U.S. export regulations are complex and both U.S. exporters as well as foreign companies that export, re-export or transfer products subject to U.S. export regulations must be in full compliance in order to avoid major fines and penalties that can cripple a business. At TSI Global Consulting we offer export compliance training that is structured to provide the tools necessary for management and line function staff to ensure compliance with the U.S Export Administration Regulations (15 CFR Parts 730-774) which regulate the exports, re-exports and transfer of commercial as well as “dual use” and some lower sensitive defense related products, software and technology. We also train corporate management to ensure compliance with higher level defense/military exports that fall under the jurisdiction of the International Traffic in Arms Regulations (22 CFR Parts 120-130) regulated by the U.S. Department of State. Our proprietary training modules are offered in a seminar format using alternative methodologies including face-to-face delivery either in your company conference room, at our office in San Antonio, Texas or by live online delivery using one of the latest current generation audio/visual web conferencing platforms. Our proprietary export compliance training modules include:
** All training modules are offered for delivery either in person or by Microsoft Teams live online/video conferencing**
An Introduction to United States Export Controls: Overview of Policy and Procedure
This 4.5 hour training module, driven by 78 PowerPoint slides with accompanying hard copy handouts of various sections of the EAR and ITAR provides a broad but also technically deep overview of both the Export Administration Regulations and the International Traffic in Arms Regulations. Some of the topics covered include:
- Why are exports subject to Federal Regulation
- Key Definitions of the EAR and ITAR (i.e. Export, Foreign Persons, Defense Articles, Technology versus Technical data)
- Overview of the Regulatory Agencies for U.S. Export Controls (Department of Commerce, Bureau of Industry and Security, Department of State, Directorate of Defense Trade Controls and Department of the Treasury, Office of Foreign Assets Controls)
- DDTC Licensing (Who needs a license? What are the various types of licenses? How are they filed?)
- ITAR Compliance issues (Destination Control Statement; Marking and labelling requirements etc.)
- Major ITAR exemptions (Part 123.16 Low Value Shipments, Part 126.5 Canada exemptions etc.)
- What is and What is not regulated under the EAR (de minimis rule, foreign direct product rule)
- Overview of the Commerce Control List (Part 774) and the “Export Control Classification” or “ECCN” system of classification.
- How do you file for BIS ECCN classifications and Export Licenses + “best practices” for drafting and filing.
- Overview of required Support Documentation for license applications
- Screening End Users and End Uses for possible EAR violations—Procedure and best practices.
- Filing voluntary disclosures
- Fines and Penalties under the ITAR and EAR
Essential Elements of an Effective Export Management Compliance Program (EMCP)
This two hour, 30 PowerPoint slide training module with accompanying handouts and templates provides an overview of the recommendations and guidelines provided by the U.S. Department of Commerce Bureau of Industry and Security (BIS) for structuring an effective company specific Export Management Compliance Program. Topics covered include:
- What is an export compliance program
- 9 Key elements of an effective Export Management Compliance Program
- Getting Started with your EMCP: Forming an effective task force
- Developing a task force agenda
- Key element one: Senior Management Commitment & How to Draft the Commitment statement
- Key Element Two: How to Identify Compliance Vulnerabilities & Risk Assessment
- Key Element Three: The Written Export Compliance Manual: What it needs to include and how to draft it
- Key Element Four: Export Compliance Training (Who, What, Where, When, Why and How)
- Key Element Five: Cradle to Grave Export Compliance: Procedures for classification, license determination, screening and regulatory compliance. Developing your internal company systems and processes.
- Key Element Six: Recordkeeping: Who, What, Where and Why? EAR Requirements
- Key Element Seven: Monitoring and Auditing: Review of the BIS Audit Module
- Key Element Eight & Nine: How to handle and report problems, violations and taking corrective action.
Export Control Reform in the Aerospace Industry: A Technical Overview
This two hour 32 PowerPoint slide training module with accompanying handouts is prepared specifically for exporters of commercial and military aircraft parts and components addresses the recent export control reforms that shifted export control jurisdiction of most military aircraft parts, components, software and technology from the ITAR to the new Series 600 of the Commerce Control List. The presentation is driven by 40 PowerPoint slides with accompanying handouts. Some of the topics covered include:
- Export control reform (historical background, implementation schedule, summary of the new rules)
- What Military Aircraft and related parts and components will remain on the USML and which move to the new 600 Series of ECCNs
- Definition of the new “specially designed” rule (Part. 734.3)
- License Exceptions for Series 600 parts/components/software and technology: A detailed Overview
- General Restrictions on use of license exceptions
- Low Value Shipment (LVS)
- Temporary Exports (TMP)
- Repair and Replace (RPL)
- Government (GOV)
- Technology and Software Unrestricted (TSU)
- Strategic Trade Authorization (STA)
- Series 600 re-export considerations
- AES filing requirements
- Do You Understand the Proposed New Export Control Regime: Test Yourself Case Study Application
Best Practices for Safeguarding Against Diversion in Export Transactions
This 90-minute PowerPoint slide driven training module will help exporters by providing best practices to safeguard against EAR and ITAR violations for diversion to unauthorized end users and end uses. In the aftermath of Russia’s invasion of Ukraine, the U.S. and other western nations adopted complex trade restrictions for exporting, re-exporting and transferring US origin products that are subject to the EAR to Russia, Belarus and the occupied territories of Ukraine. In addition, new complex military end user and end use rules prohibit export of many commercial and dual use products to China and a handful of other countries if the end user is defined as ‘military” which includes engagement in any sort of activity that supports military end users or end uses (broadly defined). Screening and due diligence has become increasingly complex and burdensome, but also critically important to avoid EAR and ITAR violations that are imposed on firms that either knowingly or unknowingly export to clandestine procurement networks that are using shell companies and counterfeit documentation to source US origin goods for end use destinations and purposes that are in violation of US regulations. This short seminar will provide your company with today’s best practices for safeguarding against unauthorized diversion. Topics covered include:
- Know Your Customer Guidelines
- Examples/Templates for effective End User/End Use Certification Documents (EUC)
- Techniques for Deep Screening Foreign Parties
- Conducting effective due diligence
In addition to providing the above modules, we always welcome the opportunity to customize a training module based on your company’s specific needs. The cost to provide your company with export compliance training using one of our proprietary modules is dependent upon the amount of training required as well as the delivery method (i.e. in person versus live online webinar). For complete details on cost and our current lead time for scheduling training for your company contact Jonathan Fink at jonathan.fink@tsiglobalconsulting.com or call the office at 210-757-0618.
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