Basic Export Compliance Procedures

The large enterprises aren't the only ones that have to comply with export regulations. Even the smallest U.S. enterprises that ship their products to clients outside the country are subject to a slew of export restrictions, and breaking them can result in steep fines.

Unfortunately, many small and medium-sized enterprises' employees may not realise what is required until it is too late.

Defending Your Company From Export Violations

Businesses that are presently exporting or plan to do so should take a few simple steps to assure compliance with US Export Controls. While the following six steps are by no means exhaustive, they should serve as a good starting point for organisations looking to create an export compliance plan.

1. Determine whether an export licence is required by the destination country.

The US government prohibits exports to some countries without an export licence for a variety of reasons. The United States has imposed embargoes on countries such as Iran and Syria for sponsoring terrorist operations in the most serious situations. In other cases, the United States prohibits companies and individuals from exporting specific products to specific countries for national security, nuclear nonproliferation, chemical and biological weapons, or a variety of other reasons outlined in the EAR.

2. Conduct a thorough investigation of all parties involved in your export transaction.

The US government, as well as a number of other nations and organisations such as the UN and the European Union, maintain lists of banned parties to whom you cannot export without a licence. Items that are EAR99 or otherwise do not require an export licence based on the country of export are included in this category.

3. Keep an eye out for red flags: Understand how your product will be used.

Even seemingly harmless goods can be misused in unexpected ways. It is the responsibility of companies to understand how their products will be used once they leave the country. Some of these applications are forbidden, while others may necessitate the acquisition of an export licence.

4. Keep an eye out for Deemed Exports

The EAR's export controls don't merely apply to things being shipped outside the United States. Companies are exporting technology when they exchange technical data, such as product designs and blueprints, or when they enable foreign nationals to view a product in the United States.