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Sanctions and export controls are federal legal regimes that regulate who, what, where and how goods, software, technology and services can be moved, sold or shared across borders or to certain people and entities. In the United States the main authorities are the Department of the Treasury - Office of Foreign Assets Control for sanctions, the Department of Commerce - Bureau of Industry and Security for dual-use items subject to the Export Administration Regulations, and the Department of State - Directorate of Defense Trade Controls for defense articles and services under the International Traffic in Arms Regulations. Because Brownsville sits on the U.S.-Mexico border and operates a busy port and logistics network, businesses and individuals in the area often face particular exposure to export-control and sanctions risks arising from cross-border shipments, supply chains, reexports, and customs inspections.
This guide explains why people and businesses in Brownsville may need specialized legal help, summarizes local considerations to keep in mind, answers common questions, lists useful resources and outlines practical next steps if you need legal assistance.
Sanctions and export-control rules are complex, technical and primarily federal. A lawyer with experience in this area can help in many common situations:
- Compliance program design and audits - to create or review internal controls, policies, screening processes, classification methods and employee training.
- Classification and licensing - to determine whether an item is controlled under the Export Administration Regulations or the International Traffic in Arms Regulations and to prepare license applications or commodity classifications.
- Denied-party screening and due diligence - to help set up screening against restricted and specially designated party lists, and to advise on how to document enhanced due diligence for higher-risk transactions.
- Cross-border shipments and reexports - to advise on shipments to Mexico or other foreign destinations, including reexports of U.S.-origin content or software delivered overseas or in the cloud.
- Responding to government inquiries, seizures or enforcement actions - to represent clients in investigations, voluntary disclosures, administrative proceedings and criminal matters.
- Transactional support - mergers, acquisitions, joint ventures, supply agreements and export-related clauses that need to account for controls and sanctions risk.
- Technical questions - assistance with technology controls, deemed exports, encryption classification and the intersection of export rules with immigration or employment issues.
Most sanctions and export-control authority is federal. Key federal legal frameworks that affect people and businesses in Brownsville include:
- Office of Foreign Assets Control (OFAC) sanctions - OFAC administers country-based and sectoral sanctions, and maintains lists of blocked and specially designated nationals. OFAC rules can block property, prohibit transactions and impose civil and criminal penalties.
- Export Administration Regulations (EAR) - administered by the Department of Commerce Bureau of Industry and Security, the EAR control dual-use items and software by classification under an Export Control Classification Number - ECCN - and by country-based licensing policy.
- International Traffic in Arms Regulations (ITAR) - administered by the Department of State, ITAR controls defense articles and defense-related services and uses the U.S. Munitions List to define controlled items.
- Customs and border enforcement - U.S. Customs and Border Protection enforces export and sanctions controls at ports of export and reexport and has authority to detain or seize shipments suspected of violations.
Local factors in Brownsville that affect compliance and risk management include:
- Cross-border trade volume - routine movement of goods to and from Mexico increases the risk of misrouting, diversion, or inadvertent reexport of controlled items.
- Port and logistics operations - port handling, transload facilities and freight forwarders must be compliant and carefully screened to avoid diversion or facilitation of restricted transactions.
- Supply-chain complexity - local manufacturers and maquiladora arrangements may involve foreign vendors and reexports that trigger U.S. controls even if the end user is outside the United States.
- State and local procurement policies - while they do not override federal law, state contracts and procurement rules may include representations and compliance obligations related to sanctions and export controls.
Sanctions are targeted foreign policy tools that restrict transactions with specified countries, entities or persons and often freeze assets. Export controls restrict the transfer of certain goods, software and technology based on national security, foreign policy or nonproliferation concerns. There is overlap - an export to a sanctioned person may violate both regimes.
Major enforcement agencies include the Department of the Treasury - Office of Foreign Assets Control for sanctions, the Department of Commerce - Bureau of Industry and Security for the EAR, the Department of State - Directorate of Defense Trade Controls for ITAR matters, U.S. Customs and Border Protection for border enforcement and detention of shipments, and the Department of Justice which prosecutes criminal violations.
Export-control and sanctions law is primarily federal. Texas and local governments do not impose separate export-control regimes, but they may have procurement rules, state-level compliance expectations or economic development programs that affect trade. Local enforcement of exports and seizures is handled by federal authorities operating in the region.
You may need a license when an item is controlled under the EAR or ITAR and the destination, end-user or end-use is subject to licensing policy or a specific license requirement. Licensing determinations depend on classification, the destination country, the final end-user and the intended end-use. A lawyer or qualified export compliance professional can assist with classification and license applications.
A deemed export occurs when controlled technology or source code is disclosed to a foreign national inside the United States, effectively "exporting" that technology. In a border city like Brownsville with cross-border employment and contractors, deemed-export issues can arise when foreign nationals work with controlled technology or when U.S.-origin technical data is accessed by foreign persons.
Implement a risk-based screening program that checks transactions and parties against federal restricted-party and sanctions lists, verifies primary and ultimate end-users, documents due diligence steps and escalates high-risk hits for further review. Keep records of screening results and any mitigations or licenses obtained.
Penalties can be severe. Civil fines vary depending on the agency and the violation, and can reach tens or hundreds of thousands of dollars per violation. Criminal penalties can include substantial fines and imprisonment. Penalties may also include administrative orders, denial of export privileges and reputational harm.
Contact counsel immediately. Preserve documents and communications related to the shipment. An experienced attorney can advise on how to respond to requests for information, assist with securing release where possible and guide whether a voluntary disclosure to the relevant agency is advisable.
Voluntary self-disclosure is the practice of informing the relevant agency proactively about an apparent violation. Agencies sometimes mitigate penalties for timely, comprehensive and cooperative disclosures. A lawyer can help evaluate whether a disclosure is required or advisable, prepare the disclosure package and negotiate with the agency.
Look for a lawyer or firm with specific experience in export controls, sanctions and government enforcement, preferably with practical experience with the relevant federal agencies, customs practice at ports and experience with cross-border trade. Ask about prior matters, outcomes, team members, fee structure and whether they will coordinate with technical or compliance specialists as needed.
Federal agencies and organizations commonly involved in sanctions and export-control matters include:
- Office of Foreign Assets Control - Department of the Treasury
- Bureau of Industry and Security - Department of Commerce
- Directorate of Defense Trade Controls - Department of State
- U.S. Customs and Border Protection
- Department of Justice
Local and regional resources that may be helpful in Brownsville include port authorities, trade and logistics organizations, local chambers of commerce and trade associations. Professional resources include industry compliance groups, certified export compliance consultants and the local or state bar association to find qualified attorneys. For business financing and export assistance, consider outreach to the U.S. Small Business Administration, export finance institutions and regional economic development agencies that provide export counseling and training.
If you believe you need legal help with sanctions or export-control matters in Brownsville, consider the following practical steps:
- Assess the urgency - if there is a detained shipment, governmental inquiry or imminent transaction, seek counsel immediately.
- Gather documents - prepare invoices, bills of lading, contracts, technical specifications, export classifications, screening records and communications related to the transaction.
- Conduct a preliminary risk review - identify controlled items, countries, end-users and suspected issues so you can communicate effectively with counsel.
- Choose counsel - look for a lawyer with focused experience in sanctions and export controls, preferably with familiarity with border-port enforcement and cross-border commerce.
- Consider voluntary disclosure and remediation - a lawyer can advise whether a voluntary self-disclosure and remedial steps such as strengthening compliance policies will likely reduce penalties.
- Implement compliance measures - work with counsel to create or update screening, classification, licensing, recordkeeping and training programs to reduce future risk.
Getting the right advice early can limit exposure, preserve business operations and increase the chance of a favorable outcome. If you are unsure how to proceed, start by contacting a qualified sanctions and export-control attorney for an intake meeting and a tailored plan of action.
