The new set of best practices encourages exporters to maintain strong internal compliance strategies, conduct focused outreach, and continuously raise awareness of export control regulations and obligations.

The following is a summary of the best practices published by BIS:

• Companies should pay attention to the Red Flag Indicators on the BIS website.
• Companies should seek to utilize Trade Facilitators that administer sound export management and compliance practices.
• Companies should “know” their foreign customers – by obtaining detailed information to measure the risk of diversion.
• Companies should avoid routed transactions when exporting and facilitating the movement of dual-use items.
• When the Destination Control Statement (DCS) is required, companies should provide the appropriate Export Control Classification Number (ECCN) and the final destination where the item(s) are intended to be used.
• Companies should provide the ECCN or the EAR99 classification to freight forwards, and should report this information in AES.
• Companies should use information technology to the maximum extent feasible to augment “know your customer” and other due-diligence measures.

For more detailed information, please read the full article.

If you’re interested in attending, RSVP via our event page on LinkedIn, or send an email to emilythornton (at) managementdynamics (dot) com -  We hope to see you there!

Read the 145-page PDF here: COMPLIANCE GUIDELINES: HOW TO DEVELOP AN EFFECTIVE EXPORT MANAGEMENT AND COMPLIANCE PROGRAM AND MANUAL

I do not have time to read through the manual in detail at the moment, but from a brief lookover it appears to have some great tips for getting management onboard during a compliance project, how to contact BIS if you have export questions, key points for export compliance training, and information on recordkeeping.

It’s a very valuable document for trade compliance professionals – probably useful to save to your desktop for quick reference!

If you are more of a auditory learner, check out the below webinar for more tips on establishing (or enhancing) your export compliance program.

Webinar: Key Strategies for Establishing an Export Management System:

Small to medium-sized companies represent 97% of all US exporters, but don’t always have the resources to keep up with the constantly changing landscape of export regulations and cannot afford the business risks of non-compliance.

This webinar, hosted by World Trade Magazine, addresses key findings from an industry survey on how companies manage export compliance and highlights a number of best practices for your company to consider when implementing an export management system.

From BIS:

Registration is now open and the agenda has been posted for the Export Control Forum, to be held on February 22-23, 2010 in Irvine, CA.

We have changed the format and venue this year in response to recommendations you have provided. The Export Control Forum will be held at the Hyatt Regency Hotel in Irvine, CA, and one registration will now cover the day-and-a-half program.

As in years past, day one of the Forum will feature key management, policy, legal, and licensing specialists from the Bureau of Industry and Security. We will also have representatives from the Bureau of the Census, and the Departments of Treasury, State and Defense.

Together, these speakers will provide updates on significant developments in the export control field. The day will conclude with a gala reception, offering you the opportunity to mingle and discuss issues of concern with the presenters and other participants.

On day two, you have the option to choose from one of two half-day sessions, dedicated to more in-depth discussion of selected topics.  This year, those sessions will be: “The Commodity Jurisdiction Process,” and “Blindsided: Export Controls That Can Catch You By Surprise.”

Please consult our website for additional details at http://www.bis.doc.gov/seminarsandtraining/irvine_feb_22_23_10.htm.  We hope to see you at the Forum next year.

Sign up for the BIS email notification service to receive updates like these.

“BIS has a unique mission at the intersection of international trade and national security,” U.S. Commerce Secretary Gary Locke said. “Eric Hirschhorn has a wealth of experience working with export controls and I look forward to having him onboard as we implement President Obama’s vision to reform the export control system and increase competitiveness of U.S. companies by facilitating the sale of our goods while protecting national security.”

If confirmed by the Senate, Hirschhorn will oversee the Commerce agency that advances U.S. national security, foreign policy and economic objectives by ensuring an effective export control and treaty compliance system and by promoting U.S. strategic technology leadership.

Read the whole story on Hirschhorn at the Department of Commerce

Or, check out his Export Controls and Embargo Handbook on Amazon.com.

BIS explains their reasoning in a recent news release on their website:

Evidence obtained by BIS shows that Mahan Airways continues to disregard U.S. export controls. BIS evidence also shows that Mahan Airways has violated the Export Administration Regulations (EAR) and the TDO involving re-exports to Iran of U.S. origin aircraft and that such violations have been significant, deliberate and covert, and there is a likelihood of future violations.

For additional information view the BIS news release.

The EAR plays an important role in trade compliance, and the penalties for violating these regulations can range from denial of export privileges like the above to corporate fines and even imprisonment.

The measures will allow items normally exchanged between individuals as gifts to be included in gift parcels going to Cuba and remove the requirement that gift parcels be sent only to members of the donor’s immediate family. Gift parcels may now be sent from an individual in the United States to an individual or an independent religious, educational, or charitable organization in Cuba.

The amendment also raises the value limit for gift parcels from $400 to $800 and increases the number of parcels that an individual donor may send each month from one parcel per household to one parcel per donee.

The EAR update removes the 44-pound limit on personal baggage that previously applied to travelers to Cuba and creates a new License Exception that authorizes exports and re-exports to Cuba of donated personal communications devices such as mobile phone systems, computers and software, satellite receivers and digital cameras.

Read the complete press release at the BIS news page.

The BIS has also posted a helpful question-and-answer document, including the facts on what changes were made, who is eligible to send donations, and what limits there are on donations, baggage, and telecommunication devices.

Introduction to Automating Export Compliance

According to research by the AberdeenGroup, companies using an automated export compliance system are 1.5 times more likely to report 0% of exports held up at customs. This video highlights how applying an export management system can ease your export pains and help establish compliance to avoid penalties, delays and fines. Watch it online now!

BIS has released this PDF with additional information.

The complete announcement is below:

9/02/2009 – The U.S. Commerce Department’s Bureau of Industry and Security (BIS) is pleased to announce that the U.S.-China High Technology Working Group (HTWG) will take place on September 29 in Washington, DC. The public-private forum will be co-chaired by the People’s Republic of China’s Ministry of Commerce and in partnership with the National Association of Manufacturers (NAM).

The HTWG will enable U.S. and Chinese companies to interact directly with one another and government leaders to discuss export controls and high technology trade, with particular emphasis on the information technology and civil aviation-aerospace sectors.

More information will be released shortly, but as attendance at this forum will be limited due to space restrictions, please contact the NAM to reserve your spot at HTWG@nam.org.

Please see the event flyer.

Of note:

• On May 14, 2009, Joseph Piquet was sentenced 60 months in prison and two years of probation based on his role in a conspiracy to purchase high-tech, military-use electronic components (such as high power amplifiers for use in early warning radar) from a domestic corporation, and to then ship the items to Hong Kong and the People’s Republic of China without first obtaining the required export licenses.

• On March 12, 2008, MTS Systems Corporation of Eden Prairie, Minnesota, pled guilty to two counts of Title 18 United States Code Section 1018, False Certification or Writing, in connection with MTS’ submission of two license applications to the Department of Commerce.

Total fines for these violations plus another 2006 export violation: $836,000

• On March 10, 2004, Thomas Campbell Butler, MD, a professor at Texas Tech University, was sentenced to two years in prison, three years of supervised release, and criminal fines and restitution totaling more than $50,000 for export violations, false statements, theft, embezzlement, fraud, and mail and wire fraud.

Butler was arrested in January 2003 for falsely reporting to the FBI that 30 vials of bubonic plague bacteria that had been destroyed by Butler were missing and presumed stolen from his university laboratory.

An investigation into Butler’s report uncovered that Butler had earlier exported a related set of bubonic plague bacteria to Tanzania in September 2002 without the required licenses.

Total penalties: $87,400  and his export privileges were denied for a period of 10 years.

Ensure Export Compliance:

Companies need to implement an export management system to protect their export privileges and ultimately brand reputation. An Export Compliance solution automates the international sales order management process including restricted party screening (RPS), export license determination and tracking, shipping document generation and government reporting.