Export Management Compliance Program (EMCP) - A Brief Overview

Developing and implementing an effective Export Management Compliance Program (EMCP) has become an essential obligation for the corporate houses and business entities engaging in international trading and export operations. In order to curb the risks associated with the violation of trade regulations like licence cancellations, export privilege denials, etc.; nothing can be better than integrating a concrete internal control program (ICP) and a comprehensive EMCP within the complete business process.

EMCP- A Preface

An EMCP is a specific program that connects the employees and processes of a particular firm through a systematic set of guidelines and procedures in order to ensure that every entity of the firm is aware of their export control responsibilities. The program focuses on bringing out comprehensive answers of the following questions: -

• Are the employees aware of the export control responsibilities?
• Are the right procedures of export management being followed?
•  Is the business completely safe from the risks of violating the trade and export regulations?
• Are the export control procedures integrated systematically?
• Is the company accurately screening the trade partners, end-users, vendors and all other entities?

Implications of the Program

It is hard to ignore the fact that a company or business can successfully achieve the objectives associated with export trade compliance only if it abides by an effective compliance program. There are some sectors that seriously care about implementing an effective EMCP within the business process; however, most of them completely ignore it or abide by a weak program which contains potential loopholes that are harmful to the business.

In such circumstances, a company with a weak compliance program has increased probabilities of facing serious consequences. Therefore in order to reduce the risks and successfully achieve the compliance objectives, opting for a professional compliance consultancy firm proves to be a valuable decision. These firms shelter experts who help to identify the potential loopholes in the existing program through audits and assessments, besides, formulating a fresh new compliance guideline for the company.

Advantages of an Effective EMCP

The following are some of the advantages of implementing a successful and effective Export Management Control Program.

• It helps to reinforce the commitment of the senior management of the company to comply with the U.S export laws and regulations.
• Systematic processing of the export transactions, through proper management.
• Identifying the entities and persons responsible for specific export control tasks.
• Ensuring compliance safeguards, at every crucial point of the business, including the supply chain.
• Providing advanced tools and systems to ensure that the management is performing the export control functions accurately and systematically.
• Supervising all the international and domestic transactions and identifying the ones that require a license and the ones that do not.
• Consolidating the entire process in order to reduce the time spent in compliance activities.

Trade Compliance is something that is to be achieved gradually. Screening the partners through advanced Export software and abiding by an effective EMCP can help a company to successfully comply with the necessary trade obligations and regulations.