International Trade – Export Controls and Economic Sanctions

Overview

BakerHostetler provides exceptional and rapid support and detailed US compliance and export control advice.

– Chambers USA 2022

Drawing on decades of experience helping a wide variety of clients, our Export Controls and Economic Sanctions team understands the nuances of the often-changing U.S. export control and economic sanctions laws and regulations, including the International Traffic in Arms Regulations (ITAR), the Export Administration Regulations (EAR) and the various economic sanctions regimes administered by the Department of the Treasury’s Office of Foreign Assets Control (OFAC). We provide practical and business-minded counsel in all areas affected by these laws and regulations, including export jurisdiction and classification analyses, licensing determinations, compliance, design and implementation of compliance programs, voluntary and directed disclosures, required notifications, and defense of enforcement actions.

Our team includes attorneys, trade advisers and paralegals, including several who have government and in-house experience. This diversity uniquely situates us to provide practical and business-minded counsel on the myriad of export control and economic sanctions issues that confront our clients. Outstanding client service and responsiveness are also hallmarks of our practice.

Our practice is multinational and spans numerous industries, including defense, aerospace, semiconductors, materials, manufacturing, electronics, oil and gas, maritime, biotechnology, encryption, and medical devices. We assist our clients in maintaining compliance with U.S. export controls and sanctions laws and regulations. We advise them on the scope and applicability of the ITAR, the EAR and OFAC sanctions, and work with them to ensure that their commodities, technology and software are properly classified and licensed for export and other transfers; address sanctioned person screening; and properly tailor and implement compliance programs. Also, as part of our counseling services, we regularly assist clients with related immigration issues, including compliance with both export controls and employment antidiscrimination requirements in connection with employment of foreign nationals. Our experience enables us to assist clients with applying for “deemed export” licenses and ensuring that proper procedures are in place for verification of U.S. person employee status under the ITAR and the EAR.

Representation of companies before the U.S. Departments of Justice, State, Commerce and Treasury to address potential noncompliance is also a key part of our practice. We have the knowledge and experience to handle matters in which clients are the subject of governmental audits, investigations or enforcement proceedings efficiently and effectively and to minimize exposure. We have conducted hundreds of internal investigations, export and sanctions self-assessments, and internal compliance audits to identify international trade compliance shortcomings and recommend and implement corrections. We regularly counsel clients on the scope and merits of voluntary disclosures and when further U.S. government authorization is required for items exported without the required approval.

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Whether it be the myriad matters involved in embargo/sanctions compliance, including the latest sanctions imposed on Iran or Syria, the changes to U.S. export controls brought about by President Obama’s Export Control Reform Initiative, developments in U.S. Court of International Trade litigation, or changes to U.S. Customs and Border Protection security and commercial importation compliance programs, our attorneys are on top of the changes and proactively work with clients to help them adapt their compliance procedures to the new requirements and take advantage of any business opportunities presented by the changes.

We assist clients with business and employment-based immigration issues, including employment of foreign nationals and compliance with the employer sanctions and anti-discrimination provisions of immigration law. Our experience enables us to determine which visas are most likely to be approved for a client's needs, where to file the petition and how to present the alien's credentials in the most favorable light.

We have successfully negotiated complex immigration agency restrictions in the United States and abroad, including attainment of H-1B visas for professional specialty-occupation workers, H-2B visas for temporary and seasonal workers, L-1 visas for intra-company transferees, E visas for treaty-traders and investors, TN visas for professionals from Canada and Mexico, J visas for foreign exchange visitors, visas for individuals with extraordinary ability and P visas for professionals in arts and sports. We have obtained hundreds of permanent residence visas (“green cards”) for our clients as well, including multinational executives and managers, advanced-degree and other professionals, skilled workers and “national interest” or “outstanding researcher” candidates. We also have significant experience with I-9 compliance, E-Verify and family-sponsored permanent residency petitions.

Named a Law360 Practice Group of the Year (2018), BakerHostetler’s International Trade team is well recognized in Chambers Global and Chambers USA, as well as The Legal 500 and Best Lawyers in America. Team members also hold individual accolades within the field of international trade in the areas of customs, export controls & economic sanctions and trade remedies & trade policy.

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Our professionals have assisted clients on the following representative matters:

  • Provided numerous clients in a wide range of affected industries with advice and guidance on export controls and sanctions implemented in response to the invasion of Ukraine. Guidance includes advising U.S. and foreign entities on the applicability of the OFAC sanctions and EAR and ITAR license requirements relating to Russia, Belarus and covered regions of Ukraine and a wide variety of related issues.
  • Guided a client through responses to OFAC subpoenas regarding embargoed country activities, conducted a related internal investigation and developed a comprehensive export control and embargo/sanctions compliance program for the client, leading OFAC to close the case without penalty.
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Experience

Our professionals have assisted clients on the following representative matters:

  • Provided numerous clients in a wide range of affected industries with advice and guidance on export controls and sanctions implemented in response to the invasion of Ukraine. Guidance includes advising U.S. and foreign entities on the applicability of the OFAC sanctions and EAR and ITAR license requirements relating to Russia, Belarus and covered regions of Ukraine and a wide variety of related issues.
  • Guided a client through responses to OFAC subpoenas regarding embargoed country activities, conducted a related internal investigation and developed a comprehensive export control and embargo/sanctions compliance program for the client, leading OFAC to close the case without penalty.
  • Advised a leading private equity firm, which focuses on acquisitions in the defense, aerospace, and maritime sectors and its portfolio companies on all aspects of international trade and other regulatory matters, including government contracts and defense security compliance matters. Representations included conducting buyer due diligence, coordinating preparation of responses to seller due diligence requests, drafting relevant provisions of the purchase and sale agreements, advising on possible application of various regulatory regimes, and coordinating pre- and post-closing notices to regulatory agencies, as well as advising the client on the acquisition of a business subject to a U.S. Department of State Consent Agreement. For the portfolio companies, representations included preparing export jurisdictional and classification requests, drafting compliance policies and procedures, conducting internal reviews, and preparing voluntary disclosures.
  • Represented companies throughout all phases of their requests for removal from the BIS Entity List.
  • Counseled a U.S. developer of electric aircraft on an array of export controls issues, including export jurisdiction and classification analyses of the company’s products and technologies, as well as implementation of export control policies and procedures, and provided related training.
  • Advised a range of companies, U.S. and foreign, on U.S. export controls and sanctions laws and regulations relating to China, including ownership of parties and scope of the foreign direct product and military end-use and end-users rules. 
  • Represented numerous victims of cybersecurity incidents in connection with disclosures and notices to export control agencies and the Department of Defense.
  • Obtained licenses under the EAR’s expanded “Entity List” Foreign Direct Product Rule for U.S. and foreign companies.
  • Represented companies in connection with ITAR registrations, including submitting and renewing registrations, making required filings under the ITAR due to the intended sale or transfer to a foreign person of ownership or control and preparing other filings related to material changes.
  • Assisted a large aerospace parts manufacturer in the development and implementation of an enhanced export compliance program, with special emphasis on recently acquired operations.
  • Counseled the corporate and maritime registries of a foreign nation and their U.S. contractor regarding the implications of various U.S. sanctions applicable to U.S. and non-U.S. persons in connection with the provision of services to registered vessels.
  • Obtained immigration visas and related deemed export licenses for foreign national employees of numerous clients and provided counseling on compliance with “deemed export” rules applicable to such employees.

Recognition

  • Chambers Global
    • International Trade: Customs (USA) (2017 to 2019, 2022)
    • International Trade: Export Controls & Economic Sanctions (USA) (2017 to 2020)
    • International Trade: Trade Remedies & Trade Policy (USA) (2017 to present)
  • Chambers USA
    • International Trade: Export Controls & Economic Sanctions: Highly Regarded (Band 1) (2022)
    • International Trade: Trade Remedies & Trade Policy (Nationwide) (2017 to present)
    • International Trade: Customs (Nationwide) (2021 to present)
  • The Legal 500 United States – Dispute Resolution: International Trade (2015 to present)
  • Latinvex Top International Law Firms in Latin America (2017 to present)
    • Trade and Sanctions (2021 to present)
  • U.S. News – Best Lawyers “Best Law Firms” International Trade and Finance Law –Washington, D.C. (2016 to present)