# 12 The A to Z of Export Compliance

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In this month’s newsletter

??? Your Essential Compliance Glossary

??? Compliance FAQs

??? What’s Next in Export Compliance

???? Your Essential Compliance Glossary

Understand 10 key terms for smoother international trade operations.

1?? AES: Automated Export System

A digital platform for U.S. exporters to report international shipments electronically to the Census Bureau.

2?? Deemed Export

Sharing controlled technology or technical data with a foreign person while they're in the U.S. This sort of transaction is treated as if it were an export to their home country

3?? DPS: Denied Party Screening

The process of verifying if parties involved in exports comply with U.S. safety standards.

4?? EAR99

A classification indicating items subject to the Export Administration Regulations (EAR) but not listed on the Commerce Control List (CCL).

5?? ECCN: Export Control Classification Number

An alphanumeric code categorizing items for export control purposes based on their nature.

6?? End User

The ultimate recipient abroad who uses the exported item (i.e., purchaser or consignee), excluding intermediaries.

7?? Export Classification

Government-assigned codes that classify exported items, indicating any restrictions or controls that apply to them.

8?? NLR: No License Required

Designation for items not needing a license for export, except to embargoed countries or restricted end users.

9?? Restricted Party

Individuals, entities, and countries subject to export restrictions by U.S. government agencies.

?? VSD: Voluntary Self-Disclosure

A self-reported violation of export regulations aimed at mitigating penalties.

???? Compliance FAQs

Find the answers that will keep you compliant.

What are the penalties for violating the export control regulations?

Breaking export control rules can lead to fines (up to $1 million per violation), losing your export privileges, or even jail time. Definitely not worth the risk!

What are the main bodies that regulate exports?

In the U.S., exports are regulated by BIS for dual-use items, DDTC for military items, and OFAC for sanctioned countries and individuals.

How do I determine if my product requires an export license?

Check the item's classification on the Commerce Control List (CCL) or United States Munitions List (USML) and consult the relevant regulations.

What’s the difference between ITAR and EAR?

ITAR deals with defense-related items, while EAR covers dual-use items having commercial and military applications.

How do I ship a controlled item or commodity out of the U.S.?

You'll need the right licenses to ship controlled items, whether they're under ITAR or EAR rules, based on the item’s classification and destination country.

How long does the license take?

Expect your license to take around 8 to 12 weeks, though it could be longer for certain destinations.

Why do organizations have to screen individuals and entities?

Screening ensures you're not doing business with anyone on a government watch list—keeping you out of trouble.

When should I consider submitting a Voluntary Self-Disclosure (VSD)?

Consider filing a VSD when you catch a slip-up in export regulations. It's your way to say, "Oops, we made a mistake." And admitting to it may help ease potential penalties.

What should I do if U.S. Customs detains my goods?

The key here is to take immediate action. Respond promptly to the notice, provide any necessary information, and work with your customs broker.

???? What’s Next in Export Compliance

If you’re wondering about the upcoming trends and challenges, here they are!

More Complex Controls & Trade Sanctions

Geopolitical events such as the Russian invasion of Ukraine and the Israel-Hamas conflict cause constant updates to sanctions.

So, exporters must step up their risk management processes to avoid transacting with sanctioned third parties.

Due Diligence Against Sanctioned Ownership

There’s been a shift in regulatory guidance regarding sanctioned ownership. Agencies now provide less explicit instructions. They leave you to interpret and implement compliance measures.

In other words, you should take a proactive approach and put all third parties you engage under scrutiny.

Investment in Technology Solutions

Advances in AI and machine learning are transforming compliance operations. For example, by providing accurate and swift screening against sanctioned party lists. And notifying you of any regulatory changes.

These technologies allow your compliance teams to focus on strategic activities like identifying potential violations and taking corrective action.

?Have a compliance challenge on your mind? Let's brainstorm solutions together ??.

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Happy reading, and stay tuned for more! ????