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
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.
New BIS Rule Grants Australia and the UK “Nearly” the Same Treatment as Canada
By: Derrick Kyle, Senior Associate
Date: 04/20/2024
On April 19, 2024, the Department of Commerce Bureau of Industry and Security (“BIS”) published an interim final rule (“Interim Rule”), amending the Export Administration Regulations (“EAR”) to enhance cooperation and technological innovation between the United States, Australia, and the United Kingdom (“UK”) pursuant to the AUKUS Trilateral Security Partnership (“AUKUS”).
Persistent Errors in the Export Classification of Software Products
By: Olga Torres, Managing Member, Derrick Kyle, Senior Associate
Date: 04/20/2024
Many companies, particularly Software-as-a-Service (“SaaS”) and start-up companies, continue to struggle with the concept of export control classification of items with encryption functionality. This ongoing confusion is understandable for a few reasons. First, many SaaS companies do not export their software in the traditional sense. Software purchasing has moved beyond the days of downloading and installing software onto a computer from, for example, a CD-ROM. (Most newer laptops no longer contain disc drives.) But these companies may still unknowingly be exporting software according to regulatory definitions.