Export Controls

Items subject to International and Export Trade Regulations

International Traffic in Arms Regulations

Some jurisdictions restrict the export, import, or sale of these products. For instance, some weapons are deemed to be “defense articles” that are regulated by the U.S. Department of State under the International Traffic in Arms Regulations (“ITAR”). All items governed by ITAR require a license, a license exemption, or other approval from the U.S. Department of State in order to “export” (22 C.F.R. § 120.1 et seq. defines export to include releasing or transferring “technical data” to “foreign persons,” whether inside or outside the United States, or to “US persons” located at APO/DPO/FPO addresses outside of the United States). Non-compliance with the ITAR can result in civil penalties as high as $500,000 per violation, criminal penalties up to $1,000,000 in fines, 10 years imprisonment per violation, and/or a bar from conducting business with U.S. companies.

Export Administration Regulations

Weapon products considered “dual-use” (i.e., those having both a defense and commercial purpose) may be regulated by the U.S. Department of Commerce under the Export Administration Regulations (“EAR”). An export license or other approval from the U.S. Department of Commerce may be required prior to selling these items. Non-compliance with EAR can result in civil penalties as high as $250,000 per violation or twice the amount of the transaction that is the basis of the violation, criminal penalties up to $1,000,000 per violation, 20 years imprisonment per violation, and/or loss of export privileges.