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DANGEROUS MYTHS ABOUT U.S. EXPORT CONTROL Russell W. Spittler My products and services are mass-marketed around the world. They are not subject to U.S. export controls. Truth: Whether or not a product is mass-marketed around the world does not determine whether it is subject to U.S. export controls (though it may play a role in determining how tight a control will be placed on such a product). U.S. embargoes, for instance, often capture things as "simple" as toys and office equipment. My product or service does not have a military use, so it's not subject to U.S. export controls. Truth: As noted above, whether a product or service has a military use does not determine whether export controls apply to it (though this may help determine what controls do apply). Even e-mails, telephone calls, and release of technologies to non-exempt foreign nationals can be subject to U.S. export controls. My products are sold entirely over the Internet, so I have no concern about U.S. export controls. Truth: Products sold over the Internet are in many ways treated the same as those physically shipped. U.S. export controls apply to electronic transfers, downloads, etc., even when that which is transferred is not being "sold". A sale is not required for U.S. export controls to apply. My company uses a freight forwarder who handles all our exports, so my firm is not liable. Truth: Freight forwarders, when properly authorized by a company, are agents of the U.S. exporting firm. A U.S. firm who uses a freight forwarder is responsible to exercise oversight of the forwarder's handling of the U.S. firm's exports, and the U.S. firm is responsible to cooperate in providing necessary export control information to a freight forwarder. Failure to exercise this oversight can lead to the U.S. firm being held accountable and liable for violations which the forwarder may commit while acting on behalf of the U.S. firm. Once my company's products are outside the U.S., we are "off the hook" and have no concerns. Truth: It is important to understand that once goods are exported from the United States, they do not escape U.S. jurisdiction. Essentially, unless and until certain circumstances are met, U.S.-origin goods retain their identity as U.S. goods, which subjects them to U.S. jurisdiction and U.S. law. Similarly, when U.S. citizens leave the United States, they too are still subject to U.S. law. For U.S. firms, this can include U.S. branches and subsidiaries. My company does not export products to "bad" countries, so there are no U.S. export controls for us to worry about. Truth: Whether a country is "bad" or not is irrelevant to whether U.S. export controls apply to sales and shipment of goods and services to that country, or release of controlled technologies to its non-exempt nationals. The U.S. has export controls which apply even to its closest military and commercial trading partners and allies. U.S. export control is not a question of whether there are controls on a given country, but to what extent such controls apply. It does not matter whom I sell to within a given country. Truth: In addition to controls which apply to products and services going to different countries, U.S. Government agencies active in the export control area also prohibit export transactions with different lists and types of parties, known as "Denied Parties", "Debarred Parties", "Specially Designated Nationals", etc. Such prohibitions can even include brokering of transactions and the negotiation of business transactions with these parties. Further, the U.S. also prohibits the export of certain items to parties involved in activities relative to the production of nuclear weapons, chemical-biological weapons, and missiles without prior authorization. My company only exports to a few distributors abroad. Who the distributors sell to is not my concern. Truth: The U.S. is interested in the "reexport" of goods sent abroad, and a U.S. exporter's knowledge of where its exports will end up. U.S. goods retain their U.S. identity for export control purposes (except under certain conditions) after being exported, and therefore U.S. parties and their foreign distributors need to be aware of U.S. reexport requirements. My company does not export goods overseas. We therefore have no U.S. export control concerns. Truth: U.S. companies often misunderstand the broad meaning ascribed to the term "export" by the U.S. government. This term can capture goods, commodities, services abroad or in the U.S., e-mails or faxes abroad containing controlled technologies, and the release of controlled technologies to non-exempt foreign nationals in the U.S. In addition, firms which sell goods in the U.S. that are later exported from the U.S. have an obligation to provide export- related information about those goods to the U.S. parties buying from them in order to facilitate the exporter's completion of a Shipper's Export Declaration. Travel to certain foreign countries for business reasons, in particular those which are embargoed, may also be regulated. Call toll-free 1-877-328-7866 and talk to one of our global
trade compliance consultants. They'll help you analyze your requirements, evaluate
your options, and provide focused product demonstrations. Or send an email to
info@eCustoms.com. |
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