A customer wants a technical demonstration, an overseas engineer needs repository access or a distributor proposes a new destination. The commercial team may be ready to proceed while the company still lacks a documented answer on export controls. A rushed transfer can interrupt delivery, expose the business to enforcement and leave the contract difficult to perform.
Our firm assesses export-control issues in Israeli and cross-border commercial activity, coordinates specialist foreign advice where needed and helps put the resulting restrictions into agreements and operating decisions. We also advise on responses when an earlier transfer, licence or classification is questioned.
Map the item and the proposed activity
The review starts with the product, software, technology or service and what the company proposes to do with it. A physical shipment, source-code release, technical presentation and remote support session may require different analysis.
Our firm works with the technical and commercial teams to identify the item’s characteristics, origin, destination, recipients and intended use. We then assess which legal frameworks require review. General background appears in FIU export control guidance; a decision for a particular transaction needs the actual technical and legal facts.
The transaction map should include development, hosting, support and onward supply, not only the named customer. It should also identify what has already occurred so that a new approval process does not conceal an unresolved historic issue.
Distinguish US jurisdiction from a licensing conclusion
The US Export Administration Regulations, administered by BIS, apply to defined categories of items. These include US-origin items wherever located and certain foreign-made items involving controlled US content or specified foreign-produced direct-product connections, subject to the applicable rules and exclusions.
That scope requires analysis rather than a simple test of whether the seller is American. Our firm coordinates the US advice needed to assess origin, incorporated content, relevant technology and the actual transaction. A foreign-made product should not be treated as outside US controls merely because final assembly occurred elsewhere.
Items within the EAR may be listed under an Export Control Classification Number on the Commerce Control List or designated EAR99 where not listed. Classification is part of the review, alongside destination, end-user, end-use and applicable authorisation requirements.
ITAR is a separate framework for relevant defence articles and services under State Department jurisdiction. The jurisdictional question should be resolved before treating EAR and ITAR as interchangeable. EAR and ITAR compliance architecture provides a general compliance-programme overview; our firm coordinates the legal analysis appropriate to the company’s activity.
| Decision | Information for legal review | Relevant business team |
|---|---|---|
| Item and version | Technical facts, origin and existing classifications | Engineering and product |
| Recipient and use | Customer, intermediaries, destination and ultimate use | Sales and compliance |
| Information access | Material shared, recipients and location | IT, HR and technical teams |
| Transfer or marketing step | Applicable authority, authorisation and conditions | Legal and responsible management |
Assess the Israeli framework independently
An Israeli business or activity can require its own review under Israeli export-control rules. The US position does not replace the Israeli assessment, and a local authorisation should not be assumed to satisfy foreign restrictions.
The Israeli review connects the item, proposed activity and recipient to the relevant Israeli authority, classification and licensing questions. For defence-related activity, the review should address the actual marketing, export or other controlled step rather than wait for a shipping instruction.
Encryption products require particular attention following the repeal of the former Encryption Order on 21 March 2026. The Ministry of Defense identifies the remaining controls by reference to the information-security items in Wassenaar Chapter 5, Part 2: export for defence use falls under the Defence Export Control Agency, while export for civilian use falls under the Ministry of Economy. The product’s inclusion in the control list and its intended use matter, not simply the presence of an encryption feature.
The change also affects which activities remain controlled. The Ministry of Defense distinguishes export, and marketing for defence use, from other activities under the repealed order. Existing licences require individual review: the transition provisions preserve or extend certain approvals, while approvals for items or activities no longer controlled under that framework were cancelled. We examine the applicable route before the business relies on a historic approval or commits to a new transfer.
Classify against technical facts and keep the reasoning
A useful classification file connects the product and version to its relevant technical characteristics: performance, components, software functions, encryption and the information provided with the item.
Our firm works with the technical advisers to identify the legal questions, document assumptions and assess whether further information or an authority determination is needed. Guidance on common export compliance mistakes discusses recurring classification and process issues.
The review should also identify when to reconsider a conclusion. A new feature, firmware change, different component, changed recipient or proposed use can affect the analysis. The record should make clear which version and facts the decision addressed.
Review access and information releases before collaboration
Under the EAR, releasing or otherwise transferring relevant technology or source code to a foreign person in the United States can be a deemed export. The regulatory definitions and exceptions matter; foreign-person access and the need for a licence should be assessed under the applicable provisions.
Cross-border transmission and disclosures outside the United States require their own analysis. A US-to-Israel file transfer should not be described solely as a domestic deemed-export issue. Our firm maps the activity and coordinates the advice needed for the relevant release, export or reexport.
The review can include repositories, demonstrations, remote diagnostics, supplier packages and access by new team members. We help translate the conclusions into permitted access, approval responsibilities and restrictions that the business can implement.
The U.S. International Trade Administration’s export controls guidance explains the US agency framework. Where local internet or information rules also affect the project, a separate review may be needed, with Throughwire on China internet regulations providing related reading on China. The export decision should address the actual item and disclosure.
Screen the parties and understand the intended use
A transaction may involve a customer, distributor, payer, freight provider and ultimate user in different places. Our firm assesses which parties and restrictions require review and how ownership, routing or end-use concerns should be investigated.
A potential name match needs proper resolution. Our firm connects the screening findings with the proposed use, destination and any facts inconsistent with the stated transaction, so management can decide whether to proceed, seek further information or change the arrangement.
Practical controls discussed in maintaining export compliance controls include classification, screening and licensing records. We help define an escalation route for incomplete information and prepare requests that address the actual legal concern.
A delivery promise and an export authorisation answer different questions. The contract must explain how the business will perform when the regulatory answer changes.
Make authorisations and conditions part of the contract
The commercial agreement should reflect who supplies classification information, who applies for an authorisation and what happens if approval is delayed, refused or subject to conditions. Our firm negotiates those provisions alongside delivery, payment, confidentiality and termination.
A distributor’s promise to comply should be supported by appropriate information, permitted-use and onward-transfer terms. A development agreement should address where work occurs, who may access the material and the steps required before a change.
This review forms part of commercial agreement strategy in Israel. We assess how a proposed compliance restriction affects the client’s actual obligations so that the business does not promise unrestricted access or delivery before the required review is complete.
| Review area | Question to resolve |
|---|---|
| Jurisdiction and classification | Which framework applies to the item and activity? |
| Parties, destination and use | Do restrictions or red flags require further review? |
| Authorisation | Is a licence, exception or other legal basis available and applicable? |
| Implementation | Are the conditions, records and access controls ready before proceeding? |
Keep records that explain the decision
The file should identify the technical facts, applicable classification, parties reviewed, authorisation basis and conditions attached to the approved activity. The operational records should show what was transferred and to whom.
Our firm helps assess retention requirements and the records needed to respond to an audit or inquiry. Training and process testing should use the company’s real workflows, including access changes and technical support. Export compliance training discussion is a general training resource.
When records are missing, our firm helps establish what occurred, identify the supporting evidence and assess the legal implications. That work gives the company a sound basis for its response to a counterparty or authority and for correcting the recordkeeping process.
Respond carefully to a suspected breach
If an unapproved transfer may have occurred, our firm assesses the immediate activity, preservation needs and facts requiring investigation. We coordinate the relevant Israeli and foreign advice before recommending a regulatory response or voluntary disclosure.
The work includes identifying the items and recipients, reviewing prior approvals and deciding what activity should pause while the position is examined. We also assess the client’s contractual notices and any statements requested by customers, banks or business partners.
Where the issue affects a payment route, bank account blockages and restrictions may require separate attention. For a wider event, commercial crisis management can help align legal communications and management decisions with the investigation.
Protect the transaction before the dispute grows
An export-control question can quickly become a delivery dispute, a stalled acquisition or an inquiry into transfers already made. Our firm connects the regulatory analysis to the commercial response: assessing the Israeli position, coordinating foreign advice, negotiating realistic delivery and access terms, and handling legal communications when a customer or authority challenges the transaction.
To protect the next transaction or address an existing dispute, contact RNC Group.
This article is for general information only and does not constitute legal advice. Laws and their application depend on the facts and jurisdiction and may change. Although we aim to keep this information accurate and current, we do not guarantee that it is complete or up to date. The article may contain omissions or errors. Reading this article does not create an attorney-client relationship with RNC Group. Before making a decision or taking action, seek advice from a qualified lawyer in the relevant jurisdiction.