Olympic Size Export Risks for Franchisors in 2008

As the US athletes prepare for the 2008 Olympics in China, so should US franchisors. Challenges for both competitors could be substantial. US Department of Commerce and Defense Department officials have announced their intent to tighten controls vis a vis exports to China. Of 1,000 applications for dual use permits for China in the last four years only 700 have been approved under EAR regulations, according to BIS officials.

In addition, according to the DTSA, only a few licenses have been approved by the State Department for items exported to China subject to ITAR. Any US item for export to China controlled by ITAR must receive a presidential waiver before a license can be approved. Check the various US government websites for specific sanctions currently in force against the Chinese government or its various entities.

With a record 35 venues in place for the 2008 Beijing Olympics, the Games could be a gold medal opportunity for both US athletes and franchisors, but to succeed one must prepare early.