How a possible violation usually surfaces
Many possible export control violations are first noticed inside the company rather than by the government. They come to light through a customs hold, a freight forwarder's question, an internal audit, or an employee who raises a concern. Dual-use items are governed by the Export Administration Regulations, administered by the Commerce Department's Bureau of Industry and Security (BIS), while defense articles and related technical data fall under the International Traffic in Arms Regulations at the State Department. Sanctions questions often travel alongside and belong to the Treasury Department's Office of Foreign Assets Control. Which regime applies affects which agency you would deal with and how any disclosure would be made, and it is not always obvious at the start.
Decisions in the first weeks
Pausing further shipments of the item in question is usually prudent while the facts are gathered. Emails, shipping records, classification notes, and license files should be preserved, and routine deletion should be suspended for the people involved. A central question is whether to make a voluntary self-disclosure. Both Commerce and State have disclosure processes, and BIS has said that a deliberate decision not to disclose a significant possible violation can count against a company later. A disclosure made before the facts are understood can create its own problems, so its timing and scope deserve careful thought. Where conduct was willful, criminal exposure exists, and those cases are prosecuted by the Justice Department rather than by the regulators.
What we sort out with you first
In a first consultation we try to understand what moved, to where and to whom, how it was classified, and who made those decisions. We look at whether an internal review should be run under counsel so that its findings are protected as far as the law allows. If individual employees face questions, we consider whether their interests line up with the company's or whether they should have their own lawyers. We also look at related exposure, such as customs filings or sanctions screening, that the same facts may touch. The goal at this stage is a clear picture and a plan, not an early prediction of how any agency will respond.
