When we think of the term “export,” some typical images come to mind: a container on a truck or railroad well car, a cargo ship filled with steel containers or boxes and flats stowed in an airplane’s hold. It seems straightforward, right? In general, an export occurs when something is shipped or transmitted out of the United States. In addition to physical cargo, exports include other actions that may not seem as obvious.
If it seems like export compliance regulations change a lot, you’re right—they do. Sometimes minor tweaks are made, but in other cases, comprehensive changes occur with wide-ranging ramifications. Whether your company’s exports are governed by the Export Administration Regulations (EAR), the International Traffic in Arms Regulations (ITAR) or other agencies, changes to regulations can come at any time and have a significant impact on your international business.
For most companies, the need to train their employees in export controls and compliance can be met through the live, in-person export compliance training seminars that ECTI offers across the country. But occasionally, an organization has more specific needs or logistical requirements that make customized, in-house sessions the logical choice. How do you decide which option is best for your organization?
As the pandemic begins to subside and our work lives return to “normal,” attending a live, in-person export compliance training seminar has definite attraction. After months of working from home or limiting interaction to family and close friends, getting away from work and home for a few days to focus on acquiring new knowledge and skills is appealing.
When businesses seek to sell goods, services, data or technology abroad, they must comply with U.S. export controls. In select cases under Part 744 of the Export Administration Regulations (EAR), “catch-all” rules – also known as end use and end user-based controls – apply. One of the most common catch-all rules is the Military End Use and Military End User (MEU) Rule.
U.S. Export Controls Around Encryption – Helping Your Company Navigate a Maze of Complex Compliance Regulations
To anyone with experience in export compliance, that should come as no surprise. U.S. export controls are as voluminous as they are complex. Some controls even defy common sense—yet they are the rules and must be followed. And while executing on an export compliance program takes solid understanding in many areas, the challenge is even tougher when it comes to software or equipment that utilizes encryption.
Whether you’re just starting out on your export compliance journey and looking to build an export compliance program from the ground up, or you have a program in place and seek potential improvements, you’re best served to leverage an established model.
U.S. regulatory agencies can and do impose serious penalties for U.S. and non-U.S. companies that fail to comply with highly extraterritorial U.S. rules. These include monetary fines, a loss of U.S government contracts and/or a complete ban from receiving any U.S. items. The recent pace of changes to U.S. export control and sanctions measures have made it even more important for non-U.S. companies to stay up-to-date on the regulations.
Technology startups are at the forefront of innovation, driving advances that improve efficiency, enable growth and prosperity, and make people’s lives easier, healthier and more rewarding.
Jurisdiction over U.S. export controls span several government agencies. Understanding and applying these rules requires the active involvement of multiple departments and functions across a company or other institution.