Last week the China Nuclear Industry Huaxing Construction Co., Ltd. (Huaxing), a corporation controlled by the People’s Republic of China, pled guilty to violating the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR) and other related charges.

Ongoing export control reform is bringing about some major changes for exporters, particularly because pieces, parts and components from the U.S. Munitions List (USML) will be migrating to the Commerce Control List (CCL).

A recent Pentagon effort to add infrared detection technology to the U.S. Munitions List has caused concern for many U.S. companies. Infrared imaging is currently considered a dual use item because it has both commercial and military purposes. Adding the technology to the U.S. Munitions List could potentially shut U.S. companies out of a global market of about $2.6 billion by 2017 in the automotive, surveillance and security industries.

The FBI has opened a criminal investigation into ZTE Corp’s sale of banned US computer equipment to Iran. ZTE is China’s second-largest telecom equipment maker and the world’s fourth largest mobile device maker. The investigation stems from a Reuter’s report in March, stating that ZTE sold surveillance systems to Iran’s largest telecommunication firm.

On June 28th, Pratt & Whitney Canada Corporation (PWC) pleaded guilty to violating the Arms Export Control Act and to making false statements regarding its illegal export of US-origin military software to China. This software was used in the development of the Z-10, China’s first modern military attack helicopter. PWC, along with its parent company, defense contractor United Technologies Corporation (UTC), and UTC’s US-based subsidiary Hamilton Sundstrand Corporation (HSC), will have to pay more than $75 million as part of a settlement with the Justice and State Departments.

The Bureau of Industry and Security (BIS) recently published proposed changes to US export law in the Federal Register and asked for public comment. The changes primarily deal with the fact that the US has two lists for items that require export control and licensing: the US Munitions List (USML) administered by the State Department, and the Commerce Control List (CCL) maintained by the Commerce Department.

President Obama's videotaped remarks will be delivered to the Department of Commerce tomorrow, during their annual export control conference. He will outline the foundation of our new export control system, "including what we control, how we control it, how we enforce those controls and how we manage our controls." The goal in reforming our current system is to strengthen national security by focusing on controlling the most critical products and technologies.

Just a reminder, everyone - exporting (and importing for that matter) is a privilege and not a right.