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Export Control Laws in Logistics: Keeping the Recipe for the Secret Sauce for Export, Re-Export and Deemed Export Controls

export control laws

Why Do We Have Export Control Laws & Regulations?

In a perfect world, export control laws wouldn’t be necessary because there would be no bad guys. Unfortunately, such is not the case. We live in a world where we and others around the globe enjoy our personal freedoms, our rule of law, and other live-and-let-live social structures that are not embraced by some folks. Some folks, unfortunately, live under a my-way-or-the-highway mind set, and feel justified or compelled to try to impose their will on others. Recently, for example, we witnessed beheadings of two Americans by certain extremists. There are countless examples, and, make no mistake, freedom isn’t free.

To help promote and support a technological and military advantage by those we call our allies around the world, export control laws and regulations have been devised to eliminate or at least minimize the risks to our country and our allies by identifying certain products, software and technologies that could be used to do us harm. At the same time, these regulations create safe ways to limit the spread of these advanced goods, so they don’t fall into enemy hands. The U.S., Canada, NATO countries, Australia, and other counties under the umbrella of agreement such as the Wassenaar Arrangement, have all joined together to support these initiatives.

It may all sound very cloak and dagger, but in reality, these are core principals of national security and foreign policy and help keep us all safe in a complicated world. I’m grateful for these policy objectives and the countless men and women who help keep us all safe in so many ways.

How are the Rules & Export Control Laws codified?

Under various national, regional and international Acts, Codes, Regulations, Agreements and Arrangements, the myriad of policy objectives are organized and promulgated. In the U.S., the primary laws and regulations are as follows:

  • S. Code Title 22, the US Arms Export Control Act (AECA) and its implementing regulations, the International Trade in Arms Regulations (ITAR) at U.S. Code of Federal Regulations Title 22
  • The Export Administration Act (EAA)
  • The Export Administration Regulations (EAR) at U.S. Code of Federal Regulations Title15

For an in-depth discussion of the legal authorities empowering U.S. export controls, see also:

https://www.bis.doc.gov/index.php/forms-documents/doc_view/16-legal-authority

Why should you comply to Export Control Laws?

There are the usual penalty provisions, so in the “don’t let this be you” category, you may wish to be sure that you and your company don’t violate export control laws. The penalties are significant.

export control laws violations

Export Control Laws Violations

Moreover, it’s simply to do the right thing, and to be a good corporate citizen should be enough, eh?

What should you do to make sure you’re making it happen to stay Compliant to Export Control Laws?

If you are entrusted with creating and implementing an Export Control Compliance Program in your company, know that you are doing good work that helps to keep us all safe. Be sure to have robust Policies and Procedures, and, as we’ll see next month, get support and engagement from Upper Management, who sets the tone at the top.

Here’s an example of a robust Export Control Manual that identifies the moving parts of a solid export control program:

export control laws manual

Include a Training Program that reaches all levels of your organization so all parties can be your eyes and ears and prevent unauthorized exports. And implement a robust Export Control Audit Program so that you can test all your policies and procedures and make sure they are working the way that they should to keep us all safe.

Enjoy your Thanksgiving with all your treasured family secret recipes, and…

Let Livingston Global Trade Management help you today!

© Randi S. Waltuck, 2014 All Rights Reserved.  RWaltuck@LivingstonIntl.com

http://www.livingstonintl.com/services/global-trade-management/

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Randi Waltuck
Ms. Waltuck Barnett is a highly regarded global trade professional, having created and implemented global and domestic trade compliance programs across many industries for companies large and small. Her experience includes oversight of a $5B, 65-location division of Honeywell, a $3B, 17-location division of Motorola, Global Trade Optimization for Dell, Inc., among others. Ms. Waltuck has worked in the international trade arena in various industries for nearly 20 years. Her professional accomplishments include multi-million dollar global supply chain savings under various legal theories, as well as end-to-end global trade mitigation processes and procedures, identifying “right sized” technology tools, including “compliance on a shoestring” practices. She has served on councils and boards for various organizations, including the American Association of Exporters and Importers (AAEI), the Organization of Women in International Trade (OWIT), is a charter-member of the International Compliance Professionals Association (ICPA) and a frequently sought-after trade and supply chain conference speaker for various well-known conference organizers, including the American Conference Institute (ACI), Marcus-Evans, and Richardson Conference Events. A licensed customs broker, Randi holds degrees in International Business, an MBA in Finance, began her pursuit of a J.D. in International Trade Law and is available to solve your global trade needs, now!
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