Industry - Business
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
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 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.
19
www.euroasiasemiconductor.com Issue V 2011
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