The simple answer is that there is no best way to maintain export compliance. For an organization to be truly export compliant, there should be a program in place that includes the following export compliance best practices:

The first step in most organizations’ export compliance program is typically Denied Party Screening, also known as Restricted Party Screening, among other names. Screening is the process of helping to ensure that organizations do not do business with any party on a government or international watch list.

People and entities on these watch lists face trade restrictions due to reasons ranging from terrorism, criminal activity, and money laundering, among others. Doing business with these entities can lead to criminal and civil penalties, large monetary fines, imprisonment, negative press coverage, a hit to an organization’s reputation, and a revocation of export privileges.

Our Denied Party Screening FAQ page goes into greater depth about denied party screening, and related obligations.

This varies from organization to organization. It depends on the location, or locations, in which a business operates, where they export, the nature of the products, technologies, and services, and the various parties involved with the transaction.

Some of the more common lists organizations screen against are:

As mentioned already, organizations should pick the lists it screens against based on the specific needs of the business. This is an area in which Descartes Visual Compliance™ can assist.

Governments around the world control exports for many reasons, including preventing controlled technology or dual-use goods from falling into the wrong hands. Exports are also regulated to advance foreign policy objectives, and to further economic and trade goals.

In the United States, there are three primary U.S. government bodies that regulate exports:

Additionally, other countries and international organizations, such as the European Union, have their own departments enforcing export controls aligned with their policies and goals.

The International Traffic in Arms Regulations (ITAR) is enforced by the United States government via the United States Munitions List (USML). Items on the USML are defense and military-related goods and technology, and require a license or an exemption in order to be lawfully exported.

The Export Administration Regulations (EAR) are administered by the Bureau of Industry and Security (BIS). The EAR controls goods and technology that have commercial applications, but may also have military uses (i.e., dual use goods). Technology and goods are controlled by the EAR for a variety of reasons, including anti-terrorism, national security, foreign policy, and nuclear proliferation. These goods similarly require licenses, or exceptions, to be lawfully exported.

Organizations engaging in international trade and exports are responsible for complying with export regulations and controls. Companies are still subject to export controls and the laws governing them regardless of their awareness of them.

Having a solution in place that assists organizations with helping to determine export classifications, as well as managing licenses, where required, is a good step in the direction towards being export compliant.

Should your organization determine that your exports are covered by either the EAR or ITAR, you must either apply for the appropriate license, determine whether they come under the purview of an exemption (ITAR) or determine if it is possible to get an exception (EAR).

If an item falls under the EAR or ITAR, a license is needed in order to export. Licenses are limited by time, value, or number of exports, and must be renewed upon expiry.

For items under the EAR, there are multiple categories of license exceptions. Should your organization’s goods qualify for these, you may not need an export license. The exceptions apply to limited cases, including public domain information, fundamental research, and educational information. If the items are on the CCL, and designated EAR99 (see below), they may not require a license unless they are being exported to an embargoed country or a restricted party.

For items on the USML, there are countries that may be exempt from needing licenses. Broad USML exemptions are largely blocked by the United States government in consideration of national security. However, there have been exemptions made for scientific research, and smaller scale exemptions arising from treaties in the past.