By Kristine Kelleher, Export Solutions

If you are an exporter, chances are you’ve had questions about complying with the export regulations. Understanding the regulations is one thing; applying them correctly in real-world situations is another. If you’ve ever wondered whether other exporters struggle with the same challenges, you’re not alone. Test your export compliance knowledge with some of the most common questions we receive from exporters.

Decide whether each statement is true or false.

1.  Every company has the right to export its items globally, regardless of whether they comply with the export regulations.

Click to Reveal the Answer

False. The US Government views export as a privilege, not a right, and just like any law in the U.S., we are all expected to know and follow laws in our country.

2.  The U.S. is the only country in the world that restricts exports.

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False.  Almost every country around the world has its own set of export and import regulations. That means that your shipment must comply with the US export regulations, as well as any import regulations of the country you are exporting to.  Further, if you or your distributor is re-exporting, they must apply the US regulations to the re-export as well as their country’s export law.

3.  Export regulations do not apply to me because I am not in the Shipping/Logistics Department.

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False.  All employees are responsible for ensuring that they do not break the law.  This means following Know You Customer Guidance provided for in the EAR as well as Red Flag awareness.

4.  Emailing instructions on how to service my controlled item to my customer in Singapore is an export.

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True. Exports can be both tangible and intangible. Service manuals/instructions are examples of Technical Data where an export license determination is required prior to emailing to your customer.

5.  My Canadian customer has come to us, and we are getting ready to take them on a tour to show them how our controlled item is manufactured.  This is an export.

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True.  Visually seeing how an item is manufactured is an export to the nationality of the person who receives the information.

6.  Export regulations only apply to large companies, not small shops like ours.

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False. Export regulations apply to all U.S. Persons and U.S. Companies.

7.  I have been talking to a potential customer for months, and everything seems fine.  I do not need to screen against any government lists.

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False.  There are thousands and thousands of people, entities, and addresses that US companies and people cannot export to per the law.  This list is not static and changes often.  An address that was not on the list a month ago could be on the list today.

8.  I have a potential sale to China, which is not an embargoed country.  As long as I run them through restricted party screening, we are good to go.

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False.  China is incredibly high risk, and current foreign policy is not favorable for U.S. exporters.  This means enhanced due diligence beyond standard screening.

9.  My customer called me at 4 pm on Friday, before a long weekend, and wants me to change the ship-to address.  The truck comes at 5 pm.  It is the same entity and country, but a different street and building number.  This is fine, and I am good to make the change in our ERP system and send it.

Click to Reveal the Answer

False.  This is a Red Flag, and a change such as this prompts rescreening requirements.

10.  My international customer wants this shipment to go ex-works (routed). They have arranged for a freight forwarder to pick it up at the dock here, so we do not have to worry about export compliance regulations.

Click to Reveal the Answer

False. International companies cannot be the exporter of record / USPPI.  This means all due diligence is still required, which includes complying with the US export regulations.  Freight terms do not absolve companies from complying with the law.

 

If you have ever had any of these questions or other ones that have come up, you can see that you are not the only one. If interpreting or applying the export regulations has you confused, don’t suffer in silence and potentially get it wrong. Help is just an email away. Contact us today for a free consultation.

Kristine Kelleher is a Trade Compliance Consultant for Export Solutions -- a full-service consulting firm specializing in U.S. import and export regulations.