Northwest Aerospace News June | July Issue No. 15 | Page 54

THE COVID-19 CRISIS
& U.S. EXPORT CONTROLS
By Nelson Dong; Dorsey & Whitney LLP, Seattle, Washington
During the COVID-19 crisis, hospitals and healthcare providers have complained about
inadequate supplies of mechanical ventilators, and personal protective equipment (PPE)
such as N95 or surgical masks, face or eye shields, gowns, gloves and the like. U.S. PPE
shortages have become more evident as federal reserves of PPE proved insufficient. The
U.S. government has legal tools to protect U.S. supplies of such urgently needed PPE and
other materials.
Nelson G. Dong
Partner
Head, National Security Group
Co-Head, Asia Group
PNDC SPOTLIGHT
However, as U.S. companies adjust to “stay at home” orders to reduce the community
transmission of COVID-19 and allow more employees to work from home, there can be
other export control pitfalls. Corporate compliance efforts must adjust to these new work
environments.
Defense Production Act
The Defense Production Act of 1950 (DPA) provides the U.S. government with
emergency powers to require businesses to take federal contracts to produce essential
goods or services, even at prices that may cause net financial loss to those businesses. The
U.S. government may also require that such federal contracts receive a higher fulfillment
priority than normal existing commercial contracts.
54 NORTHWEST AEROSPACE NEWS