Part 129 of the International Traffic in Arms Regulations (“ITAR”) requires certain persons engaged in “brokering activities” to register with and pay a fee to, the U.S. Department of State Directorate of Defense Trade Controls (“DDTC”). ITAR Part 129.2 broadly defines “broker” as any person engaging in “brokering activities” (discussed in greater detail below) fitting…
A California man was sentenced today to 63 months, or more than five years, in prison for his role in a scheme to illegally export integrated circuits with military applications to China the required filing of electronic export information. As part of his sentence, the Judge ordered Shih to pay $362,698 in restitution to the…
It’s my long-held position that technology controls present the most challenging export compliance challenge. Last month’s consent agreement between the Directorate of Defense Trade Controls and Honeywell International illustrates my point quite well. As we’ll discuss, Honeywell fell into three of the most common traps for unauthorized exports of controlled information. Companies subject to the International Traffic…
A federal grand jury in Los Angeles unsealed an indictment Thursday that accuses five defendants of conspiring to unlawfully export defense articles to Russia. Specifically, the defendants allegedly exported thermal imaging riflescopes and night-vision goggles without a license, in violation of the Arms Export Control Act. According to court documents, Elena Shifrin, 59, of Mundelein,…
OFAC and BIS regulations SAP, a German multinational software corporation with a significant U.S. presence, recently settled allegations that it violated OFAC and BIS regulations concerning exports of software, upgrades, and patches from the United States to Iran and Iranian companies. The settlement amounts totaled in excess of $6.4 million. In the following transcript George…
A Transformative Approach for the Future of Trade Since the last comprehensive trade legislation reforms in 1993, growth in e-commerce, rapid technological change, and the continued expansion of the global marketplace have significantly altered how trade is conducted. As these shifts continue to accelerate and evolve, it is imperative for the U.S. Government to act now to pursue transformational reforms…
Although historically less attention-grabbing than sanctions, US export controls have been progressively newsworthy in recent years–starting with the Trump administration’s headlining restrictions aimed at Huawei, initiated in May 2019. More recently, the US government’s focus on China’s military modernization appears to have a driven a spate of China-focused export controls launched by the US Department…
Internal Trade Policy In the following transcript, George W. Thompson discusses the likely impacts on American international trade policies under the Biden administration. Explore our international trade courses here. If you expected that the Biden international trade policy would mean a break from that under the Trump administration. Well, I hate to disappoint you, but…
The Federal Trade Commission (FTC) has filed a Federal District Court complaint alleging that Chemence, Inc. committed unfair trade practices by claiming its merchandise, glue, is “Made in the U.S.A.” The FTC is charged with enforcement of statutes prohibiting the use of “unfair or deceptive acts or practices” in commerce. Its lawsuit seeks an injunction against…
Parenting can be such a chore. Minding wayward little ones, cleaning up after them, and getting hit with six-figure Treasury Department penalties for their misbehavior can offset the joy of beholding the smiles on their cherubic faces. Did I say Treasury Department penalties? Yes, they can arise when the parent is a U.S.-based company and…
We Revisit Practical Advice for NAFTA and how it applies to USMCA It’s been a few months since USMCA officially became the new free trade agreement between the U.S., Canada, and Mexico. While we have seen a good number of companies jumping right in and adopting the new agreement, there may still be some out…
