MA Export Ctre "risk assess" may 2006

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MEC EXPORT COMPLIANCE AWARENE

Presented by Paul Divecchio DiVecchio
Associate Phone (617)
513-3230, Fax [phone]
Email pauldivec_at_earthlink.net
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(No Transcript)
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Export Compliance Decisions
1. USE COMMON SENSE!!
Everybody Has it??
2. Document Decisions
Demonstrate your D2 Due Diligence
3. Abide by the Exporters Cardinal Rule
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What You Know! Stated Implied
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Company Objective

• Dont be an Ostrich !
• ENHANCE EXPORT OPPORTUNITIES
• RISK AVOIDANCE

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• CURRENT CLIMATE
• Mandatory AES Compromised (DHS vs. Census)
• Patriot Act Penalty Increase - 10K to 50K
• PRC Catch All-conventional military
• Enforcement Oversight - AGRESSIVE
• Industry Compliance Initiative A MUST

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• What can happen if it goes wrong?
• Fines
• Negative Publicity
• Denial export Privileges
• Disruption of Business
• Jail Time

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Methods of Enforcement

• Industry Sources - Informants
• Intelligence Sources
• Outreaches
• Safeguards Verification Program
• Visa Application Review Program
• Export Document Review (Targeting)
  ( SED/AES, Airway
  Bills, Bills of Lading)
• Public Sources - Newspapers, Trade Publications,
  Internet

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KEY EXPORT COMPLIANCE RISKS

• WRONG JURISDICTION (Boeing L3)
• CLASSIFICATION (NONE/WRONG)
• GLOBAL DENIED PARTY REVIEWS
• SLOPPY PAPERWORK
• EMBARGOES DIVERSIONS
• ANTIBOYCOTT COMPLIANCE
• TECHNICAL DATA TRANSFER
• EMPLOYEES
• OUTSOURCE
• CUSTOMERS DATA
• SPONSOR LETTERS FOR VISAS

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Some helpful websites

• www.bis.doc.gov - Bureau of Industry Security
  (BIS), U.S. Dept of Commerce -BIS EAR, press
  releases
• BIS web site RESOURCE LINKS takes you to other
  federal agency web sites
• www.census.gov/foreign-trade/schedule/b/index -
  U.S. Census Bureau - Schedule B Nos.
• www.treas.gov/offices/eotffc/ofac Office of
  Foreign Assets Control (OFAC)- summary sheets on
  embargoed (and other) countries
• www.cbp.gov/xp/cgov/export/aes - U.S. Customs
  and Border Protection - Automated Export System
  (AES)

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EFFECTIVE COMPLIANCE PROGRAMS

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  EXECUTIVE COMMITMENT
• Corporate Governance establish a code of
  conduct
• Compliance Focal Point
• Location/Authority/Skill Sets/Budget/Recognit
  ion
• Compliance Team
• Engagement High Morale
• Global Compliance
• All Divisions
• Subs/Branches/JV
• Unaffiliated
• Compliance Assessments (not audits)
• Include acquisitions
• Education Corporate Awareness

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HOW TO ACHIEVE ! KEY COMPANY ISSUES

• RESOURCE COMMITMENT
• Classification of products/technology
• Technology Transfer Monitoring
• Company Export Compliance Manual (formal)
• Company Personnel Awareness (training/education)
• Integration of Compliance with acquisitions
• Subsidiary Compliance
• Pro-act with governing licensing agencies
• Automation of the Compliance Program

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Company ComplianceToday

• Corporate Education (company awareness-global)
• Corporate Training (operational personnel)
• Roll out Formal Compliance Program
• Form Compliance Committee
• Automate Compliance Checks Wherever Possible
  
• lt Maintain a Robust Program gt

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EVERYONE'S ACCOUNTABLE