Defense, Homeland Security, Export Controls
The defense and homeland security sectors are characterized by complex rules and regulations and a difficult environment for negotiating complex transactions requiring a deep understanding of international contract and commercial law. Failing to adhere to applicable regulations can lead to serious criminal consequences.
End-users are normally governments, international organisations and their armed forces, the police and other security forces and agencies. Consequently, sales to these purchasers will often involve public tenders and rigid rules regarding the spending of public funds. Prime contractors are often dictated to flow-down many provisions in their contracts to their subcontractors, meaning that there is less flexibility for negotiations and making an intimate knowledge and extensive experience in the field critical for obtaining the best results for clients and for advising clients on how to deal with the minefield of regulatory requirements, especially for clients further down the contracting chain.
Products and technology specifically developed or adapted for military use and various other products and technology that were principally developed for civilian use, but that can also have sensitive military application are governed by complex export control regulations. Businesses that may not even be involved in any defense and homeland security activity may still need to determine whether their goods and technology are considered to be controlled dual use goods, for which export licenses are always required under Israeli law. Exporting goods and technology without appropriate licenses, when they are required, is a criminal offense.
Manufacturers of products in Israel or elsewhere may find that their products are controlled by U.S. export control laws – the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR), if they incorporate into their products U.S. manufactured components or are influenced by U.S. origin technology. The U.S. Government has taken enforcement action against foreign businesses in breach of its export control laws on many occasions, even when they have never set foot in, or exported anything from, the U.S.
The Defense, Homeland Security and Export Controls department of Joseph Shem Tov & Co. provides a full set of services for clients in this area, including:
• Advising on government tenders
• Advising on Israeli export control law, including
o Auditing and verifying client compliance with applicable export controls
o Providing seminars and compliance programs
o Assisting with export license applications
o Preparing, negotiating and advising on Technical Assistance Agreements (TAAs), Manufacturing License Agreements (MLA), Warehouse Distribution Agreements (WDA) and other licensing documents under the ITAR and EAR.
o Advising in connection with export control violations
• Advising on the U.S. Foreign Military Sales (FMS) and Foreign Military Finance (FMF) programs
• Drafting, negotiating and advising on commercial agreements such as joint ventures, teaming and cooperation agreements, subcontracts, research and development agreements, manufacturing, sale and supply agreements, agency, distribution and representation agreements and licensing agreements.
• Advising on anti-bribery regulations
• Intellectual Property considerations in the defense and homeland security sectors