ITAR Archives | Customs & International Trade Law Blog

Building & Maintaining an Export Compliance Plan

Diaz Trade Law’s President, Jennifer Diaz, Associate Attorney Sharath Patil, are enthusiastic to announce Bloomberg Law published another one of our articles, “Building & Maintaining an Export Compliance Plan”! We also thank our law clerk, Gabi Perez, for her support with research for this article. 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|2022-11-10T15:44:12-05:00October 18, 2022|Bloomberg, Bloomberg Export, International Law, U.S. Bureau of Industry and Security (BIS), Uncategorized|Comments Off

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)|Comments Off

Customs and Trade Law Weekly Snapshot

Here is a recap of the latest customs and international trade law news:

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By Jennifer Diaz|2022-07-01T11:13:28-04:00February 4, 2022|Brazil, Export, International Trade, ITAR, Snapshot, U.S. Department of State (DOS), USMCA|Comments Off

Export Filing Requirements for Puerto Rico & the U.S. Virgin Islands

Did you know that shipments from the 50 U.S. states to Puerto Rico and the U.S. Virgin Islands generally requires an Electronic Export Information (“EEI”) filing under the U.S. Census Bureau’s Foreign Trade Regulations? This article provides an overview of Foreign Trade Regulations export filing requirements generally, outlines the requirements for Puerto Rico and the U.S. Virgin Islands, and outlines what you can do to optimize your export compliance.

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By Jennifer Diaz|2022-07-07T12:52:42-04:00January 11, 2022|EAR, EEI, Export, International Trade, ITAR, U.S. Census Bureau|Comments Off

Export Licensing Under EAR

Diaz Trade Law’s President, Jennifer Diaz, and Associate Attorney, Sharath Patil, are enthusiastic to announce Bloomberg Law published another one of our articles, “Export Licensing Under EAR“! 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!

[…]

By Jennifer Diaz|2022-04-25T16:53:46-04:00January 4, 2022|Best Practices, Bloomberg, Bloomberg Export, EAR, Export, International Trade, ITAR, U.S. Bureau of Industry and Security (BIS)|Comments Off

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!

[…]

By Jennifer Diaz|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

Keysight Technologies Pays $6.6M to State Department for Export Violations

The U.S. Department of State and the California-based company Keysight Technologies Inc. have reached a settlement of $6.6 million for violations of the Arms Export Control Act (AECA), 22 U.S.C. § 2751 et seq., and the International Traffic in Arms Regulations (ITAR), 22 C.F.R. Parts 120-130. This settlement comes after a compliance review by the Office of Defense Trade Controls Compliance (DDTC) in the Department’s Bureau of Political-Military Affairs for exporting unauthorized software used for testing radar equipment (on fixed or mobile platforms) to countries including Russia and China.

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By Jennifer Diaz|2021-10-07T14:34:25-04:00September 17, 2021|Customs Expert, Enforcement, Export, International Trade, ITAR|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

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

BIS Publishes First Military End User List

In a Final Rule, published on December 23, 2020, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) amended the Export Administration Regulations (“EAR”) by creating a “Military End User (MEU) List”. The list includes the first tranche of 103 entities consisting of 58 military end-users in China and 45 in Russia. BIS determined that these companies are ‘military end users’ for purposes of the ‘military end user’ control in the EAR that applies to specified items for exports, reexports, or transfers (in-country) to China, Russia, and Venezuela when such items are destined for a prohibited ‘military end user.’

Prior to this final rule, exporters, reexporters, or transferors were responsible for identifying these entities as ‘military end users’ themselves, assuming they were not otherwise individually informed. The MEU List (which is now searchable on the consolidated screening list) allows the public to be informed of BIS’s determination so all potential exporters are informed simultaneously.

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