If your company is depending on a busy shipping department for export compliance you may be at risk. Let shippers do what they do best by moving the freight. Export compliance should be a front end and not a back door process.
While risk management always gets C-level attention, export compliance is often a mid-management or lower level function. Fines and penalties for violations are significant enough to make export compliance a basic part of risk management. Violations of the Export Administration Act (EAR) may be subject to both criminal and administrative penalties. Criminal penalties can reach 20 years imprisonment and $1 million per violation. Administrative monetary penalties can reach $11,000 per violation and $120,000 per violation in cases involving items controlled for national security reasons. Violations are posted on the Bureau of Industry and Security (BIS) website which makes adverse publicity a deterrent for any corporation. In addition, compliance issues can expose companies to regulatory scrutiny by government agencies, including Customs and Border Protection (CBP) and Departments of State, Commerce, and Treasury.
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