An Export Compliance Management Program (ECMP) is a comprehensive written system to assist exporters in complying with either the Export Administration Regulations (EAR) or the International Traffic in Arms Regulations (ITAR). An ECMP should provide an organized, integrated operating system that: (1) ensures compliance with U.S. export control laws and regulations; (2) manages export-related questions, decisions and transactions; (3) provides a streamlined management structure for processing export transactions in a transparent and accountable manner; and (4) protects the company from penalties.

The establishment of an ECMP can greatly reduce the risk of involuntarily exporting to an unauthorized party or for an unauthorized end-use. However, an ECMP, by itself, will not relieve an exporter of criminal and administrative liability under the law if a violation occurs.

Global Trade Expertise can assist in the development and implementation of an ECMP to allow clients to engage in the transfer of goods and information across borders confident that they are in compliance with the laws with regard to exports, re-exports, and deemed exports.

United States export controls laws are designed to control sensitive goods and technologies, to protect and promote national security, foreign policy and economic interests. Compliance with all relevant export laws is extremely important: a company will be considered strictly liable for the violations of these laws and, as a consequence, it may incur considerable penalties, civil and criminal prosecution, fines, and loss of export privileges. Therefore, each company should regularly review its export control manuals to determine compliance with the applicable regulations, such as the Export Administration Regulations (EAR) or the International Traffic in Arms Regulations (ITAR).

Global Trade Expertise has extensive experience conducting export compliance assessments. We will conduct a thorough review of your current procedures and will advise you on the remedial measures relative to your current compliance status. Our assessment will also include the extraterritorial impact of the U.S. export laws on your foreign subsidiaries. As a result of our assessment, we will identify compliance issues found, best practices (including informal benchmarking against similarly situated exporters), and recommendations.

A small number of products and technology require a license from either the Department of Commerce or Department of State before they can be exported from the United States. To determine if a license is needed to export the product or technology, exporters must first determine which government agency has jurisdiction over the commodity. Once jurisdiction is determined, the commodity must be found on the the Commerce Control List (CCL) or the U.S. Munitions List (USML).

If an article, service, or data is found on the USML, an export license from the Department of State is required. If the article/technology is not on the USML, it must be classified with an Export Control Classification Number (ECCN). Once an ECCN has been identified, an exporter must determine the reason for control, and consult the Department of Commerce Country Chart to determine if an export license is required.

Global Trade Expertise can help exporters determine the jurisdiction of a commodity, classify the commodity, and determine if an export license is required or if a license exception or exemption is available. We have successfully obtained numerous commodity jurisdiction rulings and obtained commodity classification determinations on behalf of our clients.

An export license grants permission to conduct a certain type of export transaction. It is issued by the appropriate government agency (either the U.S. Department of State's Directorate of Defense Trade Controls (DDTC) or the U.S. Department of Commerce's Bureau of Industry and Security (BIS)) after review of the facts surrounding the proposed export transaction.

Only a small number of exports require an export license from the U.S. government. Licensing determinations are made based on the individual transaction, but the characteristics of the product or technology will determine if a license is needed. If the product or technology is a defense article or service and found on the U.S. Munitions List (USML), an export license from the U.S. Department of State is required.

If the product or technology is not on the USML, the commodity must be classified and an Export Classification Control Number (ECCN) determined. Whether the commodity needs an export license will be determined based on the reason for control and the country of destination or end use.

Global Trade Expertise can assist exporters with determining whether their commodities require an export license prior to export from the United States. We can also assist exporters in applying for export licenses from the appropriate government agency.

The balance between trade and homeland security has never been more difficult.  As American businesses or universities continue to rely on the expertise of highly-skilled foreign nationals, they have to face additional regulatory difficulties. Sharing technology subject to export controls with foreign nationals (employees, customers, consultants, student interns or members of research teams) may be deemed an export.

A “deemed export” is a “release of technology or software of items subject to the EAR to a foreign national in the United States.” To avoid committing deemed export violations, companies should have compliance procedures that encompass HR, IT security, facilities, and trade compliance functions. Prior to granting access to controlled technology or software to a foreign national in the U.S., a deemed export license from the U.S. government may be required.

Global Trade Expertise can assist clients with identifying potential deemed export compliance issues and can advise clients on how to develop compliance processes and procedures to deal specifically with deemed exports.

During the 1970s, the U.S. adopted two sets of rules to prevent U.S. persons from complying with certain boycotts that conflict with U.S. foreign policy. The Department of Commerce's Office of Antiboycott Compliance (OAC) enforces the "Anti-Boycott Regulations," located at 15 C.F.R. Part 760.

Similarly, the Department of Treasury and the Internal Revenue Service (IRS) administer the "Anti-Boycott Guidelines" under section 999 of the Internal Revenue Code of 1986.

While the principal focus of the original anti-boycott laws apply to all boycotts imposed by foreign countries that are not sanctioned by the United Sates and to prevent discrimination against U.S. persons.

The antiboycott laws require that any U.S. person report quarterly any requests they have received to take any action to comply with, further, or support an unsanctioned foreign boycott.

Global Trade Expertise can assist clients with identifying potential antiboycott violations and developing compliance processes and procedures to avoid committing such violations.

U.S. embargoes and economic/trade sanctions are administered by the U.S. Department of Treasury's Office of Foreign Assets Control (OFAC), and are aimed at prohibiting almost any form of business transactions with the governments, companies, and persons that are citizens of embargoed countries or countries subject to U.S. trade sanctions, as well as prohibited entities.

Comprehensive controls apply to countries subject to general embargoes (currently, Cuba and Iran). Accordingly, nearly all items require an OFAC license to be shipped to Cuba or Iran and are subject to a general policy of denial. Also, the transfer of items of value to embargoed nations are prohibited.

OFAC administers a number of U.S. economic sanctions that target geographic regions and governments and programs related to foreign narcotics traffickers, foreign terrorists, WMD proliferators, etc. Moreover, OFAC publishes a list of individuals and companies owned or controlled by, or acting on behalf of, targeted countries. OFAC also lists individuals, groups, and entities under programs that are not country-specific. Collectively, such individuals and companies are called, "Specially Designated Nationals" (SDNs). Their assets are blocked and U.S. persons are generally prohibited from dealing with them.

Global Trade Expertise can assist clients with determining whether OFAC sanctions apply to specific transactions and can develop compliance processes and procedures to avoid OFAC violations.

It is a violation of U.S. export control rules to engage in activities that violate the terms and conditions of a denial order. Furthermore, it is a violation of the export control rules to export to prohibited end-users or end-uses without U.S. Government authorization. The U.S. government recommends screening of all parties to an export transaction against all of the U.S. prohibited lists.

“Prohibited” parties identified by the U.S. Government have included the parties to an agreement, 3rd parties and other incidental beneficiaries to an export transaction. Screening all parties to an export transaction will help reduce the risk of exporting to a prohibited party. The government also recommends that company employees be aware of certain situations (“red flags”) that may suggest actual or potential violations of the export control rules. The government developed these “red flags” specifically to assist companies in determining potential diversion risks.

Global Trade Expertise can assist clients in determining whether they adequately screen export transactions to comply with export control laws and regulations. We can also assist clients with evaluating automated screening solutions and developing compliance processes and procedures to deal specifically with export screening.