify potential vulnerabilities. For example, U.S. government agencies collect data on foreign student nationality, school enrollment, and types of research conducted at universities for federal agencies, which could supplement information that State and Commerce receive from visa application processes and other sources. Although State and Commerce provide guidance through training seminars, agency Web sites, and telephone help desks to assist exporters in understanding and complying with regulations, officials stated that their focus is on processing export license applications--primarily from industry. Recently, Commerce established an advisory committee composed of industry and university representatives who are expected to discuss issues such as the nature of university research and its relation to export controls.