How You Can Develop an ITAR-Compliant Program

If you want to do an export transaction of defence goods and services, you should be ITAR compliant. The full form of ITAR is International Traffic in Arms Regulations. Some of the exporters realize that this process is unnecessary and some consider it to be very costly. But it in the true sense, when you are exporting defence foods and arms across the international borders, you have to follow the rules of ITAR. Failing to comply with regulations can make you face several problems like loss of reputation, low market demand, prohibition of export license and also paying huge administrative fines to the Government.

The penalties are huge. The civil fines are even more than $500,000 and the criminal penalties are $ 1 million per violation. Think it has happened with you? Why not take precautions before you are facing such situations. Complying with the export rules and regulations can be one of the safest decisions when you are exporting defence goods to non-US nations. The defence articles include technical data, services, items and arms that come under the USML list. The item that has the intelligence and military applicability is termed as the defence article. The technical data is the information that is required for production, repair, assembly, modification, testing, operation and design development. ITAR compliance requires the documented system and there are several areas that need to be identified.

HERE ARE SOME OF THE TOPICS THAT SHOULD BE CHECKED :

Corporate Commitment: The International Traffic in Arms Regulations can identify the corporate commitment for organizing the meeting and maintaining the ITAR rules. The compliance program can identify the individuals, who are responsible for ITAR program; the directive from company management describing the company commitment to ITAR and also identify the duties and regulations to maintain the ITAR requirements.

Internal Audit Program: Once you have developed the ITAR program, internal audit process requires the establishment for monitoring the implementation and effectiveness of the ITAR program. The audit process includes documentation of audit results, auditor training, yearly schedule of audit activities and also many more.

Record Maintenance Program: The documents define the activity; keep records of the evidences of all the activities and functions that are taking part. The record control program comprises the secured storage areas, back-ups for the electronic goods, storage of the records and retention periods as well.

All these areas are controlled with the help of export software applications in these days. The online tools help the exporters to maintain compliant with the regulations. Export classification and license determination are some of the important steps that are included to be compliant and have a legal trade.

Improve Your Trade Compliance with Effective Party Screening

With the increasing number of restricted business partners out there, coupled with numerous fast growing logistics in almost all the trading companies, screening with the manual means is really a difficult task to do these days. In the earlier days, most of the business entities used check their trade parties, customers and the end-users of their products through the manual means. But due to increase in the number of entities into business or due to widening landscape of trade around the world it is not possible to screen the companies manually. It requires lots of expertise and time.

Denied party screening is a method that a business entity conducts in order to ensure that it is not engaging with the denied and/or restricted parties listed by the government agencies. There are two types of lists - denied and sanctioned party lists. As long as the end-use application of the goods and services is permitted by the sanctioning government entity it can be approved to do business with the companies that are falling under the sanctioned lists. But for those which are falling under the denied lists mean that conducting business transaction with such entities is prohibited unless an export license or other authorizations obtained from the respective government agency. It is not always possible for the companies to check their business partners manually. Thus, most of the organizations have taken help of various software solutions for managing restricted party screening. One of the important features of the restricted party screening solutions is that it takes very less time to screen the business entities and check whether it falls under the restricted party list or sanctioned party lists.

The software solutions help the companies to compare the trade parties with the recently denied party lists. It is very obvious that these party lists are accurate and updated in a regular manner. There are several global lists that must be referred by the companies when taking hold of the international business. With the increase in the number of various government agencies and the export lists are also updated, most of the organizations are observing a productivity drain if the compliance team is maintaining the compliance program manually. Taking many days to complete the party screening is not acceptable when the order has to be shipped within the single day. If the business entity wants to ensure total compliance in the process, it is better to screen the export parties against the lists.

An automated restricted party screening solution is flexible and takes very less time to ensure that the export is compliant with the regulations of the U.S. number of trade parties, control, and timing are some of the considering factors to considering when you are taking the effective RPS solution. Always search for the online solutions for the points like when the party to the transaction process is known, when the restricted party lists are updated by the government and if there is a material change in the process of the transaction.

Thus, it is clear that it is very important to take help of the party screening and export software to effectively maintain compliance in the business process. The online tools are effective bulk and individual screening as well.

Make Arms Export Compliant With ITAR Compliance

The entire procedure of exporting defence items and arms from one country to another requires the intervention of certain rules and regulations that should be maintained in a special way. Exporters always remain in tension when they are exporting the arms across the international borders. Before preceding the export, all the defence items are checked to assure that the transaction is compliant with the trade rules or not. Due to expansion of trade across borders, the risk of crimes and treachery has increased a lot. In the case of defence items, there are several strict rules that should be followed.

Role of Online Applications in the Export Process :

In the earlier times, most of the export companies screen their products and the trade parties through manual screening. But this process of screening is time-consuming and requires a lot of technical data and expertise. But this process is not so popular nowadays. The exporters are now using several online tools to screen the trade parties and the end-users to maintain compliance within the export process. The export software used for party screening and maintaining other services of export is user-friendly and cost-effective at the same time. It helps in bulk and individual screening. Violating the export rules is considered crime for the exporters. The software applications screen each and every export items, export parties, end-users, customer, vendors and the freight forwarders as well.

Know About International Traffic In Arms Regulations:

Before exporting the defence items and arms, it is very important to maintain full compliance with the International Traffic in Arms Regulations. The trade license is also required when you are exporting the defence goods. Especially, when the customer is a non-US person, the screening is very much important. Even if there is no export planned, it is important to maintain security in the process and safeguarding the items. Some of the ITAR compliance related services includes technology plan and preparation, review of the technology and assessment of the applicable controls, commodity exemption and jurisdiction, DDTC registration and assistance, ITAR license applications and validation of the resolutions. Before sanctioning the export, the experienced consultants go through the whole project and evaluate it. In this case, the export applications help in maintain the export of the defence items and arms. The online tools check the export products to avoid crimes.

Thus, it is clear that before exporting the defence arms, the exporters should follow certain regulations. Using the online solutions can create a change in the whole process, as well.

Compliance Solutions Making Your Trade Legal and Permanent

Export is one of the complicated issues in the recent days. Maintaining global trade is quite difficult as the number of export objects has increased. Due to the increased development in communication and technology, various types of products are exported from one country to another within the short period of time. Companies located in the United States always check the exporting products before exporting. The export companies screen, classify and monitor the products export. Failing to comply with the trade rules can be fatal for the companies. They have to pay the huge amount of monetary fines to the government.

Manual checking is not possible due to the presence of huge amount of data and products being exported from one place to another. Manual screening requires technical knowledge and expertise that consumes time and money at the same time. To save money and time for export, people are using software applications to screen the products. These online applications are reliable and help in doing bulk and individual screening. Many companies offer effective software solutions for the exporters to screen the trade parties and the end-users.

Trade Compliance Program:

Maintaining trade compliance is very important in the recent days. Having a strong Internal Control Program for the export compliance is the first step for ensuring that export decisions that are being taken are consistent with the trade regulations. The compliance program controls the activities of the logistics departments, engineering, R&D units, Human resources and international sales. Some of the important elements of this program help in checking and protecting the keys that are necessary to check the overall export process. But if there is no export program or there is weak export compliance program means that there is vulnerability in the process.

The companies that fail to comply with the regulations have to face lots of problems. They have to pay fines, loss of business reputation, loss of export license and privileges and in severe cases, imprisonment is quite common. ICP is an indication of the compliance of the company towards the rules and regulations. Internal Compliance Program helps to minimize the risk of violations.

International Traffics in Arms Regulations compliance is quite effective to maintain defense objects and technical data from one country to another. Even if there is no export considered, in case of all the defense products, there is a requirement to the safeguard of technical data against the group of unauthorized persons. The ITAR compliance services include revising of technology and assessment, preparation of technology control plan and also analyzing the license exemption.

Thus, maintaining compliance in the trade is one of the important steps while you are exporting goods globally. Take help of the software tools to screen the export partners.

Why Businesses Need Effective Export Compliance Program

A good export compliance program is extremely necessary to decrease the risk of violating the export regulations and laws. Organizations without proper compliance assistance might violate the laws and can result devastatingly. Some of the most common areas where organizations violate the regulations are by providing any foreign citizen the right to use information technology infrastructure, by transporting software to any data processing facility or gratifying orders from any foreign business. Hence, the need for an effective compliance program increases in order to keep the business going without any hassle.

Companies that are working without any type of export compliance program or export controls are at a significant risk of penalties and substantial fines. The wiser decision lies in getting hold of a company that offers export compliance solutions. Their many effective services become beneficial for the companies to run a smooth export business. Let us find out the many effective solutions offered by these companies.

·         Internal Control/Compliance Assessment:

Assessment and analysis is the primary step of the entire program. This helps to understand the level of compliance achieved by the companies. The experts with their knowledge conduct periodical self or external assessments to find the weaknesses and issues in the compliance process and procedures. This becomes extremely helpful for the companies as by finding the small problems of a company, it eventually helps to decrease the chances of penalties.

The assessment can be conducted depending on the need of companies. Sometimes, it can be only a part of the company while the other times, the assessments can be conducted to the entire company. After conducting assessments, they provide a report which contains a documented report of the required changes. This helps to close the gaps and eradicate the chances of violation. 

·         Export Control Classification Number:

Export Classification is another essential part of the entire compliance program. ECCN is applicable for all products or technologies that are controlled under Export Administration Regulations and is related to their technical features and functionality. With the companies offering effective compliance solutions, the process of export gets easier and without any hassle. Their review and documented report of ECCN (Export Control Classification Number) for all the products and technologies reduces the chances of a potential violation. Apart from this, their advice becomes beneficial for the companies.

·         Transactional Assistance:

There is no doubt that coping with the complex regulations is the hardest part. Without proper knowledge about how and from where to start the entire analysis, it can harm the business. Experts prove to be a good solution as they have proper understanding about the global trade operations. In order to stay in the safe side and eliminate the chances of penalties, a proper solution becomes beneficial.

Without incorporating the effective compliance program, the scope of violating the regulations is many.  In order to ensure a proper global trade operation, expert help becomes beneficial. Proper assessment of the entire transactional process and effective documents becomes a help for companies.