Increasingly interconnected global businesses need to focus on how export controls and trade sanctions can affect their cross-border activities in unexpected ways.

For decades, the US Government has used trade controls — export controls as well as trade and economic sanctions — to advance national security and foreign policy interests. These rules, many of which have not kept pace with rapid advances in technology, create significant compliance challenges for companies and individuals around the world.

At their core, US trade controls apply restrictions on transfers of sensitive products, software, and technology, as well as dealings with certain countries, governments and specified parties. For technology companies, compliance challenges are most significant when dealing with either sensitive technologies, third parties whose identities and locations are difficult to ascertain, or both. This alert addresses five compliance “hot-spots” for technology companies under US trade controls.