International Trade    TAA - FAR - DFARS - ITAR - EAR - OFAC

Our focus is on helping businesses succeed in the international marketplace by guaranteeing they are in compliance with all United States Export Laws. We assist companies with commodity jurisdiction, Technical Assistance Agreements (TAAs), compliance audits and other compliance and licensing challenges.

We are also experienced in goverment contracts, including Federal Aquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS) and Small Business Innovation Research (SBIR) programs. We specialize in International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR) and the Office of Foreign Asset Control (OFAC), a part of the U.S. Department of the Treasury which is responsible for administering and enforcing economic and trade sanctions against certain nations, entities, and individuals.

Is Your Business Export-Compliant?

In the demanding new arena of international trade, keeping track of countless export regulatory requirements can be a daunting task. Responsibilities such as document and license management, product certification, and restricted party screening are critical for the survival of any business that relies on cross-border trade. With both monetary and criminal penalties harsher than ever, compliance is no longer a choice — it is a necessity.

From the U.S. Customs web site

ITT Corporation to Pay $100 Million Penalty and Plead Guilty to
Illegally Exporting Secret Military Data Overseas

WASHINGTON—ITT Corporation, the leading manufacturer of military night vision equipment for the U.S. Armed Forces, has admitted sending classified materials overseas and will pay a $100 million penalty, Assistant Attorney General for the National Security Division Kenneth L. Wainstein and U.S. Attorney for the Western District of Virginia John L. Brownlee announced today, along with the Defense Criminal Investigative Service (DCIS) and U.S. Immigration and Customs Enforcement (ICE). (click here for story)

Most of us assume the term “export” only applies to commodities such as food, hardware, tools or raw materials which are shipped outside the United States. Few of us realize exported items also include information in any form: print, e-mail, fax, CD, verbal exchange, visual transmission and computer downloads.

There are additional transactions that are deemed to be exports even though they may take place within U.S. borders, such as the release of technological information or a source code to a foreign national. Any type of transaction with a foreign national, including a visual demonstration or conversation regarding a product, is subject to the same rules and regulations as if the information were being exported to that person's home country.

To prevent violations of export compliance regulations, of what things should you be aware?

•  Do you currently do business with the government?

•  Do you have a compliance plan in place? This would include a statement from the company's management stressing the importance of compliance, a compliance manual, compliance training, and audits or independent evaluations.

•  Does your company have an Export Control Order checklist or a product matrix?

•  Have you added new product lines that have not yet been cleared for export?

•  Does your product have military application? Can your product be used for another application for which it was not intended? Could your product be considered dangerous or a risk to national security if it fell into the wrong hands?

•  Is your company the sole-source for this product or technology? Is your product unique or in limited supply?

•  Where are your customers located? Are there limitations or trade sanctions imposed on selling to that country? Is your customer on the Department of Commerce Bureau of Industry and Security (BIS) Denied Persons List?

•  Who are your customer's customers? Do you have end-user statements on file?

•  Do you have any foreign national employees or visitors?

 

Penalties for Violations of Export Regulations

ITAR – International Trade in Arms Regulations

United States Department Directorate of Defense Trade Controls

•  Criminal violations: up to $1,000,000 fine per violation and up to 10 years imprisonment

•  Civil penalties: seizure and forfeiture of the articles and any vessel, aircraft or vehicle involved in the violation, revocation of exporting privileges and fines of up to $500,000 per violation.

EAR – Export Administration Regulations

United States Department of Commerce Bureau of Industry and Security

•  Criminal violations: $50,000 to $100,000 or five times the value of the export, whichever is greater, per violation and up to 10 years imprisonment.

•  Civil penalties: loss of export privileges and fines of $10,000 to $120,000 per violation.