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MA. EXPORT CENTER
COMPLIANCE EXPORT EXPO
Presented by : Paul Divecchio –DiVecchio & Associates Phone: (617) 513-3230, Fax: (508) 393-3645 Email: [email protected]
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WHATZ HAPPENEN
• Criminalization of corporate wrongdoing• Dramatically increased Penalties $$$$$$$• Higher scrutiny on corporate ethics
“Corporate Governance” • Accountability for Executives (Decision Makers)• Evolving enforcement initiatives & tools• Global Compliance a MUST• REFORM????????
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CURRENT CLIMATE - REFORM
• MANY REGULATORY CHANGES(You have to Keep Up With Them)
“EXPORT CONTROL REFORM” * Singular licensing Agency * Singular Control List * Singular Enforcement Agency * Singular IT Data Base
• Targeted Enforcement (Collaborative Effort) – “Fusion Center”
• Ambiguous Regulations/Convoluted
• Status – The “beast” publish 1st qtr 2013 (includes definition “specially designed”) - Classification/licensing – “problematic” - Census – Changes to REGS “still coming”??????
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CHANGING ENVIRONMENT
• Laws & Regulations constantly shifting - Foreign policy (“as the world turns”)• Global Trends - Nonproliferation (“the know standard”) – U.S. “EPCI” – Regime “catch all” - Anticorruption Laws (FCPA) - Greater Regime participation – Mexico/Singapore/Malaysia/Taiwan - Transhipment “Best Practices” - Compliance and Enforcement issues of U.S. Corp’s foreign affiliates • Enforcement Initiatives - Spot audits –AES data/license data/PLC & PSV/safeguard trips/web • New Investigatory Tools - Global harmonization of resources - Intelligence sharing - Automation of export reporting (enforcement targeting) - Tenfold increase in Penalties
HIGHER SCRUTINY = NEW COMPLIANCE CULTURE
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International Trade Compliance Is:
A Company Insurance Policy to Minimize Risk Exposure.
2
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ACCOUNTABILITY
Knowledge includes not only actual knowledge of an event, but also an awareness of “high probability”* of its occurrence.
Not this!
So … use all available information.Seek more information if you have suspicions.
*The US government would like to revise its regulations to say that you have “knowledge” of an event if a reasonable exporter would consider the event “more likely than not”.
THIS WAS WITHDRAWN BY BIS
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COMPLIANCE POSITION Right Person – Right Place
SKILL SETS ARE CRITICAL
PERSONALITY-INITIATIVE-LOGIC-COMMUNICATION-CAN HANDLE STRESS
SUPPORTIVE ORGANIZATION INHERANT AUTHORITY-OBJECTIVITY-VISIBILITY
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Compliance Objectives
• Increase Export Compliance Awareness
• Enhance Levels of Knowledge
• Promote Coordination/Cooperation
• Review Procedures
• Identify Needs and Resources
• Establish Company-wide Compliance
Stimulate and help:
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Trade Compliance Program
• Connecting People and Processes Globally
• Automation – Trade Tools
• Maintaining a Robust Compliance Program is Critical!
Compliance is a
Living ProcessNOT a Project
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2. Compliance Planning
4. Measurement, Evaluation & Corrective Action
3. Implementatio
n& Operation
5. Management
Review & Certification
1. Compliance risk assessment & prioritisation
5-Step Implementation Process*
*Integrated into existing risk management processes
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PROCESS ASSESSMENT• Learn how the business actually runs: gather
information from every part of the business that presents a compliance risks– Learn the trade lanes– Learn the information lanes– Find where the business will be in five years
• Assess the information• Evaluate your processes and procedures and write a
report describing the gaps• Practice Note: One size does not fit all. You cannot
write clear, practical steps for each business operation until you know, what they do, and how they do it
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Export Compliance DecisionsExport Compliance Decisions
Everybody Has it??
WHEN IN IT OUT, NOT:
IT OUTWHEN IN
3. Abide by the Exporters Cardinal Rule
2. Document Decisions
1. USE COMMON SENSE!!
Demonstrate your D2
“Due Diligence”
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