Basics of Export Regulations
Apr 18th, 2011 Matt Gardner
International Traffic in Arms Regulations (ITAR) are compliance standards or regulations of the United States government which set controls for the export and import of defense articles and commercial products on the United States Munitions List (USML). The list, so to speak, is subject to change so as to remain current with the development of new technology, evolving/devolving relationships between the United States and other countries, and other relevant variables.
Also governing with ITAR is the Export Administration Regulations (EAR). EAR contains the Commerce Control List (CCL), a detailed record of regulated commercial items including varied commodities, software technologies, certain building material, circuit boards, automotive parts, blue prints (basic and technical), design plans, and retail software goods. The government still holds exporting companies responsible for knowing what export licenses and paperwork are required under CCL classifications.
There are serious penalties under export laws, for civil and criminal acts. If a company is found not to be in compliance with ITAR regulations, it can result in civil fines as high as $500,000, per offense. For criminal penalties, fines can amount up to $1,000,000 plus 10 years in prison, per violation. On the other hand, under EAR regulations, civil fines can go as high as $250,000 per offense. Criminal penalties under EAR are as high as $1,000,000 and 20 years imprisonment, per violation. ITAR and EAR regulations can be very complicated and a company could inadvertently violate a regulation with heavy consequences.
Because of the dynamic nature of ITAR and EAR regulations, using an outsourcing company is a wise business decision. Outsourcing companies provide essential legal and regulatory support and knowledge, which is vital regardless of the size of your business. The outsourcing firm serves as your surrogate export department by making shipping arrangements, making sure your products are ready for shipping by taking care of the invoicing to either your overseas purchasers or within the U.S., and guaranteeing that all legal procedures are adhered to. Furthermore, this is accomplished at a cost much lower than that of maintaining an internal export department, thus saving businesses more in the long run.
Outsourcing your exports to a professional staff experienced in import/export control matters will help avoid inadvertent violations, which could result in criminal and civil sanctions. A business must make sure that the outsourcing company they plan to use is fully knowledgeable of ITAR standards and regulations in order to ensure that all shipments are fulfilled legally.About the Author:
Elymat Industries Inc. is a professional export outsourcing company. Serving the Military Aerospace Industry for 35 years, we specialize in obtaining US State Department and Commerce Department licenses to ship these products overseas.http://www.elymat.com/
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