Export Controls & Economic Sanctions

Representative Experience

Export classification of goods and services. We assist companies with a review and assessment of their products or services for proper classification of items covered by the Commerce Control List (CCL) or the U.S. Munitions List (USML). When necessary, we prepare classification requests or a commodity jurisdiction (CJ) request to have BIS determine the proper Export Control Classification Number (ECCN) or, if determined to be a defense article or service, the appropriate category under the USML.

Counseling on general licensing requirements and strategies. We counsel companies on the license requirements mandated by the different regulatory agencies, often dependent upon an item’s technical characteristics, destination, end-user and end-use. Once we determine that an export requires a license, we assist in preparing and filing license applications or related agreements.

Technology transfers to or employment of foreign nationals. We advise companies on the proper control of and restrictions surrounding the release of export-controlled goods or technology to foreign nationals who may be employed and reside in the United States. We provide counsel on submitting license applications for foreign nationals pursuant to the “deemed export” rule.

Compliance programs. To ensure that internal policies and procedures minimize the risk of noncompliance with existing export control and economic sanctions laws, we help companies design and implement compliance programs. We address all elements of the compliance program, including corporate policies, internal procedures, training and audits, disciplinary measures and third-party contract provisions. Working in close collaboration with company personnel, we assist in crafting individualized programs that promote effective and efficient compliance, risk assessment and management, and timely discovery and notification to upper management of potential issues. We continuously monitor regulatory developments and evaluate best practices to serve our clients’ interests.

Compliance counseling. Our advice covers a wide range of export issues pertaining to the movement of goods, technology and services. We counsel companies on compliance issues concerning the operations of their overseas subsidiaries, affiliates and joint venture partners. We conduct audits of companies’ product classifications, export transactions and internal compliance procedures.

Voluntary disclosures. We assist clients with company-wide internal reviews of possible export controls violations, advising on the pros and cons of voluntary disclosure. When disclosures are warranted, we help prepare and submit disclosure reports, respond to follow-up questions from government enforcement agents and engage in settlement negotiations on behalf of clients.

Enforcement actions and litigation. We defend clients faced with criminal and civil charges stemming from alleged violations of export control and economic sanctions laws. We represent clients in enforcement actions, settlement negotiations and litigation with BIS, OFAC and DDTC.

Due diligence for corporate transactions. When clients undertake mergers, acquisitions, IPOs or other corporate transactions, we counsel on reducing risk related to international trade concerns. We conduct due diligence of potential exposure and successor liability in connection with the full range of risks relating to international trade regulations, including possible violations of U.S. export controls, economic sanctions and antiboycott regulations.

Representative Matters

The export control and economic sanctions matters we have handled include:

• Managing all export controls, licensing and agreement approvals with DDTC for an EU-based electronics and laser manufacturer.
• Managing all export controls, licensing and compliance issues under the EAR for a U.S.-based manufacturer of controlled products.
• Defending an international technology company in an export investigation with BIS regarding deemed exports.
• Obtaining BIS approval to enable seamless manufacturing for a process control manufacturer with South American operations.
• Defending a chemical manufacturing company in an export investigation while protecting highly sensitive proprietary intellectual property.
• Managing ITAR approvals for U.S.-based defense contractors working to support U.S. military operations overseas.
• Defending voluntary disclosure of controlled exports and deemed exports for a multinational corporation, resulting in zero penalties.
• Avoiding a penalty after filing a voluntary disclosure on perceived encryption violations for a multinational electronics manufacturer.
• Negotiating a settlement for a U.S.-based manufacturer regarding potential OFAC sanctions.
• Advising numerous companies on compliance issues related to U.S. trade embargoes, including those in effect against Iran, Cuba, Syria, Sudan and North Korea.
• Conducting training programs for U.S. and overseas company personnel with respect to U.S. law and company policy concerning export controls, economic sanctions and antiboycott laws.
• Advising numerous companies on compliance with U.S. antiboycott regulations, assisting in reporting boycott requests and advising on possible violations.