Friday, March 13, 2009

U.S. Government Agencies and the Regulation of Exports

The U.S. Government controls exports for reasons of national security and foreign policy. It is important for exporters to have a good understanding of the government agencies that enforce export laws and regulations as well as the requirements of each. This article introduces the various government agencies and provides a brief overview of the regulations they enforce and primary responsibilities.

Department of Commerce – Bureau of Industry & Security (BIS)
• Export Administration Regulations (EAR) 15 CFR 730 – 774
• Facilitates trade and administers export controls for commercial and dual-use items not regulated by the USML.
• Issues export licenses. Dual-use items are those goods that possess both commercial and military or proliferation applications.

Department of State - Directorate of Defense Trade Controls (DDTC)

• Arms Export Control Act 22 U.S.C 2778
• International Traffic in Arms Regulations (ITAR) 22 CFR 120 – 130
• Issues Export Licenses
• Products designed or modified for military use
• Commodity Jurisdiction: DOS determines export licensing jurisdiction between DOS and DOC
• Authority to approve permanent and temporary export and temporary import of “defense articles, defense services and technical data”.
• An “ARTICLE” or “SERVICE” is subject to ITAR if
a) it is specifically designed, developed, configured, adapted or modified for a military application; and
b) does not have a predominant civil application; and
c) does not have performance equivalent to an article or service used for civil application.
• A defense article or service will be listed on the United States Munitions List (USML) 22 CFR 121

Department of Commerce – Census Bureau
• Compiles trade statistics via Automated Export System (AES) and provides the export information to BIS & DDTC who use the information for export control
• Foreign Trade Regulations (Title 15 CFR 30).
• Census does not issue licenses or “authorizations to ship product”.

Department of Defense
• Technical Advice concerning national security
• Defense Technology Security Agency DTSA
• Reviews certain percentage of licenses from DOS

Department of Homeland Security – CBP
• Cargo Security
• Trade Statistics

Department of Treasury – OFAC
• Regulates trade and financial transactions with embargoed countries
• 31 CFR 500-596
• Administers and enforces economic and trade sanctions against targeted foreign countries, terrorism sponsoring organization and international narcotics traffickers.

Over the next few weeks, we will learn a little more about each department and their export control responsibilities.

No comments: