U.S. (RE-) EXPORT CONTROLS AND U.S. SANCTIONS

COMPETENT EXPORT CONTROL CONSULTING ALSO WHEN U.S. LAWS ARE CONCERNED

Many in Germany based companies are exporters. For being successful in exporting one has not only to comply with the rules and regulations in international trade from diverse areas (Compliance) but also to integrate such rules and regulations at best in one´s own supply chain in order to let processes run smoothly and avoid bottlenecks.

The U.S.A. apply their complex (re-) export control laws (EAR, Export Administration Regulations) of the Bureau of Industry and Security (BIS) under certain conditions also for items, which are outside the U.S. territory (U.S. origin items) or under certain conditions made outside the U.S. territory (foreign made items). Therefore also German companies can be affected as re-exporters of U.S. origin items or foreign made items and need to follow U.S. laws from an U.S. perspective in addition to German and EU export control regulations. As the arm of U.S. authorities has a long reach and their sanctions could be draconic, basic knowledge about the respective U.S. regulations for German exporters is indispensable because it strongly reduces risks.

Besides, U.S. sanctions from the Office of Foreign Asset Control (OFAC) can hit German companies in their businesses as well. Primarily such U.S. sanctions target upon U.S. persons and U.S. items which are subject to the U.S. Export Administration Regulations (EAR). Secondarily, such U.S. sanctions can also take effect upon non-U.S./foreign companies (called secondary sanctions). For instance, when the U.S.A. refuse the access of foreign financial institutions to the U.S. financial system, in cases where the foreign financial institution has not followed such secondary OFAC sanctions in processing their clients flows of payments. In the past German and other European financial institutions already had to pay billions of U.S. $ in fines to OFAC for the settlement in such cases.

I am very pleased to consult you on such matters under U.S. laws in each phase of your business. Specialized lawyers and consultants belong to my international network in order to support you on such topics like:

• When are U.S. laws applicable in non-U.S. countries (subject to EAR)
• De minimis, bundling, 2nd incorporation und direct product rule
• Classification (ECCN/EAR99) under the U.S. Commerce Control List (CCL)
• Licensing requirements with ECCN and country of destination according to the Commerce Country Chart (CCC)
• Other licensing requirements (General Prohibitions, Embargoes)
• License Exceptions
• Procedure for license applications (SNAP-R)
• Specially Designated Nationals and blocked Persons List (SDN list)
• Office of Foreign Asset Controls (OFAC) sanctions