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An export checklist is a necessity for any U.S. company doing business internationally. It should include information on restrictions on items leaving the U.S., restrictions on items entering certain countries, relevant packaging and labeling information, and any pertinent financial information. However, a checklist isn't sufficient to ensure export compliance. The Department of Commerce's Bureau of Industry and Security (BIS), the Directorate of Defense Trade Controls, and the Treasury Department Office of Foreign Assets Control are the three main government agencies responsible for enforcing U.S. export controls, and the best way to ensure your business complies with all the export controls to which your products are subject is with an export compliance audit. Companies New to International Trade Companies new to international trade may choose to undergo an export audit by an export compliance consultant in order to establish a robust export compliance program. Some companies may have traded internationally in the past, but due to changing regulations have come under new export compliance regulations. These companies can benefit greatly from a compliance audit. Other companies may have only recently expanded into areas that are subject to export controls, and for these companies too it is vital to establish an export compliance program and test it to ensure that risk of violations is minimized. Auditing Established Export Control Programs Even in companies that have traded internationally for many years, the periodic audit of export procedures is important, because regulations change frequently, and it is not always easy to keep up with every change affecting a business. These audits can help companies look at past activity and see where new problems may arise. For example, there are laws that prohibit dealing in products that were unlawfully exported in the past, such as when a previously exported item needs repair. And the truth is that any company that does business internationally benefits from a periodic audit of their established export compliance programs to ensure that they are still applicable and still cover everything they are required to. When an audit shows a past infraction, changes can be made so that the infraction doesn't occur again. What to Look for in an Export Auditor An export compliance audit may be performed by a consultant who specializes in export controls. Sometimes these audits are overseen by a company's in-house counsel so that attorney-client privilege is established. Any export control auditor should not only have thorough knowledge of all relevant export laws and regulations, he or she should also be completely up-to-date concerning changes in regulations, which occur frequently. Areas the Audit Should Address An export control audit should begin with a determination of which U.S. controls apply. The auditor should determine whether the company has adequate compliance policies and whether employees are adequately trained, both for maintaining awareness of export requirements and for learning about changes in regulations. Physical controls, IT controls, and adherence to U.S. economic sanctions are other areas that should be addressed in a compliance audit. A checklist is an excellent starting place for export compliance, but an audit of compliance procedures is the best way to ensure your company follows all applicable international trade regulations.
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