Export Trade Compliance - Exactly what Every Agreement Maker Have to Find out about Export Compliance

Agreement makers (CMs) have actually ended up being the de facto production department for lots of UNITED STATE companies. The reasons for this continued trend include outsourcing non-core competencies (i.e. manufacturing), lowering supply chain expenses, decreasing capital expenditures, and building flexibility into manufacturing operations.

The CM's customer who exports is required to follow the UNITED STATE Department of Commerce Export Administration Laws (EAR) and the U.S. Department of State International Traffic in Arms Regulations (ITAR). The EAR has territory over "dual use" products, that is, those items with both industrial and military applications, while ITAR has jurisdiction over defense posts. Exactly what about the CM's export compliance requirements? Our info is gathered from international business exchange.



CMs should initially develop whether or not the products or assemblies they produce are under the territory of ITAR or EAR. Are the items used in telecommunications or commercial applications? CMs will likely currently understand the responses to these concerns, which will assist to figure out the commodity territory.

Products under ITAR jurisdiction are specified on the U.S. Munitions List (USML), which can be found in CFR 22, Part 121. In addition to ammo, missiles and explosives, this list consists of military vessels, vehicles, plane, training equipment, protective workers equipment, military electronic devices, optical and guidance control devices.

It is imperative that the CM knows that the USML consists of elements, parts, devices, attachments, and associated equipment specifically designed or customized for use with the devices in each of the USML classifications. The subassemblies that a CM produces are regulated on the USML.

Products under EAR jurisdiction can be found on the Commerce Control List (CCL) in CFR 15, Part 774. The CCL includes items (products, software, and technology) subject to the authority of the U.S. Division of Commerce, Bureau of Industry and Security (BIS) and include "dual use" products in addition to purely commercial products. The CCL does not consist of those items specifically controlled for export by another division or company of the U.S. Government. In circumstances where other companies administer controls over associated products, entries in the CCL will contain a reference to these controls.

If you are not sure of the export territory of a product or service, you must request a product territory (CJ) determination from the U.S. Division of State, Directorate of Defense Trade Controls (DDTC).

SO, WHAT DOES A CM SHOULD LEARN ABOUT EXPORT COMPLIANCE?

Under ITAR Jurisdiction

-Registration with the Department of State (DDTC). If the CM does not export the regulated items, this is required even -Notification of the DDTC of violations of criminal statutes, changes in senior management, modifications in foreign ownership, and mergers and acquisitions -Maintenance of records concerning the manufacture, acquisition and personality of defense articles and technical information -Application for licenses (or use of appropriate exemption) for exports of products on the USML -Application for licenses (or use of proper exemption) for technology transfers of products on the USML to foreign individuals or entities

Under EAR Territory

-Application for licenses (or use of suitable exception) for exports of products on the CCL and Commerce Country Plan as needed -Application for licenses (or use of proper exception) for technology transfers to foreign individuals or entities of products on the CCL and Commerce Country Plan as needed -Checking on end-user versus government lists of forbidden parties/entities -Making sure that products are not intended for restricted end-uses (i.e. WMD).

Failure to abide by these federal regulations can lead to substantial criminal charges (possible jail sentences and fines) and civil action (e.g., fines and denial of export privileges).

Compliance Assurance LLC offers detailed import and export compliance trade, evaluation, and training management systems. Solutions are readily available for U.S. business and their foreign subsidiaries as well as non-U.S. companies expecteded by UNITED STATE export laws.

The CM's client who exports is needed to comply with the U.S. Department of Commerce Export Administration Laws (EAR) and the UNITED STATE Department of State International Traffic in Arms Regulations (ITAR). The EAR has jurisdiction over "dual use" products, that is, those items with both military and commercial applications, while ITAR has jurisdiction over defense articles. Exactly what about the CM's export compliance requirements?

The CCL includes products (products, software, and technology) target to the authority of the UNITED STATE Division of Commerce, Bureau of Industry and Security (BIS) and consist of "dual use" items as well as purely industrial products. The CCL does not include those items exclusively regulated for export by an additional division or agency of the U.S. Government. To learn more info check out trade barter.