Export Compliance Program Seventh Element: Handling Violations and Taking Action
July 29, 2021
(The Exporting Source)
by Blake Gill *
As we come to the last of functional elements
of an Export Compliance Program (ECP), we
arrive upon one of the dreaded topics of how to
handle violations and take action. This
element must be clear and concise on how an
organization should handle any potential
violations and the inevitable investigation.
Handling violations is not often
included in an ECP or considered by management.
Some management teams believe that because an
export team exists, and a compliance program is
in place that it will prevent violations from
occurring. Let’s set the tone straight: this
is NOT reality in any company. The truth is
that your company is expected to have
violations. Early detection and quick
reactions will be the key to reducing exposure.
All the previously discussed elements will aid
in early detection of violations, and time is
of the essence.
An internal and external reporting
process should exist for reporting all
noncompliance issues. A specific investigation
process should exist to quickly follow up on
the activities that trigger a response.
Disciplinary actions should be specifically
annotated within your ECP and should be
enforced. A lackadaisical response to a
potential violation will create a nonchalant
attitude towards compliance within the
organization.
Support from executive management will
be extremely critical at this point. A safe
environment must exist so that there is open
communication and a culture that fosters
compliance can grow. Employees must feel safe
and encouraged to discuss violations so proper
action can be taken. Organizations are given a
medium by the Bureau of Industry and Security
(BIS) to disclose potential violations.
As mentioned earlier, companies are
expected to have violations. It is a sign that
your program is working as intended since a
violation has been identified and reported.
The violation handling is then put to test with
a voluntary self-disclosure. This disclosure
will include how the organization will resolve
the violations and how preventative actions
will be put in place to prevent the same
violation from occurring. It is encouraged to
seek external professional support, such as an
attorney or trade consultant, to assist with
the disclosure and corrective action process.
I want to encourage any readers that
may feel worried about violations; most
disclosures will not face significant penalty.
The government is there to support your
business and work with you to build a better
compliance program. Don’t look at them as
the enemy; they are your friend in the process
and want to see your business grow and be
prosperous.
* Blake Gill is an experienced International Trade Compliance professional with a demonstrated history of work in the technology industry. He has many years of experience working with export control, customer screening and item classification over a wide variety of products. Additionally, Blake has performed the duties of Empowered Official at multiple international companies.
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