The U.S. government continues to vigorously enforce U.S. export laws against both U.S. and non-U.S. companies. In addition to monetary penalties, companies charged with violating U.S. export laws may be subject to strict compliance obligations. In extreme cases, the U.S. government may even suspend a company’s export privileges.
In this webinar, we will discuss recent
On August 3, 2021, the U.S. State Department Directorate of Defense Trade Controls (DDTC) issued an order laying out charges and imposing a monetary penalty of $6.6 million on Keysight Technologies, a U.S. technology and software company, for 24 alleged violations of the International Traffic in Arms Regulations (ITAR). The ITAR are the primary U.S. regulations that control exports of defense articles, services, and technology, including software.
Keysight and DDTC settled the matter through a Consent Agreement that also requires Keysight to take specific compliance measures, including maintaining a designated compliance officer, for a period of three years.
We want to highlight three particular elements of this matter.
Continue Reading Export Enforcement Update: The Importance of Commodity Classification
I co-authored an article with Heather Smith, Associate General Counsel and Secretary at Lydall, Inc., outlining best practices for companies to undertake to ensure successful export transactions. The article also discusses the relevant regulations and agencies governing and enforcing export activities, such as the Export Administration Regulations (EAR), the International Traffic in Arms Regulations (ITAR) and Office of Foreign Assets Control (OFAC). As we point out in the article, “U.S. export and sanctions laws have a broad reach and can cover conduct occurring entirely outside the United States and actions undertaken by non-US parties.” It is therefore important that any company involved in export transactions be aware of and establish “a robust culture of compliance, including tone from the top and clear policies and procedures, [as] an essential part of effective compliance.”
Continue Reading Export Compliance: Challenges and Best Practices
Join us next week as we present on the topic of “Complying with ITAR Requirements Amid Increased Enforcement” in a webinar hosted by Clear Law Institute. We will be speaking with Dave Hardin, Senior Counsel at Raytheon, as we cover how to comply with current U.S. export control requirements under the U.S. International Traffic in
As yet another step in the continuing Export Control Reform (ECR) effort, the U.S. government has recently issued a series of proposed rules that may help clarify key regulatory definitions and requirements that have confused exporters in the past. In particular, the proposed rules may ease licensing requirements for U.S. persons – and the employers of U.S. persons – working in the global defense industry.
First, on May 26, the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) proposed changes to the International Traffic in Arms Regulations (ITAR) to clarify the registration and licensing requirements that apply to U.S. persons in the United States or abroad who furnish defense services to, or on behalf of, their non-U.S. person employers. See 80 Fed. Reg. 30001 (May 26, 2015).
Then, on June 3, DDTC issued proposed revisions to help clarify the scope of activities and information covered by the ITAR. See 80 Fed. Reg. 31525 (June 3, 2015). The same day, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) issued a parallel proposed rule to amend key definitions of the U.S. Export Administration Regulations (EAR). See 80 Fed. Reg. 31505 (June 3, 2015).
What follows is a brief summary of several of the key changes.
Continue Reading ECR Marches On: State and Commerce Announce More Proposed Changes