Export Administration Regulations Archives | Customs & International Trade Law Blog

Significant Updates to BIS Enforcement Policies in 2022

Diaz Trade Law’s President, Jennifer Diaz, Associate Attorney Sharath Patil, are enthusiastic to announce Bloomberg Law published another one of our articles, “Significant Updates to BIS Enforcement Policies in 2022“! Below is the article reproduced with permission for your reading pleasure. You can read the article here (where you’ll have the ability to access all of the great hyperlinks). Please note you cannot click on the hyperlinks below.

We’d love to hear your feedback!

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By Jennifer Diaz|2022-11-08T14:42:31-05:00November 8, 2022|Bloomberg, Bloomberg Export, China, Cuba, EAR, Export, International Trade, IRAN, People's Republic of China, Russia, Russian Harmful Foreign Activities Sanctions Regulations, U.S. Bureau of Industry and Security (BIS)|Comments Off

Understanding the RPL Export License Exception

U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”). Administered by the U.S. Commerce Department, the EAR is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. U.S. exporters have an important responsibility to adhere to the EAR. Violations of the EAR carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned.

Licensing Exception for “Servicing and Replacement of Parts and Equipment” (RPL)

An export license under the EAR is not necessary if the License Exception for “Servicing and Replacement of Parts and Equipment” (“RPL”) applies. License Exception RPL is described under Part 740.10 of the EAR. RPL is known as a transaction-based exception because the availability/applicability of the exception is based on the terms of the transaction.

According to BIS guidance, the RPL License Exception may be used for the two following scenarios:

Replacement Parts – This authorizes the export and reexport of replacement parts for the immediate repair of previously exported, reexported or foreign made equipment incorporating U.S. origin parts on a one-for-one replacement basis. It also authorizes the export and reexport of stock spare parts that were authorized to accompany the export of equipment.
Servicing and Replacement – Replacements for defective or unacceptable U.S.-origin equipment. (a) The commodity or software to be replaced must have been […]

By Jennifer Diaz|2022-08-22T15:53:35-04:00August 30, 2022|EAR, EEI, Export, International Trade, U.S. Bureau of Industry and Security (BIS)|2 Comments

Encryption Controls under the Export Administration Regulations

Encryption is generally defined as the process of converting information or data into a code, especially to prevent unauthorized access. Put simply, encryption makes a wide range of technologies more secure. Since 1996, most encrypted technology is controlled by the EAR. Some encrypted technology, which has military-related functionalities, is controlled by the International Traffic in Arms Regulations (“ITAR”). This article provides an overview of encryption controls under the EAR, outlines license exceptions for certain encrypted technologies, and provides best practices for export compliance.

Background on Export Administration Regulations

Over 95% of the world’s population is outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”).

Administered by the U.S. Commerce Department, the EAR is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. U.S. exporters have an important responsibility to adhere to the EAR. Violations of the EAR carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned.

Encryption Controls

According to 15 CFR 742.15:

“Encryption items can be used to maintain the secrecy of information, and thereby may be used by persons abroad to harm U.S. national security, foreign policy and law enforcement interests. The United States has a critical interest in ensuring that […]

By Jennifer Diaz|2022-09-09T08:08:45-04:00August 24, 2022|EAR, EEI, Export, ITAR, U.S. Bureau of Industry and Security (BIS), U.S. Census Bureau, U.S. Department of Commerce (DOC), U.S. Department of State (DOS)|1 Comment

$432k Penalty From BIS Stresses Importance of Export Compliance

Building and maintaining a strong export compliance program is essential if you don’t want your company to become a headline. The Bureau of Industry and Security (BIS) announced an administrative settlement with a penalty amount of $432,570, for Alfa Laval US of Richmond, VA and Alfa Laval Middle East Ltd. of the United Emirates for alleged violations of the Export Administration Regulations.

Do you know if your company is meeting export regulations and obligations? Obtaining counsel who is an expert in export compliance is the first step. Are your employees/staff trained in all exporting issues? Our one-hour webinar is a must attend to help provide you with a foundation of tools and key elements that must be included in your export compliance program. Register today to hear from the following experts:

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By Jennifer Diaz|2021-09-13T15:54:12-04:00September 14, 2021|EAR, Export, International Law, U.S. Bureau of Industry and Security (BIS), U.S. Office of Foreign Assets Control (OFAC)|1 Comment

Understanding the GOV Export License Exception

Background on Export Administration Regulations

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”).

Administered by the U.S. Commerce Department, the EAR is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. U.S. exporters have an important responsibility to adhere to the EAR. Violations of the EAR carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned.

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By Jennifer Diaz|2021-10-07T14:37:05-04:00August 24, 2021|Best Practices, EAR, EEI, Export, International Trade, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC)|Comments Off

Understanding the Computer Export License Exception (APP)

Background on Export Administration Regulations

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”).

Administered by the U.S. Commerce Department, the EAR is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. U.S. exporters have an important responsibility to adhere to the EAR. Violations of the EAR carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned.

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By Jennifer Diaz|2021-10-07T14:47:23-04:00August 3, 2021|EAR, EEI, Export, Supply Chain, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC)|1 Comment

Do’s and Don’ts of Filing a Commodity Jurisdiction Request

An Introduction to Export Controls

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”), and the International Traffic in Arms Regulations (“ITAR”). Violations of export control laws carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned for violations of U.S. export control laws.

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By Jennifer Diaz|2021-10-07T14:45:48-04:00June 22, 2021|China, Cuba, EAR, EEI, Export, International Trade, IRAN, ITAR, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC), U.S. Office of Foreign Assets Control (OFAC), venezuela|Comments Off

ACE: Auditing Your Export History

If a company or individual believes they have violated export control regulations and the U.S. government is unaware of this violation, proactively and voluntarily disclosing the potential wrongdoing can substantially reduce penalties. A key component of filing a successful voluntary self-disclosure (“VSD”) is uncovering and providing the correct data. Diaz Trade Law has significant experience analyzing ACE export data to evaluate your export compliance and submit successful VSDs that substantially mitigate penalties.

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By Jennifer Diaz|2021-10-07T14:55:38-04:00May 13, 2021|ACE, Best Practices, EAR, EEI, Export, HTS, International Trade, ITAR, Supply Chain, U.S. Bureau of Industry and Security (BIS), U.S. Census Bureau|Comments Off

Understanding Strategic Trade Authorization

Background on Export Administration Regulations

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”).

Administered by the U.S. Commerce Department, the EAR is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. U.S. exporters have an important responsibility to adhere to the EAR. Violations of the EAR carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned.

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By Jennifer Diaz|2021-10-07T15:03:47-04:00April 20, 2021|Best Practices, China, EAR, Export, International Trade, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC)|Comments Off