By: Thad McBride
On May 10, 2013, the U.S. State Department issued unusually practical guidance (the Guidance) on exporting to Libya. The Guidance, which even has a practical name – “Direct Commercial Sales of Defense Articles and Services to Libya” – is available here.
For many years, the United States has imposed extensive restrictions on exports of defense articles to Libya. Since February 2011, unilateral U.S. restrictions on such exports have been buttressed by an arms embargo imposed on the country by the United Nations. Under part 126 of the U.S. International Traffic in Arms Regulations (ITAR), UN arms embargoes essentially have direct effect under U.S. law. With respect to Libya, this means that section 126.1(k) of the ITAR tracks the restrictions that the United Nations has imposed on Libya.… Continue Reading
By: Reid Whitten
On April, 30, 2013, Raytheon Company, a major military electronics and weapons manufacturer, agreed with the U.S. Department of State to pay $8 million in civil penalties and remedial expenditures to settle alleged violations of the International Traffic in Arms Regulations (ITAR). The size of the penalty catches the eye, but beyond the whopping number is a sizeable lesson to be drawn from such enforcement actions: when a company forgoes the expense of maintaining its ITAR compliance system, it risks paying a much greater price if a breakdown occurs.… Continue Reading
By: Scott Maberry, Curtis Dombek, and Cheryl Palmeri
On April 16, 2013, the U.S. Departments of State and Commerce published the first in a series of final rules, amending the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) in accordance with President Obama’s 2009 Export Control Reform (ECR) initiative. This is a significant milestone in export reform. The ECR aims to focus U.S. government efforts on controlling the export of sensitive technologies while streamlining exports of defense-related items to U.S. allies and partners around the world.
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By: Thad McBride and Matthew Riemer
On Thursday, March 14, the Census Bureau published a final rule (available here) implementing changes to the Foreign Trade Regulations (FTR), 15 C.F.R. Part 30. The final rule includes long-awaited revisions to the post-departure filing program commonly referred to as Option 4. Census is also requiring mandatory filing of export information through the Automated Export System (AES) or through AESDirect for all shipments of temporary exports. The final rule also implements remedial changes to the FTR to improve clarity and to correct errors.… Continue Reading
By: Scott Maberry and Reid Whitten
Since 2011, President Barack Obama’s administration has actively pursued export control reform designed to reduce the regulatory burdens on U.S. companies and enhance U.S. national security (as reported here). On March 7, 2013, the Administration notified Congress of the first in a series of amendments to the U.S. Munitions List. The next day, March 8, 2013, the White House released Executive Order 13637 to update delegations of presidential authority over the administration of export and import controls. Also on March 8, the White House issued a fact sheet on the implementation of export control reform. These steps, though small, mark clear progress in the President’s Export Reform Initiative.… Continue Reading
By: Mark Jensen
For the last nine months, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) has been collaborating with NASA, the U.S. Air Force, and the National Reconnaissance Office on a “Deep Dive” survey and assessment of the U.S. space industrial base supply chain network. The survey was originally distributed to 9,150 companies and other organizations. Through January 2013, the government had received more than 2,000 responses, which yield a great deal of data about the space industry in the United States.
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By: Reid Whitten
On June 15, the European Union put into effect some 271 changes to its dual-use export control regulations. The changes represent an update of the entire European export regime to incorporate numerous changes made in accordance with international agreements reached in the past few years.… Continue Reading
By: Curt Dombek and Mark Jensen
On June 19, The U.S. Department of State, Directorate of Defense Trade Controls (DDTC) and U.S. Department of Commerce, Bureau of Industry and Security (BIS) proposed a joint, largely standardized definition of "specially designed" that would apply to items on both the Commerce Control List (CCL) and U.S. Munitions List (USML). The definition represents a major step in the functional merger of the two lists. Once implemented, it should ease the administrative burden of U.S. export compliance on companies whose work touches both areas and clarify the status of a large number of items. One thing it will not do (and which may never be done) is remove ambiguity from the lists altogether.… Continue Reading
By: Thad McBride and Cheryl Palmeri
As part of the Obama Administration’s Export Control Reform Initiative, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) has recently revised the Export Administration Regulations (EAR) by adding a new Export Classification Control Number (ECCN) series to the Commerce Control List (CCL). The newly created ECCN series 0Y521 is a temporary holding classification for items that are subject to the EAR but are not yet identified in an existing ECCN.… Continue Reading
By: Curt Dombek, Brian Weimer, Dan Brooks, and Reid Whitten
Since 1999, strict controls on the export of U.S. satellites and satellite components have drastically eroded U.S. manufacturers’ market share in the global satellite industry. On April 18, 2012, the U.S. Departments of State and Defense released the “1248 Report” containing findings related to reducing some of those controls. The 1248 Report assesses the national security risks of removing certain satellites and related components from the tightly controlled United States Munitions List (USML) and transferring them to the generally less restrictive Commerce Control List (CCL). The report concludes that most communications satellites, lower-performing remote sensing satellites, and related components could be transferred from the USML to the CCL without harming U.S. national security. The transfer of these items to the CCL could greatly benefit the U.S. satellite industry by significantly easing the export controls placed on its products.… Continue Reading
By: Scott Maberry
As illustrated by three recent export enforcement actions, when armed government enforcement agents come to your door with PowerPoint slides, pay close attention. On March 8, 2012, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) and the U.S. Attorney's Office for the District of Wyoming announced settlements of three related cases involving illegal exports to Syria. The cases involved an increasingly common enforcement tool, the U.S. government "outreach" visit. … Continue Reading
By: David S. Gallacher
2011 was a banner year for U.S. export control laws. The Obama administration has vowed to streamline and reform the bloated U.S. export control system – promising to build "higher walls" around a narrower universe of goods and technologies requiring export licenses. Following is a summary of ten of the key reforms to U.S. export laws that took place (or were proposed) in 2011.
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By: Curt Dombek & Reid Whitten
On November 7, 2011, the U.S. State Department published a proposed rule amending the International Traffic in Arms Regulations (“ITAR”) by narrowing the categories of aircraft and related equipment controlled on the United States Munitions List (“USML”). Concurrently, the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) published a proposed rule adding five new Export Control Classification Numbers (“ECCNs”) to the Commerce Control List, which lists items controlled under the Export Administration Regulations (“EAR”). The two rules are linked, as the new ECCNs in BIS's proposed rule will cover those items carved out of the ambit of ITAR controls by the State Department’s proposed rule.
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