Import and Export Control Laws

The United States has export control laws that limit the export of materials, data, and technical information to foreign countries.

Export means the shipment of items or transmission of technology outside of the United States.

also means the transmission of technology to a non-U.S. citizen or nonpermanent resident who is located in the United States
Import and export laws are reciprocal
- export from the United States is an import to another country

3 Types of Export Control Regulations

U.S. Department of State issues the ITAR
They apply to military or defense applications and technology that does not have civil (nonmilitary or defense) uses
Any export of applications and technology covered by ITAR requires an export license
- issued by Department of State
Items that are covered by ITAR are listed on the U.S. Munitions List
- published in the Code of Federal Regulations
- has 21 categories of different items
penalties for violating ITAR are severe
- Department of State determines civil penalties
- can be subject to criminal penalties

U.S. Department of Commerce handles the EAR
- responsibility is delegated to the Bureau of Industry and Security (BIS)
EAR applies to dual-use technologies
- have both military and commercial use
an exporter must have an export license for items and technologies that are on the Commerce Control List (CCL)
- has 10 broad categories
Some items on the CCL cannot be exported even if a person tries to get a license to do so
- because another law or regulation prevents it
- E.g., trade embargo on Cuba
- embargo is a ban against trade with another country
person who violates the EAR can be subject to both criminal and civil penalties

The Office of Foreign Assets Control (OFAC) enforces trade sanctions and embargoes
- part of Treasury Department
administers trade sanctions and embargoes as part of U.S. foreign policy goal
has the power to forbid some types of transactions based upon these goals
OFAC regulations may forbid people in the United States from engaging in any trade or financial transactions with other countries
- People in the United States are prohibited from engaging in trade with certain people in other countries
publishes a list of individuals and companies that people in the United States are generally forbidden from dealing with
- people on this list are called specially designated nationals (SDN)
Penalties for violating OFAC regulations are generally the same as for EAR violations