Compliance with U.S. export regulations is a critical responsibility of exporters. Below are regulatory agencies and other sources of information for compliance with various export regulations.
Note the information below is not exhaustive of all federal export regulations and requirements, but provides some reference to key areas within export controls.
Bureau of Industry and Security (BIS)
The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce is responsible for regulating the export of most commercial items, often referred to as “dual-use” items which are those having both commercial and military or proliferation applications. Dual use export licenses are required in certain situations involving national security, foreign policy, short-supply, nuclear non-proliferation, missile technology, chemical and biological weapons, regional stability, crime control, or terrorist concerns.
Directorate of Defense Trade Controls (DDTC)
DDTC of the U.S. State Department is responsible for administering the International Trade in Arms Regulations, or ITAR. Military items that are found on the U.S. Munitions List are controled via the ITAR and require U.S. Government authorization for export (licensing).
Office of Foreign Assets Control (OFAC)
The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States.
U.S. Customs & Border Protection (CBP)
U.S. Customs and Border Protection has a variety of roles in enhancing U.S. economic competitiveness, while enforcing trade laws against counterfeit, unsafe and fraudulently entered goods. CBP manages the Automated Commercial Environment (ACE), which is the primary system through which the trade community reprts imports and exports and the government determines admissibility.
Denied Persons/Entities Screening
It is the responsiblity of every exporter to ensure they are not transacting business with individuals and entities that have been designated in one or more of the denied parties lists. There are eleven federal government "lists to check." U.S. exporters are required to check agains these lists before exporting (regardless of country of destination). The Consolidated Screening List allows for exporters to search all the required lists in one search.
Destination Control Statement
The Destination Control Statement is a legal statement required by the EAR and ITAR to be placed on the Commercial Invoice for any items that are listed on the Commerce Control List and are not classified as EAR99. ITAR regulations also requires that this statement, or a reference to this statement, be included within licensing, manufacturing and distribution agreements. The required statement is as follows:
These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.
While not required, including a Destination Control Statement on every transaction is often recommended as a good precaution in order to protect yourself in the event that merchandise you sold to a domestic purchaser is unexpectedly exported from the United States.
Release of controlled technology to foreign persons in the U.S. are "deemed" to be an export to the person’s country or countries of nationality. If a license is required for export of the technology to the foreign person's country of nationality, then it is an obligation to obtain an export license from BIS before releasing controlled technology to a foreign person.
BIS is charged with administering and enforcing the Antiboycott Laws under the Export Administration Act. Those laws discourage, and in some circumstances, prohibit U.S. companies from furthering or supporting the boycott of Israel sponsored by the Arab League, and certain other countries, including complying with certain requests for information designed to verify compliance with the boycott. Compliance with such requests may be prohibited by the Export Administration Regulations (EAR) and may be reportable to the BIS.
The Bureau of Industry & Security provides a variety of options for companies to attend training sessions in person or online to understand and comply with the Export Administration Regulations. BIS encourages companies to establish an Export Compliance Program and training is critical to that development.