Book Announcement: Export Compliance, by Nancy Wood Kouassi

Boskage is delighted to present our latest publication; "Export Compliance: A Practical Guide to Licensing and Controls", by outsourcetradegroup.com founder Nancy Wood-Kouassi.

The book is the perfect companion for the beginning to intermediate exporter, focusing on jurisdiction determination and licensing for both ITAR and EAR commodities. It's the book that Global Trade Networks calls "one of those books that export managers need to keep close by."

136 pgs. (c) Boskage Commerce Publications, Ltd. 2009

Click here for sample pages and more information.


Check out the Global Trade News review here.

Ask The Wizard: Trade Compliance On A Budget

Each Friday, the Wizard joins us to share an answer to one of the questions asked during the week. This week, the Wizard wants to ask our readers a question.

Most companies are doing more with less money and fewer employees. Budgets have been cut which means resources are not available for conferences, association dues, publications and special projects. However, CBP, BIS and other regulatory agencies still require the same high standards of compliance. We would like to provide an opportunity for our readers to share ideas on how they are meeting the challenges created. Instead of answering a question this week, the Wizard decided to ask a question, actually two questions.

1. How is your organization fulfilling compliance requirements in today’s economy?

2. Other than staff and a bigger budget, what resources or tools would make your job easier?

Share your best practices and innovative ideas to help our readers who are struggling to maintain compliant organizations on a tight budget.

Do you have a question for the Wizard? Submit your question by clicking on the link in the space for “Ask the Wizard.” See you next Friday!

Why Should Universities Worry About Export Control Laws?

When most people think of export compliance, images of large multinational corporations come to mind. Universities are in the business of education and they don’t sell products, so why would a university need export compliance procedures?

Since 9/11, the government has become increasingly concerned with preventing certain information and technology from disclosure by universities. Because of increased scrutiny, one inducement is the cost of non-compliance. Penalties range from 5 to 10 years imprisonment and fines of $250,000 to $1,000,000. Some of the recent violations include:

· Professor convicted for allowing unauthorized foreign citizens access to restricted technology in violation of the Arms Export control Act
· University fined for financial dealings with Iran and Cuba
· Universities cited for failure to obtain licenses for access by foreign nationals to military technology
· University involved in unauthorized export of biological materials.

Additional costs include loss of contracts, grants, employees and other collaborative efforts.

How can universities balance the mission of an open academic environment without regard to citizenship, nationality, or residency and academic freedom to publish and disseminate the results of research with the export regulations? Universities receive four exemptions to export regulation, fundamental research, educational exemption, employment exemption and public domain. Although most research conducted by universities is exempted under the fundamental research exemption (15 CFR 734.8), export regulations apply to research activities, including grants, contracts, and cooperative agreements. The regulations not only apply to activities, but also people, such as research assistants, students, visiting foreign researchers, etc. Because many of the export laws conflict with traditional foundations of academic freedom and openness in research and impose criminal and civil fines for noncompliance, it is important that universities implement export compliance programs. We’ve compiled the following information to get you started on the journey.


Basic Elements of a University Export Compliance Plan
Universities should consider the following items for inclusion in the export compliance plan.

• Identify and Assess Campus Risk Areas
• Implement Export Control Policies and Procedures
• Develop Best Practices Recommendations
• Provide Training
• Perform Restricted Party Screening
• Provide Travel Briefings
• Establish Export Recordkeeping Requirements – keep for at least 5 years


Activities Subject to Export Regulations
The following list identifies activities that may be subject to export controls.

• Foreign equipment & material purchase, usage & disposal
• Collaborative efforts involving foreign universities and students
• Sponsored research agreements
• International travel
• Encryption restrictions
• Defense services
• Hand-carried Items – laptops, memory devices
• Conferences
• Websites
• Visual inspections revealing technical data
• Email
• International agreements
• Material transfer agreements
• Nondisclosure agreements
• Software and other intellectual property licenses


Functional Areas Subject to Export Regulations
The following list identifies departments that may engage in activities subject to export controls.

• Legal
• Finance/Bursar
• Purchasing
• Shipping
• Grants & Contracts
• Travel & Reimbursement
• Environmental Health and Safety
• International Research, Education, and Development
• Research
• Academic Departments – Engineering, Medicine, Nursing, Sciences
• Information Technology


The information presented here only touches the surface of export compliance requirements and exceptions for universities. At a minimum, faculty, students, researchers and others as identified, need to know how to recognize that an export control issue may exist, and then whom to contact for assistance at the university.

Click on any of the following links to view the export compliance information provided by the university.

· John Hopkins University
· California Institute of Technology
· The University of Tennessee Knoxville
· Michigan State University

BIS Principles of Export Compliance

With increased scrutiny of export compliance, exporters should have an effective compliance system in place. At the recent BIS Export Control Forum in Newport Beach CA, Assistant Secretary for Export Enforcement Darryl Jackson gave a presentation outlining nine principles of export compliance used to evaluate the effectiveness of an export compliance program and determine whether mitigation of an administrative penalty is warranted. These nine principles include:

· Meaningful Risk Analysis
· Written Compliance Programs
· Responsibility for Oversight by a Senior Official
· Adequate Employee Training
· Adequate Customs and Transaction Screening
· Compliance with Recordkeeping Requirements
· Internal System for Reporting Violations
· Internal and External Reviews/Audits
· Remedial Actions to Address Violations

Similar to import compliance programs, exporters must be able to demonstrate that the nine principles are applied in business transactions and not just something put on paper to satisfy the government. The export compliance programs must also be reviewed and updated to reflect changes in business practices and government regulations. Click on the following links to view Jackson’s speech and presentation.