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Import/Export & Trade Compliance

Global trade touches nearly every sector of the US economy. Whether you are exporting advanced technology, importing manufactured goods, or managing a multinational supply chain, a complex web of US laws and regulations governs what you can ship, to whom, under what conditions, and at what cost. Violations can result in criminal prosecution, civil penalties, debarment from government contracting, and reputational damage that is difficult to recover from. This page provides an overview of the major US import/export and trade compliance frameworks that businesses need to understand.

The Regulatory Landscape

US trade compliance is not governed by a single law or agency. Instead, it involves a patchwork of overlapping regulatory regimes administered by multiple federal agencies, including the Department of State (DDTC), the Department of Commerce (BIS), the Department of the Treasury (OFAC), US Customs and Border Protection (CBP), and the Department of Labor. Each agency enforces a distinct set of rules, and a single export transaction can trigger obligations under several of them simultaneously. Understanding which rules apply—and how they interact—is the foundation of any effective trade compliance program.

ITAR: The International Traffic in Arms Regulations

The International Traffic in Arms Regulations (ITAR), administered by the State Department’s Directorate of Defense Trade Controls (DDTC), govern the export and import of defense articles and defense services on the US Munitions List (USML). ITAR applies broadly: any company that manufactures, exports, imports, brokers, or provides services related to USML items must register with DDTC, and most transactions involving controlled items require an export license. Unlike the Export Administration Regulations (EAR), which are generally oriented toward commercial goods, ITAR is specifically designed to protect US national security and foreign policy interests by controlling military and dual-use technologies with significant defense applications.

ITAR compliance is demanding. Registration is mandatory even for companies that do not currently export, companies must maintain meticulous records, and violations—even inadvertent ones—can result in civil penalties of up to $1.3 million per violation, criminal fines, and debarment. High-profile enforcement actions in recent years have targeted aerospace, defense electronics, and technology companies, but ITAR’s reach increasingly extends into commercial sectors including autonomous systems, cybersecurity tools, and satellite technology.

Export Licensing and the Commerce Control List

The Bureau of Industry and Security (BIS) administers the Export Administration Regulations (EAR), which govern the export of commercial and dual-use goods, software, and technology through the Commerce Control List (CCL). Not every item on the CCL requires a license—licensing requirements depend on the item’s Export Control Classification Number (ECCN), the destination country, the end user, and the end use. However, exporters must conduct due diligence to determine classification, screen end users against government denied-party lists, and ensure that no license exceptions are misapplied. BIS enforcement has escalated significantly in recent years, with particular focus on exports of advanced semiconductors, AI technology, and items diverted to Russia, China, and other countries of concern.

Deemed Exports: The Hidden Compliance Risk

One of the most commonly misunderstood concepts in US export control law is the “deemed export” rule. Under both ITAR and EAR, the release of controlled technology or technical data to a foreign national within the United States is treated as an export to that person’s country of nationality—even if no physical item ever leaves US soil. This means that sharing controlled technical information with a foreign national employee, contractor, or visitor at a US facility may require an export license. Companies with foreign national employees working on controlled projects must conduct nationality screening and may need to implement a Technology Control Plan (TCP) to restrict access to controlled information. Deemed export compliance is one of the areas most frequently overlooked by technology companies during rapid hiring or open-source collaboration.

Tariffs: Section 301, Section 232, and US Trade Remedies

US tariff policy has undergone dramatic changes in recent years. Section 301 tariffs on Chinese-origin goods, Section 232 tariffs on steel and aluminum, and new broad-based tariff programs have significantly increased costs for importers across nearly every industry. Compliance in this environment requires more than just paying the applicable rate—it requires careful management of country of origin determinations, tariff classification under the Harmonized Tariff Schedule (HTS), and qualification for exclusions, exemptions, or first-sale valuation strategies that can reduce duty liability. Companies must also be alert to potential liability for anti-dumping and countervailing duties, and customs fraud, which can arise when suppliers misrepresent origin or undervalue goods to avoid duties.

Forced Labor: The Uyghur Forced Labor Prevention Act (UFLPA)

The Uyghur Forced Labor Prevention Act (UFLPA), which took effect in June 2022, creates a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of China—or by entities on the UFLPA Entity List—were made with forced labor and are therefore prohibited from importation into the United States. This presumption applies across all goods and all industries, and CBP has significantly increased enforcement, detaining shipments and demanding importers provide clear and convincing evidence that their supply chains are free from forced labor. The UFLPA requires importers to conduct deep supply chain due diligence, going multiple tiers into their supplier networks to identify any Xinjiang nexus.

Beyond the UFLPA, the broader prohibition on importing goods made with forced labor under 19 U.S.C. § 1307 applies to all countries, not just China. Companies in apparel, electronics, agriculture, solar energy, and other sectors have faced significant enforcement actions and must maintain robust supplier audit programs, traceability documentation, and remediation protocols.

US Customs Compliance

Every import into the United States is subject to US Customs and Border Protection (CBP) review. Accurate classification under the Harmonized Tariff Schedule, correct valuation, and proper country of origin marking are legal obligations—not optional best practices. CBP has broad authority to audit importers, conduct investigations, and assess penalties, including seizure of goods, liquidated damages, and penalty assessments that can reach four times the unpaid duties in fraud cases. Importers of Record (IORs) bear legal responsibility for the accuracy of customs entries, even when brokers prepare them. Companies can mitigate risk through binding ruling requests, participation in the Customs-Trade Partnership Against Terrorism (CTPAT), and proactive Prior Disclosure filings when errors are discovered.

Building an Export and Trade Compliance Program

For any company engaged in international trade, a written export compliance program (ECP) is not just a best practice—it is increasingly expected by regulators as evidence of good faith and a factor in penalty mitigation. An effective ECP includes a clear compliance policy, designation of a responsible compliance officer, procedures for product classification, end-user screening, license determination, recordkeeping, and employee training. When a violation occurs, a well-documented ECP can mean the difference between a voluntary self-disclosure that results in a warning letter and a full enforcement action with substantial penalties. BIS, DDTC, and OFAC all maintain voluntary self-disclosure programs with meaningful mitigation benefits for companies that come forward promptly and cooperate fully.

How We Can Help

Our trade compliance practice assists companies at every stage of the export and import compliance lifecycle. We advise on ITAR registration and licensing, EAR classification and license exception analysis, deemed export compliance, tariff strategy, UFLPA supply chain due diligence, customs penalty defense, and the development of comprehensive trade compliance programs. We also represent companies in voluntary self-disclosures to BIS, DDTC, and OFAC, and guide clients through government investigations and enforcement proceedings. If you are expanding into new markets, restructuring a supply chain, or dealing with a potential export control issue, we are here to help.

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