Export Compliance Reform and Its Implication for U.S. Companies

March 22, 2011Articles Bloomberg Law Reports

The U.S. export control system impacts a wide variety of commercial transactions within the United States and abroad. The definition of controlled “exports” under current U.S. law is very broad and complex. It covers products, activities, technology transfers and technical services that companies may not typically recognize as items that are controlled. In 2009, an interagency review of the current export control system directed by President Obama determined that the system is highly ineffective because it is overly complicated, redundant, inflexible and inclusive. These deficiencies complicate companies’ compliance and put companies at a competitive disadvantage in the global market place. In response, the Obama Administration initiated an Export Control Reform Initiative aimed at restructuring the current system by consolidating and streamlining export licensing, control lists, administration and enforcement under one government agency to promote efficiency, national security and U.S. business interests.

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