January 9th, 2022

When exporting commodities internationally, there are certain guidelines that your packages must comply with, and adhering to these guidelines is involved in the export compliance process. What exactly is export compliance? Export compliance is ensuring the adherence to certain laws and guidelines when sending off a shipment to an international location. Export Compliance is a requirement by the United States Department of Commerce developed to enforce the Export Administration Regulations (EAR) and regulate the export of “dual-use” goods or products that are utilized for commercial purposes, as well as for military uses.

Why Export Compliance is Vital?

The protocols involved in export compliance, which were launched in 1996, are extremely important for a number of reasons. It is absolutely essential that the United States as well as the foreign countries where you’re exporting packages be made aware of exactly what is contained in each shipment. National security and trade protection are the two main reasons for the creation and enforcement of export compliance. One reason why export compliance became a regulation is because of potentially dangerous shipments that were being shipped internationally, which could be perceived as weapons of mass destruction. This is why it’s necessary for you to complete many documents for custom purposes, including a packing list, Country of Origin form, SLI form (Shippers Letter of Instructions) and Commercial invoices are the most common documents required when exporting goods internationally. Failure to comply with the various laws and guidelines that have been set forth could result in your shipments being confiscated. You also face the possibility of being fined as much as $1,000,000 per violation. Corporations or individuals found to have purposely violated the laws may be fined up to $1,000,000 per violation or sentenced to up to ten years in prison. Depending on the circumstances, some violators may be simultaneously fined as much as $1,000,000 per violation and also imprisoned for failing to comply with export guidelines.

Regulations Surrounding Export Compliance

The Arms Export Controls Act (AECA) and the International Traffic in Arms Regulation (ITAR) are the agencies that enforce these laws. The Secretary of State may also opt to assess civil penalties for any individual or business found guilty of failure to comply with regulations, which may be as much as $500,000 for each violation. The civil penalties may be required either in addition to or in lieu of, any other fines, jail time, or penalties. While there are official export compliance programs available that can help companies minimize their risk of non-compliance when it comes to complying with the laws of export compliance, these programs aren’t a requirement in the United States. However, more and more corporations are recognizing the benefits of these programs, because all employees working with international exports need to be thoroughly trained to ensure that the company maintains its compliance at all times. One tiny error could cost a company a great deal of money, and possibly even more. 

Working with Shipping Agencies

Some companies are even opting to invest in the services of military and international shipping agencies that are able to expertly manage all of their international shipments, while simultaneously educating themselves and their employees on the importance of export compliance, as well as the specific guidelines. These shipping agencies have specific knowledge regarding the entire process of exporting, from A to Z. Kaiser & Johnson is a military and international shipping agency that would be more than happy to assist your company with all your shipping tasks, while ensuring that your company always remains in adherence to export compliance laws at all times. Kaiser & Johnson works with a team of freight forwarders that are custom compliance experts and can ship your products to many destinations around the world.

Contact Kaiser and Johnson Today

So, if you’d like to simplify your life when it comes to exporting items internationally, you should consider utilizing the services that we have Kaiser and Johnson. We have several decades of experience expertly managing the military and international shipments of thousands of businesses. Give us a call today at (314)664-6768 and we’ll provide you with a fair and fast estimate, so we can get started with exporting your shipments right away.