Exports
Export controls are highly technical and complex: we take pride in understanding your industry and products.
Torres Trade Law represents clients before the various government agencies administering export controls. These export regimes include items governed by the International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), and Foreign Trade Regulations (FTR or Census regulations). These laws regulate the transfer of goods, technology, software, services and information to foreign nationals and foreign destinations. We have successfully assisted companies with export compliance audits, export compliance classification projects, export licenses, technical assistance and manufacturing license agreements, commodity jurisdictions, and classification requests (CCATS).
We also assist clients with internal export audits, government inquiries, subpoenas, and investigations in both the civil and criminal side of enforcement. We work extensively with officials at the Department of Commerce Bureau of Industry and Security (BIS) and the Directorate of Defense Trade Controls (DDTC) under the Department of State.
We can also develop and implement export compliance programs for our clients. We minimize our client’s regulatory liability, minimize disruption of business, and efficiently manage company resources. We have experience in some of the most complex areas of export compliance, including but not limited to issues involving encryption technology, e-commerce transactions, deemed exports, global supply chain issues, information technology, aerospace and defense.
Representative Matters Include:
- Commodity jurisdiction rulings, product and technology classifications, and advisory opinions
- Export license applications, license amendments and transfers, license requirements, and exception requirements
- Commodity jurisdiction rulings, product and technology classifications, and advisory opinions
- Regulatory compliance in corporate reorganizations, mergers & acquisitions and asset purchases
- Deemed exports and transfers of technical data or manufacturing process sharing
- Internal investigations, voluntary disclosures, negotiation of settlements, and enforcement
- ITAR registrations, notifications, brokering, and Part 130 reporting
- Encryption and technology transfers, and software export / re-export rules, including de minimis software and technology filings to the Commerce Department
- Deemed export and re-export requirements and compliance
- Assistance with commercial flow-down export requirements in prime contractor-subcontractor and OEM-supplier relationships
- Compliance policies, procedures and training
Representative Industries:
- Aerospace & defense/commercial aviation
- Chemicals & pharmaceuticals
- Commercial electronics
- Computer hardware & semiconductors
- Cyber security
- Data processing
- Energy & power generation - nuclear & fossil fuel
- Engineering & construction
- Financial services
- Force protection services
- Industrial process controls
- IT infrastructure & encryption
- Machine tools
- Medical equipment
- Military electronics
- Oil field services
- Satellite & unmanned vehicles
- Semiconductors & microcircuits
- Software
- Special and composite materials & metals
- Telecommunications
INSIGHTS
Commerce Imposes Sweeping New Rule Restricting Exports of AI Chips
By: Olga Torres, Managing Member, and Derrick Kyle, Senior Associate
Date: 01/14/2025
On January 13, 2025, the Department of Commerce Bureau of Industry and Security (BIS) announced new rules restricting the export of advanced artificial intelligence (AI) chips and certain closed AI model weights in an expected move that was preemptively criticized by giants in the tech and semiconductor industries. The 168-page “Framework for Artificial Intelligence Diffusion” interim final rule (the “Rule”) adds a global licensing requirement for the export of advanced AI chips and closed AI model weights but with certain exclusions for some allied countries. Compliance with most portions of the new rule is required by May 15, 2025, and interested persons may submit public comments on the rule until May 15, 2025.
New Rules Further Restrict China’s Access to Semiconductor Technology
By: Derrick Kyle, Senior Associate
Date: 01/07/2025
On December 2, 2024, the U.S. Department of Commerce Bureau of Industry and Security (“BIS”) issued two new rules further restricting China’s capability to produce advanced semiconductors. One final rule (the “Entity List Updates Rule”) adds 140 entities to the BIS Entity List and assigns 16 entities the new Footnote 5 designation. Concurrently, an interim final rule makes several changes to the Export Administration Regulations (“EAR”), including adding new Foreign Direct Product (“FDP”) rules, adding or modifying several Export Control Classification Numbers (“ECCNs”) on the Commerce Control List (“CCL”), adding new license exceptions, and other revisions.
BIS Tightens Export Control Enforcement
By: By Olga Torres, Managing Member
Date: 09/24/2024
The U.S. Department of Commerce's Bureau of Industry and Security (BIS) just issued a significant rule change that reshapes the landscape of export control enforcement.
Application of the Substantial Transformation Principle in the Context of U.S. Sanctions
By: By Camille Edwards, Associate
Date: 09/24/2024
The practice of determining an item’s country of origin (“COO”) and utilizing the principal of “substantial transformation” to help make this determination is likely a familiar concept for many U.S. importers in the context of compliance with U.S. Customs regulations. However, the principal of substantial transformation is also recognized by the U.S. Office of Foreign Assets Control (“OFAC”) as being applicable in the somewhat unique context of U.S.
DDTC Speaks Out on Joint Ventures
By: Olga Torres, Managing Member
Date: 07/26/2024
The Directorate of Defense Trade Controls, usually referred to as “DDTC,” is somewhat notorious for- as the saying goes- holding their cards close to the vest when it comes to offering guidance on specific topics related to the ITAR and how it applies to exporting goods and services to foreign persons or countries. So, for any U.S. exporter whose products or services are captured under the ITAR, it is important to take notice when DDTC speaks by publishing guidance.
On March 25, 2024, DDTC published a short series of Frequently Asked Questions regarding joint ventures[1] and how those contractual arrangements affect an exporter’s DDTC registration. Following are a few of the key points from the FAQs.
[1] There is no single legal definition of the term “joint venture.” Generally, joint venture is used to describe a commercial arrangement between two or more parties to undertake a specific business project or opportunity. The parties share both the risks and rewards of the undertaking.
DOJ Involvement in the Enforcement of Trade and National Security Laws
By: Olga Torres, Managing Member, Camille Edwards, Associate
Date: 04/20/2024
The U.S. agencies most well-known for their enforcement of U.S. trade and national security laws are the Bureau of Industry and Security (“BIS”), the Directorate of Defense Trade Controls (“DDTC”), the Office of Foreign Assets Control (“OFAC”), and U.S. Customs and Border Protection (“CBP” or “Customs”). However, the Department of Justice (“DOJ”) can often play a critical role in these types of matters.