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Import and Export Controls

Updated Jan 30, 2024 ·

Overview​

Many countries regulate the flow of information and goods across borders.

  • EU’s GDPR protects personal data within its jurisdiction
  • U.S. Export Controls restrict sensitive military and scientific information

Countries of Concern​

U.S. firms can generally export high-performance computing systems without prior government approval. However, there are exceptions for countries designated by the Department of Commerce’s Bureau of Industry and Security (BIS).

These countries pose a threat due to nuclear proliferation or support for terrorism:

  • Cuba
  • Iran
  • North Korea
  • Syria

ITAR​

The International Traffic in Arms Regulations (ITAR) controls defense-related exports and imports listed on the U.S. Munitions List (USML).

  • Regulates defense articles, including firearms and ammunition
  • Controls defense-related technical data
  • Controls defense-related services

It requires registration with Directorate of Defense Trade Controls (DDTC) for:

  • Manufacturers
  • Exporters
  • Brokers

EAR​

The Export Administration Regulations (EAR) govern exports of commercial items, dual-use goods, and certain less sensitive military items.

  • Classify based on sensitivity and potential dual-use applications
  • Licensing required for specific countries and certain end uses

Exporters must also identify the Export Control Classification Number (ECCN) of their products to ensure proper licensing and compliance.

Wassenaar Arrangement​

The Wassenaar Arrangement is a global agreement among numerous countries (currently 42 signatories) to control the export of certain types of sensitive items and technologies to agreed-upon “terrorist countries” (countries identified by the signatories as having connections with terrorist groups and activities)

  • Controls dual-use items
  • Regulates certain cybersecurity tools
  • Helps keep advanced tech away from harmful use
  • Supports consistent export rules across participating countries

This arrangement guides how organizations review, classify, and export technology so they can avoid violations and keep security risks under control.

  • Covers tools that can be both civilian and military
  • Includes encryption items and intrusion software
  • Requires checking if a product needs an export license
  • Affects companies that sell or share security software across borders

OFAC​

The Office of Foreign Assets Control (OFAC) enforces U.S. economic and trade sanctions.

  • Administers sanctions programs targeting:

    • Countries
    • Entities
    • Individuals

  • Prohibits transactions with:

    • Sanctioned countries
    • Sanctioned parties
    • Terrorism-related actors

  • Requires compliance from:

    • Financial institutions
    • Exporters
    • Individuals conducting international business