Is Your Company Prepared?

In a modern era defined by geopolitical volatility, many global authorities have reacted to circumstances of evolving unrest and uncertainty by revisiting longstanding export practices and tightening rules designed to shore up national security.

Most recently, on April 28, 2020, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”), which is charged with administering and overseeing much of the U.S. export control landscape, published three amendments to the Export Administration Regulations (“EAR”), each of which are expected to significantly impact companies that must export controlled goods or technologies abroad. Two of these amendments took effect on June 29, 2020, while the third remains open for public commentary while it is finalized.

Critically, these BIS rules have been substantially expanded and now apply to a broader range of export activities that previously did not pose any particular enforcement risks. Moving forward, therefore, companies must take special note of how these updates apply to their own export regimes and thereby ensure alignment with these updated Commerce Department mandates by working to strengthen their existing export licensing and compliance efforts.

What remains true is that even accidental or unwitting export violations typically implicate national security and, as such, can create devastating consequences for noncompliant companies’ reputations and bottom lines. Remaining abreast of these updated regulatory schemes thus takes on a renewed significance for sustained business success in an era defined by rapidly-changing export risks. This white paper provides an overview of BIS’s recent regulatory revisions, prescribes several best practices for your company to remain compliant with global export control policies, and then highlights the indispensable role of industry-leading compliance technologies in achieving export success.