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Coronavirus Update: FEMA Allocates Certain Scarce PPE for Domestic Use and Restricts Exports

By Dj Wolff, Jana del-Cerro & Stephanie Crawford on April 8, 2020
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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.

Photo of Dj Wolff Dj Wolff
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Photo of Jana del-Cerro Jana del-Cerro
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Photo of Stephanie Crawford Stephanie Crawford

Stephanie Crawford is a trusted counselor to a broad range of industries facing reorganizations, transactions, national security issues, and questions of supply chain management. Stephanie provides related mergers and acquisitions, counseling, litigation, international arbitration, and investigations services to clients in the aerospace and

…

Stephanie Crawford is a trusted counselor to a broad range of industries facing reorganizations, transactions, national security issues, and questions of supply chain management. Stephanie provides related mergers and acquisitions, counseling, litigation, international arbitration, and investigations services to clients in the aerospace and defense, communications, energy, information technology, and consumer products sectors.

Stephanie has substantial experience with both buy-side and sell-side transactions. She has led government contracts diligence for numerous private equity entities and defense contractors. She assists clients with navigating post-closing government requirements, including unique license transfers and approvals; novation and change of name regulations; and Defense Counterintelligence and Security Agency communications and foreign ownership, control, and influence (FOCI) mitigation.

Stephanie counsels clients on supply chain, sourcing, and national security regulations and requirements. Such counseling includes compliance with the Defense Production Act, including priority orders, ratings and associated regulations; the Public Readiness and Emergency Preparedness Act; and National Industrial Security Program Operating Manual (NISPOM) regulations. She is also known for her ability to solve immediate and business-threatening System for Award Management (SAM) and Defense Logistics Agency (DLA) CAGE Code problems.

Stephanie defends government contractors facing potential tort litigation with a nexus to their government contracts and facing supply chain and national security-related investigations, litigation, and arbitrations.

Stephanie’s pro bono practice focuses on a broad range of veterans’ issues, including disability ratings and discharge upgrades

Read more about Stephanie CrawfordEmail
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  • Posted in:
    Other
  • Blog:
    Government Contracts Legal Forum
  • Organization:
    Crowell & Moring LLP
  • Article: View Original Source

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