ARTICLE · 08 JANUARY 2009

Export Compliance – Sign Here Please

Reed Smith

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Effective July 21, 2008, the U.S. Department of Defense (“DoD”) issued an interim rule amending the Defense Federal Acquisition Regulation Supplement (“DFARS”) to address requirements for complying with export control laws and regulations when performing DoD contracts.

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Effective July 21, 2008, the U.S. Department of Defense ("DoD") issued an interim rule amending the Defense Federal Acquisition Regulation Supplement ("DFARS") to address requirements for complying with export control laws and regulations when performing DoD contracts. The major impact of the rule is that it will now contractually obligate defense contractors to comply with U.S. export regulations. While defense contractors have always been required to follow U.S. export laws and regulations, the interim rule now imposes additional risks and liabilities on contractors because a violation of these requirements can also result in a breach of your government contract.

Unfortunately, because of the complexity and scope of U.S. export requirements, many companies inadvertently violate these laws and regulations. Thus, adding a breach of contract claim to those violations requires defense contractors to understand and adhere to this new rule and the existing export

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