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The Federal Emergency Management Agency (FEMA), under the Department of Homeland Security, has released a Temporary Final Rule that invokes the Defense Production Act (DPA) to allocate certain Personal Protective Equipment (PPE) for domestic use and prohibit exportation of PPE from the U.S. without express FEMA approval. The mechanics of implementation remain somewhat unclear, but the rule provides for Customs and Border Protection to detain outbound shipments of PPE until FEMA determines whether to return the shipment for domestic use, issue a DPA-covered order against the PPE, or allow the export of all or part of the order in the interest of national defense. Covered PPE (“covered material”) includes:

  • N95 Filtering Facepiece Respirators
  • Other Filtering Facepiece Respirators
  • Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges
  • PPE surgical masks
  • PPE gloves or surgical gloves

FEMA commits to make determinations “quickly” and “within a reasonable time of being notified of an intended shipment.” The rule exempts covered material shipments made by or on behalf of U.S. manufacturers with continuous export agreements with customers in other countries since at least January 1, 2020, provided that at least 80% of the manufacturer’s domestic production of covered material was distributed in the U.S. in the preceding 12 months. Those violating the rule may be subject to a fine up to $10,000, imprisonment for up to one year, and/or an injunction. The rule will be effective when published in the Federal Register, currently scheduled for April 10.

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Photo of Dj Wolff Dj Wolff

David (Dj) Wolff is the co-chair of Crowell & Moring’s International Trade Group and a director with Crowell Global Advisors, the firm’s trade policy affiliate.

At Crowell & Moring, he serves on the steering committee for the International Trade Group, where his practice

David (Dj) Wolff is the co-chair of Crowell & Moring’s International Trade Group and a director with Crowell Global Advisors, the firm’s trade policy affiliate.

At Crowell & Moring, he serves on the steering committee for the International Trade Group, where his practice focuses on all aspects of compliance with U.S. economic sanctions, including day-to-day compliance guidance, developing compliance programs, responding to government inquiries, conducting internal investigations, and representation during civil and criminal enforcement proceedings. Dj works regularly with non-U.S. clients, both in Europe and Asia, to evaluate the jurisdictional reach of U.S. sanction authorities to their global operations, identify and manage the potential conflict of laws that can result from that reach, as well as to support client’s design, implementation, and evaluation of a corresponding risk-based sanctions compliance program. Dj also regularly leads teams in diligence efforts on trade and related regulatory areas on behalf of his U.S. and non-U.S. clients in the M&A arena, having successfully closed more than 30 deals with an aggregate valuation of several billion dollars over the last 18 months.

Dj is ranked by Chambers USA in International Trade: Export Controls & Economic Sanctions. He has previously been recognized by Law360 as a Rising Star in International Trade (2020), by The National Law Journal as a “DC Rising Star” (2019), by Who’s Who Legal: Investigations as a “Future Leader” (2018 and 2019), Acritas Star as an Acritas Stars Independently Rated Lawyers (2019), by Global Investigations Review as one of the “40 under 40” in Investigations internationally (2017), and WorldECR as one of the five finalists for the WorldECR Young Practitioner of the Year award (2016).

Photo of Stephanie Crawford Stephanie Crawford

Stephanie L. Crawford is a counsel in Crowell & Moring’s Washington, D.C. office, practicing in the Government Contracts group.

Stephanie’s practice focuses on mergers and acquisitions, contract and regulatory compliance reviews, and counseling on supply chain, sourcing, and national security issues. Her practice…

Stephanie L. Crawford is a counsel in Crowell & Moring’s Washington, D.C. office, practicing in the Government Contracts group.

Stephanie’s practice focuses on mergers and acquisitions, contract and regulatory compliance reviews, and counseling on supply chain, sourcing, and national security issues. Her practice supports clients in the aerospace & defense, communications, energy, information technology, and consumer products sectors.