and a former U.S. Assistant Secretary of Commerce, International
Trade Administration. He served as a senior U.S. trade policy-maker
and negotiator and has practiced international trade law since 1980.
Stewart. Her practice focuses primarily on international trade law,
export controls, economic sanctions and customs matters.
2100 M Street, N.W., Suite 200
Washington, D.C. 20037
202.315.0765 Phone
202.466.1286 Fax
amdunn@stewartlaw.com
jsmith@stewartlaw.com
www.stewartlaw.com
others involved in exporting certain goods
and technology are facing major changes
to export licensing rules under new
reforms to the U.S. export control laws.
A wide range of products, materials and
technology are affected by export control
reforms that went into effect in October
2013 and additional reforms being
implemented in 2014. All participants
in the export chain from manufacturer to
shipper must ensure that they understand
how the changes to these laws apply to
their products and activities.
Export controls are restrictions on
exports implemented for various national
security purposes that require the
issuance of export licenses by various
agencies of the U.S. government before
exporting a wide range of goods. The
export control laws capture a broader
range of products, software, technology
and services than many realize.
these laws can result in severe criminal and
civil penalties, including imprisonment.
Even a single inadvertent violation can
result in hundreds of thousands of dollars
in penalties. For example, in August
2013, Meggitt-USA, Inc. agreed to pay
a civil penalty of $3 million (plus $22
million suspended) to settle allegations
that it violated export control laws. In
January 2013, a Pennsylvania man was
sentenced to 42 months in jail for knowingly
misclassifying electronic amplifiers.
Although the amplifiers were eligible for
export to the end-user countries under the
proper license, his explanation was that he
was "too busy" to obtain the licenses and
was "overwhelmed at work."
agreed to pay civil penalties of $4 million
(plus $4 million suspended) for alleged
export control violations.
Many violations arise from inattention,
improper self-classification of exported
programs. In some instances, companies
have tried to determine the correct controls,
but missed certain subtleties in the laws and
committed unintentional violations. Such
mistakes are not uncommon.
Initiative
(sometimes referred to as the ECRI) was
launched by the Obama Administration
in 2009 based on the recognition that
complicated export controls make
exporting more difficult for U.S. businesses,
discourage foreign companies from buying
U.S. products and services, and do not
reflect key U.S. national security concerns.
The Reform Initiative seeks to identify
the most sensitive items requiring strict
controls, while streamlining and easing
restrictions on items not as essential to U.S.
national security concerns ("putting higher
fences around fewer items").
This reform effort is focused on two
of the major export control regimes the
International Traffic in Arms Regulations
(ITAR), which regulate items on the U.S.
Munitions List (USML), and the Export
Administration Regulations (EAR), which
regulate items on the Commerce Control
List (CCL).
Force Businesses and Individuals to Comply
With Changing Export Licensing Rules