export/re-export control laws
Definition
These are government rules that restrict which products, technologies, software, and services American businesses can send to people or companies in other countries. The government controls these exports to protect national security, foreign policy interests, and to keep sensitive technology out of the hands of certain countries, organizations, or individuals. Re-export rules go one step further by also controlling what happens to your products after a foreign buyer receives them, meaning that buyer cannot simply ship your goods to a third country without permission.
Example
If your small business sells specialized drone components, export control laws may require you to get a government license before shipping those parts to certain countries, and your foreign buyer would need permission before resending them elsewhere.
Watch Out
Violating these laws can result in massive fines and even criminal charges, so if you sell anything with military, technological, or dual-use potential, you should consult a trade compliance attorney before doing business internationally.
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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.