Best Sanctions & Export Controls Lawyers in San Jose

1. About Sanctions & Export Controls Law in San Jose, United States

Sanctions and export controls in the United States regulate how goods, software and technology can be exported, re exported or shared with foreign persons or destinations. In San Jose, a hub for technology firms, these rules impact hardware, software, encryption, and IT services sold abroad or to international partners. Compliance requires attention to licensing, screening, and recordkeeping to avoid penalties.

The key federal agencies involved are the Office of Foreign Assets Control (OFAC) for sanctions, the Bureau of Industry and Security (BIS) for export controls under the Export Administration Regulations (EAR), and the Directorate of Defense Trade Controls (DDTC) for defense articles under ITAR. Local companies often tailor compliance programs to match their San Jose operations, supplier networks, and international customers. An attorney with expertise in export controls can help align business practices with these complex rules.

OFAC enforces economic sanctions to achieve U.S. foreign policy and national security goals. Violations can lead to civil penalties, license denial, or criminal charges.

For San Jose businesses, non compliance can disrupt partnerships, trigger license suspensions, or prompt federal audits. Your legal counsel can map risk, interpret the law, and implement a practical program that fits your tech focus and supply chain. Understanding how EAR, ITAR and OFAC interact is essential for Silicon Valley operations.

Cited sources you may review for official guidance include OFAC, BIS and DDTC websites: OFAC, BIS, and DDTC.

2. Why You May Need a Lawyer

• A San Jose software company plans to export dual use encryption software to a partner in Germany. Determining whether EAR classification and a license are required hinges on proper ECCN assignment and end user screening. An attorney can guide licensing strategy and documentation.

• A local hardware manufacturer learns a shipment to a foreign distributor may violate OFAC sanctions. A lawyer helps assess exposure, coordinate with BIS and OFAC notices, and respond to enforcement inquiries.

• Your San Jose team releases controlled technical data to a non U.S. employee working remotely in Canada. This deemed export may trigger ITAR or EAR controls, necessitating a formal risk assessment and licensing plan.

• An acquisition involves a Santa Clara County target with potential export control liabilities. A sanctions and export controls attorney conducts due diligence, identifies red flags, and negotiates indemnities and licensing contingencies.

• The company receives a government data request or subpoena related to export controls. A qualified attorney can prepare a timely response, preserve privilege, and coordinate with federal agencies.

• Your startup is expanding to new markets and faces rapidly evolving controls on emerging technologies. A lawyer helps implement ongoing compliance programs to keep pace with regulatory changes.

3. Local Laws Overview

San Jose residents and businesses operate under federal sanctions and export control regimes. There is no separate municipal export controls statute for the city, but local companies must comply with federal requirements in daily operations, supplier management and international sales. The following core frameworks govern most San Jose export activities.

Export Administration Regulations (EAR) - 15 C.F.R. Parts 730-774

The EAR governs dual use items and certain software and technology. Classification under ECCN determines licensing needs and export destinations. The Act is implemented through the Export Control Reform Act of 2018 (ECRA), which provides the statutory basis for EAR administration. End users and end uses matter for license decisions in the San Jose area.

Recent updates in the EAR include shifts in licensing for encryption items and ongoing adjustments to control lists. Companies in San Jose with encryption products should monitor BIS notices and apply for licenses when required. For official guidance see the BIS EAR pages.

International Traffic in Arms Regulations (ITAR) - 22 C.F.R. Parts 120-130

ITAR controls defense articles and related services; licensing is handled by the Directorate of Defense Trade Controls (DDTC). Items on the United States Munitions List (USML) require ITAR licensing and strict handling and disclosure standards. ITAR enforcement often affects defense oriented hardware, specialized software, and related services produced in California.

Office of Foreign Assets Control (OFAC) Sanctions Programs - 31 C.F.R. Part 500 and related

OFAC administers sanctions programs targeting specific countries, regimes and individuals. Business activities, including sales, transfers and facilitation, must avoid sanctioned destinations or persons. San Jose firms with international supply chains should implement OFAC screening and license compliance procedures.

Recent policy actions reflect ongoing adjustments to sanctions regimes and enforcement priorities. See OFAC's official guidance for current programs and exemptions.

Key sources for these regimes include official agency pages: BIS EAR, DDTC ITAR, and OFAC.

In 2023 and 2024 BIS and OFAC announced updates to encryption controls and sanctions programs, underscoring the need for ongoing compliance in Silicon Valley operations.

4. Frequently Asked Questions

What is the difference between EAR and ITAR?

The EAR controls dual use items with civilian and potential military applications. ITAR covers defense articles and services. Licensing and compliance obligations differ by regime and item classification.

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

Classify your item under ECCN for EAR or USML for ITAR. Consult BIS or DDTC guidance and consider end use, end user, and destination country to determine licensing needs.

When is an export license required for shipments from San Jose?

Licenses are needed when ECCN item licenses or ITAR items meet destination or end user restrictions. Many shipments qualify for license exceptions or open licenses, depending on specifics.

Where can I file for an export license?

EAR license applications go to BIS via the SNAP or ICSR portals. ITAR licenses are handled through the DDTC licensing system. Your attorney can submit and track these filings for you.

Why might a license application be denied?

Reasons include incorrect classification, destination restrictions, sanctioned end users, or security concerns. Thorough documentation and proper screening reduce denial risk.

Can a small startup face OFAC penalties?

Yes. OFAC penalties apply to all entities that violate sanctions, including startups with international supply chains. Compliance programs and timely reporting mitigate risk.

Should I conduct a risk assessment for export controls?

Yes. A formal risk assessment helps identify controlled items, end users, and potential license needs. It supports remediation and training programs.

Do I need a written sanctions compliance program?

While not always mandatory, a formal program is highly recommended for ongoing business activity. It demonstrates due diligence and can reduce penalties in enforcement actions.

Is a deemed export considered an export?

Yes. Releasing controlled technology to a non U.S. person inside the United States or abroad can trigger EAR or ITAR controls. Licensing and internal controls apply.

How long does an export license review take?

Review times vary by item, destination, and complexity. Typical EAR license decisions can take weeks to months; plan accordingly and work with counsel to monitor progress.

What is ECCN classification and why does it matter for encryption items?

ECCN determines licensing requirements and permitted destinations. Encryption items often face tighter controls and additional screening obligations.

5. Additional Resources

• Office of Foreign Assets Control (OFAC) - Sanctions programs and enforcement guidance. OFAC

• Bureau of Industry and Security (BIS) - EAR regulations, licensing, and control lists. BIS

• Directorate of Defense Trade Controls (DDTC) - ITAR guidance and licensing. DDTC

6. Next Steps

1. Identify your controlled items by product family and determine if EAR or ITAR applies. Timeline: 1-2 weeks for initial catalog and specs review.

2. Assemble product specifications, bill of materials, end user information, and current licenses. Timeline: 1-2 weeks for collection.

3. Consult a San Jose sanctions and export controls attorney to classify items and map licensing needs. Timeline: 1 initial consultation, within 2 weeks of contact.

4. Develop a preliminary internal risk assessment and screening process for customers and suppliers. Timeline: 2-4 weeks for draft program.

5. Implement a formal export controls compliance program including training, screening, and recordkeeping. Timeline: 4-6 weeks to roll out core elements.

6. Prepare for licenses or license exceptions if required and begin the application process with BIS or DDTC as advised. Timeline: weeks to months depending on item and destination.

7. Conduct annual reviews of products, customers, and destinations to keep the program current. Timeline: ongoing with an annual formal audit.