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Almost every mid-sized and large company in the US employs a foreign national, that is a non-US citizen or green card holder. As soon as this foreign national employee is exposed to that company’s technology (product), an export occurs to the country of that foreign national even though neither the national nor the product ever left the shores of the US. This is called a deemed export.
Products are classified in accordance with US export regulations based on their function and use. That classification determines if a product can be exported from the US to another country without an export license or use of a license exception, exemption, or general license. This applies to deemed exports as well. If the foreign national is exposed to technology that would require an export license to export it from the US to that foreign national’s home, then an export license is required, or other measures must be taken to protect that technology from the foreign national while in the US.
Therefore, foreign nationals and their employers (your client) are subject to US export laws even if the technology which they are exposed to never leave the shores of the US—deemed exports. Learn how your clients can avoid the steep penalties for violating deemed export regulations.
Originally presented at: Dec 2018 International Trade Law and Deemed Exports
Attorney, Shareholder, Minutillo Law Corporation - San Jose, CA