International Business Law: Chapter 13

national security controls

used to "prohibit or curtail" the export of goods or technology that would make "a significant contribution to the military potential of any other country or combination of countries which would prove detrimental to the national security of the United States"

sanctions

regulations that prohibit US citizens or companies from doing business with certain foreign governments, organizations, or individuals who support international terrorism, violate treaties on the spread of nuclear weapons, or traffic in illegal drugs

controlled technology

the specific information and know-how necessary for the development, production, or use of a product, including the results of proprietary research done by corporations, universities, or research labs

diversion

the unlawful transfer, transshipment, rerouting, or re-exporting of controlled goods or technology from one destination, to which the goods or technology could legally be shipped, to another destination that has not been lawfully authorized to receive the items

deemed re-export

a communication of information from someone who was licensed to receive it to a third person that must also be licensed

special comprehensive license

a license that allows companies to make multiple shipments to the same consignee over an extended time; requires advance registration with the BIS, approval of the consignee, and approval of a system of internal controls and record keeping to ensure compliance with the export regulations

specially designated nationals and blocked persons list

a list maintained by the Department of Treasury, Office of Foreign Assets Control, comprising individuals and organizations deemed to represent restricted countries or known to be involved in terrorism and narcotics trafficking

unverified list

a list of firms for which an end use check could not be done in prior transactions

Commerce Control List

a list of items to control selected by the Department of Commerce based on consultations with other executive departments

debarred list

a list of parties barred from exporting defense articles, administered by the US State Department

denied persons list

a list of persons whose export privileges have been denied or revoked

entity list

a list originally set up to bar exports or diversions to organizations engaged in activities related to the proliferation of weapons of mass destruction; today it has expanded for other reasons

validated end user program

a program allowing qualified exporters to pre approve foreign "trusted customers" and subsidiaries of American companies for shipments of certain high-technology, commercial, or dual-use items, without the need for individual export licenses

export management and compliance program

a program designed to ensure compliance with export controls (virtually mandatory today); should be in writing and stat

financial sanction

a regulation that restricts or prohibits relationships with "targeted" foreign countries, foreign entities, or named foreign individuals because of their support for international terrorism, the proliferation of weapons of mass destruction, for international drug and narcotics trafficking, or other threats to national security

re-export

refers to the shipment or transfer of American-controlled items or technology from one foreign country to another foreign country

Electronic Export Information

an electronic filing of information required for each export shipment leaving the United States

end user

an individual person or entity in which an export control(s) is based on

foreign national

an individual who is neither a US citizen nor a permanent legal resident of the United States

consolidated screening list

an online compilation of prohibited end users

boycott

an organized refusal of one or more nations, often backed by economic sanctions, to trade with one or more other nations

dual-use items

commercial items that may also have military or "proliferation" uses (relating to the proliferation of nuclear, chemical, or biological weapons)

foreign policy controls

controls created for foreign policy reasons; they must not be merely idealistic, but also realistic

short supply controls

controls that might apply to certain foodstuffs, medicines, basic metals, or natural resources (scarce goods)

conscious avoidance

criminal cases are based on willful conduct or ________________, meaning that the exporter purposely avoided learning information that might have had a bearing on his or her license application

red flag indicators

indicators that warn of possible illegal attempt to violate US export controls; represent firms on the unverified list

commercial items

items intended for civilian use

export controls

laws and regulations that govern the licensing of certain goods and technology exported from the United States or transferred to non-US citizens

antiboycott laws

legal responses by governments that make it unlawful for their citizens or companies to participate in a boycott

export license

license required for the export or re-export of a controlled item

export

the act of shipping controlled items out of the United States or the transfer of controlled items or technology to a foreign national whether they are located inside or outside the United States, including technology transferred electronically

deemed export

the communication or other transfer by an American citizen of technology, technical data, software and source code, encryption technology, or any other controlled information to a foreign national

extraterritorial jurisdiction

the idea of extending jurisdiction over goods and technology once they leave the nation in which they originated

foreign availability

the idea that suggests that controls may not be placed on the export of goods and technology that "are available without restriction from sources outside the United States in sufficient quantities and comparable in quality to those produced in the United States so as to render the controls ineffective in achieving their purposes"

Automated Export System

the online system of the US Census Bureau used to collect information about export shipments