Export Controls and Regulations
U.S. Export Controls and Regulations exist to protect our national security, foreign policy interests, and regional stability, as well as crime control and economic competitiveness.
If your company manufactures products, develops technology, provides technical services, or plans to sell internationally, U.S. export controls likely apply to you—even if you’ve never shipped anything overseas before.
What are Export Controls?
At their core, export controls regulate what is being transferred, where it is going, who will receive it, and how it will be used.
An “export” does not only mean shipping a physical product across a border. Under U.S. regulations, exports also include:
- Sending technical data or software electronically to another country
- Uploading controlled data to foreign cloud servers
- Carrying controlled technology on a laptop while traveling internationally
- Sharing controlled information with a foreign national, even inside the United States (known as a deemed export)
Because exports can occur digitally or verbally, many companies are subject to export controls without realizing it.
U.S. export controls are laws and regulations that govern how goods, software, technology, and services can be shared with foreign countries and foreign persons.
Why Do Export Controls Exist?
Export controls are one of the U.S. government’s primary tools for protecting national security and preventing sensitive technology from being used for military, surveillance, or weapons-related purposes by foreign adversaries.
They also support broader foreign policy and economic goals, including sanctions enforcement, anti-terrorism efforts, and nonproliferation initiatives. Once controlled technology is released, it cannot be taken back—making prevention essential.
Who Must Comply?
U.S. export controls apply to:
- U.S. companies and individuals
- Foreign companies exporting U.S.-origin items
- U.S. technology shared with foreign employees, contractors, or partners
- Manufacturers, service providers, universities, and research facilities
Ignorance of the law is not a defense. Companies and individual employees can both be held liable for violations.
The Role of Export Regulations
Export controls are implemented through specific regulations administered by different U.S. government agencies. The two main regulatory frameworks exporters encounter are:
- Export Administration Regulations (EAR) – Administered by the U.S. Department of Commerce, governing most commercial and dual-use items. (Learn more about EAR)
- International Traffic in Arms Regulations (ITAR) – Administered by the U.S. Department of State, governing defense articles, services, and technical data. (Learn more about ITAR)
Other agencies also play critical roles in export enforcement and oversight, such as:
- U.S. Treasury’s Office of Foreign Assets Control (OFAC) administers economic sanctions and embargo programs, restricting trade with certain countries, companies, and individuals (regardless of product classification!).
- U.S. Customs and Border Protection (CBP) enforces export requirements at the border, reviewing filings, licenses, and documentation and detaining or seizing shipments that do not comply with U.S. export laws.
Ignorance of the law is not a defense. Companies and individual employees can both be held liable for violations (including fines or jail time).
What Export Controls Mean for Your Business
Export controls are not optional. Violations can result in:
- Civil penalties reaching hundreds of thousands—or millions—of dollars
- Criminal penalties, including prison time for individuals
- Loss of export privileges
- Reputational damage and loss of government contracts
The good news: compliance does not require becoming a legal expert. Most companies meet their obligations by understanding which rules apply, implementing basic procedures, training employees, and asking questions when something doesn’t feel right.
Key Takeaway
Export controls are one of the U.S. government’s primary tools for protecting national security and preventing sensitive technology from being used for military, surveillance, or weapons-related purposes by foreign adversaries.
They also support broader foreign policy and economic goals, including sanctions enforcement, anti-terrorism efforts, and nonproliferation initiatives. Once controlled technology is released, it cannot be taken back—making prevention essential.
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