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United States Export Regulations

The first step in your export compliance program development is to explain your responsibilities as defined by the Department of State (DoS) and the Department of Commerce (DoC) related to export controls.

These U.S. government export regulations require that exporters, manufacturers, re-sellers, distributors and integrators have a comprehensive export compliance program in place.  The following excerpts taken from the DOC and DOS websites set the tone for overall export compliance and the tools you need to ensure lawful export activities.

Department of Commerce (DoC):

The Bureau of Industry and Security is charged with the development, implementation and interpretation of U.S. export control policy for Commercial and dual-use commodities, software, and technology. Dual-use items subject to regulatory jurisdiction have predominantly commercial uses, but also have military applications.

"Senior management must establish written export compliance standards for the organization, commit sufficient resources for the export compliance program, and ensure appropriate senior organizational officials are designated with overall responsibility for the export compliance program to ensure adherence to export control laws and regulations."  You may visit the following website for full text version http://www.bis.doc.gov/

Department of State (DoS):

The U.S. Government views the sale, export, and re-transfers of defense articles and defense services as an integral part of safeguarding U.S. national security and furthering U.S. foreign policy objectives. The Directorate of Defense Trade Controls (DDTC) and the International Traffic in Arms Regulations (ITAR) is charged with controlling the export and temporary import of defense articles and defense services covered by the United States Munitions List (USML). 

"Comprehensive operational compliance programs include the establishment of Manuals that articulate the process to be followed in implementing the company export program......" You may visit the following website for full text version: http://www.pmddtc.state.gov/

To keep you in full compliance with these complex regulations, Xport Consultants has developed an Export Compliance Program written in plain English that addresses all regulatory guidelines and obligations. We have simplified those complex regulations and confusing exporter obligations and transformed them into our three major compliance program building blocks, including:

• Export Compliance Manual
  
• Training
  
• Audits and Assessments

What are some of the benefits of an effective Export Compliance Program (ECP)?

• Increases international sales
• Greatly reduces risk of export fines and penalties
• Ensures export compliance with ISO, AS9100 and DFARS requirements
• Provides compliance safeguards throughout the supply chain
• Provides written instructions for employees to follow

With the advance of the Internet, international trade opportunities are abundant, though every exporter faces risks. Failure to comply with U.S. export regulations can result in fines, business interruptions, sanctions and even imprisonment.

Mitigate your risk by implementing an effective Export Compliance Program (ECP) as export related Fines and Penalties can be significant:

• ISO and AS9100 registrars are reporting “major findings” related to the lack of ITAR controls and documented export compliance procedures resulting certification or re-certification delays.
• Failure to comply with DFARS flow downs can result in loss of future contract awards and potential export control violations.
• Failure to comply with ITAR can result in civil fines as high as $500,000 per violation, while criminal penalties include fines of up to $1,000,000 and 10 years imprisonment per violation. 
• Failure to comply with the EAR can result in maximum civil fines of $250,000 per violation, while criminal penalties can be as high as $1,000,000 and 20 years imprisonment per violation. 
• Failure to comply with CBP mandatory EEI can result in fines up to $10,000 and/or imprisonment for up to 5 years. Additionally, filing EEI late could get you fined $1,100 for each day it is late.

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Take the next step now towards export compliance.