Export Controls & Sanctions Compliance Advisory
U.S. export controls (EAR and ITAR) and economic sanctions (OFAC) govern what technology, goods, and services American companies — and many foreign ones — can provide to Chinese and other counterparties. Artisan Business Group helps companies identify their exposure, screen counterparties, design compliance programs, and respond when issues arise.
The Problem
The Bureau of Industry and Security (BIS) Entity List now contains over 600 Chinese companies, and the list grows with nearly every enforcement cycle. Violating export controls can result in criminal prosecution, civil penalties, and debarment — but the controls are complex enough that many companies discover violations only after a deal has closed or a shipment has moved. OFAC sanctions add another layer: secondary-sanctions risk can affect transactions that never touch U.S. soil. The pace of regulatory change — new Entity List additions, expanded foreign-direct-product rules, evolving OFAC guidance — makes ongoing compliance increasingly difficult without dedicated attention.
How We Help
- Export-control classification — determining EAR99, ECCN, and ITAR classification for products and technology
- Counterparty screening — checking customers, distributors, suppliers, and partners against the Entity List, Denied Persons List, SDN List, and other restricted-party lists
- License requirement analysis — determining when a license is required and whether a license exception applies
- Compliance program design — building or auditing internal export-compliance programs
- Technology-transfer risk assessment — evaluating deemed-export and re-export risk in cross-border R&D and manufacturing arrangements
- OFAC sanctions review — assessing primary and secondary sanctions exposure for U.S.–Asia transactions
Our Process
Product & Technology Classification
Classify products and technologies under the EAR Commerce Control List and ITAR USML.
Counterparty Screening
Screen all relevant parties against BIS, OFAC, and State Department restricted-party lists.
License Requirement Analysis
Determine whether the transaction requires a BIS or State license, and whether a license exception applies.
Program Design or Audit
Build a compliance program or audit an existing one against current BIS/OFAC guidance.
Ongoing Monitoring
Track Entity List updates, foreign-direct-product rule expansions, and OFAC designation changes relevant to your business.
Who This Is For
- U.S. technology, semiconductor, and defense-related companies with Chinese customers, partners, or investors
- Foreign companies manufacturing U.S.-origin products or products with U.S.-origin technology
- Importers and distributors uncertain whether their Chinese suppliers are Entity List-designated
- Financial institutions evaluating cross-border transactions with Chinese counterparties
- Companies responding to a BIS or OFAC inquiry or voluntary self-disclosure
Frequently Asked Questions
What is the BIS Entity List, and how does it affect my business?
The Bureau of Industry and Security's Entity List designates foreign companies, individuals, and organizations subject to specific export-license requirements, typically because BIS has determined they act contrary to U.S. national security or foreign-policy interests. Once designated, U.S. exporters generally cannot ship items subject to the EAR to an Entity List party without a license, and license applications for these parties are typically reviewed under a presumption of denial. Over 600 Chinese companies are currently designated, including major technology and telecommunications firms. Indirect supply — selling to a Chinese distributor who re-sells to an Entity List company — can also create liability.
What is the Foreign Direct Product Rule, and who does it affect?
The Foreign Direct Product (FDP) Rule extends U.S. export-control jurisdiction beyond U.S.-origin items to foreign-made products if they are the direct product of certain U.S. technology or software, or are produced by plants using U.S.-origin equipment. BIS has expanded the FDP Rule significantly since 2020, most notably the Huawei FDP Rule (2020) and the advanced-chips FDP Rule (October 2022). The practical effect is that non-U.S. manufacturers — including Taiwanese, Korean, and European companies — can face EAR jurisdiction over their products if those products involve U.S. technology, even if no U.S. export ever occurred.
How do I screen counterparties against restricted-party lists?
Effective counterparty screening requires checking multiple lists: BIS's Entity List, Denied Persons List, and Unverified List; OFAC's Specially Designated Nationals (SDN) List and various sectoral sanctions lists; the State Department's Debarred Parties List; and the Department of Defense's Section 1260H list of Chinese Military Companies. Screening must also cover beneficial owners and affiliated entities — not just the immediate counterparty's legal name. We help clients build screening processes, select screening software, and handle ambiguous matches where names are transliterated or corporate structures obscure the ultimate beneficial owner.
What is a "deemed export," and when does it apply?
A deemed export occurs when controlled technology is released to a foreign national inside the United States — for example, when a Chinese engineer at a U.S. company accesses export-controlled technical data or software. The release is deemed to be an export to that person's country of citizenship. This has major implications for U.S. technology companies employing foreign nationals in engineering or R&D roles, and for joint-venture and licensing arrangements where technical information is shared with foreign partners. A deemed-export analysis is a standard part of any cross-border technology-transfer review.
What is the difference between primary and secondary OFAC sanctions?
Primary sanctions prohibit U.S. persons and entities (and in some programs, U.S.-dollar transactions) from engaging with sanctioned parties or countries. Secondary sanctions create risk for non-U.S. persons: engaging in certain conduct with sanctioned parties — even in transactions that have no U.S. nexus — can result in designation on the SDN List or other consequences, cutting the non-U.S. party off from the U.S. financial system. Secondary sanctions are particularly relevant for Chinese and Asian companies evaluating transactions with Iranian, Russian, or North Korean counterparties, or with entities connected to those programs.
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