Technology Transfer Control Laws
The U.S. government's definition of "technology" refers not only to physical goods, but to any specific information
necessary for the development, production, or use of a product. Therefore any of your company's technical data that is
"leaked" to unauthorized foreign nationals constitutes an export of technology to that foreign country, so that from
an export control standpoint, the security of your technical data is vital for maintaining compliance with export control
Even when technology transfers are being conducted in a perfectly legal manner, it is important for company compliance
officers to have the ability to view, monitor, and track that the transfers are occurring according to all government
guidelines, and according to the details of the relevant Agreements. This is because, for many corporations, there will
be numerous individuals named in Agreements who are authorized to access technical data; they will likely be doing so
from a variety of different subsidiary companies in diverse locations throughout the world. Without effective oversight
of tech data transfers, there is no way to know that your company is not inadvertently transmitting data to unauthorized
parties who may use your technology to harm the United States and its allies.
Penalties for Illegal Technology Transfer
In the event that your company attempts to export goods with an expired or exhausted license, the consequences can be crippling.
Shipments will be halted at the port of exit and there will be lengthy delays in releasing items as the U.S. government investigates
to determine why the company has not maintained adequate records and procedures for overseeing their export activities—assuming
a company can convince the government that they were simply negligent, and not attempting to willfully export without a valid license.
Companies appearing to take a casual attitude toward export compliance will come under increased scrutiny, and difficult questions
regarding the business's reliability and commitment to compliance are certain to arise. Even if violations are determined to have
been a result of carelessness rather than an intentional attempt to circumvent the law, hefty fines and/or the temporary or permanent
revocation of export privileges can be levied against the company. Plus, significant delays in shipments will cause difficulty for
customers, who will seek alternative suppliers whose shipments can be expected to arrive on time.
Proper oversight of export licenses is a responsibility your company cannot afford to ignore—without proper License
management, you may be inadvertently aiding enemies of the United States and its allies. Every time an export compliance violation
occurs, the safety and the very lives of America's soldiers and civilians, both at home and overseas are put in serious jeopardy.
That's why the U.S. takes export licensing so seriously, and you should too. Export licensing is the primary means of facilitating
international business while protecting American interests, and helping to prevent controlled goods and technology from falling into
the hands of terrorist groups and other hostile foreign entities.
Not only defense and aerospace articles, but also "dual-use" goods—which can have both civilian and military uses—present
a potential threat, and must be properly licensed for export. While not all exports require licenses, it is the exporter's
responsibility to determine whether or not their goods require one, or to prove that they qualify for a license exemption or
exception—and the company's audit logs and export-related documentation must be just as assiduous as if they were exporting
goods requiring licenses. All these requirements are to promote homeland security, and so scrupulous adherence and oversight are an