Avoid Kicking the Hornet’s Nest: A Fresh Look at How to Anticipate, Avoid, and Respond to BIS Administrative Subpoenas (Part 1)

In July 2024, the Department of Commerce’s Bureau of Industry and Security (BIS) issued guidance for US companies that has “primed the corporate enforcement engine.” These new guidelines outline how the BIS will drive enforcement and compliance through 1) identification of “red flags” that indicate a “high probability” of diversion in violation of US export controls, 2) criminal prosecutions, and 3) issuance of “supplier list” and “red flag” letters that warn companies of the risks of diversion posed by certain counterparties.

Brent Carlson and Michael Huneke forecast the BIS’s potential enforcement steps and provide guidance on anticipating, avoiding, and responding to administrative subpoenas, which pose challenges to US companies and their legal and compliance teams as the new wave of export controls enforcement unfolds.

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