Blackletter

The International Traffic in Arms Regulations (ITAR) regulatory system should be familiar to you if your company is involved in buying or selling services or goods on the United States Munitions List (USML). If you are manufacturing, exporting, distributing or acting as a broker for defense-related items, goods, or data you must be ITAR compliant. Failure to comply can not only ruin your day – it can kill your business.

The purpose of the ITAR is to safeguard the security of the US and its allies by controlling the movement of defense-related goods and technologies. The USML has 21 categories of items covered by the ITAR ranging from firearms to missiles, explosives, and biological agents. Arms manufacturers tend to be fully aware of the ITAR compliance rules, but smaller companies can get into trouble when they deal in “dual-use” items that are not primarily intended for military use. For example, an electronic device that’s designed for civilians may also be used in a piece of military equipment – and could trigger a need for ITAR compliance.

As a first step, your company must be registered with the Directorate of Defense Trade Controls (DDTC). By registering with DDTC, you are acknowledging that you understand all of the ITAR requirements and are compliant. The onus is on you to be familiar with the regulations and abide by them. This includes knowing who you can (and can’t) do business with. Upon registration, you’ll pay a fee and be issued with a license or authorization to deal with goods and services governed by the ITAR.

Compliance also means following all the necessary steps to prevent the transfer of USML restricted goods, services and technologies to foreign nationals – either within the US or overseas. This requirement includes any defense articles, defense services, or defense-related technical data. Your data needs to be closely guarded and protected, which can be a real challenge for companies that regularly transfer sensitive information over the internet and store data overseas.

The State Department is extremely serious about controlling the manufacture and export of items on the United States Munitions List. This list, however, contains many goods, services, and technologies that may not be traditionally classified as “military items”. This includes things like commercial satellites, certain photography lenses, and chemicals used on the civilian market. Most importantly, it’s not just the end product that’s restricted – the ITAR applies to all of the components that went into making the final product.

If you are found to be in violation of the ITAR, you can face civil fines of up to $500,000, criminal fines of $1,000,000, and be imprisoned for up to 10 years per violation.

Before the DDTC comes calling, talk to an experienced attorney with expertise in ITAR compliance. Determine whether or not your company is dealing with goods or services on the USML. If you do, in fact, provide goods or services on the USML, immediately seek legal advice on how to ensure you’re ITAR compliant. This will include not only registering with the DDTC but also becoming fully aware of all the measures you are required to take in order to stay on the right side of the regulations. When it comes to the ITAR, it’s always better to be safe than very, very sorry.

https://www.dbllawyers.com/the-itar-and-you/

Case Study in Federal Litigation (Shoemaker Corporation III)

Tom Dunlap sits down with Kevin Shoemaker and Robert Sutton of Shoemaker Corporation III and David Keesling of Dunlap, Bennett and Ludwig to talk about business law on a multi-million dollar court case level.

There are many legal and tax considerations when it comes to purchasing or selling an aircraft. All airplane related transactions must comply with stringent Federal Aviation Administration (FAA) guidelines. Airplane purchase agreements must be closely reviewed by experienced aviation attorneys and clear title assured before the sale can go through. Our aviation litigation attorneys at Dunlap Bennett & Ludwig PLLC discuss the basic legal process for acquiring an aircraft below. 

Before purchasing an aircraft, you will want to build a strong acquisition team. Purchasing an aircraft solo through an aircraft sales agent may be setting yourself up for issues because many sellers prioritize their own sale over the buyer’s needs. As a buyer, you will be well served to build an advisory board.

Start by selecting a buyer’s agent. Your agent will manage the aircraft selection and handle all communications. You will need a trusted aviation attorney who will ensure the plane has proper documentation and guide the closing. Your team must include a technical inspector who will coordinate the inspection and assess the inspection report, along with an escrow agent to manage funds. Your aviation attorney will further assist you in tax deferment strategies pre and post-sale

Purchasing an aircraft is a costly transaction. As such, you will want to ensure the purchase agreement adequately protects your legal rights. Your aviation attorney will draft a strong purchase agreement that will protect you in the event of technical issues discovered during inspections, title problems, and more. Your attorney will further search the aircraft title to uncover any liens or other defects.

With the purchase contract signed and inspections complete, the sale of the aircraft can move forward. Closing will involve the accumulation of all purchase steps and transfer of funds as well as title. You will need to ensure all FAA regulatory requirements are met, including registry of the aircraft and a current Airworthiness Certificate. During and after the closing, your attorney will further handle all tax matters related to the purchase of the aircraft.

The DBL team is comprised of several attorneys who not only have vast knowledge of aviation law but are former military members and experienced licensed pilots themselves. Be sure to contact one of our aviation attorneys to help you navigate the purchase process and avoid any costly missteps and regulatory issues.

https://www.dbllawyers.com/aviation-transactions-explored/

The use of social media in every day life is now becoming the norm. The President is well known for using Twitter. Celebrities have adopted it to make announcements, pick fights, or even take political stands on current events. Social media provides the ability to reach a large number of people with short and sometimes loaded comments.

AUSA National Security

Tom Dunlap sits down with David Verhey and Robert Eatinger, partners for Dunlap Bennett and Ludwig, and Major General Charlie Fletcher, at the AUSA cocktail part in Washington, DC, and they talk about cyber security and national security and socio economic issues.