Category: Military

Export Controls and Technology Transfers in a Global Economy

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How to keep critical information and technology away from those who wish to harm our country, our families, and ourselves.

By Mark D. Harris[1]

The MDHI’s work in Ukraine and the Middle East has stimulated discussion on bringing technology into these countries, which could be considered de facto technology transfers. For example, we have asked if it is permissible to bring new ultrasound machines into Ukraine to take care of patients. The answer that we discovered was a qualified “yes”, if we were willing to cut through thickets of red tape and wade through rivers of regulations. Ultrasound machines are not “prohibited/restricted”, and they are not “dual use” (military and civilian), but they are “high technology” and therefore subject to scrutiny. There have also been questions about robotics parts and 3D printers, both of which can be considered “dual use”

In an era of rapid innovation and global collaboration, the protection of sensitive technology is no longer just a matter of corporate security; it is a critical component of national security and international law. For organizations operating across borders, understanding the intricacies of export controls is essential to avoid severe legal penalties and reputational damage.

Export Control Obligations and Technology Transfers

A technology transfer occurs whenever controlled technical data is shared with a foreign person, whether through email, cloud access, visual inspection of equipment, verbal briefings, or something else.[2] Organizations must identify the Export Control Classification Number (ECCN) for their technologies to determine if a license is required before any transfer takes place.[3] Failure to secure the necessary authorizations can lead to massive fines, the loss of export privileges, and even criminal prosecution.

Export Control Classification Numbers (ECCN)

  • First digit – category, such as electronics or materials
  • Second digit – product group, such as software or hardware
  • Final three digits – unique identifier

The special designator, EAR99, applies to items not specifically listed on the Commerce Control List (CCL), which is maintained by the Bureau of Industry and Security (BIS). The ECCN helps exporters:

  • Identify whether an item is controlled for export.
  • Determine the reason for control, such as national security, anti-terrorism, or nuclear nonproliferation
  • Check if a license is required for a specific country or end user.
  • Identify available license exceptions that may allow export without a license

People can find ECCNs from manufacturers and from the CCL.

Best Practices for Safeguarding Sensitive Technologies

Safeguarding sensitive technology requires a defense-in-depth strategy that combines physical, digital, and procedural controls. Organizations should adopt a principle of least privilege, ensuring that only individuals with a verified “need to know” and the appropriate legal authorization can access controlled data.[4] Key measures include:

  • Digital Segmentation: Maintaining controlled technical data on secure, encrypted servers with multi-factor authentication and robust activity logging
  • Physical Security: Using badges, biometric scanners, and restricted areas to prevent unauthorized visual access to prototypes or sensitive hardware
  • Marking and Labeling: Clearly marking all documents and files containing controlled technology with their specific classification and handling instructions
  • Secure Communications: Mandating the use of approved, encrypted platforms for any discussions involving sensitive technical details

Elements of an Effective Internal Compliance Program (ICP)

An Internal Compliance Program (ICP) is the foundational framework that ensures an organization meets its legal obligations consistently. A robust ICP is not a static document but a living system of oversight and improvement. The essential elements of an ICP in a corporate environment include:

  • Management Commitment: Clear, written support from senior leadership prioritizing compliance over short-term commercial gains. For example, management at all levels must commit to full compliance with laws such as the Arms Export Control Act (AECA)[5] and International Traffic in Arms Regulations (ITAR).[6]
  • Continuous Training: Regularly updated training programs tailored to different roles, from engineers and sales teams to IT and HR.
  • Risk Assessment: Ongoing evaluation of the organization’s products, customers, and geographic reach to identify and mitigate potential compliance gaps
  • Recordkeeping: Maintaining meticulous records of all export classifications, licenses, and communications for at least five years
  • Auditing and Reporting: Internal and external audits to verify that procedures are being followed, coupled with a clear mechanism for reporting and correcting violations

Academic institutions and even individuals must consider whether their actions violate law. For example, in July 2009, a professor at the University of Tennessee working on an Air Force contract was convicted of violating the AECA by sharing technical data with Chinese and Iranian graduate students. He served over two years in prison.

Due Diligence for International Partnerships and Investment

International partnerships, mergers, and acquisitions present significant export control risks. Before entering into an agreement, organizations must perform rigorous due diligence to ensure they are not inadvertently facilitating illegal technology transfers.

This process begins with Restricted Party Screening (RPS). Organizations must vet all potential partners, investors, and vendors against government “watchlists,” such as the Entity List or the Specially Designated Nationals (SDN) List. Beyond basic screening, firms must investigate the end-use and end-user of their technology. If a prospective partner has ties to a restricted military program or a sanctioned government, the risk may be prohibitive. Furthermore, foreign investments in sensitive domestic technology sectors may trigger a review by the Committee on Foreign Investment in the United States (CFIUS), which has the power to block or unwind deals that threaten national security.

Conclusion

In summary, the intersection of technology and international law requires a proactive and disciplined approach. By integrating robust compliance programs and rigorous due diligence into their core operations, organizations can innovate with confidence, knowing they are protecting both their assets and the security of the global community

Footnotes

[1] Augmented by artificial intelligence

[2] A deemed export is the sharing or release of controlled technology, technical data, or source code to a foreign national within the United States, which is considered an export to the foreign person’s country of nationality or permanent residency, even though no physical item crosses borders

[3] An ECCN is a five-character alphanumeric code used to classify U.S. export-controlled items on the Commerce Control List (CCL) to determine licensing requirements.

[4] The principle of least privilege (PoLP) ensures that users, processes, or applications are granted only the minimum access necessary to perform their tasks, reducing security risks and limiting potential damage from breaches. It is also known as the Principle of Minimal Privilege (PoMP) or the Principle of Least Authority (PoLA).

[5] Provisions of the AECA:

  • Foreign Military Sales (FMS) and Commercial Sales: AECA provides the framework for both government-to-government and commercial defense transactions
  • End-Use Monitoring: Ensures that exported defense articles are used as intended and not diverted to unauthorized users
  • Restrictions on Certain Countries: Prohibits sales to nations supporting terrorism or not cooperating with U.S. antiterrorism efforts
  • Congressional Oversight: Requires reports and certifications to Congress on significant arms sales and potential violations
  • Licensing and Compliance: U.S. exporters must obtain licenses for defense articles and services, with strict documentation and adherence to AECA regulations

[6] International Traffic in Arms Regulations (ITAR) is a is a set of U.S. Department of State regulations controlling the export and import of defense-related articles, services, and technical data to safeguard national security and enforce foreign policy objectives. ITAR covers defense articles (guns, bombs, US munitions list), defense services, and technical data.

Saratoga Campaign 1777

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The Battle of Saratoga was a turning point in the American Revolution. Leaders like John Burgoyne, Horatio Gates, and Benedict Arnold, with thousands of valiant men, fought in a drama that would change the world.

By Mark D. Harris, MD, MPH, MBA, MDiv, ThM, PhD, DBA

Background: The Road to Saratoga

After fighting side by side to defeat the French and Indians (1756-1763), Britain and her American colonies drifted apart. Laboring under a heavy debt, Parliament increased taxation and control over the Americans. The Quebec Act (1774) was intended to build support for Britain among the Catholic French Canadians, institute the French system of civil law,[1] and limit colonial migration into the Ohio Valley. However, it infuriated English colonists. But it, and other “intolerable acts,” provided the tipping point into revolution.

Before Congress even declared America to be a new nation (4 July 1776), American rebels captured Fort Ticonderoga (10 May 1775), Crown Point, Fort St. Johns (17 Sep to 3 Nov 1775), and Montreal in the early months of the conflict. US General Richard Montgomery commanded about 1000 militia through the St. Lawrence River north to Quebec. Moving primarily by water, they brought most of the artillery and supplies. US General Benedict Arnold began taking about 1000 militia through the wilderness of Maine, from the Kennebec River to the Chaudière River. Having started in July, Arnold’s force lost about 500 men to starvation, desertion, expiring enlistments, and disease (smallpox). Montgomery’s force diminished to 700 by expiring enlistments.

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The Battle of Tarawa: America’s Early Lesson in WWII Amphibious Warfare

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By Mark D. Harris, MD, MPH, MBA, MDiv, ThM, PhD, DBA

What was the Battle of Tarawa in World War II? Why was it important then,…and today?

The morning of November 20, 1943, dawned over a small coral atoll in the Central Pacific that few Americans had ever heard of. Within seventy-six hours, Tarawa would become seared into the American consciousness as one of the most savage battles of World War II. The ferocious fighting on this tiny strip of land, barely twelve square miles in total area, would claim over 6,000 lives and fundamentally transform how the United States Navy and Marine Corps conducted amphibious operations for the remainder of the war.

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Why Ukraine will endure

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I wrote the article below, Why Ukraine will endure, on 27 Feb 2022, shortly after the Russians invaded Ukraine. I did not publish it at the time, though I don’t remember why. While in Kyiv last month, I told Dr. Rick Perhai and others from Kyiv Theological Seminary about the article, and he asked to see a copy. I knew that I had written the piece, but forgot that it was never actually published. So, I couldn’t find it on the MDHI website. Going through my hard drive archives today, while looking for something else, I found the lost article.

On one hand, I have been proven right. Against all odds, Ukraine has endured. Despite the emigration of Ukrainians, many stayed behind to defend their homeland. On the other hand, I did not foresee the momentous changes in warfare occasioned by this conflict. Drones and electronic warfare have revolutionized combat. Ukraine has proven itself masterful at using everything in its arsenal, and more importantly, in its people’s imaginations, to stop the Russian onslaught.

Diplomatically, sanctions have not been as effective as hoped, but then again, sanctions never are. China, North Korea, and India are providing Russia with more than token support. Putin still believes that he is winning and still refuses to negotiate in good faith for peace.

So, for my friends in Ukraine, I have now found the article that I told you about. Happy reading!

By Mark D. Harris, MD, MPH, MBA, MDiv, ThM, PhD, DBA.

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The Battle on the Marchfeld

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The Battle on the Marchfeld is a little known but important event in military history. As a result of the battle, the Habsburgs came to power and ruled the Holy Roman Empire and later Austria and Spain until the 20th century. 

By Stephen T. Harris, Historian

Background

In 1250, Frederick II, Holy Roman Emperor (1194-1250) died. He had quarreled with the pope and was excommunicated multiple times. The pope had gone so far as to depose Frederick II. As the pope refused to allow one of his descendants to take the throne, the imperial throne fell vacant, leading to the Great Interregnum (1254-1273). A group of princes known as the electors[1] elected Richard of Cornwall (1209-1272), brother of Henry III of England, as King of the Romans in 1257. Still, Richard held little real power in the empire. Richard often remained in England for long periods. The German princes were virtually independent and could do whatever they wished. Some historians argue Richard’s election was intentionally designed to prevent a strong ruler from trying to curb the princes’ power. During the Great Interregnum, the princes worked to increase their power, and many did. The most successful was Ottokar II (1233-1278), King of Bohemia, who used conquest and political marriages to build a massive kingdom that stretched to the Adriatic.

One of those marriages was with the daughter of the Duke of Austria, a woman named Margaret of Babenberg (1204-1266). However, the duchy was not rightfully Ottokar’s. It was an imperial fief and as such should have gone back to the emperor, to grant to whomever he chose. Several years after he married, the pope granted Ottokar an annulment to marry a woman his age and have children. However, this meant he no longer had a legal right to Austria through marriage.

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Defending Taiwan

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The world in 2025 is a bigger geopolitical mess than it was in 1914. Taiwan, Ukraine, and Israel are developed states at the epicenter of life-or-death struggles.[1] After a recent visit to Taiwan, this article describes a way, and quite probably the only way, for Taiwan to survive as an independent nation if China invades.

By Mark D. Harris, MD, MPH, MBA, MDiv, ThM, PhD, DBA

Chiang Kai Shek (1887-1975) fled mainland China and moved his nationalists, the Kuomintang (KMT), to Taiwan after their defeat by the communists under Mao Tse Dung (1893-1976) in 1949. Since that year, the Communists ruling mainland China have declared that Taiwan is a renegade province and they will take it back by any means possible, including war.[2]  Every modern Chinese ruler, including the current autocrat Xi Jin Ping, has reaffirmed this intention.[3]

A pre-invasion scenario

Chinese paramilitary “fishing boats”, coast guard ships, and naval vessels encircle Taiwan under the guise of military exercises, law enforcement, or humanitarian actions. These boats partially disrupt Taiwanese imports and exports. Then they leave, having learned valuable lessons and helped lull Taiwanese defenders and politicians into a sleepy acquiescence, like a frog in warming water. Chinese aircraft from bases such as Longtian (in Fujian) harass Taiwanese responding forces. Cyber attackers, space forces, special forces, and others engage. Much of this is happening today. By not firing the first shot, the Chinese undercut nations that may oppose them. If no one physically challenged the blockade, Taiwan would slowly be strangled to death.

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