Export Controls
Understanding export controls and U.S. economic sanctions is essential to minimizing the risks associated with international trade activities. The United States controls the exportation of items based on the nature of the item, its end use, the end user and the country of destination. Restrictions on the exportation of products apply to munitions under the International Traffic in Arms Regulations (ITAR) and “dual use” goods under the Export Administration Regulations (EAR). Additionally, economic sanctions programs administered by the Office of Foreign Assets Control (OFAC) restrict specified types of transactions with certain countries, individuals and firms. These sanctions may extend to the activities of foreign branches and subsidiaries of U.S. companies, as well as any U.S. person or companies directing or participating in those activities.
Compliance is the central element of export controls. Due to the differing, and sometimes conflicting and overlapping, regulations enforced by the Departments of State, Commerce, Treasury, Homeland Security and other agencies, compliance and the resolution of potential violations can be complex. At Thompson Coburn, we work with our clients to design, develop and implement the documented compliance programs that are essential to avoiding and mitigating export control penalties.