Deemed Export Regulations: Introduction

Under both the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR), the ability of persons or entities to release of controlled technology and technical data to foreign persons (including those physically located within the United States) is significantly limited without relevant licensing and/or authorization.   Importantly, these limitations apply to the […]

Deemed Export Regulations: Controlled Technology and Technical Data

Licensing or other authorization is not required in situations where the technology or technical data is controlled for export/release to foreign persons.  Technology or technical data that is not controlled is therefore exempt from EAR and ITAR licensing and authorization requirements.   It is worth noting that the EAR governs controlled technology, and ITAR governs […]

Deemed Export Regulations: Who Qualifies as a Foreign Person?

A foreign person is any: Person who is not a US Citizen, US permanent resident, legal refugee, or other similarly-authorized individual; Employees on H1B1, H1B, L1, and O1A visas are therefore considered foreign persons under EAR and ITAR. This can increase the administrative overhead quite substantially if you and your organization are unprepared. Entity that […]

Deemed Export Regulations: What Constitutes a Release?

Release need not be concerted, voluntary, or even intentional.  Conduct qualifying as a “release” under EAR and ITAR includes, but is not limited to: a) allowing a foreign person to visually inspect or otherwise view the technology or data; and b) oral discussions, whether over the phone, through a video-conferencing program, or in-person.   Under […]

Deemed Export Regulations: Licensing and Other Compliance

Though most technology and technical data is not controlled for export or release to foreign persons, entities, and governments, if the technology or technical is in fact controlled, then a license may be required.   To ensure that such technology/data can be released or exported to foreign persons, the petitioner must apply for a license […]

Deemed Export Regulations: Punishment

The EAR and ITAR subject violators to separate fines for violations, which – depending on criminal or civil liability – can run up to $1M or $250K per violation, respectively.  How does this work?   Suppose that (without a license) you accidentally send design documents for controlled technology to a foreign client.  It was a […]

Penalties for ITAR Noncompliance

The International Traffic in Arms Regulations (ITAR) implemented by the State Department’s Directorate of Defense Trade Controls – in combination with the Export Administration Regulations (EAR) implemented by the Department of Commerce – applies controls to the export/import of defense articles and defense-related services. Though necessary, the regulations set up by ITAR places a heavy […]

Broker Registration Renewal and Reporting

Once a broker has been registered, there are numerous additional requirements in order to maintain their status as a registered broker.   Material Changes Must Be Reported When there have been changes to the circumstances such that the registration is materially affected (the details of brokering activity have changed) then the DDTC will have to […]

Exemptions from the Registration Requirement

There are numerous provisions in the ITAR that carve out exemptions for specific persons and entities to reduce the administrative burden of having to register as a broker (and subsequently obtain an approval for brokering activities).   US Connection Predecessor to Registration Broker registration requirements require substantial links to the United States.  They apply only […]

ITAR Brokering Registration Regulations and Compliance

Under the International Traffic in Arms Regulations (ITAR) implemented and enforced by the Directorate of Defense Trade Controls (DDTC) of the Department of State, “brokers” of defense articles and defense services are required to register with and obtain the approval of the DDTC prior to engaging in the business of brokering.   If you are […]