To: Brainwave Science, Inc.
From: Brainwave Science, Inc. Export Compliance Team
Subject: U.S. Export and Re-Export Regulatory Compliance
Date: May 1, 2023
We at Brainwave Science, Inc. (“Brainwave”) are pleased to have you as a client. We are providing this Memorandum to reiterate some of the requirements of our business relationship. These requirements are an integral part of the corporate policy of Brainwave which mandates full compliance with the U.S. Export Administration Regulations, (EAR), OFAC (Office of Foreign Assets Control) and with all other U.S. Government regulations. Your careful attention to complying with these requirements is, therefore, essential.
Pursuant to the corporate policy of Brainwave, under no circumstances will a sale, export or re-export transaction be made contrary to the U.S. Export Administration Regulations, (EAR), and/or all other applicable U.S. export regulations. To that end,
- No sale or resale of U.S. products, are to be made to any individual or entity listed on the Lists of Parties of Concern without prior approval from the U.S. Government;
- No sale or resale of U.S. products is to be made to any country subject to a U.S. trade sanction (embargo) without prior approval from the U.S. Government and Brainwave AND
- The end use of U.S. products for direct/indirect use in any nuclear/missile technology, chemical or biological application may be controlled by U.S. export regulations and must be reviewed by Brainwave prior to any sale.
Please be advised that Brainwave performs a 100% check against these lists prior to processing any order. Any order that is in question may be held for additional documentation prior to shipment, and/or may not be accepted. For your reference, below is a brief description of the lists and the website link to the searchable Consolidated Screening List: http://export.gov/ecr/eg_main_023148.asp
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U.S. LISTS OF PARTIES OF CONCERN:
Denied Persons List - Individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited. (Department of Commerce)
Unverified List - End-users who BIS has been unable to verify in prior transactions. The presence of a party on this list in a transaction is a “Red Flag” that should be resolved before proceeding with the transaction. (Department of Commerce)
Entity List - Parties whose presence in a transaction can trigger a license requirement supplemental to those elsewhere in the Export Administration Regulations (EAR). The list specifies the license requirements and policy that apply to each listed party. (Department of Commerce)
Nonproliferation Sanctions - Parties that have been sanctioned under various statutes. The linked webpage is updated as appropriate, but the Federal Register is the only official and complete listing of nonproliferation sanctions determinations. (Department of State)
Specially Designated Nationals List – Parties who may be prohibited from export transactions based on OFAC’s regulations. Export control regulations require a license for exports or re-exports to any party in any entry on this list that contains any of the suffixes "SDGT", "SDT", "FTO", "IRAQ2" or "NPWMD". (Department of the Treasury, Office of Foreign Assets Control)
Foreign Sanctions Evaders List: Foreign individuals and entities determined to have violated, attempted to violate, conspired to violate, or caused a violation of U.S. sanctions on Syria or Iran, as well as foreign persons who have facilitated deceptive transactions for or on behalf of persons subject to U.S. Sanctions. Transactions by U.S. persons or within the United States involving Foreign Sanctions Evaders (FSEs) are prohibited. (Department of the Treasury, Office of Foreign Assets Control)
Sectoral Sanctions Identifications (SSI) List: Individuals operating in sectors of the Russian economy with whom U.S. persons are prohibited from transacting in, providing financing for, or dealing in debt with a maturity of longer than 90 days. (Department of the Treasury Office, of Foreign Assets Control)
Palestinian Legislative Council (PLC) List: Individuals of the PLC who were elected on the party slate of Hamas, or any other Foreign Terrorist Organization (FTO), Specially Designed Terrorist (SDT), or Specially Designated Global Terrorist (SDGT). (Department of the Treasury, Office of Foreign Assets Control)
- SANCTIONS/EMBARGOES
The following countries and regions are currently sanctioned for the resale of U.S. products and technology: Cuba - Iran – North Korea - Syria – Crimea Region of Ukraine
Embargoed nations and other nations for which there are export sanctions often change. The link below is for your reference regarding embargoed countries:
https://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx
As noted previously, compliance with these requirements is an integral part of the corporate policy of Brainwave. As a client of Brainwave, your acceptance of the terms outlined above is fundamental to our continuing business relationship.
If you should have any questions, please do not hesitate to contact our In-House Counsel directly at ptomkins@brainwavescience.com.