Business owners often do not realize that exports can occur even when a product does not leave the country. Even talking about a product with a foreign person can be an export of technology. It is better to be knowledgeable about United States export regulations than to take the risk of guessing what obligations apply. This is one area of the law in which an ounce of prevention is truly worth a pound of cure. The United States government is committed to working as a team member with, rather than an obstruction to, United States business, as long as business and its representatives cooperate and comply with applicable regulations. Mohr Hackett can help a client establish the desired working relationship with Bureau of Industry and Security and the U.S. State Department.
Mohr Hackett helps clients identify and negotiate confusing and complex State Department Export and Administration Regulations that may apply to a company doing business in the United States, by designing and implementing an export compliance policy and creating a classification system or formal classification applications for exported products. Mohr Hackett can help clients determine their exposure under export regulations, develop compliance procedures, prepare license or classification applications, and represent the client who has been targeted by the government. On behalf of United States companies who export abroad, we establish a cooperative working relationship with the Bureau of Industry and Security and the State Department to promote a company’s business objectives without compromising United States security goals.
The United States government restricts exports of a wide range of commercial and specialized goods and technologies. The United States uses export controls to prevent potential adversaries of the United States from obtaining militarily relevant technologies; prevent the proliferation of nuclear weapons, chemical and biological weapons, and ballistic missiles; and support United States foreign policy goals, such as promoting human rights and fighting international terrorism.
The United States has a complex set of regulations that set forth United States export restrictions and export licensing requirements. Enforcement of such regulations intensified in the wake of the September 11 terrorist attacks on our country. The regulations include The Export Administration Regulations (15 CFR Parts 730 - 774); The International Traffic in Arms Regulations (22 CFR Parts 120 - 130); The Assistance to Foreign Atomic Energy Activities Regulations (10 CFR Part 810); The Export and Import of Nuclear Equipment and Material Regulations (10 CFR Part 110); and The Foreign Assets Control Regulations (31 CFR Parts 500 - 585).
Under the State Department Export and Administration Regulations, it is a high priority for an exporter to implement an internal compliance policy and to monitor all exports for ongoing compliance with various government regulations. Business activities that are governed by regulations include product sales to overseas customers; transfers of technical data to foreign persons in the United States or overseas; providing technical assistance to foreign customers; and hand portation of products, equipment, and technical data by employees traveling overseas (including lap top computers).
Compliance procedures include a system for determining export licensing requirements, screening customers against export blacklists, screening the activities of customers against prohibited weapons proliferation and related activities, and ensuring that sales/marketing personnel do not cooperate with or agree to cooperate with unsanctioned political boycotts. Thorough recordkeeping procedures must be implemented. In addition, it may be necessary to apply for export licenses or request export classification by either the Bureau of Industry and Security or the State Department. Violation of export regulations can result in serious consequences and prosecution.