Export Management And Compliance Programs Are Essential To Avoid Export Violations
When taking a long road trip, the first step is typically to locate directions. Planning your exporting business around U.S. government compliance guidelines requires similar preparation to avoid export violations.
As an exporter, you must understand different customs, cultures, currencies, and foreign policy. It’s your responsibility to make sure your exports meet the appropriate end-use and are received by approved end-users.
In order to meet all regulatory requirements, your company needs a program that will help you navigate any known or unforeseen challenges with license applications or dual-use exports.
Unfortunately, companies often find themselves operating without a documented program for import/export compliance.
Either they rely on an employee’s “head knowledge” of what to do, or they believe that compliance is being handled by someone else in their supply chain.
Even worse, some companies have a documented program, but unfortunately, it sits on a recordkeeping shelf collecting dust – too complicated and burdensome for anyone to actually follow.
What Is An Export Compliance Program?
An Export Compliance Program, or ECP, analyzes bits of information and unique decisions to build them into an integrated, organized system.
This program is established to manage export-related choices and transactions to guarantee export compliance with the Export Administration Regulations or EAR. It will identify any red flags and a run risk assessment to ensure your meeting export control guidelines.
An ECP will help you make the best decisions for your company, like choosing the best freight forwarder that meets the required compliance guidelines, thus helping you avoid export violations.
Why Does My Company Need An Export Compliance Program?
The majority of exporters do not set out to violate EAR or break the law. But mistakes happen, and the consequences can have detrimental, long-term impacts on your business. Here are some possible ramifications of being in violation.
- Expensive Fines
- Loss Of Export License And Privileges
- Jail Time
- Tedious Corrective Actions
- Placement On A Denied Parties List
According to the U.S. Department of Commerce, “… it behooves companies in all industries to adopt an export compliance program.” This means that the United States government considers having Export Compliance Programs in place to avoid export violations.
Not only will this help contribute to U.S. national security, but it can also save you from costly import/export violations. Even if they are accidental, these violations can impact your company for years to come.
Export Solution Is Here To Help
Building an effective ITAR Compliance Program can seem like a daunting task, but there’s no need to start from scratch.
You must choose the right ITAR consultant. A good consultant will be able to understand your business needs and bring forward a customized, practical solution that actually works.
Contact us today for a free consultation on what services we can offer your company to help navigate U.S. export control policies and guidelines.