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Archive for the ‘Export Control’ Category.

Category VIII Transition Period Ending

On October 15, 2013, many items previously under the jurisdiction of USML Category VIII were moved to the jurisdiction of the EAR. In light of this transitional period, a two year window was designated to allow companies with transitioned items to secure BIS licensing. On October 15, 2015, previously issued State Department licenses will no […]

Special Comprehensive Licenses (SCL) Removed from EAR

On August 26th, the EAR was amended to remove Special Comprehensive Licenses (SCL) effective September 25, 2015. The major reason for this change was that BIS officials believed that SCLs were no longer necessary in light of Export Control Reform.  It had been concluded that individual licenses would offer exporters substantially the same benefits than […]

ITAR Amendment- Clarifying registration/licensing requirements for U.S. persons with foreign employer

The comment period recently closed for a proposed ITAR amendment that would clarify registration and licensing requirements for U.S. persons providing defense services on behalf of their foreign employer. The purpose of this clarification by the DDTC is to establish when U.S. persons are covered by licenses previously acquired by their foreign employer and if […]

Iran- Limited Sanctions Relief

A Joint Comprehensive Point of Action (JCPOA) was reached on July 14 by the P5 +1 countries and Iran.  The JCPOA will allow Iran sanction relief once it has met its responsibilities under the proposed treaty for “key nuclear commitments”.  At this time, the US will be providing sanction relief by easing secondary sanctions (i.e. […]

License Exception GOV: Overview

License Exception GOV (§740.11) authorizes exports, re-exports, and in- country transfer of eligible items to U.S. government persons and agencies, agencies of “cooperating governments”, and international inspections under the International Space Station and the Chemical Weapons Convention.   To be eligible for use of license exception GOV, the items must either be for the personal use […]

Cuba: AT Restrictions removed

On July 22nd, the Commerce Department published a rule implementing the May 29th decision to remove Cuba from the State Sponsor of Terrorism list. While Cuba is still subject to a statutory embargo, it is no longer subject to anti-terrorism (AT) level of controls. Due to the statutory embargo all items under the jurisdiction of […]

Iranian Sanctions Relief

On June 5th, the Federal Register published a State Department provision regarding the “limited, temporary and targeted sanctions relief to Iran” as a consequence of the agreement regarding the nuclear program reached with Iran in April.  The State Department will waive certain sanctions in the hopes of continuing to make future progress negotiating and fulfilling […]

Federal Register Updates- Wassenaar Arrangement, Crimea exception, etc.

  May 20: 80 FR 28853- BIS proposes to implement 2013 Wassenaar Arrangement, in regards to cybersecurity items, intrusion software, and related software. ECCNS 4A005 and 4D004 would be added to control these items. A license would be required for export/reexport/transfer for all countries except Canada, which would be an increase in control. May 21: […]

Merger, Acquisition & Divestiture

If you are a State Department registered company, it is important to consider the State Department requirements in the event your company engages in a merger or acquisition. If the sale or acquisition involves an ITAR registered entity or business (i.e. product line) of an entity, the burden is on the seller to provide advance notification […]

Export Compliance Audits

Periodic export compliance audits are an integral aspect of a company’s export compliance program. Audits demonstrate adherence both to a company’s internal controls and to U.S. export laws and regulations, including the Export Administration Regulation and International Traffic in Arms Regulations .  Export compliance audits review export invoices and other export documents to ensure compliance with product […]