Export Controls Present Compliance Challenges for U.S. Businesses
January 10, 2014
In the age of pariah state sanctions and in the interest of national security, the federal government export controls of sensitive equipment, software, and technology. Complying with complex export control requirements can be very challenging for companies conducting cross-border business.Under the current U.S. Export Controls System, the federal government maintains several lists of export-controlled items — the Commerce Control List (CCL), the United States Munitions List (USML), and the Nuclear Regulatory Commission Controls (NRCC) — that require a license prior to exportation. Export license requests typically go through an extensive review process, including review by interested U.S. government agencies, such as the Department of Defense, Department of Energy, the intelligence community, and NASA, as well as interested bureaus within the Department of State.
As detailed by the U.S. Department of State, the federal government generally reviews:
- The eligibility of the applicant
- All parties involved in the transaction
- Appropriateness of the quality and quantity of the proposed export to the end-user and stated end-use
- Any legal impediments to the proposed export
- Any national security implications presented by the proposed export
- Any foreign policy implications, including but not limited to:
- Potential effect on regional stability
- Human rights
- Ensuring compliance with multilateral control regimes.