Export Controls & Sanctions Compliance Flashcards
7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Export Controls & Sanctions Compliance flashcards as text
What is a 'deemed export' under US export control regulations?
Answer: The release of controlled technology or source code to a foreign national within the United States
A deemed export is the transfer of export-controlled technology or source code to a foreign national in the US, treated as an export to that person's home country and potentially requiring a license.
What are the maximum criminal penalties for knowingly violating the Export Administration Regulations (EAR)?
Answer: Up to $1 million per violation and/or 20 years imprisonment
Willful violations of the EAR carry criminal penalties of up to $1 million per violation and/or up to 20 years imprisonment, reflecting the serious national security implications of illegal exports.
What does the 'red flag' rule require US exporters to do when warning signs appear in a transaction?
Answer: Pause the transaction and conduct reasonable inquiry to resolve the concern before proceeding
The red flag rule requires exporters who encounter indicators of potential diversion or illegal end-use to stop and make reasonable inquiries until satisfied the transaction is legitimate before proceeding.
The Strategic Trade Authorization (STA) license exception primarily benefits exporters by:
Answer: Permitting export of specified controlled items to approximately 36 close US allies without individual licenses
STA allows exports of specified lower-risk controlled items to a defined group of approximately 36 US-allied countries without requiring individual BIS licenses, reducing administrative burden for routine trade.
When determining whether a US export license is required, what should be the exporter's first step?
Answer: Classify the item by identifying its ECCN on the Commerce Control List
Classifying the item with the correct ECCN is the essential first step, because licensing requirements depend on the item's classification, the destination country, the end-user, and the end-use.
BIS's Entity List identifies which type of parties?
Answer: Foreign persons subject to specific license requirements due to proliferation or national security concerns
The Entity List names foreign individuals, companies, and organizations against whom BIS has imposed specific license requirements because of their involvement in proliferation activities or other national security risks.
Which statement best describes the difference between EAR and ITAR jurisdiction?
Answer: EAR controls dual-use commercial items via BIS; ITAR controls defense articles on the USML via DDTC
EAR (administered by BIS/Commerce) covers dual-use items with both commercial and potential military applications, while ITAR (administered by DDTC/State) covers items specifically designed or modified for military use and listed on the US Munitions List.