mass export center oct 2011 build your export compliance manual

Click here to load reader

Download Mass Export Center OCT 2011 BUILD YOUR EXPORT COMPLIANCE  MANUAL

Post on 19-Jan-2016

66 views

Category:

Documents

0 download

Embed Size (px)

DESCRIPTION

Mass Export Center OCT 2011 BUILD YOUR EXPORT COMPLIANCE MANUAL. Roles Program elements Audit tips. Natascha Finnerty DL Exports International, Inc. BIS/DDTC RECOMMEND AN ECMP. Published guidelines for establishing export management system Nunn-Wolfowitz report google nunnwolfowitz - PowerPoint PPT Presentation

TRANSCRIPT

  • www.dlexports.com *Mass Export Center OCT 2011

    BUILD YOUR EXPORT COMPLIANCE MANUALRolesProgram elementsAudit tipsNatascha FinnertyDL Exports International, Inc

    www.dlexports.com

  • www.dlexports.com *BIS/DDTC RECOMMEND AN ECMPPublished guidelines for establishing export management systemNunn-Wolfowitz report google nunnwolfowitzBIS/DDTC Compliance guidelines Programs are on their websitesDDTC guidelinesBIS updated their guidelines in 2010 and have 9 elementsIncludes managerial tasksAdministrative requirements

    www.dlexports.com

  • www.dlexports.com *IMPLEMENTING A PROGRAM TAKES ...Management commitment Export PolicyRegulatory understandingResourcesTimeTrainingAB TechEXPORT POLICY

    www.dlexports.com

  • GOOD FOR BUSINESSIn successful companies, compliance is part of the corporate culture

    It can be a competitive asset and should be listed on your website

    Small investment can save big over new penaltieswww.dlexports.com *

    www.dlexports.com

  • www.dlexports.com *WHERE TO START?Establish an Export Steering CommitteeNominate a Focal PointEngage kick off trainingReview business and applicable regulations

    www.dlexports.com

  • www.dlexports.com *Conduct a risk assessment see BIS guidelinesEstablish/revise policies & procedures that address cradle to grave of hardware and technology release life cycle integrate into quality SOPs, other compliance programsTrain personnelImplement & audit

    www.dlexports.com

  • www.dlexports.com *EXPORT COMMITTEESuggested MembersFinanceLegalHRITSecuritySales & MarketingSales Admin.Contracts/AccountingOrder AdminManufacturingTraffic

    www.dlexports.com

  • www.dlexports.com *NEW CONSIDERATIONSEffect of Sarb-OxHigher fines and penaltiesNew mitigating and aggravating factorsExport reform - Mixing of ITAR and EAR rules?Securing of IP from foreign parties or customersAre contractors or outsourced companies screened?Anonymous reporting?

    www.dlexports.com

  • www.dlexports.com *SARB-OXUpper Management needs to be informed and verify compliance as part of corporate governancePenalties could adversely affect financial position of company, whether public or privateCould stop a sale or acquisitionDisclosure requirements

    www.dlexports.com

  • www.dlexports.com *Does SOX apply to your export issues?What percentage of your business is exports? Are you publicly held?What percentage of your suppliers is foreign?Is your company a related company?Do you export to resellers? If yes, whom do they sell to?

    www.dlexports.com

  • www.dlexports.com *COMPLIANCE PROGRAMS

    MUST PREVENT AND DETECT VIOLATIONSDOES YOURS?

    HOW DO YOU USE METRICS TO MEASURE IT?

    www.dlexports.com

  • www.dlexports.com *TEMPLATE FOR PROCESSESAre they written in the active voice?Do they describe the responsible personnel?Do you detail the records that are created by the process?Is there a risk assessment and control process?

    www.dlexports.com

  • www.dlexports.com *REVIEW CURRENT BUSINESS PRACTICES

    www.dlexports.com

  • www.dlexports.com *RISK MITIGATION FOR EXPORT ISSUESLevel of technology, ITAR?Is end-user known?Dealings in countries of concern?

    www.dlexports.com

  • RISK ASSESSMENT contdAny potential misuse of product (EPCI)?Multiple shipping sites?Do you control distribution channels?Do you require licenses and need to adhere to qty, value, provisos?AES compliance?

    www.dlexports.com *

    www.dlexports.com

  • www.dlexports.com *REVIEW APPLICABLE REGULATIONS EAR (& Antiboycott) ITAR OFAC Foreign Trade Regs NISPOMCUSTOMSCONSENT AGREEMENTS

    www.dlexports.com

  • RISK ASSESSMENTDO YOU EXPORT CONTROLLED HARDWARE OR TECHNOLOGY? (ITAR/EAR)Need export license application procedures, processing, license management, closingProduct classificationClassification of new productsPurchased Productswww.dlexports.com *

    www.dlexports.com

  • RISK ASSESSMENTDo you know your customers?Or sell thru distributors?Or you find out about them later sw registrations repairwww.dlexports.com *

    www.dlexports.com

  • www.dlexports.com *PROCEDURESCompliance Policy and Org chart with responsibilitiesTime to get management supportList back-ups to each key positionCentral focal pointProduct matrixOngoing, tie it to new product releaseCountry chartsAutomate, where possibleDenial list screening and managing hits

    www.dlexports.com

  • www.dlexports.com *EXPORT MANAGEMENT SYSTEMDuties are cross functional Employees receive training on export proceduresUse an Action Plan until completed

    www.dlexports.com

  • www.dlexports.com *DOCUMENT THE PROGRAMBorrow from your companys procedures templates and use flow chartsISO, TQM, Industry Quality standards, Sarbanes OxleyUpload an International Compliance websitePolicy, training slides, product matrix, FAQsCoordinate with other compliance efforts: Quarterly reports to management

    www.dlexports.com

  • www.dlexports.com *SampleOrder RecdConductscreeningProduct matrixLic determOrder OK?DPL, Entity, SDN -Country -High RiskProliferationApply for lic.Cancel OrderContact ECMPrepare DocsShipYN

    www.dlexports.com

  • www.dlexports.com *Export Compliance and Management ProgramAdministrative Elements:Management CommitmentResponsible OfficialsRecord KeepingTrainingInternal ReviewsNotifications

    www.dlexports.com

  • www.dlexports.com *Screening Elements

    Denial OrdersECCN Classification/License DeterminationDiversion RiskNuclear End-Users/UsesChemical & Biological End-Users/UsesAntiboycott ComplianceAddl US Govt Agency Requirements

    www.dlexports.com

  • www.dlexports.com *STANDARD SCREENING PROCESSCheck all exports against:Restricted Parties and updatesProduct Matrix/ClassificationLicense requirementsRestricted/Embargoed CountriesAntiboycott

    www.dlexports.com

  • www.dlexports.com *RESPONSIBILITY #1Product MatrixYou need to review all products to determine if an export license may be requiredThis is done export compliance manager with the help of ITControlled items can be hw, sw, technology relating to computers, software with encryption, telecommunications products, lasersIndustrial equipment and chemicals

    www.dlexports.com

  • www.dlexports.com *PRODUCT MATRIXThis process is ongoing, and requires regular updates as new items are developed or upgraded.You need to determine the export commodity classification number (ECCN), countries that may require a license, and customs numbers (Sch B).The Product Matrix list is included in the Export Compliance Program.

    www.dlexports.com

  • www.dlexports.com *RESPONSIBILITY #2Denied PartiesYou need to ensure that you do not sell to prohibited parties identified by the US Government and, potentially, other govts. Most companies need to get Compliance Screening Service for this purpose These lists are updated regularly by the government.We must determine who is the end-user, what is the end-use, who are the parties to the transactionScreening must occur before the items are shipped for exports supporting particular projects

    www.dlexports.com

  • www.dlexports.com *Need to establish a policy for hitsNeed enough information to clear hits what agency, what are the requirementsDetermine if it is a false hitContact government agency or get certification from the personKeep records of hits

    www.dlexports.com

  • www.dlexports.com *RESPONSIBILITY #3High Risk ProfileWe need to ensure that we recognize any unusual circumstances or Red FlagsEach employee is responsible for taking appropriate actions if a transaction seems suspiciousReport any unusual activity throughout sales and to the Export Compliance ManagerWHEN IN DOUBT, CHECK IT OUT!

    www.dlexports.com

  • www.dlexports.com *RESPONSIBILITY #4Country EmbargoesDO NOT SHIP TO THESE COUNTRIES WITHOUT A LICENSE!The following countries are under General Embargo:Cuba Iran North Korea Sudan Syria

    The following countries are highly-controlled:Iraq Libya

    There are many denied parties in these countries: Banks, Entities (Companies) and Individuals

    www.dlexports.com

  • www.dlexports.com OTHER COUNTRIES OF CONCERNCountry Groups DMilitary & TerroristRwanda Angola Libya Countries of ConcernChina Taiwan India Pakistan Middle EastFormer Soviet Bloc

    www.dlexports.com

  • www.dlexports.com *RESPONSIBILITY #5 ANTIBOYCOTT LAWSUS companies and their subsidiaries may not participate in the Boycott of IsraelWatch for any statements that include:- you must comply with Arab League Boycott of Israel, or- request for certification that Goods are not of Israeli OriginMust report all such statements to DOC

    www.dlexports.com

  • www.dlexports.com *RESPONSIBILITY #6 RECORD KEEPING

    We must keep records for 5 yearsTransaction Records include:Purchase OrdersQuotesCommercial InvoicesBills of Lading & Air WaybillsAES recordsBanking documents & letters of creditExport checklistsScreening resultsCorrespondence and contracts

    Comm Invoice

    www.dlexports.com

  • www.dlexports.com *Compliance RecordsAcknowledgment of the Compliance policyNotices in contracts with resellers and websitesTraining recordsAudit RecordsExport licenses and classificationsEncryption reports

    www.dlexports.com

  • www.dlexports.com *OUR INSURANCE POLICYApply Due DiligenceKnow your customerFollow the system for approving exportsContact the Export Compliance Manager with ANY QUESTIONS!

    www.dlexports.com

  • www.dlexports.com DEVELOP COMPLIANCE PROCEDURESThe entire organi

View more