US Trade law Regulation of Technology Exports
-
Upload
chester-pllc-global-business-technology-law -
Category
Law
-
view
210 -
download
1
description
Transcript of US Trade law Regulation of Technology Exports
![Page 1: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/1.jpg)
EXPORT CONTROLS ON TECHNOLOGY
J IM CHESTER J D / L L . M C H E S T E R & J E T E R , L L P D A L L A S , T E X A S
1
Presented by:
![Page 2: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/2.jpg)
I. INTRODUCTION
US Trade Laws When importing, exporting or dealing with foreign affiliates, numerous US trade regulations must be observed. - Certain goods have special rules.
2
![Page 3: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/3.jpg)
I. INTRODUCTION
Technology exports are of special concern to US regulators - Often sensitive/ dangerous
applications/uses - Easy to send / forward - Difficult to track
3
![Page 4: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/4.jpg)
I. INTRODUCTION The Bureau of Industry and Security (BIS) has primary responsibility for enforcing export control laws § Export Administration Act (EAA) § Export Administration Regulations (EAR)
Other agencies have export-specific regulations that must also be observed. § (e.g., Department of Defense Trade Controls
(DDTC)
Most export documents are delivered to CBP
4
![Page 5: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/5.jpg)
I. INTRODUCTION
What is an Export? § Physical shipment of EAR-subject goods,
technology, or technical data outside US Customs Territory
§ Downloads and emails of technology and technical data outside US
§ “Sharing” technology with a foreign national, even on US soil (“deemed” export)
5
![Page 6: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/6.jpg)
II. STANDARD EXPORT COMPLIANCE 4 Key Questions for Exports
§ What is it? § description & classification
§ Where is it going? § country
§ Who will be receiving it? § person/entity
§ How will it be used? § dual use
6
![Page 7: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/7.jpg)
II. STANDARD EXPORT COMPLIANCE
Pre-Shipment Checks and License Requirements (i.e., “General Prohibitions”) 1. Determine whether a license is required Step 1: Obtain Export Commodity Classification Number
(ECCN) for product on Commerce Control List (CCL), Step 2: Compare to Country Chart Step 3: If license is required, see if exception applies. Step 4: If license is required and no exception applies, apply
for license from BIS.
7
![Page 8: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/8.jpg)
II. STANDARD EXPORT COMPLIANCE
2. Check the various “bad guy” lists 1. Denied Parties List - BIS 2. Specially Designations Nationals and
Narcotics Traffickers - OFAC 3. Entity List - BIS 4. Debarred Parties List – State 5. Unverified List – BIS
8
See http://www.treas.gov/offices/enforcement/ofac/sdn
![Page 9: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/9.jpg)
II. STANDARD EXPORT COMPLIANCE
3. Ensure export would not violate U.S. sanctions. – See current Office of Foreign Asset Controls (OFAC) Sanctions (http://
www.treas.gov/offices/enforcement/ofac/sanctions)
4. Don’t ignore “Red Flags”
9
![Page 10: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/10.jpg)
II. STANDARD EXPORT COMPLIANCE
Penalties for Export Violations § Up to $1 million § Up to 5 years in prison § Denial of export privileges
10
![Page 11: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/11.jpg)
II. STANDARD EXPORT COMPLIANCE Common Exporting Pitfalls § Failure to check “bad guy” lists § Failure to secure IP abroad § Unlicensed exports § Deemed exports § Recordkeeping § Incorrect SEDs/documents
11
![Page 12: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/12.jpg)
III. INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR)
Prohibits shipments of certain defense articles and technology.
Controls trade in “Munitions” - Including “Mil Spec/Std.”
Requirements - Registration - Licenses - Recordkeeping
12
![Page 13: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/13.jpg)
III. INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR)
Common ITAR Pitfalls – No export/re-export license
– Recordkeeping/Reporting – Shipments to affiliates – Dual use items – “Deemed” export
13
![Page 14: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/14.jpg)
III. INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR)
ITAR Penalties Criminal & Civil:
§ Up to $1 million per violation for corporations § Up to $1 million per violation and up to 10 years in
jail for individuals
Other Enforcement Measures:
§ Seizure or forfeiture of goods § Debarment from licensing for as long as three years § Potential debarment from Government contracting
for up to three years
14
![Page 15: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/15.jpg)
IV. PATENTS § One of the exceptions to when an item is “subject to the EAR”
covers technology that has been made “publicly available” 15 CFR §§ 734.3 & 734.7.
§ BIS opinion from January 2006: technology covered in an issued
patent, a published patent application, or in an application approved for foreign filing, would be considered outside the scope of the EAR • Prior to publication of the patent, the technology would still be
controlled by EAR. • In addition, encrypted software is subject to special additional
controls.
15
![Page 16: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/16.jpg)
V. KEYS TO COMPLIANCE
- Know & Follow the Rules - Implement & update written compliance program - Periodic compliance training - “Hands on” management of vendors, agents,
brokers, forwarders, etc. - Inter-Departmental Cooperation
- E.g., R&D, Legal, HR, etc.
16
![Page 17: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/17.jpg)
V. KEYS TO COMPLIANCE
- Check your Work - Periodic compliance
reviews - Self-awareness cuts off “contingent” liabilities
- Prior Disclosures reduce/eliminate potential penalties
17
![Page 18: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/18.jpg)
VI. CONCLUSION
- International trade involves numerous rules & agencies
- Must be aware of rules and ensure compliance through training and internal reviews
- Rules change frequently - Self-policing reduces liabilities
18
![Page 19: US Trade law Regulation of Technology Exports](https://reader033.fdocuments.in/reader033/viewer/2022051609/548038e65806b5e55e8b4994/html5/thumbnails/19.jpg)
VI. CONCLUSION
Ø Failure to be diligent with trade compliance = Ø Lost opportunities Ø Substantial penalties Ø Interruptions in global supply chain
Ø Companies can budget and plan for compliance, but not for enforcement.
19