International Trade Compliance - 9 Principles Of Effective Compliance Programs

Next to willful violation, self blinding (refusing to accept information about an

export) is the most significant aggravating factor in increasing an exporters chance of getting slapped with a major civil penalty from the Bureau of Industry and Security (BIS). So, what is the best way to mitigate administrative penalties? Effective compliance programs, says BIS Assistant Secretary Darryl W. Jackson.

At a recent BIS Export Control Forum 2008 in Newport Beach, CA, Secretary Jackson stated that "for effective compliance programs, we give 'great weight mitigation' - a reduction of 25 percent - in assessing the penalties in administrative cases". He continued by saying that the Department of Justice is focusing more resources on export violations, so you should expect to see an increase in criminal prosecutions.

Thus, compliance is more important than ever. Compliance will help you avoid enforcement actions. And, if you cannot avoid an enforcement action, having an effective compliance program will get you great weight mitigation in our administrative cases if the program was in place before the violation occurred and you have taken steps to address any compliance concerns raised by the violation.

9 Principles of Effective Compliance Programs for Great Weight Mitigation in BIS's Administrative Cases:

1. Whether the company has performed a meaningful risk analysis.

2. The existence of a formal written compliance program.

3. Whether appropriate senior organizational officials are responsible for overseeing the export compliance program.

4. Whether adequate training is provided to employees.

5. Whether the company adequately screens its customers and transactions.

6. Whether the company adequately meets recordkeeping requirements.

7. The existence and operation of an internal system for reporting export violations.

8. The existence and result of internal / external reviews or audits.

9. Whether remedial action has been taken in response to export violations.

Finally, Secretary Jackson mentioned that the burden is on you, the exporter, to demonstrate that your compliance program is effective. If you are seeking great weight mitigation you must clearly demonstrate that you are entitled to it. He continued that merely sending in your lawyers to do a 'document dump' will not demonstrate adequate burden of proof required for great weight mitigation of administrative penalties.

by: James Anzalone

POST COMMENT

Testing Laptop Battery Tests How to Fix a Computer Crash and Stop Your Computer Running Slow How to Fix My Computer - Four steps to Improve computer performance Right Away Poster Printing At Its Finest Advanced Hp Rdx Hard Disk Storageworks Cartridge How To Convert Vhs To Dvd With A Dvd Recorder Outsourcing Prepress Printing Activities To India Respite Care Programs Encourage Healthy Sleep Habits for seniors Types of laptop batteries A Complete Guide - How to Extend Your Laptop Battery Life Refurbished Laptops: Save on Cost, not on Quality Epson Artisan 520: All in One Printer Save Money With Used Or Refurbished Laptops