Export Controls & Cybersecurity

Introduction

In order to protect U.S. national security interests and promote foreign policy objectives, various U.S. agencies collectively administer and enforce U.S. export control laws and participate in various multilateral export control regimes to prevent the proliferation of weapons of mass destruction and prevent destabilizing accumulations of conventional weapons and related materials. To that end, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) governs the export and reexport of commodities, software, and technology falling under the jurisdiction of Export Administration Regulations. BIS promotes continued U.S. strategic technology leadership and is responsible for enforcing the regulation of export, reexport, and transfer of items with commercial uses that can also have a dual use, and be used in conventional arms, weapons of mass destruction, terrorist activities, or human rights abuses, and less sensitive military items, which bleeds into cybersecurity as well.

Cybersecurity has recently become an essential aspect in export controls and on October 21, 2021, BIS published its Interim Final Rule (this rule is effective January 19, 2022), which summary states:

SUMMARY: This interim final rule outlines the progress the United States has made in export controls pertaining to cybersecurity items, revised Commerce Control List (CCL) implementation, and requests from the public information about the impact of these revised controls on U.S. industry and the cybersecurity community. Specifically, this rule establishes a new control on these items for National Security (NS) and Anti-terrorism (AT) reasons, along with a new License Exception Authorized Cybersecurity Exports (ACE) that authorizes exports of […]

By |2022-02-15T13:12:15-05:00February 15, 2022|ACE, EAR, Enforcement, Export, International Trade, U.S. Bureau of Industry and Security (BIS)|Comments Off on Export Controls & Cybersecurity

3-Part Podcast Miniseries – Importing, Exporting, and AD/CVD

Diaz Trade Law is excited to announce that three of its attorneys participated in a three-part podcast mini-series on Customs and International Trade law.  The podcast is titled “The View from Jamestown” and hosted by Ben Sawicki of The Chemical Company. This special three-part podcast mini-series featured an in-depth introduction to importing, exporting, and anti-dumping and countervailing duty investigations (AD/CVD), along with helpful insights on best practices for your business. The three podcasts are great for both beginners and advanced levels. We would love to hear your feedback once you’ve watched!

Watch Now! 

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By |2021-12-20T10:52:46-05:00December 21, 2021|Best Practices, Export, Import, International Law, International Trade, Speaking, U.S. Customs and Border Protection (CBP)|Comments Off on 3-Part Podcast Miniseries – Importing, Exporting, and AD/CVD

Bloomberg Law – Introduction to U.S. Export Controls: Part 2

Diaz Trade Law’s President, Jennifer Diaz,  and Associate Attorney, Sharath Patil, are enthusiastic to announce Bloomberg Law published another one of our articles, “Introduction to US Export Controls Part 2“! 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 |2022-04-25T16:52:06-04:00December 7, 2021|Best Practices, Bloomberg, Bloomberg Export, EAR, EEI, Export, International Law, International Trade, ITAR, U.S. Bureau of Industry and Security (BIS), U.S. Office of Foreign Assets Control (OFAC)|Comments Off on Bloomberg Law – Introduction to U.S. Export Controls: Part 2

$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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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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Vegas Woman Charged with Iran Sanctions Violations

A Las Vegas woman has been indicted by a federal grand jury for conspiracy to export goods from the United States to Iran, in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations. According to the indictment unsealed recently, Tina Chen, 47 — aka Ya When Chen, Wen Tina Chen, Tina Dunbar, and Tina Dubner — is the owner of Top One Zone, LLC, a company exporting electronic and computer components that Chen operates from her residence. As alleged, from about November 2015 to May 2019, Chen conspired with others to buy and export goods from companies in the United States, and then send those goods to individuals in Iran through companies in Hong Kong. Chen concealed the identities of the end users, and she did not have a license from OFAC. Chen is charged with one count of conspiracy to unlawfully export goods to Iran.

According to the allegations in the indictment, Chen engaged in numerous overt acts of conspiracy including:

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By |2021-10-07T14:41:14-04:00July 23, 2021|EAR, EEI, Export, International Trade, IRAN, U.S. Department of Commerce (DOC), U.S. Office of Foreign Assets Control (OFAC)|Comments Off on Vegas Woman Charged with Iran Sanctions Violations

New CITBA Article – An Overview of China’s New Export Controls Regime

Diaz Trade Law’s President, Jennifer Diaz, and Associate Attorney, Sharath Patil, are enthusiastic to announce that our article, “An Overview of China’s New Export Controls Regime” was published by the Customs and International Trade Bar Association (CITBA) in its Summer 2021 newsletter.

Our article discusses China’s new export control regime. The new framework is similar in many ways to U.S. export licensing mechanisms. The framework is seen by many as a mechanism to counter increasing U.S. export controls towards China as part of escalating U.S.-China tensions.

Below is the article for your reading pleasure.

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By |2021-10-07T14:42:58-04:00July 20, 2021|Best Practices, China, EAR, Export, International Trade, ITAR, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC), U.S. Department of State (DOS), U.S. Office of Foreign Assets Control (OFAC)|Comments Off on New CITBA Article – An Overview of China’s New Export Controls Regime

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

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 |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 on ACE: Auditing Your Export History

Exporting 101 – Introduction to Export Controls

On April 30, 2021, the Bureau of Industry and Security (“BIS”) announced that it had fined FLIR Systems, Inc. $307,922 for an egregious violation of the Export Administration Regulations (“EAR”) for misrepresentations made in commodity jurisdiction (“CJ”) requests. A BIS spokesperson said: “BIS will not tolerate exporters that provide inaccurate or incomplete representations related to export regulations and laws.”

This recent announcement is a textbook example of why it is important to obtain counsel and be  both proactive and truthful in regards to your export compliance. Whether you are new to exporting or looking to understand the foundations of export controls, including a discussion of recent penalty cases like FLIR’s (so they do not happen to you), or a seasoned professional looking to understand the latest developments, this one-hour webinar is a must attend. Register today to hear directly from the following expert duo:

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