mec export compliance awarene$$ presented by : paul divecchio –divecchio & associate phone:...
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MEC EXPORT
COMPLIANCE AWARENE$$
Presented by : Paul Divecchio –DiVecchio & Associate Phone: (617) 513-3230, Fax: (508) 393-3645 Email: [email protected]
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Export Compliance DecisionsExport Compliance Decisions
Everybody Has it??
WHEN IN IT OUT, NOT:
IT OUTWHEN IN
3. Abide by the Exporters Cardinal Rule
2. Document Decisions
1. USE COMMON SENSE!!
Demonstrate your D2
“Due Diligence”
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What You Know!What You Know!
Stated & ImpliedStated & Implied
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• Don’t be an Ostrich !
• ENHANCE EXPORT OPPORTUNITIES
• RISK AVOIDANCE
Company Objective
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CURRENT CLIMATE
• Mandatory AES Compromised (DHS vs. Census)
• Patriot Act Penalty Increase - $10K to $50K
• PRC – “Catch All”-conventional military• Enforcement Oversight - AGRESSIVE• Industry Compliance Initiative – A MUST
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What can happen if it goes wrong?• Fines
• Negative Publicity
• Denial export Privileges
• Disruption of Business
• Jail Time
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Methods of Enforcement
• Industry Sources - Informants
• Intelligence Sources
• Outreaches
• Safeguards Verification Program
• Visa Application Review Program
• Export Document Review (Targeting) ( SED/AES, Airway Bills, Bills of Lading)
• Public Sources - Newspapers, Trade Publications, Internet
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KEY EXPORT COMPLIANCE RISKS
• WRONG JURISDICTION (Boeing –L3)• CLASSIFICATION (NONE/WRONG)• GLOBAL DENIED PARTY REVIEWS • SLOPPY PAPERWORK• EMBARGOES – DIVERSIONS• ANTIBOYCOTT COMPLIANCE• TECHNICAL DATA TRANSFER
– EMPLOYEES
– OUTSOURCE
– CUSTOMER’S DATA – SPONSOR LETTERS FOR VISAS
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Some helpful websites• www.bis.doc.gov - Bureau of Industry & Security (BIS), U.S.
Dept of Commerce -BIS EAR, press releases
• BIS web site “RESOURCE LINKS” takes you to other federal agency web sites
• www.census.gov/foreign-trade/schedule/b/index - U.S. Census Bureau - Schedule B Nos.
• www.treas.gov/offices/eotffc/ofac – Office of Foreign Assets Control (OFAC)- summary sheets on embargoed (and other) countries
• www.cbp.gov/xp/cgov/export/aes - U.S. Customs and Border Protection - Automated Export System (AES)
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EFFECTIVE COMPLIANCE PROGRAMS EXECUTIVE COMMITMENT
• Corporate Governance – establish a “code of conduct” • Compliance Focal Point • Location/Authority/Skill Sets/Budget/Recognition
• Compliance Team• Engagement – High Morale
• Global Compliance • All Divisions• Subs/Branches/JV• Unaffiliated
• Compliance Assessments (not audits)• Include acquisitions
• Education – Corporate Awareness • U.S. and Overseas Affiliates
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HOW TO ACHIEVE ! KEY COMPANY ISSUES
• RESOURCE COMMITMENT
• Classification of products/technology
• Technology Transfer Monitoring
• Company Export Compliance Manual (formal)
• Company Personnel Awareness (training/education)
• Integration of Compliance with acquisitions
• Subsidiary Compliance
• Pro-act with governing licensing agencies
• Automation of the Compliance Program
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Company Compliance“Today”
• Corporate Education (company awareness-global)
• Corporate Training (operational personnel)
• Roll out Formal Compliance Program
• Form Compliance Committee
• Automate Compliance Checks Wherever Possible
< Maintain a Robust Program >
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