Coping with Regulatory Pressure: Strategies for Success

Regulatory Explosion – Drinking from a Fire Hose!

The regulatory landscape has been changing recently. In fact, I find it hard to keep up – and I’m what some would call “experienced”! One day I told a coworker that I didn’t have a single simple question to answer that week! In fact, I said the same thing to a BIS licensing officer, and he agreed that there aren’t many easy answers to this question.

number:

To date, 39 Federal Register notices have been issued to the U.S. Department of Commerce’s Bureau of Industry and Security (BIS). In 2023, BIS published 44 Federal Register reports. The U.S. Department of State’s Bureau of Defense Trade Controls has received 52 Federal Register notifications. Not to be outdone, the Office of Foreign Assets Control (OFAC) has issued 191 Federal Register notices!

These Federal Register notices involve enforcement actions, proposed rules, final rules, supplements, and, in certain limited circumstances, the removal of entities/parties from various restricted party lists. Specifically, there are changes to the ECCN, new license exceptions, new license exemptions, proposed expansions of U.S. person activities, and end-use and end-user controls. The bottom line is, there’s a lot to keep up with – but we’re here to help!

Common trends:

While we don’t have a crystal ball (perhaps it’s a task for the Magic 8 Ball), we should expect to continue to see the expansion and enforcement of these regulations, with particular attention to China, Russia, Venezuela, and Iran. Certain activities by Americans that may directly or indirectly support the military, crime control, or human rights may also be regulated or may not even be subject to regulations. One thing that is obvious is that exporters need to stay up to date on the latest regulations to ensure compliance. Regulations are already complex and compliance requires exporters to understand the regulations, their business and conduct due diligence to support their business in maintaining strict compliance.

How do you do this?

Update your Export Administration Compliance Plan or related work instructions, SOPs, etc.

Ask a question – we’re here to help!

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