Here are some of the frequently asked questions that customers often put to us, with our considered responses
US Issues Affecting Non-US Companies
Do US ITAR controls really apply to non-US companies?
A. In an academic, legal sense it can be argued that they do not. However, commercial reality is that the US Government can and does impose penalties on non-US individuals and companies. The ultimate sanction, commercially, is being placed on a denial list; meaning that no US person can do business with your company.
Can a non-US company apply for a US export license?
A. It depends. Under ITAR, US export licenses can be applied for only by a 'US person'. If you have a US subsidiary (or parent), that company can apply for licences but must have a US citizen employee to act as an 'empowered official'.
A non-US company can request re-export approval from the Department of State by means of a General Correspondence request but it is preferable to have the US exporter make the request, on the original license at the time of application if possible.
Under EAR, non-US companies can themselves register to use the electronic licensing system SNAP-R and make their own applications to the Department of Commerce.
Does ITAR conflict with EU employment laws?
A. Potentially, yes and so does EAR. There is no 'magic bullet' and the conflict of laws here cannot easily be resolved by industry. However, the risks arising from the conflict can be mitigated by effective compliance management and recent changes have made risk mitigation in this area more effective.
Can a non-US company apply directly to re-export US controlled items?
A. Yes, but it is often easier and quicker to ask your US supplier/partner to do this on your behalf.
Can a non-US product become US controlled, thereby closing off potential markets to which USG may object.
A. Yes, but this impact can be managed. If you intend to supply a non-US product into the US, the time to make a commercial decision regarding the future market for that product is before the initial supply. Accepting future US jurisdiction may or may not be a logical commercial choice but it is by no means inevitable, if the activity is properly managed.