Your company may be violating the federal laws and regulations unintentionally when it is doing daily transactions like providing a foreign member access to the IT infrastructure, with the help of the shipping software and technical data to the offshore database processing facilities or even for fulfilling the order of the export from any sort of business. Are you seriously concerned about the fact that your business entity is violating export rules and regulations to a greater extent? There are several ways to maintain compliance with trade rules and regulations.
You are violating the export rules and regulations, but do you know that the administrative penalties have increased the lot from the past year. The penalties have increased to a maximum amount of $50,000 for each of the violations and it has increased to $250000 for each of the violations or at times double to the economic value of the transactions. Even in some of the cases, the criminal penalties go to $1000, 000 and an imprisonment of more than 20 years. The first paragraph notifies you that you may be indirectly violating export rules and regulations. The second paragraph denotes the consequences of violating the export rules.
Countries like the USA maintain a very complex and difficult system of export compliance regulations made by the Department of Commerce, BIS (Bureau of Industry and Security). The export regulations are applied to most of the shipments of goods that are performed internationally. Maintaining the compliance with export rules is very important when companies are exporting technical data to the non-US nations across the international borders. In fact, there are some of the nations that do not appreciate complying with the US export regulations and requirements that come under International Emergency Economic Power Enhancement Act.
The companies without the export regulation controls and or the trade compliance programs may be at high risk of penalties. The companies that do not ship yet the products across the international borders often face risky situations as the United States export regulations give the access to the various technologies by the foreign nationals. The effective trade compliance program will prevent the violations and also resolve the factors to determine the amount of the fines that are given to the export violations. The business entities that that engage themselves in the international level or employ some foreign members have to prepare a thorough and effective trade compliance program for ensuring that they are complying with the export rules and regulations.
An Effective Trade Compliance Program Should Have:
- Manage resources that are responsible for monitoring trade compliance.
- Methods for detecting and finding violations
- Offering instruction manuals and also organizing training, seminars regarding perfect trade compliance
- Provide documented trade party screening and approval processes that include getting important export licenses
- Helps in document and record maintenance and requirements for compliance analysis
This from the above content it is clear that you should have trade compliance program to maintain legality in export. In these days, when you are exporting defense articles, the software provides solutions for ITAR compliance and export license determination.