BUSINESS I GLOBAL AWARENESS
There are lists issued by various government agencies globally that are a compilation of restricted or denied parties. While the thought of comparing your potential customer
against dozens of lists sounds tedious and time consuming, there are service providers who can filter the names you provide, flag suspicious names and classify them according to risk
Export Controls
Usually when we think of globally exporting items, we visualize shipping docks loaded with containers ready to be sent across the ocean. However many companies may be currently exporting items without even realizing they are violating export controls. The U.S. holds strict export regulations under the Export Administration Regulations (EAR), which regulate export and re-export of commercial items.
Under the EAR, many forms of communication such as a set of schematics sent via e-mail, or software downloaded from an internet site are both considered an export. Even if the item is only leaving temporarily, or is a gift, it is still considered an export. To confuse matters even further, the release of technology to a foreign national in the U.S. is considered a “deemed export” and is subject to EAR as well.
Fortunately not every product requires commerce export licenses, however the responsibility lies on the exporter to determine whether they need a license or not. License requirements depend on a variety of factors including what you are exporting and its’ purpose, where it’s being exported to, and who will receive the item. The main factor in determining if an export license is needed is whether the item has a specific Export Control Classification Number (ECCN). All of the ECCN’s are listed in the Commerce Control List (CCL) which is divided into 10 broad categories, of which each is then further subdivided into five product groups. The ‘where’ and ‘who’ tie back into the ‘Know Your Customer’ guidance on dealing with embargoed countries or restricted parties.
How to look out for you
There are lists issued by various government agencies globally that are a compilation of restricted or denied parties. While the thought of comparing your potential customer against dozens of lists sounds tedious and time consuming, there are service providers who can filter the names you provide, flag suspicious names and classify them according to risk.
They can also inform you if the company you are interested in doing business is located within a country that is hostile or if there are trade sanctions against it. The U.S. and E.U. share sanctions against several countries including Iran and North
42
www.solar-pv-management.com I Issue IX 2011
Korea. The United Nations also lists several countries under embargo. Some embargoed countries are allowed commercial goods, while other have much stricter restrictions. The best way to qualify potential business prospects is to compare it to the assembled lists. While it may not always be illegal to conduct business with these countries, a special license may be required to do so.
Enhanced due diligence practices ensure that your company and your executives are protected from the law. Under the Sarbanes-Oxley Act, U.S. companies need to have strong internal controls at every level of the organization to ensure the highest degree of financial accuracy and accountability. As the company is ultimately held responsible for compliance it makes the most sense for corporate chiefs to directly oversee internal procedures rather than outsource, or rely on third parties.
All these practices tie back to one simple premise: Know Your Customer. By participating in this modest diligence exercise, companies can ensure that they are protecting themselves and their country.
© 2011 Angel Business Communications. Permission required.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48