Exports are the future of the American economy. But when you seek to market abroad, an array of regulations and exports can trip you up in ways large and small, from delaying shipments to sending errant employees to jail, losing your right to export at all, and even thwarting strategic plans. The primary regulations are:
- The Export Administration Regulations (EAR), administered by the BIS.
- The International Traffic in Arms Regulations (ITAR), administered by the ODTC.
- Transactional regulations administered by the OFAC.
ITAR & EAR
Many companies and institutions first encounter export controls when seeking to employ a non-citizen to work with American technology. That’s because allowing a foreign national to access such technology is “deemed” to be an export to that person’s home country, even if s/he will be working in the United States. In fact, you must now certify in your H1B Visa application for a foreigner that you have reviewed the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR) and (a) you have determined that no license is required to release that technology to the foreign national or (b) you have applied for such a license and will deny access to technology until it has been granted.
If you determine that a license is required, moreover, you must – in your license application – describe the internal controls you have instituted to ensure that foreign nationals get access only to the technology they are licensed to receive. Such “compliance programs” are not necessarily expensive or cumbersome to implement, but they are important to have: Fines for violations – even if inadvertent – can run to $250,000 per violation, but fines that high are seldom imposed if the existence of such a program demonstrates your good faith effort to comply.
Export Compliance NE provides the expertise you need to guide your company through compliance with this complex area of the law at every stage of the company’s development, as well as the services of an experienced export control attorney to represent the company against the government in the unfortunate event that violations occur. contact us today for a consultation, or give us a call at 617-999-9694