Export control is the control of dual-use items such as goods, technology, software, and military commodities like armaments, and weapons that are mainly of strategic importance.
Export control is the control of dual-use items such as goods, technology, software, and military commodities like armaments, and weapons that are mainly of strategic importance. Since the United States regulates controls of these items, it has an impact on international research collaboration, procurement and purchase transactions with restricted countries, trade affairs, etc. However, it prevents illicit or illegitimate use of these commodities by nefarious groups like terrorist entities, etc.
What was once taken voluntary by the exporters, the latest regulations spread a trouble for them. In the wake of various geopolitical situations, the regulations of ITAR, OFAC, and EAR undergo changes to prevent illegal trade of weaponry, armaments or technology. So, how does it stop? Do exporters need to follow all the rules? Indeed, exporters follow through compliance measures for avoiding penalization or criminal offences.
Technology to keep troubles at bay
Identifying or screening dubious entities in this chaotic world isn’t too simple, right? Technology has paved way for ideal export control and compliance. It doesn’t deem fit for an exporter to exercise transparency in business operations yet fail in one point or another.
Product classification software enables automated and step-by-step USML, ECCN, and HS classification. Exporters can now look into the list of definitions and requirements and identify if their product is permitted for export or not. Similarly, businesses can access import product classification measures. This software also features information regarding license requirement for specific destinations or countries, license exceptions, warnings for restricted countries, etc.
Quick access to license check and export regulations make it convenient for businesses to focus on further operations. Since it comprises the library of information regarding EAR, OFAC, FCAR, ITAR, Nuclear Regulatory Commission, Foreign Trade Regulations, and others, organizations have search-simplified answers for compliance needs and license requirements.
Another important feature like restricted or denied party screening gives access to cross-verify business partners, suppliers, consumers, visitors, employees, consultants, and vendors against the lists denied/restricted lists issued by the government agencies or foreign trade agencies. These lists mainly feature entities banned by different governments, such as terrorist groups, PEPs, money laundering individuals, etc.
DFARS Compliance – A Brief Overview
The fascinating subject of export control brings forth various terms for businesses or organizations that one might feel unheard of. DFARS or Defense Acquisition Federal Regulation Supplement helps maintain cyber security standards for the requirements laid out by NIST or National Institute of Standards and Technology.
With respect to data security, the Department of Defense has set straightforward requirements from contractors, which include safeguarding defense information from unauthorized disclosure and access and reporting of cyber incidents. Though these guidelines may seem a little bit on the lighter side, the adequate safeguarding requires assessment in various terms, including risk and security assessment, media protection, maintenance, audit, accountability, system integrity, information security, personnel security, training and awareness, access control, communications protection, and so on. The objective of compliance and control ensures the highest security standards and zero violations that may benefit adversarial entities or so.
Linqs Group writes about export control and compliance measures, including EAR, ITAR, OFAC, etc. He discusses the main objective of export control followed by DFARS compliance measures for cyber security. Reading into these details will help exporters/importers, organizations, businesses, etc. to implement the right measures and deploy technology that makes it simple.