A guide to understanding export control guidelines
Understanding export control
Before we delve into the importance and contents of export guidelines, it is crucial to understand what export control is. While export is defined as the act of simply ‘sending (goods or services) to another country for sale’, export control is more complicated. It refers to regulations imposed by governments, intended to monitor the export of sensitive and risky goods, technologies and information from one country to another. These usually include mostly military equipment, dual-use technologies (items that could have both military and civilian purposes) and sensitive software.
The importance of export compliance for global trade
While globalization is an amazing development for global trade, there are also risks associated with export around the world. This is exactly what governments around the world are trying to avoid and why they implement export control legislation. It is extremely important to adhere to these rules and regulations, because:
- Legal obligations: On top of everything, export control regulations are legal obligations every organization has to adhere to. If you do not comply with these laws, you get penalized.
- National security: Obviously, you do not want your products to fall in the wrong hands and be used to violate human rights or end up in terrorist equipment. You have a responsibility to make sure you are aware of all export control risks.
- Avoiding penalties: If you do not comply with export control rules, you risk penalties imposed by your government. Violating this legislation could result in high fines, a suspension of your export license or even criminal prosecution. Even if the violations were made while being unaware of the current rules and regulations.
- Maintaining your reputation: your partners want to make sure that they are cooperating with a company that is not breaking any rules or contributing to national security risks. By prioritizing export compliance guidelines, your partners and clients know that they are doing business with the right company. This is good for your brand image.
Our solution pillars
Aware
Assess
Adapt
Assist
Outside assistance and coaching will keep you sharp. Because you can’t know everything in the volatile domains of sanctions & export controls.
Introduction to export control guidelines
Now that you are familiar with export control and the importance of export control regulations, let’s delve into some guidelines that your organization might need to follow.
Export control guidelines in the European Union
Within the European Union (EU), there are different regulations for the different types of goods, technologies or information you can export:
- Dual-use items: dual-use items refer to items that can have both military and civilian purposes, depending on the usage. Within the EU, the European Dual-Use Regulation establishes a list of controlled items. In other words: the items that are classified as dual-use items. Businesses that want to export these goods outside of the EU have to apply for an export license. The European Dual-Use Regulation therefore also creates the criteria to grant these licenses, including general export authorization for certain goods to specific destinations.
- Military items: items that have a distinct military purpose are under the supervision through the Common Position on Arms Export. This organization guides EU member states on policies for arms transfers.
Export control guidelines in the United States
Just like within the EU, the United States (US) makes sure that export control regulations are followed by businesses operating within the country. This makes sure that national security is safeguarded and that foreign policy objectives are met. The most important systems that regulate export control rules include:
- International Traffic in Arms Regulations (ITAR): this framework is a part of the Department of State, and controls defense articles and services.
- The Export Administration Regulations (EAR) regulate the export, reexport and transfer (in-country) of some less sensitive military items and dual-use items. The EAR is administered by the Bureau of Industry and Security (BIS)
Work together with Export Control Group
As you can tell, the world of export control is extensive and complicated. The risk of rule violations is always present, with huge consequences as a result. Export Control Group can help you. We offer a unique compliance programme to implement export control regulations. This is called the A4 approach: Aware, Assess, Adapt, and Assist. We do not only provide you with the right guidelines, we make them work. For example, with our unique Export Control Officer as a Service™. Stop worrying about export control and let us help you!
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