When businesses seek to sell goods, services, data or technology abroad, they must comply with U.S. export controls. In select cases under Part 744 of the Export Administration Regulations (EAR), “catch-all” rules – also known as end use and end user-based controls – apply. One of the most common catch-all rules is the Military End Use and Military End User (MEU) Rule.
U.S. Export Controls Around Encryption – Helping Your Company Navigate a Maze of Complex Compliance Regulations
To anyone with experience in export compliance, that should come as no surprise. U.S. export controls are as voluminous as they are complex. Some controls even defy common sense—yet they are the rules and must be followed. And while executing on an export compliance program takes solid understanding in many areas, the challenge is even tougher when it comes to software or equipment that utilizes encryption.
Whether you’re just starting out on your export compliance journey and looking to build an export compliance program from the ground up, or you have a program in place and seek potential improvements, you’re best served to leverage an established model.
U.S. regulatory agencies can and do impose serious penalties for U.S. and non-U.S. companies that fail to comply with highly extraterritorial U.S. rules. These include monetary fines, a loss of U.S government contracts and/or a complete ban from receiving any U.S. items. The recent pace of changes to U.S. export control and sanctions measures have made it even more important for non-U.S. companies to stay up-to-date on the regulations.
Technology startups are at the forefront of innovation, driving advances that improve efficiency, enable growth and prosperity, and make people’s lives easier, healthier and more rewarding.
Jurisdiction over U.S. export controls span several government agencies. Understanding and applying these rules requires the active involvement of multiple departments and functions across a company or other institution.
Universities are widely regarded as institutions of higher learning. Yet they also serve an equally important purpose as research institutions, technology hubs and incubators for startup businesses.
Exports of machine equipment and parts across many leading industries have experienced significant growth in recent years—and that growth is expected to continue in the months and years ahead.
Mistakes happen. We’re all human, so naturally we’re prone to oversights, slipups, misjudgments and more. No one is perfect. Unfortunately, human fallibilities too often cause serious and impactful problems when businesses seek to export items to foreign countries.
Businesses that seek to sell goods or services to the U.S. Department of Defense or foreign governments – i.e., defense contractors and subcontractors – know this reality all too well. After all, U.S. export controls are as voluminous as they are complex. Some controls even defy common sense—yet they are the rules and must be followed. Consequently, defense contractors and subcontractors often feel overwhelmed by a litany of issues.