{"id":4311,"date":"2020-11-20T16:02:54","date_gmt":"2020-11-20T16:02:54","guid":{"rendered":"https:\/\/diaztradelaw.com\/?p=4311"},"modified":"2021-11-04T15:29:30","modified_gmt":"2021-11-04T19:29:30","slug":"the-importance-of-regular-export-compliance-training-for-your-business","status":"publish","type":"post","link":"https:\/\/diaztradelaw.com\/the-importance-of-regular-export-compliance-training-for-your-business\/","title":{"rendered":"The Importance of Regular Export Compliance Training for your Business"},"content":{"rendered":"

What\u2019s Export Compliance?<\/em><\/strong><\/p>\n

Boundless opportunities exist for U.S. businesses when they export their products and services to foreign markets. In fact, over 95% of the world\u2019s consumers are located outside of the United States<\/a>. However, the vast export opportunities must be tempered by your duty to diligently and effectively comply with U.S. export control laws under the U.S. Department of Commerce\u2019s Export Administration Regulations (\u201cEAR\u201d)<\/a> and the U.S. State Department\u2019s International Traffic in Arms Regulations (\u201cITAR\u201d)<\/a>.<\/p>\n

<\/p>\n

The EAR <\/a>is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. The ITAR<\/a>, on the other hand, is a set of regulations which governs whether defense or military-related technologies may be exported or transferred to non-U.S. citizens. The purpose of both the EAR and the ITAR is to safeguard U.S. national security interests by ensuring that critical technology does not fall into the wrong hands. The EAR is administered by the Commerce Department\u2019s Bureau of Industry & Security<\/a> (\u201cBIS\u201d) while the ITAR is administered by the State Department\u2019s Directorate of Defense Trade Controls<\/a> (\u201cDDTC\u201d).<\/p>\n

The U.S. Treasury Department’s Office of Foreign Assets Control<\/a> (“OFAC”) administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United\u200b States. U.S. persons are generally prohibited<\/a> from engaging in transactions, directly or indirectly, with individuals or entities (\u201cpersons\u201d) on OFAC\u2019s\u00a0Specially Designated Nationals and Blocked Persons List<\/a>, other blocked persons, and those covered by comprehensive country or region\u00a0embargoes<\/a>\u00a0(e.g., Cuba, the Crimea region of Ukraine, Iran, North Korea, and Syria).<\/p>\n

The Foreign Corrupt Practices Act<\/a> (“FCPA”) was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.\u00a0 The anti-bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. The anti-bribery provisions of the FCPA also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment<\/a> to take place within the territory of the United States.<\/p>\n

U.S. exporters should work hard to establish and maintain an effective export compliance program. According to BIS<\/a>, developing an effective export compliance program is \u201can invaluable way a company can contribute to U.S. national security and nonproliferation priorities while protecting vital company interests.\u201d While having an export compliance program is not a guarantee that an export violation will not occur, a coherent export compliance program can minimize the risk of non-compliance.<\/p>\n

Why is Export Compliance Training Important?<\/em><\/strong><\/p>\n

A foundation of a strong export compliance program is export compliance training. Training is important because it:<\/p>\n