The changes being introduced under the ECR could open up new opportunities for businesses to save costs and speed up processes. Companies should therefore review their current export controls procedures in light of the new licence exceptions and possible reduced or eliminated registration fees. Additionally, as the de minimis principle would apply to the series, there may be benefits from a reduced licensing burden, thus making it easier to source articles from the USA.
Skip to main content. You are viewing free content from a subscription product Croner-i is a comprehensive knowledge and resource platform that enables professionals to stay ahead of change in their industry, with legislation, trends and best practice. Printable version Share. Department of Commerce DoC The DoC is authorised by the Export Administration Act to regulate the export and re-export of USA originating commercial goods and technology mostly dual-use goods: items that have both commercial and military applications.
Special rules also apply to certain encryption technologies and high-powered computers. Changes under the US Export Control Reform ECR Under the current system, an exporter may be required to apply for export licences from multiple agencies depending on the materials being exported and, consequently, jurisdiction is sometimes unclear and processes cumbersome. Features International direct selling. Country Profile — the USA. Controlling the trade in dual-use items. The EU Referendum — what does it mean for trade?
Questions and Answers EU export licensing controls under the dual-use regulations. One of the first steps you should take to safeguard against noncompliance is to adopt a secure file sharing solution. Because both regulations deal with not only hardware but data as well, you need a way to share that data both internally and externally without compromising sensitive information.
Exporting data is a daily occurrence in most businesses today. When using a secure file sharing solution, you have the tools needed to keep your data safe. ITAR , in particular, outlines a number of ways you need to protect your data, broken into four categories:. Secure file sharing solutions allow you to restrict access by IP address, so accounts and data are only accessed from approved, secure computers.
Account access can only be granted through authentication methods. This means accounts must be protected with usernames, passwords, SSH keys, etc. ITAR-regulated data must be physically protected. Choose a FTP provider operating out of a secure location. Regularly update malware prevention software. Top FTP hosts will manage and update all software security measures. Hardware providing access to controlled data should be current on security patches and updates.
Your file sharing host will maintain the secure solution for you. Electronic media should be wiped in accordance with NIST — Top file sharing solutions comply with this mandate, as should your company. Data must be encrypted when stored. This is one of the primary functions of a secure file sharing solution. In a top file sharing solution, data is encrypted automatically.
Using a secure file sharing solution, administrators can enforce data encryption as a file sharing requirement. Wireless networks should be encrypted. This falls under the responsibility of the company, not the FTP host.
Monitor inbound and outbound traffic. Industry-leading file sharing solutions provide activity logs to show who is accessing data. One would be wrong. The EAR control the export of so-called dual use goods and goods that are not controlled by other regulations. Dual use refers to the idea that the product has a commercial function, but it also may be used in applications or destinations the U. Most commercial shipments are subject to the EAR.
These regulations are intertwined with end user, end use and destination controls. In addition to goods, the EAR also control the export of certain software, technological know-how and even certain business practices such as contracting, financing and shipping.
Inexperienced exporters commonly assume that their everyday goods and business practices are not subject to the EAR or any of its restrictions. This is a risky assumption. I seem to have been mistaken. The U.
The details of this act are found primarily within the ITAR. Goods regulated by the ITAR are detailed within the munitions list and are subject to an export licensing requirement by the State Department.
Logically this list includes weaponry and military equipment. A brief review of the munitions list would imply that it is a simple matter to determine if exports are subject to ITAR. For companies supplying components to the defense industry, however, it may not be as clear. Companies engaged at any level within the defense industry are cautioned about outsourcing production to other countries or exporting any of their goods before reviewing the ITAR.
The ITAR also allows for a process of statutory debarment. This is administered by the DDTC through the debarred parties list, one of the primary export restricted parties lists. Like the EAR, the ITAR are concerned about unlawful distribution of technology or software related to the specifications of defense goods, their operation or their production.
With multiple regulators involved it is inevitable that exporters might get confused about which regulations apply to their goods. Sometimes the regulations reference one another and exporters can make this determination on their own. There is more to an academic education than reading, writing and arithmetic.
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