Archive 07
Export licenses in the spotlight |
| 31 October, 2007 - Technology companies need to be aware of the requirements and regulations regarding exporting products and technologies around the world. The United States Department of Commerce’s Bureau of Industry and Security (BIS) is responsible for implementing the Export Administration Regulations (EAR). The EAR regulates the export and re-export of most commercial items. Technology companies engaged with United States Federal Government contracts are very familiar with the EAR and the process required for sending their products overseas. However, the regulations apply to all companies sending their technologies around the world. Today there are numerous cases of commercial technology companies being held liable for their products and technologies in the world market after their products were identified as having a restricted technology or being re-exported to a restricted country. The United States along with the more than 50 other countries have expressed their commitment to monitoring trade and enforcing the regulations. The 8th annual Export Controls Conference was held in Bucharest, March 2007 with 180 representatives from 55 countries. The discussions were categorized in three areas Licensing, Enforcement and Policy. Each year the results have been more internationally coordinated efforts in the regulations and stronger enforcement. Since the conference, President Bush signed into law the International Emergency Economic Powers Enhancement to increase the deterrent of export controls violations. This act increased the civil penalties (both individual and entities) from $50,000 to $250,000 per violation, or twice the amount of the violating transaction. The criminal penalties increased to $1million per violation with no change to the maximum prison term of up to 20 years. Compliance is not difficult, but many companies do not realize they are subject to these regulations. Please contact Nancy Wallace for more information. |
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