Year End Review of Compliance Requirements

As 2022 draws to a close, now is a good time to review your company’s compliance program and address any deficiencies that might come to light. The following are compliance matters that should be reviewed and acted upon on a yearly basis.

Training: All employees who are involved in export decision-making should receive yearly training.  Additionally, any new export involved employees should be trained within 90 days of hire and be supervised during their involvement in export activities prior to completion of this training.  Wilmarth & Associates offers comprehensive training in export compliance requirements.

Audit: An annual gap analysis or audit should be carried out every year to ensure compliance with U.S. Export Laws and Regulations and with your company’s Export Policies & Procedures. This audit can be completed by a Wilmarth & Associates expert to ensure all aspects of your export compliance are being followed and that there have been no violations which need to be voluntarily disclosed. Alternatively, Wilmarth & Associates can assist you in drafting an audit guide to be used and followed by your company’s Export Control Officer for an internal audit.

Registration: Yearly compliance requirements include State Department registration renewal if your company’s manufactured items or defense services fall under ITAR jurisdiction. An expiration notice will be received by email from DDTC. If you are renewing December-March, you will need to enroll in DECCS, DDTC’s new electronic system.

Licensing: Exporters should also review expiring licenses and apply for renewal/replacement licenses several months prior to expiration to prevent a gap in licensing. A review of licenses and agreements should include a review of any licensing authority required to be replaced or amended due to Export Control Reform. This is especially important this year as DDTC and Commerce license reviews are taking longer due to Covid-19. Additionally, new licensing conditions require annual reporting of the immigration and employment status of all foreign nationals under State or Commerce Department licenses.

Policies & Procedures: Export Policies and Procedures should be reviewed and updated regularly. 2022 saw many significant regulations changes that require amendments. Reviewing your Export Policies and Procedures is also a good way to reinforce (along with an audit/review) the requirements for export involved employees and confirm that the written procedures are being followed and are understood.

Vendor/Supplier Certifications: Prior to your company’s transfer of controlled technical data, vendors and suppliers should be required to confirm their compliance with ITAR/EAR regulations through a supplier certification letter, which should be received and updated on an annual basis.

Burma, China, Russia, Belarus, and Venezuela: Companies should review their Burma, Chinese, Russian, Belarus and Venezuelan end users as restrictions on military and military intelligence end-users in these countries have been instituted restricting what items, including some EAR99 items, you can export without a license.