1. Objectives of export control
1.1. National security
1.1.1. Restrict items that contribute to war
1.2. Foreign policies
1.2.1. Human rights, regional stability, antiterrorism
1.3. Control proliferation
1.3.1. nuclear, chemical, and biological weapons
1.4. Preserve scarce resources
1.4.1. Natural resources
2. The Foreign Corrupt Practices Act (FCPA)
2.1. To prohibit bribery, establish standards for maintaining corporate records and internal accounting control objectives
2.2. Who is subject to the FCPA?
2.2.1. Antibribery provisions
2.2.1.1. issuer, domestic concern, or person
2.2.2. Accounting provisions
2.2.2.1. Publicly held entities (issuers)
2.3. U.S. parent corporations may be held liable for the acts of foreign subsidiaries
2.4. Enforcement and penalties
2.4.1. By the Securities Exchange Commission and the U.S. Department of Justice.
2.5. Exception
2.5.1. Payment are lawful under the foreign country laws
2.5.2. Demonstrating contractual obligation
3. Antitrust regulation and U.S. trade
3.1. General prohibitions
3.1.1. The Sherman Act
3.1.1.1. The per se rule: price-fixing, division of markets (market sharing) agreements between competitors
3.1.1.2. The rule of reason: Restraints, prohibition of monopolies
3.1.2. the Federal Trade Commission.
3.1.2.1. proscribes unfair competitive practices, deceptive practices in or affecting foreign commerce
3.2. Specific prohibitions:
3.2.1. The Clayton Act
3.2.1.1. proscribes any acquisition of the stocks or assets, results in the creation of a monopoly; prohibits price discrimination
3.3. Exemptions
3.3.1. WPA
3.3.1.1. allows competing firms to set prices, allocate orders, consolidate freight, or arrange shipments.
3.3.1.2. Export associations: they do not reduce competition within the United States
3.3.2. ETC
3.3.2.1. export associations must apply for an issuance of a certificate exempting them from antitrust liability.
3.3.2.2. disclose their plans for overseas trade with the government and obtain preclearance
3.3.3. FTAIA
3.3.3.1. limits the Sherman Act to trade with foreign nations ( unless conduct has a direct, substantial, reasonably foreseeable effect on domestic trade or commerce
3.4. Extraterritorial application of U.S. antitrust laws
3.4.1. Overseas transactions with a substantial and foreseeable effect on U.S. commerce are subject to U.S. antitrust laws.
3.5. Enforcement and penalties
3.5.1. The Department of Justice initiates civil or criminal suits against alleged violators.
3.5.2. The Federal Trade Commission initiates only civil cases
4. Incentives to promote exports
4.1. Interest-charge DISCs: taxes on export sales can be deferred;
5. Scope of EAR
5.1. Exports from the United States
5.2. Re-exports
5.3. Foreign products
5.4. Activities of U.S. persons: restrict
6. Determining license requirements
6.1. Items subject to EAR
6.2. Export license on the basis of product characteristics, destination, and use/user and the general prohibitions
6.3. License exception
6.4. Exporters have to comply with SED/DCS and recordkeeping requirements
7. Identify and report possible violations
7.1. One of the parties to the transaction is on the list of denied persons or the transaction has red flags.
8. The U.S. Antiboycott Law
8.1. Prohibits U.S. firms from participating in foreign boycotts not authorized by the U.S. government.
8.1.1. Individuals, company in US
8.1.2. Subsidiaries that US controls
8.1.3. activities involving U.S. commerce with foreign nations
8.2. Prohibitions
8.2.1. Refuse to do business
8.2.2. taking discriminatory actions
8.2.3. implementing letters of credit with prohibited conditions.
8.3. Exceptions
8.3.1. import/shipping and documentary requirements of boycotting country
8.3.2. shipment/transshipment/specific carrier or route selection requirements of boycotting country
8.3.3. immigration/passport/employment and other local law requirements of boycotting country
8.4. Enforcement and penalties
8.4.1. Criminal, civil penalties