Export Controls

Export Compliance Reviews & Assessments

Luks Cormaney LLP provides a range of services related to assessing the effectiveness and adequacy of internal export compliance policies, compliance procedures, Technology Control Plans (“TCPs”) and implementation plans for licenses and agreements in companies of varying sizes, including recommending new procedures or changes to existing procedures to increase the effectiveness of internal controls. Also, the firm has specific expertise in ensuring that export compliance policies and procedures are adapted and customized to integrate – to the extent possible – with the existing business operations of its clients. This helps ensure that export compliance procedures are observed in “day to day” business operations and do not merely sit unused on a shelf because they unnecessarily interfere with the ability of company personnel to complete their job responsibilities.

Due to the firm’s substantial experience in assisting companies with developing and implementing export compliance procedures, there already exists a large variety of models that can serve as a starting point and that can be modified to address specific issues facing new clients. This increases the cost-effectiveness of the firm’s efforts to enhance existing procedures or develop company-specific compliance procedures for new clients.

Analyzing Jurisdiction Issues

Luks Cormaney LLP provides expert guidance to clients on the issue of which set of U.S. Government regulations apply to the export of products and technical information – the controls under the Export Administration Regulations (“EAR”), which apply to civil and “dual use” items or the controls under the International Traffic in Arms Regulations (“ITAR”), which apply to exports of military and defense related items. This determination can be difficult, as many key items and technologies (e.g., aircraft parts, electronic components, etc.) fall within the grey area separating the two sets of regulations. The firm provides expert analysis of jurisdiction issues, and has substantial experience in drafting and obtaining formal determinations – called “Commodity Jurisdictions” – from the U.S. Department of State.

Obtaining & Implementing U.S. Government Authorizations

Luks Cormaney LLP provides a wide range of services to clients related to obtaining licenses and other export authorizations issued by the U.S. Government. These include export licenses of all varieties (e.g., Commerce and State licenses, including authorizations for the employment of foreign persons in the United States), Technical Assistance Agreements (“TAAs”), Manufacturing License Agreements (“MLAs”), Warehouse and Distribution Agreements (“WDAs”) and reexport authorizations. The firm is experienced in preparing such submissions that comply with the most recent guidance – formal and “informal” – from the regulatory agencies and that utilize the electronic license submission systems (“SNAP” and “D-Trade”) to ensure a timely response.

The firm also provides expert guidance to U.S. clients and the foreign parties involved in licensed transactions on how to effectively implement the requirements of such authorizations. Too often, the compliance efforts of U.S. companies after the receipt of the export approval do not match the diligence devoted to preparing the application. However, there are ongoing administrative and substantive requirements to ensure that all activities are covered under the authorization and that any changes to the scope of work or parties involved are submitted for prior U.S. Government approval. The firm has substantial experience in providing specific guidance and training on the often detailed requirements application to foreign parties under U.S. export licenses or other authorizations (e.g., sublicensing, involvement of dual/third country nationals, retransfers, etc.). This is critical to U.S. companies because, at the end of the day, a compliance issue with a foreign party will reflect on the U.S. applicant and may cause substantial delay to international cooperative programs important to all parties.

Export Compliance Training

Luks Cormaney LLP provides export compliance training for company personnel at all levels – ranging from compliance briefings for senior management personnel to in-depth, hands-on training on key issues, including: license preparation training for personnel responsible for preparing and submitting requests for licenses or other authorizations; the identification, marking and control of technical information by engineers and technicians; ensuring that contracts and shipping documents conform to regulatory requirements; exporting hardware and technical data; and controlling access to export-controlled information in computer systems. The firm has several training “modules” and standard materials that can be tailored and adapted to the specific training needs of our clients.

● Establishing corporate-wide export control compliance programs, drafting compliance manuals, and providing training for U.S. and foreign contractors engaged in trade regulated by the International Traffic in Arms Regulations (“ITAR”), the Export Administration Regulations (“EAR”), and the Treasury Department’s Office of Foreign Assets Control (“OFAC”) and the Department of Energy.

● Advising companies on the “deemed export rule” applicable to the employment of foreign persons in the United States, and the employment of third country/dual-nationals overseas.

● Preparing and securing approval of export licenses issued by the Departments of State (ITAR), Commerce (EAR) and the Treasury (OFAC).
Drafting Technical Assistance Agreements, Manufacturing License Agreements and Warehouse and Distribution Agreements; then monitoring the agreements through the approval process at the State Department’s Directorate of Defense Trade Controls (“DDTC”), the Department of Defense, the National Security Agency, and other U.S. Government agencies.

● Drafting briefing memoranda and talking points for meeting with U.S. Government officials (e.g., Defense Technology Security Administration) on the review and approval of licenses and ITAR Part 124 Agreements, such as Technical Assistance Agreements.

● Seeking Commodity Jurisdiction (“CJ”) determinations from DDTC to ascertain whether goods are subject to the export regulations administered by the State Department or the Commerce Department.

● Representing clients in the legislative and regulatory process on revisions to U.S. export control statutes and their implementing regulations.