Best Sanctions & Export Controls Lawyers in Dearborn

About Sanctions & Export Controls Law in Dearborn, United States

Sanctions and export controls in Dearborn operate under federal law rather than local ordinances. They regulate what goods, software and technology may be shipped internationally and to whom. Businesses and individuals in the Detroit area with ties to Dearborn must stay compliant to avoid penalties, even if the violation occurs outside Michigan. The rules change frequently as U.S. policy evolves and new sanctions programs are enacted.

Key agencies enforce these rules at the federal level. The Office of Foreign Assets Control (OFAC) administers economic sanctions and blocks designated persons or countries. The Bureau of Industry and Security (BIS) administers the Export Administration Regulations (EAR) for dual-use and certain military items. The Directorate of Defense Trade Controls (DDTC) administers the International Traffic in Arms Regulations (ITAR) for defense articles and services. These regimes require careful classification, licensing and recordkeeping to avoid violations.

Because Dearborn hosts many global supply chains and automotive industry players, practitioners often see cross-border trade, dual-use technologies and defense-related exports. Recent policy shifts have expanded or tightened sanction programs, making proactive guidance valuable for local manufacturers, distributors and service providers. For residents and businesses, consulting a sanctions and export controls attorney helps align operations with current federal requirements.

OFAC describes sanctions as a tool to advance foreign policy and national security goals while targeting specific individuals, entities, and sectors. OFAC overview

The EAR governs items that have both potential civilian and military applications, including software and technology. EAR overview

Why You May Need a Lawyer

Below are concrete situations that often require Sanctions & Export Controls legal counsel in Dearborn. Each scenario reflects real-world operations in the Detroit metropolitan area and surrounding suppliers and manufacturers.

• A Dearborn-based auto supplier discovers an inadvertent shipment of dual-use parts to a country under OFAC sanctions and must assess potential penalties and disclosure options.
• A Michigan manufacturer classifies newly developed software as EAR controlled and contemplates exporting it to a partner outside the United States, triggering licensing concerns.
• An ITAR-regulated defense article is planned for shipment to a foreign affiliate, raising questions about licensing, end-user restrictions and re-export controls.
• A Dearborn logistics firm suspects that a customer listed on OFAC’s Specially Designated Nationals (SDN) list has remained connected to a transaction processed through its platform.
• A local university spin-off in the Detroit area seeks guidance on licensing requirements for exporting research equipment used in sensitive projects.

Local Laws Overview

Sanctions and export controls in Dearborn are governed by federal law, with specific regulations and licensing regimes that apply nationwide. The following named laws and regulations are the core framework most often implicated in Dearborn transactions.

Office of Foreign Assets Control (OFAC) Sanctions Programs

OFAC administers U.S. economic and trade sanctions under the International Emergency Economic Powers Act. These programs restrict dealings with designated persons, blocked parties and restricted countries. Penalties can be severe for even inadvertent transactions involving SDNs or blocked entities.

Under OFAC, screening and compliance programs are essential for Dearborn companies engaged in cross-border sales or financial services. Regular updates to sanctions lists require ongoing attention from counsel and compliance staff. OFAC official site and OFAC general information provide authoritative guidance.

OFAC sanctions reflect U.S. foreign policy and national security priorities and are frequently updated to reflect evolving geopolitical risk. OFAC fact sheet

Export Administration Regulations (EAR)

The EAR controls export, re-export and transfer of most dual-use items and some purely military items. It is implemented under the Export Control Reform Act of 2018 (ECRA) and codified in 15 CFR Parts 730-774. Dearborn manufacturers and distributors must determine whether their items require a license and comply with classification and licensing requirements.

Classification decisions, licensure, end-use checks and self-disclosure duties are common compliance themes for local businesses. For official information, see the BIS EAR pages and guidance.

EAR governs dual-use items with both civilian and military applications and is supported by U.S. policy under ECRA. EAR overview

International Traffic in Arms Regulations (ITAR)

ITAR controls defense articles and related technical data. Administered by the Directorate of Defense Trade Controls (DDTC) under the Arms Export Control Act, ITAR requires licenses for many exports and re-exports, including technical documentation and training services.

Dearborn entities involved in defense contracting, defense-related research or collaborations with foreign entities should consult ITAR guidance to determine licensing obligations and recordkeeping duties. Official ITAR resources are available through DDTC.

ITAR provides the framework for controlling defense articles and services to protect U.S. national security interests. DDTC ITAR overview

Frequently Asked Questions

Below are common questions in a conversational tone. Each entry starts with a question word and stays within practical length for quick reference.

What is OFAC and how does it affect Dearborn businesses?

OFAC is the Treasury Department entity that enforces sanctions. Its rules affect transactions with designated persons and blocked jurisdictions. Local businesses must screen customers and counterparties and avoid sanctions violations.

How do I determine if my product is subject to EAR or ITAR controls?

EAR covers most dual-use goods and some military items; ITAR covers defense articles. Classification, end-use, and destination determine licensing needs. Counsel can help with proper classification decisions.

When should I conduct a sanctions compliance risk assessment for a Dearborn supplier?

Perform a risk assessment when onboarding new international customers or expanding to new markets. Reassess after regulatory changes or if a supplier list changes significantly.

Where can I find the official sanctions lists and licensing guidance?

Primary sources include OFAC for sanctions lists and BIS for EAR licensing. DDTC provides ITAR guidance for defense articles. Use official.gov sites for accuracy.

Why might a voluntary disclosure be recommended in a potential violation scenario?

Voluntary disclosures can demonstrate good faith and may influence penalties. They are typically coordinated with experienced sanctions counsel and the appropriate agency.

Can a minor export violation lead to penalties and how are fines calculated?

Yes, even minor violations can incur penalties. Penalties depend on the nature of the violation, intent, and willfulness, and can involve fines and criminal consequences.

Should I hire a local Dearborn attorney specializing in sanctions and export controls?

Local counsel with Michigan practice experience can navigate federal requirements and local business needs. They can coordinate with national experts when needed.

Do I need a license to export dual-use software from Dearborn to Europe?

Most dual-use software requires an export license or license exception. Destination, end-use, and end-user factors determine licensing requirements.

How long does it take to obtain an export license for a restricted item?

Licensing timelines vary with item complexity and agency workload. Typical processing ranges from a few weeks to several months depending on the case.

Is it possible to self-report a potential violation without legal representation?

Self-reporting is possible but risky without counsel. An attorney can advise on proper disclosures and minimize potential exposure.

What is the difference between OFAC penalties and BIS penalties?

OFAC penalties focus on sanctions violations against designated parties and jurisdictions. BIS penalties concern export control violations under EAR and ITAR classifications.

How much can penalties reach for a first offense under OFAC?

Penalties vary by violation type and intent. First offenses can incur substantial fines and potential criminal exposure, especially for willful violations.

Additional Resources

• Office of Foreign Assets Control (OFAC) - U.S. Department of the Treasury: policy guidance, sanctions lists, and licensing information. OFAC official site
• Bureau of Industry and Security (BIS) - Export Administration Regulations (EAR): classification, licensing and compliance guidance. EAR guidance
• Directorate of Defense Trade Controls (DDTC) - International Traffic in Arms Regulations (ITAR): licensing and compliance for defense articles. DDTC ITAR overview

Next Steps

1. Identify your regulatory scope by listing all products, services and destinations involved in your Dearborn operations. Do this within 7 days of reading this guide.
2. Gather relevant documents such as contracts, shipping paperwork, end-use/end-user statements, and any prior licensing decisions for review.
3. Schedule a consultation with an attorney experienced in sanctions and export controls in Michigan or the broader Midwest region. Aim for a 1-2 week timeframe.
4. Conduct a preliminary risk assessment with the attorney to determine if OFAC, EAR, or ITAR rules apply to your case and which licenses may be needed.
5. If a potential violation is identified, discuss voluntary disclosure options and memorialize a plan with your counsel. Act promptly to mitigate risk.
6. Implement a baseline sanctions and export controls compliance program in Dearborn, including training and screening procedures for staff and vendors.
7. Establish an ongoing monitoring calendar for regulatory updates and license renewals, with quarterly reviews by your legal counsel.