Export Management Compliance Program
Every individual who either imports, exports, or operates an import export business knows that government compliance is no joke. Fines can be huge (thousands to millions of dollars), delayed shipments, being banned from exporting for long periods of time, or worse yet – jail time, can all cause a business to crumble. Exporters need to have internal compliance programs and evidence that these policies are being adhered to.
We often get asked by import export brokers or import export traders if they are required to have compliance programs in place. Although it is the ultimate responsibility of the exporter of record (meaning the seller), the import export agent needs to assist his or her client in this area and also needs to ensure that the seller they have located is a party that he/she can legally sell to and in a country that U.S. products can legally be sold to.
Having an import export business typically has little regulations to adhere to, that doesn’t mean you have NONE. Always represent your clients in the best manner possible and be aware of the regulations that surround importing and exporting.
Here is a list of elements that should be included in an export management compliance program. Visit the website for Bureau of Industry and Security (www.bis.doc.gov) to learn more.
- Management Commitment: Senior management must establish written export compliance standards for the organization, commit sufficient resources for the export compliance program, and ensure appropriate senior organizational official(s) are designated with the overall responsibility for the export compliance program to ensure adherence to export control laws and regulations.
- Continuous Risk Assessment of the Export Program
- Formal Written Export Management and Compliance Program: Effective implementation and adherence to written policies and operational procedures.
- Ongoing Compliance Training and Awareness
- Pre/Post Export Compliance Security and Screening: Screening of employees, contractors, customers, products, and transactions and implementation of compliance safeguards throughout the export life cycle including product development, jurisdiction, classification, sales, license decisions, supply chain, servicing channels, and post-shipment activity.
- Adherence to Recordkeeping Regulatory Requirements
- Internal and External Compliance Monitoring and Periodic Audits
- Maintaining a Program for Handling Compliance Problems, including Reporting Export Violations
- Completing Appropriate Corrective Actions in Response to Export Violations
At the Import Export Institute, we do provide compliance information as part of our import export training and international trade education programs. Contact us so that you can be safe and secure in your import export business deals.
We encourage you to contact us. Please call our training office directly at 352-364-4644. Our office hours are Monday – Friday, 8:30 a.m.. – 5:00 p.m.. EST. Weekends and evenings by appointment.