Archives: Export Controls

Subscribe to Export Controls RSS Feed

ZTE Settlement Marked by Record Penalty and Lessons Learned

China’s Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Limited, and their subsidiaries and affiliates, (collectively, ZTE), reached a historic combined $1.19 billion settlement with the US government on March 7, 2017.  This settlement resolves export controls and sanctions violations associated with shipments of US-origin equipment to Iran and North Korea.  ZTE pled guilty to … Continue Reading

ZTE Enters Multi-Agency Settlement to Resolve Sanctions and Export Controls Allegations

On March 8, 2016, the US Department of Commerce’s Bureau of Industry and Security (“BIS”) added major Chinese telecommunications company Zhongxing Telecommunications Equipment (“ZTE”) and three ZTE affiliates to the BIS Entity List, alleging that the ZTE entities developed a scheme to re-export controlled items to Iran in violation of US export controls and sanctions … Continue Reading

BIS Again Extends ZTE Temporary General License

On February 24, 2017, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) is publishing in the Federal Register a notice again extending its temporary general license for exports, reexports, and in country transfers to Zhongxing Telecommunications Equipment (ZTE) Corporation (ZTE Corporation) and ZTE Kangxun.  BIS is extending the period of the license … Continue Reading

Commerce Department Eases Certain Export Controls on India

Tomorrow, the Commerce Department’s Bureau of Industry and Security (BIS) will ease certain U.S. export controls on India, as part of the U.S. commitments under the India–U.S. Joint Statement of June 7, 2016, which recognized the United States and India as Major Defense Partners.  BIS is amending the Export Administration Regulations (EAR) to establish a … Continue Reading

New DOJ Guidance Could be a Game Changer for Export Controls and Sanctions Enforcement

Steptoe’s Meredith Rathbone and Peter Jeydel co-authored an article in Risk & Compliance, “New DOJ Guidance Could be a Game Changer for Export Controls and Sanctions Enforcement.”  The article was published in the January-March issue and centers on how the US Department of Justice’s guidance may cause difficulties and new risks for industries. For more … Continue Reading

DDTC and BIS Publish Long-Awaited Final Rules for Category XII: Night Vision and Cameras

On October 12, 2016, the State Department’s Directorate of Defense Trade Controls (DDTC) and the Commerce Department’s Bureau of Industry and Security (BIS) published companion final rules to amend Category XII of the United States Munitions List (USML) and move some less sensitive items to the Commerce Control List (CCL).  The final rules will become … Continue Reading

BIS Eases Burma-Related Export Restrictions

On December 23, 2016, the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) issued a final rule amending the Export Administration Regulations (15 C.F.R. Parts 730-774) to ease export restrictions against Burma consistent with Executive Order 13742, issued in October 2016. That executive order, which we previously have summarized, terminated the national emergency … Continue Reading

DOJ Export Controls and Economic Sanctions Enforcement Guidance Likely to Impact Government Contractors, Parallels FCPA Pilot Program

Members of the Steptoe International Regulation and Compliance team, Tom Best, Jack Hayes, Andy Irwin, Ed Krauland, and Lucinda Low co-authored “DOJ Export Controls and Economic Sanctions Enforcement Guidance Likely to Impact Government Contractors, Parallels FCPA Pilot Program” for Thomson Reuters Briefing Papers (No. 16-12).  The paper discusses a memorandum by the US Department of … Continue Reading

BIS Again Extends ZTE Temporary General License

On November 18, 2016, the Department of Commerce’s Bureau of Industry and Security (“BIS”) announced that it extended its temporary general license for exports, reexports, and in-country transfers to Zhongxing Telecommunications Equipment Corporation (ZTE Corporation) and ZTE Kangxun.  The temporary general license benefitting these two ZTE entities was scheduled to expire on November 27, 2016, … Continue Reading

What a Trump Administration Could Mean for International Regulatory Compliance

After the November 8, 2016 elections, Washington is preparing for a new Congress and the transition of power from eight years of the Democratic Obama administration to the Republican administration of President-elect Donald Trump.  As the incoming president builds his transition team and sets out his policy priorities, Steptoe will examine what these changes may … Continue Reading

Proposed DoD Rule on Protection of Unclassified Technical Data Would “Disqualify” Contractors with Export Violations

On October 31, 2016, the Department of Defense (DoD) published a proposed rule entitled, Withholding of Unclassified Technical Data and Technology from the Public Disclosure.  Public comments must be submitted by December 30, 2016. The proposed rule establishes DoD policy, assigns responsibilities, and prescribes procedures for the circulation and withholding of certain unclassified technical data and … Continue Reading

DOJ Sanctions and Export Controls Guidance Focuses on Companies, Parallels FCPA Pilot Program

On October 2, the Department of Justice’s (DOJ) National Security Division (DOJ NSD) issued a memorandum announcing the policy framework for negotiated resolutions with companies involved in economic sanctions and export control investigations with a criminal dimension.  The policy statement titled “Guidance Regarding Voluntary Self-Disclosures, Cooperation, and Remediation in Export Control and Sanctions Investigations Involving … Continue Reading

EU Releases Official Proposal to Update Dual-Use Export Control Regime, Including Broad Controls on Cybertechnology

On September 28, 2015 the European Commission (the Commission) unveiled a proposal to “modernize and strengthen” the European Union’s (EU) dual-use export control regime pursuant to Regulation (EC) No. 428/2009 (the Regulation).  As noted in our previous advisory, a version of the Commission’s proposal was leaked in July, causing concern from industry and other stakeholders.  … Continue Reading

Inside DDTC’s New Definitions Of Export, Re-Export, Retransfer

On September 8, 2016, the US Department of State’s Directorate of Defense Trade Controls published a final rule to amend the International Traffic in Arms Regulations.  This rule clarifies and finalizes changes from a June 3, 2016, interim final rule related to the definitions of “export,” “re-export” and “retransfer.” The preamble of the final rule … Continue Reading

Significant Update to US Encryption Export Rules (and Other Commerce Control List Changes)

On September 20, the US Department of Commerce (DOC) published a final rule revising the Commerce Control List (CCL) and other sections of the Export Administration Regulations (EAR).  This rule implements revisions decided at the December 2015 Wassenaar Arrangement plenary meeting, but also includes additional updates to the EAR.  The final rule revises 58 Export … Continue Reading

DDTC’s Definitions of Export, Reexport, and Retransfer: Important Compliance Considerations

The State Department’s Directorate of Defense Trade Controls (DDTC) recently published a final rule amending the International Traffic in Arms Regulations (ITAR) to finalize and clarify changes from a June 3, 2016 interim final rule related to the definitions of “export,” “reexport,” and “retransfer.”  For additional information on the interim final rule, see our previous … Continue Reading

Potential Changes to the EU Dual-Use Export Control Regime, Including Cybertechnology

A European Commission proposal to amend the European Union’s dual-use export control regime was leaked recently, exposing significant changes to current EU policy. The proposal includes new controls on cyber-surveillance technology exports, including intrusion software. This proposed enhancement of export controls on cyber-surveillance technologies comes as the EU dual-use export control system as a whole … Continue Reading

BIS Adds Russian Companies to Entity List

Tomorrow, September 7, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) will issue a final rule adding 81 entities to the BIS Entity List (15 C.F.R. Part 744, Supplement No. 4) under the Export Administration Regulations (EAR).  BIS is designating the companies, which are based in Russia, the Crimea region of Ukraine, India, … Continue Reading

State and Commerce Publish Harmonized Destination Control Statements

The US Departments of State and Commerce published final rules revising the destination control statements required under the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR).  Destination control statements are required to alert recipients of ITAR or EAR-controlled items of associated US export control requirements.  The agencies’ Federal Register notices describe … Continue Reading

BIS Extends ZTE Temporary General License

On August 19, 2016 the Commerce Department Bureau of Industry and Security (BIS) is publishing in the Federal Register a notice extending its temporary general license for exports, reexports, and in country transfers to Zhongxing Telecommunications Equipment (ZTE) Corporation (ZTE Corporation) and ZTE Kangxun.  BIS is extending the period of the license from its current … Continue Reading

New BIS Enforcement Guidance Yields Useful Insight, but Few Practical Changes

On June 22, 2016, the Department of Commerce, Bureau of Industry and Security (BIS), finalized a new enforcement policy for administrative (i.e., non-criminal) matters called the Guidance on Charging and Penalty Determinations in Settlement of Administrative Enforcement Cases (Guidance).  The Guidance, which is effective immediately, lays out the factors that BIS and its Office of … Continue Reading

Massachusetts Company Hit with ITAR Penalty for a Single Individual Deemed Export Violation; Settlement Highlights Importance of Timely Disclosure

In its second enforcement action this year, on June 20th, the State Department’s Directorate of Defense Trade Controls (DDTC) reached a $100,000 settlement with Massachusetts-based Microwave Engineering Corporation.  Despite the small penalty amount, this case is noteworthy in several respects. … Continue Reading

BIS and DDTC Finalize Export Control Definitions

On June 3, 2016 the Department of Commerce issued a final rule, and the Department of State issued an interim final rule, making changes to key definitions in the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). The rules update the definitions of “export,” “reexport,” “release,” and “retransfer” under both the … Continue Reading
LexBlog