What we’re talking about
The Bureau of Industry and Security (BIS) is considering a 50% rule to address loopholes that are being used by subsidiaries of parent organizations on the BIS entity list. The proposed regulation would be similar to current to regulations enacted by the Office of Foreign Asset Controls (OFAC). This action would impose licensing requirements across
Self disclosure and cooperation in the investigation of export regulation violations by an entity’s acquiror has led to a waiver of prosecution against the acquiring company (White Deer Management LLC). The Department of Justice’s National Security Division and the Southern District of Texas’s United States Attorney’s Office have also decided to decline prosecution of the
The International Trade Administration (ITA) has released the 2025 Defense Export Handbook to provide an overview of U.S. trade laws governing the export of defense products. This handbook also gives guidance to new-to-market exporters on evaluating international markets and includes contact information for export control, trade promotion, and licensing. The publication describes U.S. statutes that
Integrated business management systems provide more effective solutions to the challenges facing organizations today. This approach consolidates business processes and systems across teams and unifies objectives. It can effectively address requirements for quality management, export compliance, information security management, and other concerns, ensuring compliance without gaps, duplication of efforts, or teams working at cross purposes.
AUKUS Pillar I and Pillar II ITAR developments continue as the U.S. responds to national security threats with strategic trade controls and security partnerships. In recent news, AUKUS Pillar II has greatly eased the transfer of defense articles and technologies between Australia, the United Kingdom, and the United States. This trilateral security partnership was created
The Bureau of Industry and Security (BIS) has expanded its Validated End User (VEU) Program to include controls for data centers in an effort to create a trusted ecosystem for artificial intelligence (AI) development. The VEU will now review applicants data centers to ensure application of appropriate safeguards and security measures. This update to the
The Bureau of Industry and Security (BIS) has amended the Voluntary Self Disclosure (VSD) process in the Export Administration Regulations (EAR). The newly released amendment to CFR 15 Section 764.5 and Supplement No. 1 to part 766 provides guidance for settlement determinations of penalties for administrative enforcement cases. This action evolved from a series of
The U.S. Department of State announced on August 15, 2024 that progress had been made in the AUKUS defense trade integration. This has resulted in an interim final rule amendment to the International Traffic in Arms Regulations (ITAR) that will facilitate billions of dollars in secure license-free defense trade between Australia, the United Kingdom, and
The Bureau of Industry and Security (BIS) has released guidance on improving academia research export compliance programs. This guidance is based on recent trends in Voluntary Self-Disclosures conducted by academic institutions where Export Administration Regulations (EAR) violations occurred . Voluntary Self-Disclosures A Voluntary Self-Disclosure (VSD) is conducted when an organization recognizes that violations or suspected
Integrating physical security requirements is an area of growing concern for organizations of all sizes. Aside from insuring basic safety for personnel and physical assets, businesses are faced with security requirements for cybersecurity and export compliance. This necessitates a non-siloed approach to an often overlooked management function. Basic Physical Security Measures Every organization should ensure
The Bureau of Industry and Security (BIS) has issued guidance that recommends using a new export screening list as additional due diligence to prevent diversion risks. This new database, The Trade Integrity Project has been released by the Open Source Center, which is based in the United Kingdom. This list focuses on entities involved in
AUKUS eases export restrictions under ITAR and EAR for certain defense related articles and technologies between the United States, Australia, and the United Kingdom. This strategic initiative has been taken to enhance the defense capabilities of all three nations to respond to national security threats posed by the Peoples Republic of China (PRC) and Russia.
President Biden signed H.R. 815 into law on April 24, 2024 to address specific foreign policy and national security issues. This legislation includes an extension (Section 3111) for the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) from five to ten years. This statute of limitations is applicable to
Cyber-intrusion and data exfiltration are subjects of increased concern for the Bureau of Industry and Security (BIS). In its March 2024 release of Don’t Let This Happen to You!, BIS reiterates its growing role in export enforcement to protect U.S. national security and foreign policy concerns. It emphasizes the importance of developing effective export compliance programs
Nicaragua export restrictions have been increased by both the Directorate of Defense Trade Controls (DDTC) and the Bureau of Industry and Security (BIS) as of March of 2024. These actions were taken in response to United States national security and foreign policy concerns regarding the continuing deterioration of the nation’s human rights, civil institutions, and
Foreign based businesses and persons involved in the reexport of items controlled under the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR) are subject to the regulations and associated sanctions. This also holds true for foreign producers of items that incorporate threshold percentages (de minimis) of controlled items in their products
