New Year, New Rules: Export Reform Brings New Compliance Obligations to the Shipbuilding Supply Chain

Maritime Reporter & Engineering News
12.31.13
In this article, Barbara Linney addresses the impact of the U.S. export reform initiative on the shipbuilding supply chain in 2014. The naval shipbuilding supply chain in particular will face considerable changes as it becomes subject to both the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). "Long anticipated, export reform will require renewed focus and expenditure on export control compliance by shipyards and their suppliers. Those who have not done so already should begin with a review of their programs to determine whether the vessels they are building are ITAR controlled or subject to the EAR," said Linney.

The changes to the export control regime will have a significant impact on business and compliance processes and companies should be prepared. "Most companies will have to update their existing procedures at least to some degree to conform to the new ITAR rules, and companies who focus exclusively on the naval shipbuilding supply chain will have to become familiar with the EAR as well as the ITAR and develop new EAR compliance procedures to cover export activities related to items and technology no longer subject to the ITAR," she said.

Miller & Chevalier Associate Abigail Cotterill and International Trade Specialist Kevin Miller contributed to this article.
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