export administration act
Definition
The Export Administration Act is a U.S. federal law that controls what goods, technology, and information American businesses can send to other countries. The government uses this law to prevent sensitive products or technology from reaching foreign countries, companies, or individuals that could use them to harm national security or foreign policy interests. If your business sells or ships products internationally, this law may require you to get a special government license before completing certain transactions.
Example
If your small manufacturing company wants to export specialized software or technical equipment to a country on the U.S. restricted list, you would need to apply for an export license from the Commerce Department before the shipment can legally leave the country.
Watch Out
Violating this law, even accidentally, can result in massive fines and criminal charges, so if your business exports anything abroad, you should consult an attorney or compliance specialist to make sure you are following all the rules.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.