Export Control Compliance Sharing Sensitive Technologies Between International Affiliates General Concepts And Transfer Patterns

In the normal course of operations between U.S. and foreign affiliates, inter-company communications and data conveyances are frequent and occur both intentionally and inadvertently. The U.S.-foreign affiliation can be in the form of a parent company, on one end, and a wholly-owned subsidiary, joint venture, minority interest or other intercompany affiliation, on the other end.

When sensitive technologies are involved in these intercompany exchanges, U.S. export control laws likely apply to the controlled technology transfer and export control law violations can occur. U.S. export control laws include U.S. International Traffic in Arms Regulations (ITAR), U.S. Export Administration Regulations (EAR), and those U.S. Executive Orders, U.S. statutes, and U.S. Treasury Regulations comprising the country, person, and entity sanctions that are administered and enforced by the U.S. Office of Foreign Asset Control (OFAC). While the ITAR applies predominately (but