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Houston, as a major international business hub and a center for oil, gas, and technology sectors, is uniquely affected by Sanctions and Export Controls law in the United States. Sanctions are government-imposed restrictions on trade, financial transactions, or other economic activity with certain countries, entities, or individuals. Export controls regulate the transfer of goods, technologies, and services out of the United States for reasons related to national security, foreign policy, and economic protection. These legal frameworks aim to support U.S. policy goals, prevent sensitive items from reaching prohibited destinations, and maintain compliance with international norms. Companies and individuals in Houston must understand and comply with these complex laws to avoid severe legal penalties.
Many businesses and individuals do not realize the extent of their exposure to sanctions and export controls until a problem arises. Common situations requiring legal help include:
Legal counsel can help you navigate these complexities, reduce risks, and ensure you remain in compliance with federal and state regulations.
While sanctions and export controls are primarily governed by federal law, Houston's position as a leading port city and international business center means there are practical considerations for local organizations and individuals. Federal laws such as the Export Administration Regulations (EAR), International Traffic in Arms Regulations (ITAR), and sanctions administered by the Office of Foreign Assets Control (OFAC) apply directly to Houston entities.
Texas state law also contains provisions related to international trade and compliance, especially when it comes to state contracts or investments. The local offices of federal agencies in Houston, such as U.S. Customs and Border Protection (CBP) and the Department of Commerce, play a critical role in enforcement and outreach. Houston’s diverse and global workforce also means compliance programs must address issues like deemed exports, where releasing controlled technology to a foreign national within the United States can trigger export control regulations.
Economic sanctions are trade restrictions imposed by governments for reasons like national security or human rights. They can affect any Houston business that trades internationally, restrict transactions with certain countries or entities, and require diligent compliance checks.
Export controls regulate the transfer of goods, technology, and services abroad. All exporters, technology companies, research institutions, and even individuals traveling with controlled items can be affected in Houston.
You must review U.S. regulatory lists, like the Commerce Control List or U.S. Munitions List, and assess the item’s technical specifications and intended end-use. Legal counsel can help classify products and provide thorough screening.
Denied party screening involves checking customers and business partners against U.S. government lists of sanctioned or prohibited entities. Failing to screen or dealing with prohibited parties can result in severe penalties.
Generally, U.S. persons are prohibited from most transactions with fully embargoed countries such as Iran, North Korea, and Cuba without a specific license. Always verify the latest restrictions before engaging in any such business.
Immediately seek legal advice. Do not try to conceal or destroy evidence. Legal counsel can help investigate, report potential violations, and negotiate with authorities to minimize penalties.
Both companies and their employees, officers, and directors can be held individually liable for sanctions or export control violations, especially if misconduct is willful or the result of negligence.
Yes. Universities and research institutions must ensure their activities adhere to export control laws, especially when working with international collaborators or sharing controlled technology and information.
Penalties can include large fines, loss of export privileges, debarment from federal contracts, and even prison sentences for serious or willful violations. Civil and criminal penalties can be severe.
A robust compliance program includes due diligence, staff training, regular reviews of regulations, documented procedures for classification and screening, and quick access to experienced legal counsel for complex decisions.
Several resources and organizations in Houston and nationally can assist with sanctions and export controls issues:
If you need legal assistance with sanctions or export controls in Houston, consider taking the following steps:
Early legal intervention is critical in this field. Consulting with a knowledgeable attorney helps you navigate these complex regulations with confidence, avoid penalties, and maintain healthy international business relationships.
