Regulatory Basics

Exporting From U.S.

 The Arms Export Control Act of 1976 gives the President of the United States the authority to control the import and export of certain items and services. It requires that foreign governments who receive weapons from the United States to use them for legitimate self-defense. The U.S. Departments of State and Commerce regulate this act. They take into consideration if sales and services "would contribute to an arms race, aid in the development of weapons of mass destruction, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control or nonproliferation agreements or other arrangements."

The Act also places restrictions on American defense services or defense article providers or manufactures, prohibiting them from the sale of certain sensitive technologies to certain parties and countries and requiring authorization from either the Department of State or Department of Commerce.

Businesses must obtain the proper authorizations from the appropriate U.S. Government agency prior to making an export. These authorizations are in the form of an export or import license or exemption or exception from the regulatory requirements. Only an experienced compliance person should make a decision on what authorizations are required or how to use an exception or exemption to U.S. policy. For instance, a non-disclosure agreement does not grant authorization to make an import or export. While an NDA may be required as additional supporting documentation for authorization, the form itself does not grant the business authorization to do international business.