My company doesn't have the finances to hire staff for a complete compliance program.  What should I do?

Outsource -- either the whole program or on a project basis.  In today's tough regulatory environment, it is imperative that companies employ stringent compliance programs.  The costs are too great for violation, ranging from significant fines and negative publicity to loss of import or export privileges.  Choosing to outsource entire compliance operations or components of them ensures that your company complies with ever-changing regulations, protecting your ability to conduct business and mitigate financial risk.

What kinds of records do I need to maintain for my import and export shipments?

As an importer or exporter of record, you must keep all records related to your import and export transactions for 5 years.

Import: all documents noted on the (a)(1)(A) list, including Customs entries, Powers of Attorney, packing lists, commercial invoices, transportation documents, and anything else related to the import transaction. 

Export: export control documents, memoranda, notes, correspondence, contracts, bids, accounting and financial records, documents related to restrictive trade practices, as well as anything else related to the export transaction.

How can I ensure that my customer will not re-export my U.S. products to an embargoed country?

Nothing is guaranteed, but these steps could help:

• Your customer service and marketing representatives should thoroughly screen customers.  If there are any red flags, address them immediately.
• Ask your customer to sign a document stating they will not re-export your product.
• Include destination control statements on commercial invoices.
• Keep records.

What are common importer errors?

Importers generally make errors surrounding valuation (assists, supplemental payments, non-dutiable costs, and related-party transactions, and buying commissions), classification, U.S. Goods Returned and U.S. Components, Special Trade Programs, and Record keeping.  In order to avoid these pitfalls, do your research, and above all, partner with the right team of advisors. 

What items are subject to U.S. export controls?

• All items in the U.S.
• All U.S. origin items, wherever located
• U.S. origin parts, components, and materials incorporated abroad into foreign-made products
• U.S. origin technology/software commingled with foreign technology/software
• Certain foreign-made direct products of U.S. origin
• U.S. persons and foreign nationals