It is strongly recommended that any acquiring party conduct a thorough review of divesting party’s export compliance practices and procedures. Such a review will provide a more complete understanding of possible past ITAR or EAR violations and may assist the acquiring party in determining if there are specific internal controls weaknesses that should be addressed.
Wilmarth & Associates’ due diligence reviews include a thorough review and written analysis of a company’s export transactions and activities in the following areas:
- Adequacy, accuracy, and effectiveness of export control policies, procedures and practices
- Accuracy of export documentation and maintenance of documents and records
- U.S. export licensing jurisdiction/classification of product
- Review of existing EAR and ITAR licenses, applications, use of licenses and license exceptions and exemption provisions
- Review of procedures for technical data and assistance provided to foreign customers and suppliers
- Review of control over Foreign Nationals including employees and subcontractors
- Review of facility controls related to export compliance
- Adherence to denial/debarment and other restricted parties list restrictions and required controls
- Legal liability and responsibility for export transactions
- Evaluation of service providers’ liability and responsibility
