In today’s world, it is easy to connect to potential customers all over the world who want to purchase goods or services from your U.S. business. Before your U.S. business can export, however, a critical question that needs to be answered is: Can my business export goods or services to an international buyer? The answer to this question is not straightforward and depends on the type of goods being sold, who the buyer is, and what country the buyer is located in. There are three different federal regulations and regulators that can have an impact on whether a business can export its goods and services:
• Export Administration Regulations (“EAR”):
Most U.S. items that are considered dual-use items (possessing both commercial and military proliferation applications), as well as some commercial and munitions items, are subject to the EAR. Generally speaking, to export these items, a license must be obtained from the Bureau of Industry Security (“BIS”). Failure to comply can result in severe civil and criminal penalties. Bross Law, LLC assists clients in providing legal opinions regarding the need for licensing, responding to inquiries and investigations from the BIS, and obtaining the proper Export Commodity Classification Numbers (“ECCN”) from the BIS.
• International Traffic in Arm Regulations (“ITAR”):
The ITAR controls the sale of defense items and defense services, which provide the U.S. with critical military or intelligence capability and superiority. If your business produces or sells these items, you need to learn about the ITAR, including potential requirements to register with the U.S. Department of State’s Directorate of Defense Trade Controls (“DDTC”). The United States Munitions List (“USML”) is located in the ITAR, and it describes what a defense article or service means. Under ITAR, you need to obtain a license before exporting an item on the USML or face serious legal consequences. Bross Law, LLC assists clients in submitting Commodity Jurisdiction Requests (“CJR”), responding to inquiries and investigations from the DDTC, preparing license applications, and complying with other export regulatory requirements.
• Economic and Trade Sanctions:
The Department of Treasury’s Office of Foreign Asset Controls (“OFAC”) and the BIS oversee and enforce economic and trade sanction against specific countries and individuals based on U.S. foreign policy and national security goals. OFAC and BIS maintain lists of persons (natural persons and entities, including corporations) that are subject to trade restrictions, and a U.S. person or company cannot engage in business activity with an entity on the OFAC or BIS lists. Failure to comply can lead to significant civil and criminal penalties. Bross Law, LLC assists individuals and businesses in compliance with OFAC laws, preparing and submitting voluntary disclosures, and in responding to government investigations when OFAC violations are alleged.
If your business has an export problem or an export question, please contact Bross Law, LLC by phone or the contact form to set up your free initial consultation. All inquiries are completely confidential and will be answered promptly.
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