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Huawei’s surprise placement on the BIS Entity List highlights the crucial need for your company to have a compliance program in place.
Many people believe export compliance programs only apply to the big guys – however, even the smallest business that sends their products to customers outside of the country are subject to the various export regulations and the steep penalties for export violations. as the saying goes, Ignorantia juris non excusat or ignorantia legis neminem excusat (Latin for “ignorance of the law excuses not” and “ignorance of law excuses no one” respectively).
Small and medium sized company personnel may not know of these requirements until it is too late – fines for export violations can reach up to $1 million per violation in criminal cases and administrative cases can result in penalties amount to the greater of $250,000 or twice the value of the transaction. Criminal violators may even face up to 20 years in jail time and punishment for administrative cases can include denial of export privileges – it’s a risk you can’t afford to take.
Here are a few quick tips to protect your company –
- Be sure your exported items do not require an export license.
- Determine if the destination country requires an export license.
- Know your customers – screen who is buying your goods and be sure a restricted party does not receive your goods.
- Red flags – does the destination country of your product meet a need for your product?
- Be sure you have a copy of all the required documentation – it is not enough to hire a freight forwarder to handle the export.
For more information and a no obligation consultation on creating an export compliance program – contact experienced compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com or attorney.dave@yahoo.com.