Do you have a rock-solid export compliance plan in place? Exporters are under more scrutiny than ever by the U.S. government, and regulations are constantly changing. Fortunately, we have the extensive experience to help with all aspects of international trade, from identifying and avoiding potential risks in your supply chain to understanding the International Traffic in Arms Regulations (ITAR) — and everything in between.
Export Filing Process and Reviews
Learn about Automated Export System (AES) from A to Z.
Many exporters rely on their freight forwarder to file their Electronic Export Information (EEI) in the AES. Though this business arrangement is quite common, it tends to perpetuate the misconception that the forwarder, not the exporter, is responsible for AES filing errors and other AES compliance requirements. While it’s true that a forwarder can be held accountable for their own data entry errors, they are not liable for verifying the accuracy of the information supplied by the exporter — that’s the exporter’s responsibility.
Mohawk Global Trade Advisors specializes in bridging these compliance gaps to help exporters mitigate or avoid costly penalties. Even if you self-file in AES, we can help you uncover violations that you may have missed, recommend improvements to your current processes and train your staff on how to properly file your EEI.
MGTA’s AES services include:
- AES Procedure Audit: Evaluation of your existing AES procedures, gap analysis review and recommendations for correcting and improving your compliance with current regulatory standards.
- AES Recordkeeping Review: Review of your AES records for potential violations, a detailed report of our findings and recommendations for best practice improvements.
- AES Training: On-site staff training in AES filing, internal recordkeeping, changes in AES due to recent export control reforms and where to find AES filings in the ACE portal. (link to ACE page)
Did you know…?
- All Commerce and State Department licenses require an AES filing.
- Most export transactions with a value of $2,500 or more, except those destined for Canada, will require an EEI filing in AES.
- The U.S. Principle Party in Interest (USPPI) is responsible for the accuracy of AES filings, even if a freight forwarder files the information.
- AESDirect is free to use.
Many companies misuse Foreign Trade Regulations (FTR) exemptions. Here is a list of common FTR exemption codes and what they mean.
See Appendix D of the FTR for a complete list of exemptions.
- NOEEI 30.36: for shipments to Canada
- NOEEI 30.37(a): for shipments valued at $2,500 or less, per Schedule B
- NOEEI 30.39: for shipments to the U.S. Armed Forces
File your EEI in AES for free using AESDirect. Learn how to register and more.
Foreign Trade Regulations (FTR)
An online copy of the FTR
AES Compliance Best Practices
Examples of AES best practices and compliance strategies compiled by the U.S. Census Bureau.
ITAR – International Traffic in Arms Regulations
ITAR violations can be costly, which is why it pays to work with an advisor who can help you avoid them. And sometimes the most costly trade violations are the ones you can’t see. While the International Traffic in Arms Regulations (ITAR) have been in existence for decades, many companies unknowingly violate these laws − and the consequences can be devastating.
Criminal ITAR penalties can reach up to $2 billion and 20 years in prison per violation. On top of hefty fines and potential prison time, ITAR violations can also result in your products being seized and export privileges revoked.
It’s clear that ITAR penalties are no joke. Avoid them by partnering with the compliance experts at Mohawk Global Trade Advisors, and let us help you stay compliant and within regulations.
Our ITAR consultants can:
- Guide you through the process of obtaining a commodity jurisdiction for your product
- Assist your company in obtaining your product’s required licenses from the Department of State
- Add ITAR procedures to your existing export manual
- Develop an export manual that includes ITAR procedures
Frequently Asked Questions
Anyone who manufactures or exports defense articles or services is required to be registered with the Directorate of Defense Trade Controls. Additionally, abiding by the ITAR requires a sound export control manual that addresses management oversight, export controls, policies/procedures, recordkeeping, auditing and training.
When is the last time a third party completed an assessment of your ITAR processes and procedures? Ideally, these should be audited once a year by an independent third party. It’s quite common for companies to overlook ITAR violations occurring in their own operations. Contact MGTA today to learn how to expose and resolve these compliance gaps.
With increased regulatory enforcement and the Export Control Reform Initiative currently underway, it’s imperative that your business stay in sync with current regulations. There are many changes in the works that may directly affect your products and how you conduct business.
The purpose of a commodity jurisdiction request is to determine whether an item or service is covered by the U.S. Munitions List (USML) and therefore subject to the Department of State’s International Traffic in Arms Regulations (ITAR).
If you’ve reviewed the U.S. Munitions List and other relevant parts of the ITAR ─ §120.3 and §120.4 in particular ─ and you are still unsure of the export jurisdiction of your item or service, you should request a commodity jurisdiction determination from the Department of State Directorate of Defense Trade Controls.
A DSP license allows or authorizes ITAR goods and technical data to be exported from the U.S. If you plan to export ITAR goods or technical data, and an ITAR exemption is not available to you, then it is likely you will need to obtain a DSP license from the Department of State before exporting. Otherwise, a violation can occur.
There are several different types of DSP licenses:
- DSP 5 – permanent export of unclassified defense articles and related technical data
- DSP 61 – temporary import of unclassified defense articles
- DSP 73 – temporary export of unclassified defense articles
- DSP 83 – non-transfer and use certificate
- DSP 85 – permanent or temporary export/import of classified defense articles and related classified technical data
- DSP 94 – authority to export under military sales
First, you will need to be registered with the Directorate of Defense Trade Controls. Once registered, you must then apply for a DSP license. If you are unfamiliar with ITAR licensing, we can help. MGTA will guide you through each step of the process, from registration to licensing. Give us a call to discuss how we can assist you with ITAR licensing.
Contact us today for help with your ITAR needs.
Export Licensing and Classification Assistance
Simplify your export license process today with MGTA.
Not sure if your shipment requires an export license from the U.S. Department of Commerce or the U.S. Department of State? Mohawk Global Trade Advisors will help you find out.
Often, it depends on factors such as:
- Commodity – what is being exported
- Classification – the proper classification of the item
- Jurisdiction – Department of Commerce, Department of State or other government agency/department
- Destination country – not all countries require an export license
- End user – depending on the nature of their business
- End use – licenses are required for certain end uses
Once we’ve helped with your export licensing requirements, MGTA can:
- Advise you on how to apply for U.S. export licenses
- Train you to properly export licensable goods
Export Process Review and Gap Analysis
Before you can optimize your export compliance processes, you have to know where you stand. Gain a clear view of the big picture with a comprehensive export compliance process review and gap analysis from Mohawk Global Trade Advisors. The results will allow you to understand how your current compliance procedures compare to standards established by the U.S. Bureau of Industry and Security, Department of State and other government agencies.
The process includes:
- Export manual review
- Export control processes review
- Export documentation review
- Recordkeeping review
- Written gap analysis
Program Development and Manuals
Export compliance programs are not meant to be one size fits all.
Why pay for an export compliance program that includes policies you don’t need? Let Mohawk Global Trade Advisors build your compliance program and determine exactly what you need, then customize it to fit your unique operations.
Our export compliance programs can cover both EAR and ITAR, and include any or all of the following:
- Written export compliance manual with policies and procedures individualized to your organization’s requirements
- Policies and procedures including AES, licensing, classification, screening, recordkeeping, documentation and more
- Review and analysis of your existing export compliance program
- Templates, forms and other tools to help your staff easily manage and maintain the program
- Training your key export personnel in all aspects of your program
Start building a better export compliance program today. Contact us to learn more or schedule an initial consultation.