KWM’s highly experienced trade compliance team has a proven track record advising on trade control issues across various industries
We regularly work with our international offices to assist our clients in managing risks presented by U.S. and non-U.S. export controls.
U.S. export controls present a complex regulatory landscape that reaches beyond U.S. territorial limits. U.S. and non-U.S. persons and companies that deal in U.S.-origin goods, software or technology must follow applicable U.S. export laws. These laws prohibit the unlicensed export of certain products or information for reasons of national security or trade protection. Individuals and companies can be penalized for exporting, reexporting, or transferring U.S.-origin products or technology in a manner that violates U.S. law.
Oversight of U.S. export controls is divided among numerous agencies depending on the type of item being exported, creating a complex regulatory landscape for businesses to navigate. The Bureau of Industry and Security (BIS) of the Department of Commerce has authority over a broad range of dual-use (civilian and military) goods, while the Directorate of Defense Trade Controls of the Department of State has authority over military items, and the Department of Energy and the Nuclear Regulatory Commission have authority over different aspects of nuclear-related materials and technologies.
In the realm of commercial exports, the question of whether a U.S. export license is required depends on several important factors specific to the transaction, including: the type of item (commodity, software, or technology) that will be exported, where it is going, who is going to use it, and the ultimate end-use. We help clients analyze and understand how each of these factors affects their business and ability to export.
U.S. export control laws have become a focus in recent years as the U.S. has increasingly sought to use them to protect U.S. supply chains and economic interests. These efforts have been felt most acutely in the ongoing U.S.-China trade war, with the U.S. placing a number of Chinese companies on the Department of Commerce’s Entity List, thereby prohibiting exports, reexports, and in-country transfers to the listed entities without a license from BIS.
In addition to assisting clients navigate the complex legal requirements of U.S. export controls, we also advise clients when they are accused of having run afoul of U.S. export control regulations.
Our team offers comprehensive service on U.S. export controls, including
- Assessing export control compliance risk based on the company’s business model;
- Assessing and assisting in improving internal risk control systems related to export control;
- Advising on company business practices to reduce compliance risks;
- Advising on U.S. export control issues involving corporate investment activities, e.g., domestic and overseas M&A;
- Conducting internal investigations across the world in response to potential U.S. export control violations;
- Advising companies under investigation for potential U.S. export control violations in their discussions with U.S. enforcement and regulatory authorities;
- Advocating for and advising companies listed by the Department of Commerce on how to get delisted;
- Representing companies before the End-Users’ Review Committee to seek removal from the Entity List; and
- Advocating for and advising companies pursuing legal remedies against U.S. authorities.
