International Trade

On September 28, the U.S. Commerce Department, Bureau of Industry and Security (BIS) announced that it has imposed a civil penalty fine and denial of export privileges against Vorago Technologies (Vorago) for the unauthorized export of controlled commodities to Russia.

Vorago is a U.S. manufacturer of integrated circuits for use in environments with high radiation levels and extreme temperatures.  The company’s products are particularly well suited for use in space.  BIS is the primary U.S. government agency that administers and enforces U.S. export controls on commercial items, including particularly strict licensing requirements on items that can be used with weapons of mass destruction or conventional weapons.

According to BIS, Vorago engaged in a conspiracy with a Russian company, Cosmos Complect (Cosmos), to circumvent U.S. export controls.  To settle the matter, Vorago agreed to the following:

  1. A penalty of $497,000, and
  2. Denial of export privileges until September 2023.

The denial of export privileges, and roughly half of the penalty, will be suspended as long as Vorago complies with the terms of the settlement.Continue Reading U.S. Technology Company Pays for Unauthorized Exports to Russia

I recently authored an article for Law360 offering an inside look at two U.S. Department of Commerce committees responsible for interpreting how national security and foreign policy should be applied to transactions involving the export, re-export and transfer of U.S. technology. I served on both committees – the Export Administration Operating Committee (OC) and the Advisory Committee on Export Policy (ACEP); I was chair of the OC and executive secretary of the ACEP until joining Bass, Berry & Sims. The article lends important insight to the closed-door processes each body uses and provides clarity on how national security decisions are reached.

While the chair of the OC has decision-making authority (with certain exceptions where decisions are made by interagency vote), the ACEP is the body that reviews cases where a government agency does not agree with the OC chair’s decision. “The decisions of these bodies are where the rubber meets the road in export control implementation,” I explained in the article. “Export control is a key feature in determining whether the U.S. will continue to maintain its technological supremacy, or China or another country will catch up or surpass the U.S.”

In addition to a neutral chair of the OC, who also serves as executive secretary of the ACEP by law, and the politically appointed ACEP chair, representatives from the Department of Commerce, Defense, Energy and State sit on the OC and ACEP. At the OC level, the chair makes a decision based on recommendations from the four agencies (again, with certain exceptions). At the ACEP, decisions are based on a majority vote and where the vote is a tie, the decision reverts to the OC Chair’s decision. The goal of the balanced interagency structure at the OC level is to prevent a single agency from dominating the process. The ACEP’s process aims to resolve situations where the regulatory standards and policy are not clear and have led to disagreements among agencies at the OC, including giving policy guidance for OC members to apply in similar situations going forward.Continue Reading Key Department of Commerce Entities Related to National Security Decision-Making Processes

Please join us for the Compliance & Government Investigations Seminar hosted by Bass, Berry & Sims and FTI Consulting. Due to ongoing COVID-19 concerns, this event will be virtual only.

We are excited for this year’s complimentary CLE program, which will provide the same caliber of practical advice, insight into government developments, and thoughtful discussion from industry panelists you have come to expect from this seminar. This year’s topics include:

  • Inside Scoop: Top Issues In-House Counsel Currently Face
  • Update on International Trade Regulations and Enforcement
  • SEC Update: Key Enforcement and Regulatory Priorities
  • Running an Investigation
  • Antitrust Is Back: DOJ and FTC Signal Significant Increase in Antitrust Enforcement
  • Data Privacy Update
  • Healthcare Fraud Enforcement Updates
  • Hot Topics in Procurement Fraud in 2021 and Beyond
  • COVID-19 Funding Fallout: Preparation for Government Scrutiny

This year’s seminar will be held from 8:30 a.m.–3:45 p.m. CDT on Tuesday, September 28. To register, please click here.

Click here to view the agenda.Continue Reading [Virtual Event] 8th Annual Compliance & Government Investigations Seminar

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 recently provided insights on export control law related to technology and research in a recent article in Chemistry World.  The article covers a recent settlement between Princeton University and the U.S. Commerce Department. Under the settlement, Princeton agreed to pay a fine for alleged export violations related to research sent to foreign facilities in…

As developments related to COVID-19 continue to unfold, Bass, Berry & Sims attorneys are monitoring the situation and providing guidance through a series of video chats entitled, “COVID-19 Compliance Conversations.”

In this episode, Thad McBride is joined by Mahesh Joshi, Vice President & Chief Compliance Officer at NCR. Mahesh shares thoughts on how he…

As developments related to COVID-19 continue to unfold, Bass, Berry & Sims attorneys are monitoring the situation and providing guidance through a series of video chats entitled, “COVID-19 Compliance Conversations.”

In this episode, Thad McBride is joined by Ernie Edgar, General Counsel at Atkins North America, to discuss operational and legal challenges he and…

As developments related to COVID-19 continue to unfold, Bass, Berry & Sims attorneys are monitoring the situation and providing guidance through a series of video chats entitled, “COVID-19 Compliance Conversations.”

In this episode, Thad McBride is joined by Ed Bond, the Director of IBM’s Export Regulation Office, to discuss issues that exporters need to…

As developments related to COVID-19 continue to unfold, Bass, Berry & Sims attorneys are monitoring the situation and providing guidance through a series of video chats entitled, “COVID-19 Compliance Conversations.”

In this episode, Thad McBride and Lindsey Fetzer provide a brief overview of compliance considerations related to international donations and charitable contributions. Watch the…

The U.S. government continues to take action in an effort to slow the spread of the COVID-19 virus.  In so doing, the government has provided insight into those industries and operations deemed to be essential to U.S. national security.  Lessons learned from these actions will almost certainly help inform U.S. policymakers and regulators when the current crisis has eased, particularly with respect to reviewing foreign investment in the United States.  (Such investment, when it could implicate U.S. national security, is subject to review and approval by the Committee on Foreign Investment in the United States.)

DHS Outlines Essential Businesses for Quarantine Purposes

On March 19, the Department of Homeland Security (DHS) issued guidance to identify those industries and businesses considered to be “essential” for U.S. continued operational purposes.  That Guidance on the Essential Critical Infrastructure Workforce was published by the Cybersecurity and Infrastructure Security Agency (CISA), which forms part of DHS.  The guidance is available here.Continue Reading COVID-19 and National Security: Federal Government Defines Essential Business

From the Bass, Berry & Sims Blog Network
From the Bass, Berry & Sims Blog Network

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