export compliance global california 2009 april 3, 2009 santa clara, ca

Export ComplianceGlobal California 2009

April 3, 2009

Santa Clara, CA

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EXPORT CONTROL BASICS

Export Controls are based on item, destination, end-user and end-use.

Export controls are designed to protect the national security, foreign policy and economic interests of the United States.

Source ; Bureau of Industry and Security Office of Export Enforcement

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Criminal: 20 years imprisonment $250,000 fine ($1,000,000

corporation)

Civil: $250,000 max per violation or 2 x value of export and

potential Denial of export privileges


PENALTIES

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PENALTIES

Avoid becoming an Enforcement Statistic. Make export compliance a priority!

Requires top-down commitment from the CEO to the warehouse. Look for Changes to the BIS Regulations Example – September 22, 2008, 115 new entries to the BIS Entities List

creating a license requirement for the export of all items subject to the EAR.


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BASIC COMPLIANCE TOOLS

Have an Export Management and Compliance Plan. Write clear operating guidelines, distribute to all personnel and

provide training. Identify and publish all export control functions, responsible

personnel, and their contact information.


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Compliance program design – there is no “one size fits all”– Use Export Management System Guidelines

Cited in 15 CFR sec 766 sup. 1 Described in detail on the BIS Web Site

– Use Internal Compliance Plan Guidelines 15 CFR sec 752.11

– Industry Best Practices


HOW TO DESIGN A COMPLIANCE PROGRAM

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1. Whether the company has performed a meaningful risk analysis.

2. Existence of a formal written compliance program.

3. Appropriate senior officials responsible for compliance program.

4. Adequate training provided to employees.

5. Company effectively screens customers and transactions.

6. Company meets recordkeeping requirements.

7. Existence of internal system for reporting export violations.

8. Conducts and maintains results of export compliance audits.

9. Appropriate remedial activity taken in response to violations.


PRINCIPLES OF AN EFFECTIVE COMPLAINCE PROGRAM

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Documentation

– Training records– Disciplinary records for violations of company policy– Due diligence/screening checklist– Evidence of record retention– Provide results of compliance audits– Clearly written designation of responsible personnel


EVIDENCE OF EFFECTIVE COMPLIANCE

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Correct product classification: This is the exporter’s responsibility – classify, verify, and document!

Identify all parties to a transaction; verify legitimate intermediaries and name ultimate consignee on export records.


WHAT THE EXPORTER MUST KNOW

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Be Aware of Diversion Risks!

Lists you must check prior to export:– Denied Parties– Embargoed countries– BIS Listed Entities– BIS General Orders

Exercise due diligence where Red Flags are present; refrain from/report questionable transactions.


“KNOW YOUR CUSTOMER” GUIDANCE

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Research customers – internet is a great place to start. Whenever practical talk to new customers about their markets and

product applications. Learn to identify and recognize “Red Flags”. If there are “Red Flags” inquire.


“KNOW YOUR CUSTOMER” GUIDANCE

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NUCLEAR WEAPONSCentrifuge High Speed Thermal CamerasMass SpectrometerVacuum Pumps

BIOLOGICAL WEAPONSBacterial StrainsCoated Valves and PumpsFermentersPresses


CHEMICAL WEAPONSPrecursor chemicalsCoolers/Heat ExchangersMixing Vessels

MISSILESCompositesMachine ToolsFilament Winding EquipAccelerometersVibration Test Equipment

EXAMPLES OF DUAL USE ITEMS

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Overwhelmed by end of quarter orders and processing. New personnel using outdated go-by documentation. Export manager on vacation (cross train back up personnel). Lack of communication with sales staff and foreign distributors.


HOW VIOLATIONS HAPPEN IN GOOD COMPANIES

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Incorrect ECCN

Improper use of NLR (No license required)

Incorrect Ultimate Consignee

If your forwarder completes your AES filing, ensure shipping instructions are clear and defined


INCOMPLETE/INCORRECT EEI INFORMATION

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Identify all license conditions and identify any conflict with the sales transaction.

Resolve any conflicts before proceeding with transaction. Even if this means amending the license!

Notify intermediate and ultimate consignees of all BIS license conditions.

Submit all reporting as required by BIS license.


FAILURE TO INFORM ON LICENSE CONDITIONS

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Summary

If you identify a violation, immediately assess and contain problem, work with your management to evaluate the benefits of voluntary disclosure to BIS/OEE.

Disclosures related to failure to obtain one-time review for use of the ENC exemption receive favorable treatment and are encouraged.


FedEx® Global Trade ManagerYour free, online shipping assistant

18September 2008FedEx Global Trade Manager

Common Challenges International Shippers Encounter:

Missing, incorrect or improperly completed documents Complying with regulations and laws


FedEx Global Trade Manager Solutions

With FedEx Global Trade Manager, you can:– Find the proper documents required for international shipping– Prepare, store and reuse customs documents online– View advisories concerning your shipment– Research country profiles– Search an up-to-date international denied-party-screening database– Use product profiles to manage your commodity information


Find International Documents

This tool helps you determine and print the documents needed to accompany your international shipments, both express and ground, thereby helping to ensure a smooth customs clearance



Enter your origin and destination countries Select whether you’d like FedEx® Global Trade Manager to help you

find the particular documents you need for this shipment or to show you all the available documents pertinent to the import and export countries and shipment type you specified



Enter the product information, including:– The name of the product– The Harmonized System Code (you can search for this right on

FedEx® Global Trade Manager)– The customs value– The country of manufacture

You have the option to save the product information in a product profile for fast and easy access at a later time



View the list of recommended documents for your shipment, or a document list based on the import and export countries

Some of the most frequently used documents are available for online completion, including the Commercial Invoice, the Pro Forma Invoice, the NAFTA Certificate of Origin, the Certificate of Origin and the packing list


Document Preparation Center

Prepare, store and manage customs documents online. Save time avoiding duplicate entry of information when you save document profiles and reuse documents for future shipments.



To begin, select one or more documents from to complete them online, and either print or click Ship to prepare your shipment.

Save document profiles for international shipments to edit and reuse a set of documents when you repeat similar shipments. Also initiate a similar shipment with your document profiles.

Each document profile relates to an international shipment you have already prepared. You can easily search and sort to access your profiles efficiently. You can also customize your view.

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Prepared customs documents are stored in the Document Archive for complete visibility.

View and modify each document or create a document profile to reuse the document for future shipments.

Upload your company lettered to be used with your Commercial invoice and also upload a signature image for customized and professional documents.

September 2008FedEx Global Trade Manager


Save partially completed documents to come back and finish at a more convenient time.

Select a pending document profile to resume preparation and complete or to delete as needed.



All prepared customs documents are stored in the Document Archive for complete visibility.

View and modify each document or create a document profile to reuse the document for future shipments.

Upload your company lettered to be used with your Commercial invoices and also upload a signature image for customized and professional documents.


Advisories

This feature gives you important regulatory information for the import and export side of your transaction, as well as for the commodity you are shipping


Advisories

Enter your origin and destination countries, transaction currency, and shipping and insurance charges

Enter the product information, including:– The name of the product– The Harmonized System Code (you can search for this right on

FedEx® Global Trade Manager)– The customs value– The country of manufacture

You have the option to save the product information in a product profile for fast and easy access at a later time

FedEx Global Trade Manager prepares a report containing the applicable shipping advisories that you need to know about


Country Profiles

Provides an overview of essential, country-specific shipping information and regulatory requirements, including demographics, business information and statistics

This resource enables you to research a country upfront for sourcing decisions before you ship


Denied Party Screening

Identifies individuals, companies and other parties that have been denied the privilege of engaging in international business transactions


International Resource Center

Here you’ll find several useful tools and resources designed to make international shipping accessible and straightforward, including: – International shipping checklist– International shipping reference guide– Global trade links– FedEx international

shipping resources


FedEx Global Trade Manager

FedEx Global Trade Manager is just one more way FedEx can help simplify your shipping, saving you time and money and boosting your productivity

Log in today at https://gtm.fedex.com/GTM to see how easy it is!

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