International Trade Blog

There are many reasons the U.S. government has decided some goods should require a second look before they can be exported to certain countries.

In my previous article I explained what these various reasons for control are as they appear in the Commerce Department’s Export Administration Regulations (EAR). And I explained why exporters would need to apply for an export license from the U.S. government based on the particular Reason for Control and the destination country.

Even if one or more reasons might apply to a product going to a specific country, the EAR also provides exceptions to the export license requirement.

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Far too often we hear from exporters who say they’re not worried about export compliance because their company is “too small to be noticed” or they “don’t ship items that will get them in trouble.”

This is a huge—and potentially costly—mistake.

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Most of us wouldn't take a long road trip without directions, so why would a company embark on an export journey without one?

Exporting is a complicated process. You are navigating different cultures, customs, currencies and regulations. In order to be consistently successful, you need directions that guide you past all these hurdles, both known and unexpected.

That's where an Export Compliance Program (ECP) comes in.

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Creating consistent, accurate export documents is crucial in ensuring your international shipments arrive on time and making sure you get paid quickly. While it’s often the export manager’s job to oversee this process, everyone in your company should be concerned that export documents are created the right way.

Here are three reasons getting your export documents correct is important to everyone at your operation, including your C-suite.

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In a previous article I explained the export license determination process for exports of dual-use items controlled by the U.S. Department of Commerce under the Export Administration Regulations (EAR).

We walked through how exporters must first find the correct Export Control Classification Numbers (ECCNs) of their products and then determine if an export license is required based on what reasons for control apply to the export and whether or not any license exceptions are available.

Today’s article gives a summary of each EAR reason for control.

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Have you ever heard the saying, “Love isn’t a big thing; it’s a million little things”? It’s a pretty popular quote that appears on many home decorations, cards and internet memes.

As an exporter, my take is a little different—I think the line should read, “Export compliance isn’t a big thing; it’s a million little things.” And while it might not make for a lovely greeting card, it’s true—your export compliance responsibility isn’t a simple task.

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A variety of U.S. laws and regulations exist to monitor and controls exports from the United States. These laws and regulations are designed to comply with trade agreements, embargoes, sanctions and other political measures the U.S. has with other countries. Most importantly, the laws and regulations are designed to protect U.S. national security so the most sensitive information and technology don't get into the wrong hands.

This is where the International Traffic in Arms Regulations (ITAR) come in. ITAR is part of a web of laws and regulations prohibiting U.S. individuals and companies from engaging in business with prohibited/sanctioned countries and persons for various economic, financial, anti-terrorism and human rights issues.

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Successful companies use metrics or key performance indicators (KPIs) to measure aspects of their performance. Often times, these metrics or KPIs apply to sales, marketing or manufacturing. But they can—and should—be used in import and export compliance functions, too.

When effectively applied, trade compliance metrics drive process efficiencies, provide better visibility, and promote the efforts of the trade compliance group to the executive team and throughout the entire organization.

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If you’re the person at your company who is charged with completing export paperwork, you know how time consuming and tedious it can be. Spending all your time completing export forms makes it hard to do other things that could help you grow your company and improve your exporting.

And while you know these things, it can be difficult to make that justification to the appropriate people at your company, persuading them to invest in export documentation software that can make you more efficient.

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The International Traffic in Arms Regulations (ITAR) require that companies appoint one or more empowered official to oversee ITAR-related activities.

Before a company can do that, however, they need to understand exactly what an empowered official (EO) does and who can fit that role. And both the company and the person or people who fill that role need to understand the potential liability for their actions.

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