BIS Seeks Comments Regarding The Effects Of U.S. Export Controls On Decisions To Use Or Not To Use U.S.-Origin Parts And Components In Commercial Products

The Bureau of Industry and Security, U.S. Department of Commerce

("BIS"), is requesting comments concerning the effects of

U.S. export controls on decisions to use or not to use U.S.-origin

parts, components and materials in commercial products and the

potential impacts of such decisions.

The deadline for comments has been extended from February 19,

2009, to April 20, 2009. In many instances, U.S. export laws and

regulations trace U.S. parts, components and materials into

foreign-made products that are then exported/reexported to various

countries. Some U.S. exporters are concerned that the U.S. parts,

components and materials may exceed certain de minimis levels in

foreign-made products and thus capture the finished article within

the scope of U.S. export/reexport restrictions.

Issues may also arise when the U.S. product is technology that

is used in foreign production. In certain instances, not only is

the technology subject to U.S. controls, but also the "direct

product" of U.S. technology may be subject to controls, prior

approvals by the cognizant U.S. agency and licensing.

Violations of U.S. export laws and regulations carry heavy civil

and criminal penalties, and some U.S. exporters have complained

that the harshness of U.S. export laws places them in a significant

competitive disadvantage globally.

The request for comments is an opportunity for those interested

parties to submit opinions and comments to the U.S. Department of

Commerce. Comments may be submitted to publiccomments@bis.doc.gov.

If you have any questions about this topic or would like

more information, please contact Brian S. Goldstein, any member of

the International Practice Group or the attorney in the firm with

whom you are regularly in contact.

This article is for general information and does not include

full legal analysis of the matters presented. It should not be

construed or relied upon as legal advice or legal opinion on any

specific facts or circumstances. The description of the results of

any specific case or transaction contained herein does not mean or

suggest that similar results can...