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.