What Export Rule Reversal Signals for Tech Compliance

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Jones Act Compliance and the Third Proviso

The Jones Act restricts transportation of goods between U.S. ports to U.S.-flagged, built and operated vessels. A narrow exception called the Third Proviso allows certain cargo movements through Canada on rail to remain lawful, provided the Canadian segment is substantial, recognized by regulators and genuinely part of trade. Shippers must document rail usage, separate bills of lading and substantial handling to support compliance. Simply trucking or routing through Canada without meaningful commercial activity does not qualify. Alternative structures, such as exporting to Canada, processing, then re-importing, can also work if records and customs filings are correct.

TikTok Deal Cedes Control to U.S. Investors

TikTok’s Chinese parent ByteDance has agreed to form a new U.S. joint venture with American investors to address long-running national security and compliance concerns. The new entity, TikTok USDS Joint Venture LLC, will hold key responsibilities for data protection, algorithm security, content moderation and software assurance. American firms including Oracle, Silver Lake and MGX will together own a major share, while ByteDance retains a minority stake. The deal is set to close in January 2026, marking a major shift in regulatory compliance for major tech platforms.

What Export Rule Reversal Signals for Tech Compliance

The recent suspension of the “Affiliate Rule,” also known as the 50 percent export control rule, has broad implications. Initially aimed at closing loopholes that let majority-foreign-owned affiliates bypass export restrictions, the rule’s reversal creates policy uncertainty for technology firms. Frequent shifts in export controls make it harder for companies to plan compliance, manage supply chains and invest for the long term. This unpredictability can weaken U.S. competitive advantages in sectors like AI and semiconductors, while encouraging stockpiling of sensitive technologies.

🧠 Expert Take

The concern that I have is that it really changes the way public companies operate and makes them creatures of regulation instead of creatures of the market. Why that matters is because the market ultimately reflects the views of consumers, employees, and other communities in which those companies operate. The market collects all that information. And so, if a company is responding to the market, it’s responding to signals that all those folks are sending. And of course investors, the shareholders that own the company.  Hester Pierce, SEC Commissioner.

🧰 Compliance Toolkit

Components of An Effective Compliance Training Guide

A strong compliance training program starts with clear goals, relevant content and measurable outcomes. A structured approach includes assessing risk areas, designing role-specific modules, using real-world examples, and layering assessments to track understanding. Training should integrate both general ethics and function-specific compliance, with frequent refreshers and updates tied to regulatory changes. Best practices include regular testing, feedback loops with learners, and linking training outcomes to broader compliance key performance indicators (KPIs).

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