US Person Definition – U.S. Export Regulations

US Person Definition and How to Apply it

Understanding the U.S. Person Definition is essential for compliance to U.S. Export regulations.  Companies in the United states need confirm a US Person Definition with regards to an export or deemed export.  The U.S. Governmental agencies define the term “Export” broadly.  The term export is not limited to the shipment of an item to an overseas country.  An export may include services, or technical information including software. 
 

Export Regulations Agencies

U.S. Export Regulations are complicated and require careful consideration.  Adding to this complexity, agencies controlling various regulations have their own methodologies for confirming and verifying a US Person.
 

ITAR Definition

The International Traffic in Arms Regulations (ITAR), which is administered by the Department of State Directorate of Defense Trade Controls (DDTC), regulate the export of defense related technologies and services listed in the United States Munitions List (USML).  Items categorized in the USML include weapons, armaments, ordnance, vehicles, and technical data and services.  They also include items that are “specially designed” for military applications (e.g. a power supply specifically designed for use on an armored vehicle).
 
Under § 120.14  of the ITAR a U.S. person is defined as a person who is a lawful permanent resident of the United States.  A lawful permanent resident is further defined by 8 U.S.C. 1101(a)(20). A U.S. Person is also a protected individual which is defined by 8 U.S.C. 1324b(a)(3).  It also means any corporation, business association, partnership, society, trust, or any other entity, organization or group that is incorporated to do business in the United States. It also includes any governmental (federal, state or local) entity.  It does not include any foreign person as defined in § 120.16 of this part. [ 71 FR 20537, Apr. 21, 2006].
 

us persons definition

EAR Definition

The Export Administration Regulations (EAR) are enforced and interpreted by the Bureau of Industry and Security (BIS).  Items which are not controlled under ITAR or other regulations will fall under the EAR.  EAR classifications are designated by the Export Control Classification Number which is a five-character alpha numeric code . 
 
The EAR defines a foreign person under Title 15 of the Code of Federal Regulations as:
      1. An individual who is a citizen of the U.S..
      2. A permanent resident alien of the United States.
      3. A protected individual as defined by 8 U.S.C. 1324b(a)(3).
      4. A person falling under the judicial administration of the laws of the United States or any jurisdiction within the United States.

U.S. Person Definition Challenges

Compliance to U.S. export regulations is mandatory for all US Companies.  It can be a challenge to figure out how to apply these regulations in a practical manner to the day to day operations in the business. 
 
Distinguishing between a US Person Definition and a Foreign Person Definition is a complex issue.  This determination includes many factors including green card holders, foreign corporations, and corporation’s partnerships.  CVG Strategy’s Export Compliance Experts can help your Export Compliance Program with US Person Definition.
 

CVG Strategy Can Help

Export Compliance is important.  Failure to comply with regulations can result in criminal prosecution including imprisonment and fines.  It can also result in civil penalties and disbarment from export activities.  Your business cannot afford to have its reputation ruined by a failure to comply.

Click on the link below to download our whitepaper on US Person Definition for Business.

CVG Strategy can help you establish a coherent and effective export compliance system.   We can perform export control classifications, perform audits, and educate your team.  Regardless of whether your business falls under EAR or ITAR, CVG Strategy has the expertise to help.  We also provide online answers for your export regulation questions.

CVG Strategy’s Export Compliance Experts can help you with using the Foreign Person Definition in an ITAR and Export Compliance Program so your company can be compliant.

How Can We Help?

Take a look around our site and contact us for more information on how we can help you meet your challenges.

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