Domestic exporters of technical data or commodities and foreign corporations receiving such technical data or commodities need to understand and follow the new licensing procedures of the BXA adopted in 1996. Understanding and compliance is critical for two major reasons. First, U.S. export controls play an important role in successful international transactions involving U.S.-origin technical data and products. Such review can effectively limit a corporation's financial risk and encourage the foresight to ensure that agreements are properly drafted to minimize liability in the case of delays or prohibitions. Second, both U.S. and foreign corporations are subject to severe legal and business consequences if they do not comply with the U.S. export controls procedures and regulations.
Violators can face substantial fines and stiff prison sentences.
More importantly, violation of U.S. export controls can result in a denial of the privileges to export technical data or commodities from the United States, to receive technical data or commodities exported from the United States, or to import technical data or commodities into the United States. Denial of these important privileges can devastate domestic firms and foreign companies depending on international markets. Our professional staff has counseled domestic and international companies to ensure that they understand U.S. export controls and the key concepts upon which they are based. Other exports from the United States do not require a license and may be shipped without BXA approval. These exports are said to be exported pursuant to a license exception.