Time is a precious commodity for any business owner, and in your case there’s never enough of it.
So when the head of manufacturing asks for your okay to provide a tour to a possible investor from across the ocean, you consent without hesitation.
But as he walks out the door a thought rises to the surface of your mind.
You seem to remember reading something about the proper legal procedure for your planes and non-US visitors. The details are hazy however.
Allow us to shed some light on this clouded subject.
What Is a Deemed Export?
Aviation deemed exports are relevant items under modern U.S. regulations released to a foreign national.
Covered materials:
- Goods
- Technology
- Information
Dual-use technology transferred to non-citizens requires a license. This describes that which has both civil and military applications.
Before we move forward, let’s clarify when this system won’t apply.
When the foreign national is:
- The owner of a permanent resident visa
- Granted U.S. citizenship
- A certain protected person (students, technical expert, researchers)
Export Administration Regulations (EAR) do apply to certain actions of the aerospace industry. Commercial aircraft manufacturers should be aware of three scenarios which fall under the watchful eye of the government.
When the technology is made available:
- Visually
- Orally
- By practice or application
At first glance this appears to cover nearly every interaction your business has with a foreign visitor. This isn’t true, but it’s worth discussing with a legal expert before giving a tour of your operation to such a person.
How do you know if your business is subject to these controls?
Great question and one we’ll answer next.
Commerce Department’s Role
Unless the airplane you want to send abroad doubles as a fighter jet, your state normally won’t regulate it.
Before you breathe a big sigh of relief however, understand there’s still a player to factor in. The United States Commerce Department.
We recommend you first review their Commerce Control List to deduce if your desired export is listed.
Examples:
- Avionics
- Electronics
- Material processing
- Propulsion
Don’t see it in the index? Acquiring an export license may not be necessary.
As with all aircraft exports from complete planes to parts, certain countries like Russia and North Korea fall under different restrictions. These sanctioned nations have tighter constraints on exporting.
We’ve detailed what’s considered a deemed export and when it applies. Perhaps you’re still left scratching your head and want more information for your specific business.
We’d love to do something for you to alleviate any lingering concerns.
Aviation Deemed Exports and Reidel Law Firm
As experts in international trade law, we can help you handle the legal aspects of aviation deemed exports.
In addition, our legal team can advise you on ways to shore up gaps in the following areas:
- Trade compliance audits and training
- Export compliance
- Litigation before the Court of International Trade (Section 337, anti-dumping/countervailing, and other trade related cases)
- Import compliance
A robust compliance program is necessary for any business engaged in international trade. Our International Trade Law division helps businesses in Texas and around the world with understanding and complying with the many complex import and export regulations.
By effectively managing risk and maximizing opportunities for businesses we answer the needs of our clients wherever and whenever they arise.
Call Reidel Law Firm today at (832) 510-3292 or fill out our contact form to see how we can help your business expand internationally.
