Do you deal internationally with customers, or do you source the goods or parts from foreign suppliers?
Then this may interest you.
For a while, the stricter rules under the U.S. Department of Commerce, State and Treasury sent jitters to various companies. There is no significant reason not to comply with export rules at all. As the steps are taken for national interest, the placed interests would certainly find it irregular. But the common citizenship applauds the state for taking such robust measures against perpetrators and traitors.
The ever-changing standards of export rules are a cause for concern for the international trade community, especially exporters. However, the various state departments are working to remove bottlenecks and ensure seamless movement through the procedures. If you dazzle with the procedures, you may fall into a legal soup for offenders who have severe penalties equivalent to strict imprisonment and monetary purposes. The discrepancy is an added burden to it.
On the whole, the hassle can be shortened midway. In general, the ECCN classification involves several steps, such as consulting the export control manager, developing superior knowledge of the product / service, and export control regulations. If this was not a phenomenal problem in itself, determining a commodity under ITAR or EAR would literally degrade someone. Not a feasible idea at all, isn’t it? Not only is it time consuming, but it hampers the way business functions work or work to date.
It is appalling to see that some companies have no qualms about it, leaving it to their fate as it is, instead of complying with the rules. But the delirium prevails elsewhere. Fortunately, the introduction of automated systems to identify products and determine the export license has benefited the companies.
Trade in compliance solutions through automated searches
Consistency is key. Yes, it is not a pun in this context. A company with its individual export control program should establish consistency in the procedures. Otherwise, any neglect would lead to severe punishment by the authorities. Similarly, it applies to ITAR compliance measures. The problems of the Middle East are all known, so the enlarged evaluation of exports to these countries is nothing new at all.
Eventually, the software vendors get all the credit for providing superior software solutions with automated search capabilities. Whether it is identifying an article / item for export or checking the trading partner’s credentials over restricted lists, the software-enabled systems allow seamless operation within an enterprise.
While the funds for ECCN and HTS classification are made available, it is very important that the searches are based on real time and match the standard requirement of offices. For example, any company can tag a software with a dummy tool, only after witnessing it being too slow for bulk searches.
The reputable consulting firms that offer trade compliance solutions and have industry experts in their core team will deal with issues of all kinds, including the petite with little experience. As a result, you have an advantage in preventing the problem from starting.