ITAR and EAR Challenges and Considerations: What You Need to Know
As part of the Export Control Reform initiatives, the State Department's Directorate of Defense Trade Controls (DDTC) and the Commerce Department’s Bureau of Industry and Security (BIS) have issued rules that will revise the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). It is not enough for exporters to just understand the current law: it is also critical for exporters to develop and update their export compliance programs and practices to avoid potential pitfalls.
In a 90-minute LIVE Webcast, a panel of thought leaders and practitioners assembled by The Knowledge Group will offer their thoughts on the revised ITAR and EAR. The speakers will also discuss common compliance issues and effective compliance practices.
Key topics include:
- ITAR and EAR Amendments and New Rules
- Jurisdiction and Classification
- Licensing, Agreements, and Exceptions
- Effective Compliance Practices
- Recent Enforcement
- Identifying Risks and Pitfalls
- Background on EAR and ITAR (Thaddeus R. McBride)
- Summary of EAR
- Commerce Control List and Export Control Classification Numbers (ECCNs)
- Based on destination, end-use
- Prohibited and Restricted parties
- Summary of EAR
- Summary of ITAR (Heather M. Smith)
- US Munitions List
- Required for nearly all exports
- Other authorizations – such as TAAs and MLAs – also available
- Embargo on certain destinations
- Limited exceptions
- Brokering and other obligations
- It is more important than ever to accurately classify items under the EAR or ITAR in light of Export Control Reform and the significant migration of items from USML to CCL (Candace M. J. Goforth)
- Background on Export Control Reform
- How ECR has worked
- Accurate classification is foundation for appropriate export authorization
- Practical factors (Heather M. Smith)
- How are companies responding to ECR?
- More classifications required?
- Training personnel?
- New policies?
- The harmonization of terms between the ITAR and EAR does not mean exact one-for-one language which leads to further compliance challenges (Candace M. J. Goforth)
- Recognize which regulations control
- Ensure classification reflects correct / current terms
- Beware of how easily technology and technical data can be exported, including through e-mail, phone calls, and even site visits (Candace M. J. Goforth)
- Both EAR and ITAR control exports of technology
- Different definitions of each
- Significant challenge for exporters
- Non-US employees, visitors, interns, potential purchasers, etc.
- Practical factors (Heather M. Smith)
- What steps does company take to protect technology?
- How manage the EEOC issues and the need to understand people’s nationality
- There are more opportunities in Cuba and Iran because the embargoes have been eased – but many restrictions remain (Thaddeus R. McBride)
- US companies and individuals can conduct business in / with Cuba in certain sectors
- Travel to Cuba is permitted in many cases
- Practical challenges remain
- Financial transactions may be tough
- Export licenses still needed in many cases
- Many companies watching Cuba but not actively pursuing business
- US companies and individuals still prohibited from conducting most business in / with Iran
- Non-US subsidiaries of US companies can conduct certain business
- Practical challenges remain
- Strict limitations on US person involvement
- Financing transactions can be challenging
- Sanctions could snap-back, particularly in Trump administration
- A vigorous enforcement environment, and frequently-changing laws, mean that companies must maintain robust compliance practices and processes (DISCUSSION)
- High-profile settlements and Consent Decrees
- Significant penalties against companies and individuals
- Compliance best practices
- Management commitment
- Policies / procedures
- Training personnel
- Monitoring / periodic audits
Who Should Attend:
- Export Compliance Counsel
- Export Control Counsel and Consultants
- Export/Import Control Managers
- U.S. Exporters
- Multinational Companies
- Other Related Professionals
Candace Goforth is the Managing Director of Goforth Trade Advisors where she provides clients with strategic and practical day-to-day solutions involving defense trade and export controls. She is a subject matter expert on the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR).
Prior to her current position, Candace served over thirteen years in the Directorate of Defense Trade Controls (DDTC) leaving as the Director for Policy. As Director, she oversaw the Department of State’s implementation of the Export Control Reform initiative and was intimately involved in the revision of the control lists. Candace was also a key player in the drafting of the definition of specially designed.
In addition to being Director, Candace held numerous positions in DDTC to include Licensing Officer, Senior Agreements Officer, Commodity Jurisdiction Analyst, Senior Foreign Affairs Officer and Compliance Specialist. Candace was also the Division Chief for Training, and was charged with the training of all new Licensing and Agreements Officers.
Candace received her Master’s of Arts in Security Policy Studies from George Washington University.
Candace Goforth is the Managing Director of Goforth Trade Advisors where she provides clients with strategic and practical day-to-day solutions …
Thad McBride heads Bass Berry’s international trade group, which advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, and the Foreign Corrupt Practices Act (FCPA). He also handles import matters (CBP), advises clients on anti-boycott controls, and assists companies with matters involving the Committee on Foreign Investment in the United States (CFIUS). Thad regularly assists clients in investigations and enforcement actions brought by government agencies, and is routinely asked to write and speak on important trade issues.
Thad McBride heads Bass Berry’s international trade group, which advises public and private companies on the legal considerations essential to …
Heather M. Smith is Associate General Counsel and Secretary at Lydall, Inc. (NYSE:LDL). Prior to joining Lydall, Inc. in May 2015, Ms. Smith was Assistant General Counsel at UTC Aerospace Systems, which is part of United Technologies Corporation (UTC). Ms. Smith also held the position of Assistant Counsel at UTC’s Pratt & Whitney division from January 2007 to February 2014. While at UTC, Ms. Smith focused on compliance, operations, commercial contracting, and U.S. Government matters. She began her legal career in the United States Navy Judge Advocate General’s Corp., during which time she served in several locations, including most notably with the U.S. Navy SEALs at Naval Special Warfare Command in Coronado, CA. Ms. Smith graduated from the University of Connecticut with a B.A. in English, and received her J.D. from New England Law School in Boston, MA
Heather M. Smith is Associate General Counsel and Secretary at Lydall, Inc. (NYSE:LDL). Prior to joining Lydall, Inc. in May …
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About Goforth Trade Advisors LLC
Goforth Trade Advisors LLC (GTA) is a full service consulting firm specializing in designing defense trade compliance solutions for U.S. and non-U.S. parties. In particular, GTA focuses on overview training/speaking on the U.S. Export Control Reform (ECR) Initiative as well as developing company-specific action plans to comply with and implement the revised International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR).
GTA believes in understanding and applying the ITAR and the EAR as one regulation. For defense trade transactions, compliance with the ITAR and the EAR is inter-dependent and with ECR an imperative. All training and services provided by GTA will include an assessment from a Licensing, Compliance and Policy perspective as related to the ITAR and the EAR.
About Bass, Berry & Sims PLC
With more than 260 attorneys representing numerous publicly traded companies and Fortune 500 businesses, Bass, Berry & Sims has been involved in some of the largest and most significant litigation matters and business transactions in the country.
About Lydall, Inc.
Lydall, Inc. is a New York Stock Exchange listed company (NYSE:LDL), headquartered in Manchester, Connecticut with global manufacturing operations producing specialty engineered products for the thermal/acoustical and filtration/separation markets.