On October 15, 2020, CFIUS will officially tie mandatory filings to U.S. export control regimes, including the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR).  While that change may draw a clearer line of what constitutes a mandatory filing, it also pulls your CFIUS review into the complex (and somewhat nerdy) world of export regulations.
Continue Reading Lend Me Your EARs: CFIUS Makes Export Controls a Trigger for Mandatory Filings

Key Takeaways:

  • Technology Infrastructure and Data. CFIUS will focus its review on investments in critical Technology, critical Infrastructure, and sensitive personal Data (“TID Businesses”).
    • Critical technologies is defined to include certain items subject to export controls along with emerging and foundational technologies under the Export Control Reform Act of 2018.
    • CFIUS provides a very helpful list of critical infrastructure and functions to help assess whether any business is a TID Business. We reproduce most of this list at the end of this blog article. (Sneak preview: telecom, utilities, energy, and transportation dominate the list.)
    • The proposed regulations provide much-needed guidance on what constitutes sensitive personal data and also seek to limit the reach of the definition so it does not cast too wide a net over transactions in which CFIUS really should have no national security concern.
  • Exceptions for Certain Countries. Investors from certain countries may be excepted from CFIUS jurisdiction when making non-controlling investments.
  • New Set of Rules for Real Estate. In a companion piece, CFIUS proposed for the first time a detailed set of rules related to investments in real estate. We will cover this in a separate blog article to be published in the near future.
  • Expansion of Short-Form Declaration Use. The proposed rules provide parties the choice to use a short-form declaration for any transaction under CFIUS jurisdiction in lieu of a long-form notice.
  • Comments Due by October 17, 2019. Members of the public may submit comments on the proposed regulations any time between now and October 17, 2019. Final regulations must be adopted by CFIUS and become effective no later than February 13, 2020.


Continue Reading CFIUS Proposes Rules to Implement FIRRMA

On March 8, the U.S. government signaled regulatory changes that may create new opportunities for international collaboration on satellite development, global sales of satellite and launch equipment, and even sharing launch technology.

. . . and the Government wants you to weigh in.
Continue Reading Clear for More Takeoffs: Now is the Time to Have Your Voice Heard on New Satellite and Launch Regulations

On July 29, 2016, the U.S. Treasury Office of Foreign Assets Control (OFAC) cleared the runway for non-U.S. operators of civil aircraft to send flights into Iran. New  “General License J” authorizes many Boeing, Airbus, and other civil aircraft containing U.S.-origin materials to fly to Iran on “temporary sojourn.” The General License provides a great opportunity for non-U.S. aircraft owners and operators. However, a series of complex conditions may complicate ground handling agreements, damp or dry lease arrangements, code sharing, or other transactions related to providing service to Iran.
Continue Reading Layover in Tehran: United States Authorizes Carriers to Land Civil Aircraft in Iran

We have eaten all the holiday meals and treats, we have counted down and watched the ball drop, and we have emptied a fair few champagne bottles.  Now, we are all resolving to be leaner, nimbler, smarter, and stronger in the New Year.

So is the ITAR.


Continue Reading ECR Episode VIII: New Rules for the New Year

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 Export Control Settlements Highlight the Need to Pay Attention During “Outreach” Visits

By: Thaddeus McBride and Cheryl Palmeri

In a Federal Register Notice dated December 19, 2011, the U.S. Department of State announced proposed changes to 22 C.F.R. part 129 and related provisions of the International Traffic in Arms Regulations (ITAR) that regulate brokers and brokering activities.  State is accepting comments on the proposed rule until February 17, 2012.  The exporting community has been awaiting these amendments for several years, and while providing some clarification as to broker registration and approvals, the amendments are pretty modest. 
Continue Reading State Department (Finally) Proposes Amendments to ITAR Brokering Provisions

By: Thaddeus McBride and Reid Whitten

Under a recent court decision, UK government agencies may be able to shield the names of British companies transacting in Iran, and thereby aid these companies in averting potential consequences of U.S. law.

Continue Reading Mind Your Own Businesses: UK Court Decision May Signal Pushback On Extraterritorial Enforcement of US Trade Laws