Export Compliance Compendium
Find the answers to questions about:
- Best Practices for Export Compliance
- Commercial, Dual Use or Military Exports
- Dangerous Myths about U.S. Export Control
- Export Management Systems (EMS)
- And more!
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Export Compliance articles are educational tools
The articles do not constitute legal advice; such advice can only be rendered based on an attorney-client relationship and the facts and circumstances of a particular case.
The Compendium offers practical know-how to help you stay on the right side of the law when dealing with export compliance issues. See for yourself...the Compendium contains full texts of the articles summarized below.
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All Article Summaries from the Export Compliance Compendium, Feb. 2005-Nov. 2007
2005
February 2005
Is There a Problem, Officer?
Usually, a U.S. manufactured part shipped to any Federal Aviation Administration (FAA) regulated repair station for a repair order (but not a replacement) can be repaired and shipped back to the foreign company without an export license. However, there are several important questions you need to ask about each shipment to assure compliance with Export Administration Regulations (EAR).
March 2005
Commercial, Dual-Use or Military Exports: Who’s in Charge Here?
Three different U.S. government departments are involved in export compliance, the Bureau of Industry and Security (BIS), the Directorate of Defense Trade Controls (DDTC), and the U.S. Customs and Border Protection (CBP). Different laws and regulations govern each department. This article reviews those laws and regulations, and explains where you can go for answers to export compliance questions.
April 2005
What Constitutes Due Diligence?
Many government agencies inspect for export compliance. Failure to follow export laws and regulations expose you and your company to large fines and potential jail time. One of the best ways to avoid liability is to apply internal controls. Put someone in charge of export and import compliance and maintain a library on compliance laws and procedures.
May 2005
Best Practices for Export Compliance
The time to build your compliance program is before the audit team arrives at your door. Review these lists of the hot enforcement issues and best practices to help create a compliant import/export program.
June 2005
Best Practices, Part One: Export Compliance Starts at the Top
If your company imports and exports parts you should appoint a Chief Export Compliance Officer (CECO). This individual must know the EAR and the International Traffic in Arms Regulations (ITAR) governing the items exported. There are many tasks for the CECO including keeping up with changes in regulations and procedures and conducting export training for employees.
July 2005
Best Practices, Part Two: Compliance Manual and Compliance System
An Export Management System and the Export Compliance Manual is an essential part of your compliance program. The contents of this manual will differ based on the complexity of you own export demands. However, recent government guidance suggests including all the items discussed in this article.
August 2005
Best Practices, Part Three: Matching the System to Company Operations
Audit teams from BIS and PMDTC (Defense Trade Controls—State Department) look for a consistent and traceable process that follows the guidelines and reflects actual practice at your company. Test your company’s procedures and compliance against these actual audit questions by assigning one person to conduct a walkthrough of the process.
September 2005
No Way To Do Business!
When conducting any overseas business, you must know your customer. Practicing due diligence with your export controls will avoid the fate of a California aircraft parts dealer indicted in 2005 for conspiring to export military items to the Middle East, Asia, and Europe.
October 2005
Training for Export Compliance
Bureau of Industry and Security (BIS) audit and enforcement teams typically ask what sort of training program is in place for export compliance. To ensure your training program meets the BIS team’s expectations, it should be thorough, accurate, attended by the appropriate personnel, and occur twice a year.
November 2005
Selecting and Using Freight Forwarders and Brokers
Choosing the best freight forwarder or broker is critical to your business when servicing overseas customers. Use this list of criteria when looking for a new freight forwarder or evaluating your existing relationship.
December 2005
Updating and Monitoring the EMS
A successful Export Management System (EMS) integrates normal company procedures with a positive attitude toward, and an adherence to, all government regulations. There are several critical steps to follow when creating your EMS including developing sales and order processing screens to stop any non-compliant shipment.
2006
January 2006
Don’t Let Your Export Compliance System Grow Mold
A good Export Management System (EMS) must screen for the critical tests of compliance. Test your EMS using guidelines established by the Bureau of Industry and Security (BIS). And look over the full guidelines.
February 2006
Export Compliance—Never An Option
When you ship parts overseas, you need to be aware of the export compliance issues involved. This article lists thirteen items that you and your company must address to ensure compliance with export laws and regulations.
One way to simply export compliance is to take advantage of the “Return for Repair” Rule for military or “dual-use” items when applicable.
March 2006
Dangerous Myths about U.S. Export Control
This month’s article reprints a list of myths along with the truths about export compliance by Russ Spittler, Esq., Senior Director of Compliance of Endevco.
April 2006
The Boeing QRS-11 Case
The QRS-11 gyro chip is just over 1.5 inches in diameter, weighs about 2 ounces, and is used in missiles, the B-2, and the B787. Failure to get the proper export license for the chip resulted in fines of $15 million against Boeing. Just like large manufacturers, repair station operators are required to exercise their own diligence with regard to separating military and commercial business.
May 2006
Where To Turn For Export Compliance Help
The government agencies that oversee export compliance provide many helpful tools to assist your company comply with export laws and regulations. For example, you can learn from others mistakes on a Bureau of Industry and Security (BIS) website, check pertinent websites for policy changes, and compare your customer list against the Denied Party site. BIS also offers primary and refresher seminars on export compliance.
June 2006
Voluntary Self-Disclosure—A Touchy Subject
If you believe you have made a mistake (inadvertent or otherwise) in export compliance, seek legal advice at your earliest opportunity. This article provides a general overview of voluntary self-disclosure (VSD) and what a disclosing entity can expect in the VSD process.
September 2006
Commercial, Dual-Use, or Military Exports—Who’s In Charge Here?
This article describes the three different U.S. government departments involved in export compliance, the Bureau of Industry and Security (BIS), the Directorate of Defense Trade Controls (DDTC), and the U.S. Customs and Border Protection (CBP). Different laws and regulations govern each department. If you export you need to be familiar with all these laws and regulations as well as where to go for help.
October 2006
C-130 or L-100: These Are the Rules
As of May 23, 2006, the treatment of repair and replacement parts for Lockheed’s venerable L-100 changed dramatically. The changes affect all parts exclusive to both the L-100 (there are about 70 still in operation worldwide) as well as the military-use C-130. This essentially “re-created” the L-100 as an International Traffic in Arms Regulations (ITAR) controlled aircraft.
November 2006
Your Export Compliance Year End Review
Review your Export Management System (EMS) at least once per quarter and ask these questions: Am I sure that my Export Compliance Manual accurately reflects changes in export law? Are the personnel and the processes described in the manual current? Have I fully reported on any changes in the way we conduct our overseas business?
December 2006
Urgent Bulleting Regarding Export Compliance
On or about January 31, 2007, the Office of Defense Trade Controls Licensing will no longer accept the DSP “carbon paper” applications or “downloadable” application forms. Submissions NOT affected by this coming change include: DSP-85 (Application/License for Permanent/Temporary Export or Temporary Import of Classified Defense Articles and Classified Technical Data), General Correspondences (GCs), Agreements/Amendments (AGs, TAAs, MAs, DAs), and Brokering Requests (BAs).
2007
January 2007
The Deemed Export Rule
A deemed export, as set forth in section 734.2 (b) of the Export Administration Regulations (EAR), is a “release of technology or software of items subject to the EAR to a foreign national in the United States.” Your company procedures should review who has access to all controlled technology inside and outside the company.
February 2007
Getting Help on Export Compliance—Where? How?
Companies engaged in exporting or importing services and/or products in the aviation industry should closely monitor the Bureau of Industry and Security’s (BIS) website and attend their training seminars. This description of BIS seminars can help you decide which ones to attend.
May 2007
Export Compliance—Who Needs It?
If your business currently exports or is considering exporting, you need to know export laws and regulations. An important part of compliance with export law involves assigning the appropriate Export Control Classification Number (ECCN) to the exported article.
June 2007
Military Parts: ITAR and USML Compliance
The International Traffic in Arms Regulations (ITAR) cover the import and export of defense items as categorized in the United States Munitions List (USML). To comply with ITAR you should register your company with the Directorate of Defense Trade Controls (DDTC), part of Department of State.
July 2007
DTAG Meeting to Discuss Trade Issues
The Defense Trade Advisory Group (DTAG) provides the Bureau of Political-Military Affairs (the Bureau) with a formal channel to consult and coordinate with U.S. private sector on defense trade issues. This group of private sector defense trade specialists provides industry perspective on impediments to legitimate exports.
August 2007
Licensing for Military or Dual Use Exports—Getting Your Ducks In A Row
All manufacturers, exporters, and brokers of defense articles, defense services or related technical data, (as defined on the United States Munitions List (Title 22 CFR part 121 of the International Traffic in Arms Regulation (ITAR)), are required to register with the Directorate of Defense Trade Controls (DDTC). In addition to properly completing registration, one must also apply for an initial license (Application for Permanent/Temporary Export or Temporary Import of Classified Defense Articles and Related Classified Technical Data) using the Defense Trade Electronic Licensing System (D-Trade).
September 2007
Don’t Get Caught Exporting without a License
To help you decide whether or not an export license is required for a certain item, here are the definitions of some common terms. Export Administration Regulation 99, No License Required, and Replacement are import terms to understand when exporting aviation parts.
October 2007
Be Careful! Be VERY Careful!
Whether or not you need an export license depends on the individual transaction, not just the product. Product usage determines if you need a license for a particular transaction.
November 2007
Does this Require a License?
If a part is (or may be) used in a military aircraft, it is a dual-use part for export regulations. Export of these parts requires a license from either the Bureau of Industry and Security (BIS) or the State Department. Using separate cages and well-marked tags will help alleviate any questions of conversion or diversion in the minds of an audit team from the BIS or the DDTC.
