September 11th, the subsequent war on terror, and regional instability have caused the U.S. Government to give priority to the investigation and enforcement of export controls. These laws that govern the export of services, data, and articles are key components to U.S. anti-proliferation efforts. At issue are important national security and foreign policy interests. This emphasis on national security has resulted in multiple high profile prosecutions. The trend from the last Administration is continuing with increasing export oversight and revisions to export control laws. All this makes proper compliance and export counseling more important than ever before.
Export control laws are complex, overlapping, and sometimes contradictory. They are broad and apply to many different industries, including the aviation and aerospace industry, high-tech companies, financial services, universities, and defense/security contractors who export goods or services.
Recognized as an international leader in export control and trade sanctions compliance, Holland & Hart attorneys have been at the forefront of several seminal export control and trade sanction investigations and enforcement actions. Headquartered in Denver with an office in Washington D.C., Holland & Hart offers its international experience and inside the beltway knowledge at a fee level remarkably lower than similar firms in the nations capital. With extensive experience working with the U.S. State, Commerce and Justice Departments, Holland & Hart offers counseling and advice to clients on compliance, investigations, enforcement, and penalty mitigation without the overhead associated with other large firms. Further, Holland & Hart is backed by one of the nation's leading litigation departments, which means that our export control and trade sanctions lawyers can bring significant resources to a company's defense in the event of an investigation or criminal prosecution.
Discretion in this area of law is key. The foreign policy and national security implications of these enforcement actions can have significant consequences on government clients and investors, as well as on a firms public image. We therefore strive to resolve matters in a manner that minimizes public scrutiny and the associated damage to goodwill.
From small privately held start-ups to publicly traded Fortune 500 companies, the export control and trade sanctions attorneys at Holland & Hart have considerable experience in all aspects of this complex area of law, including:
Export Controls
Controls on the export of defense articles and technical data or dual-use articles and technology as well as the provision of defense services pursuant to the Arms Export Control Act (AECA) and Export Administration Act (EAA)/International Emergency Economic Powers Act (IEEPA). These laws are administered by the U.S. State Departments Directorate of Defense Trade Controls (DDTC) through the International Traffic in Arms Regulations (ITAR) and U.S. Commerce Departments Bureau of Industry and Security (BIS) through the Export Administration Regulations (EAR).
Trade Sanctions
Economic sanctions and embargoes that restrict with whom U.S. persons can conduct business. These restrictions are primarily administered by the U.S. Treasury Departments Office of Foreign Assets Control (OFAC).
Customs Law/Import Controls
The enforcement of trade and customs laws by U.S. Customs and Border Protection. These matters typically involve the seizure of items at ports of entry, tariff classification, customs valuation, and country-of-origin requirements.
Antiboycott Compliance
Restrictions on participating in unsanctioned foreign boycotts administered by the U.S. Commerce Department pursuant to the Export Administration Regulations (EAR). Antiboycott restrictions also include provisions of the Internal Revenue Code enforced by the U.S. Treasury Department.
Foreign Corrupt Practices Act
Restrictions on making corrupt payments to foreign government officials or other persons associated with foreign governments for the procurement or retention of business. The Foreign Corrupt Practices Act (FCPA) is enforced by the Department of Justice.
Homeland Security
The Global War on Terrorism has resulted in new laws and increased governmental regulation. Various agencies, with overlapping jurisdiction, now regulate international trade and investment in addition to previously existing export controls and trade sanctions. These generally fall under the umbrella authority of the Department of Homeland Security (DHS). Holland & Hart brings its substantial experience working with DHS and other agencies to mitigate the impact of these new laws and regulations on your business.
National Security Restrictions on Investment
Holland & Hart's export control and trade sanctions attorneys are experienced in restrictions under the Exon-Florio Amendment of the Defense Production Act of 1950 and under the National Industrial Security Program, including notifications to the Committee on Foreign Investment in the United States (CFIUS), developing mitigation plans for Foreign Ownership, Control or Investment (FOCI), and establishing compliance and technology control plans that control secured information.
Compliance And Training
From body armor and computer chips to helicopters and space launch vehicles, Holland & Hart has assisted companies in developing and monitoring comprehensive export compliance programs. We have also counseled senior management on navigating this complex area of law while reducing the impact of compliance on internal business processes. We have provided tailored online training tutorials for large multinational companies and personalized face-to-face training for company executives. Our trainees span the globe, from the United States to Asia, Europe and the Middle East. In addition, Holland & Hart has extensive experience assisting companies in the exporter registration process, preparation and submission of export and brokering licenses, and in preparing commodity classification or jurisdiction requests.
Investigations And Enforcement
In 2007, the Department of Justice began an export enforcement initiative that has led to a tremendous increase in the investigation and prosecution of export control and trade sanction violations. With more than 500 federal prosecutors and agents now trained on investigating export control violations, and with more than 20 new regional export enforcement task forces. As a result, companies are subject to more scrutiny than ever before. Violations of these laws carry significant civil and criminal penalties and the associated loss of public goodwill. Therefore, Holland & Hart clients are those companies that recognize the need for robust compliance systems, employee training, proper internal investigations, and discreet resolution of export and trade sanction matters.
Accompanying the increased government scrutiny on export controls and trade sanctions, private companies have been requested to provide unprecedented support to U.S. Government operations in Iraq, Afghanistan, and other volatile regions of the world. Companies supporting U.S. Government foreign operations often encounter these laws when exporting equipment - such as aircraft, body armor, and optics overseas or providing consulting services or training to foreign governments. Many companies rely on U.S. Government support for their programs and export investigations can hinder contract performance and could result in debarment or a substantial loss in revenue. Holland & Hart helps companies such as these to avoid compliance issues and manage investigation responses.
HHCMS Export Compliance Training Program
To complement its practice in the area, Holland & Hart developed the HHCMS compliance training system. This web-based system allows companies to quickly and effectively train employees, while compiling the data needed to demonstrate compliance to government regulators. Originally launched for space companies dealing with the difficulties of compliance with U.S. export control laws when engaged in multinational projects, the system is now used by a variety of industries engaged in international commerce ranging from construction to defense services. For more information, visit www.hollandhart.com/hhcms.
Representative Export Control Matters
A major defense service contractor with respect to complex regulatory and compliance matters affecting ITAR, EAR, OFAC and other controls with respect to activities in Iraq, Afghanistan, and several African countries.
A publicly traded, multinational engineering and construction service firm with respect to multiple compliance issues, including OFAC, ITAR and EAR requirements and related training.
A publicly traded, multinational service firm with respect to the export of ITAR controlled data and services related to nuclear weapons testing facilities.
A publicly traded, multinational pharmaceutical company in federal criminal and administrative proceedings concerning the illegal export of missile fuel components.
A U.S. company with respect to an investigation and disclosure of the unlicensed export of a super computer to the People's Republic of China.
A privately held German company with respect to alleged criminal violations of the Arms Export Control Act involving exports of missile technology components.
A U.S. aviation parts company alleged to have criminally violated the Arms Export Control Act through the sale of jet fighter parts to an Iranian company.
A U.S. person alleged to have criminally violated the International Economic Emergency Powers Act by trading high-technology items with the Chinese Academy of Launch Technologies.
A technical optics company in criminal investigation regarding alleged deemed exports of technical data to China.
A criminal case involving a university employee involved in deemed exports of defense technical data to China.
An international defense logistics firm with internal investigation of Foreign Corrupt Practices Act and voluntary disclosure of anti-boycott violations.
A semi-conductor manufacturer with respect to unlicensed exports of defense articles.
A non-U.S. national whose testimony was sought by a special Congressional committee investigating ballistic missile technology exports to China.
Multiple defendants in a federal criminal prosecution alleging violations of export control laws with respect to the export of computers to Syria.
Several corporations and individuals investigated by federal grand juries investigating allegations of criminal export violations.
Multinational corporations with respect to Foreign Corrupt Practices Act and anti-boycott compliance and related defense matters.
Multinational corporations in developing compliance programs in various areas of federal regulatory law.
Numerous voluntary and directed disclosures and other investigations before the Departments of State, Commerce and Treasury.
Multiple internal audits pursuant to Department of State mandates.
