Export Compliance Consulting

  • Former Federal Agents
  • 100 Years of Combined Experience
  • Investigations, Compliance & Defense
Chris Quick

Former Special
Agent (FBI & IRS)

Roger Bach

Former Special
Agent (DOJ-OIG & DEA)

Timothy Allen

Former Special Agent
(U.S. Secret Service & DOJ-OIG)

Ray Yuen

Former Special
Agent (FBI)

Michael S. Koslow

Former Special
Agent (DOD & OIG)

We Assist Companies Throughout the United States with All Aspects of Federal Export Compliance

Tim Allen

Compliance Team Lead – Timothy E. Allen | Former Special Agent (U.S. Secret Service & DOJ-OIG)

Domestic companies that ship products abroad are subject to numerous federal export laws and regulations. These laws and regulations apply not only to physical goods, but also digital goods in many cases. Non-compliance can have significant consequences, up to and including federal criminal prosecution.

The risks of exporting are particularly high in the defense industry and when dealing with countries and entities that are subject to sanctions imposed by the Office of Foreign Assets Control (OFAC). Defense technologies and other assets with national security implications are subject to enhanced controls, and they are subject to the oversight of the Bureau of Industry and Security (BIS). When doing business with countries and entities that are subject to OFAC sanctions, exporters must be extremely careful to ensure strict compliance with all applicable sources of statutory, administrative, and regulatory authority.

Former Federal Agents with Vast Experience in Export Compliance and Enforcement

Our export compliance consulting team is composed of former federal agents who have centuries of combined relevant experience. Having spent decades at the U.S. Department of Justice (DOJ), Federal Bureau of Investigation (FBI), and other agencies, our consultants are equally familiar with the steps required to maintain compliance and the consequences of failing to do so. These insights allow our team to provide clients with strategic, custom-tailored advice; and, when engaged for export compliance, we are able to get to work and start providing advice immediately.

Areas of Federal Export Compliance

There are several aspects to export compliance, and this is one area of corporate compliance in particular where companies’ needs can vary widely. This makes it vital for companies to work with consultants who offer significant expertise. At Corporate Investigation Consulting, all members of our export compliance consulting team are well-versed in matters including:

Bureau of Industry and Security (BIS)

The Bureau of Industry and Security, which resides within the U.S. Department of Commerce, is responsible for enforcing companies’ export compliance obligations under the federal Export Administration Regulations (EAR). The BIS also has oversight of companies that export goods and services to certain countries – including Cuba, Iran, North Korea, Sudan, and Syria. Many exports are subject to licensing requirements with BIS’s Export Administration, and BIS conducts inspections and End-Use Checks (EUCs) domestically and abroad.

Commerce Control List (CCL)

As BIS explains, “[a] key in determining whether an export license is needed from the Department of Commerce is knowing whether the item you intend to export has a specific Export Control Classification Number (ECCN). . . . All ECCNs are listed in the Commerce Control List (CCL).”

The CCL divides products into ten categories, and goods, data, and services in each category are then further divided into five product groups. Correctly identifying categories and groups on the CCL (or determining that an export does not fall on the CCL) is critical for effective export compliance. We assist exports with CCL compliance with respect to all categories and groups:

CCL Categories

  • (0) Nuclear and miscellaneous
  • (1) Materials, chemicals, microorganisms, and toxins
  • (2) Materials processing
  • (3) Electronics
  • (4) Computers
  • (5 Part 1) Telecommunications
  • (5 Part 2) Information security
  • (6) Sensors and lasers
  • (7) Navigation and avionics
  • (8) Marine
  • (9) Aerospace and propulsion

CCL Groups

  • (A) Systems, equipment, and components
  • (B) Test, inspection, and production equipment
  • (C) Material
  • (D) Software
  • (E) Technology

Export Administration Regulations (EAR)

Along with CCL compliance, the Export Administration Regulations impose various additional requirements. For example, licensing is a significant area of EAR compliance as well. When seeking to export products or services that are subject to the EAR, companies must determine if an EAR license is required, a different license is required, the product or service is subject to a license exception, or the product or service is eligible for export under the EAR’s No License Required (NLR) provisions.

We assist companies with EAR compliance in these and other areas. Our consultants can help you determine what your company needs to do to establish EAR compliance, and we can help you implement the tools and systems your company needs to maintain compliance on an ongoing basis.

International Traffic in Arms Regulations (ITAR)

The International Traffic in Arms Regulations (ITAR) apply to “defense articles,” “technical data,” and “defense services” supplied for military use. Most companies that are subject to ITAR must register with the Directorate of Defense Trade Controls (DDTC) within the DOS, and most articles, data, and services supplied for military use are subject to ITAR licensing requirements. We have significant experience working with defense contractors. If you have questions or concerns about ITAR compliance, our former federal agents can guide you through everything you need to know.

OFAC and DOS Licensing

The Office of Foreign Assets Control imposes and enforces trade sanctions against foreign countries, companies, and individuals that present national security risks and with which doing business would compromise the nation’s foreign policy objectives. Domestic companies seeking to export products and services to these “blocked” countries and entities may only do so in strict compliance with OFAC’s licensing requirements.

The U.S. Department of State (DOS) imposes licensing requirements for certain types of products and services that present similar risks to U.S. interests. At Corporate Investigation Consulting, we have significant experience in the areas of OFAC and DOS licensing, and we can work with you to establish an export compliance program that appropriately addresses all pertinent licensing requirements.

Re-Exporting

Re-exporting involves shipping assets to one country with the intent to subsequently export the assets from that country to another. Oftentimes, this third country is subject to OFAC sanctions or other direct export restrictions. While re-exporting is not necessarily prohibited, companies generally cannot use re-exporting as a means to sidestep the federal restrictions on exporting assets to blocked countries and other recipients of concern. We have experience in the area of re-exporting compliance as well, and we can use this experience to help you make informed and strategic decisions.

Put our highly experienced team on your side
Roger Bach

Former Special Agent (OIG)

Timothy E. Allen

Former Senior Special Agent U.S. Secret Service

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Maura Kelley

Former Special Agent (FBI)

Ray Yuen

Former Supervisory Special Agent (FBI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Dennis A. Wichern

Former Special Agent-in-Charge (DEA)

Marquis D. Pickett

Special Agent U.S. Secret Service (ret.)

The Elements of an Effective Export Compliance Program

Implementing an effective export compliance program requires a multi-faceted approach. Not only is it necessary to identify all relevant areas of export compliance, but it is also necessary to identify all areas of a company’s operations where the company’s compliance obligations come into play.

The Bureau of Industry and Security has published a set of export compliance guidelines titled, The Elements of an Effective Export Compliance Program. While these guidelines are specific to BIS compliance, they provide a useful introduction to the types of issues companies’ export compliance programs need to address. This includes issues such as:

  • Management’s Commitment to Compliance
  • Export Compliance Risk Assessments
  • Export Classifications, Authorizations, and Licensing
  • Recordkeeping
  • Internal Export Compliance Training
  • Internal Export Compliance Audits
  • Responding to Export Compliance Violations
  • Building and Maintaining an Export Compliance Manual

While resources such as BIS’s export compliance guidelines can be useful, they are not sufficient for assessing (and addressing) a company’s compliance obligations. Companies must thoroughly assess their obligations under all pertinent laws and regulations, and they must adopt custom-tailored policies and procedures focused on their specific needs. At Corporate Investigation Consulting, our former federal agents work with our clients’ key stakeholders to determine what is needed, and then we provide solutions that are designed specifically to help our clients withstand scrutiny from BIS, DOS, OFAC, and other federal authorities when necessary.

FAQs: Establishing, Maintaining, and Demonstrating Federal Export Compliance

What Rules Apply to U.S. Exporters?

This is a complicated question. Numerous federal laws and regulations apply to U.S. exporters, though many of these laws and regulations only apply to either (i) certain types of exports or (ii) exports to certain countries or recipients. When evaluating their export compliance obligations, companies must assess the applicability of the EAR, ITAR, various export control laws, and the rules adopted by the BIS, DOS, OFAC, and various other federal departments and agencies.

What Does My Company Need to Do Before Shipping Products or Data Overseas?

Before shipping products or data overseas, it is imperative to ensure that doing so will not run afoul of any federal export control laws or regulations. Export violations can have immediate and long-lasting ramifications, and companies need to be careful to ensure that they do not garner unwanted attention from the BIS, DOS, OFAC, or other federal authorities.

What Are the Risks of Exporting Products, Data, or Services in Violation of Federal Export Regulations?

Violations of federal export laws and regulations can carry penalties ranging from trade restrictions and civil fines to criminal prosecution and federal imprisonment. In addition, companies that face inquiries from authorities such as the BIS, DOS, and OFAC are likely to face enhanced scrutiny in the years to come—and this can add to the challenges of maintaining efficient and profitable export operations.


Speak with an Export Compliance Consultant in Confidence

If you would like more information about our export compliance consulting services, please contact us for a complimentary consultation. Call 866-352-9324 or tell us how we can reach you online to schedule an appointment with one of our former federal agents today.

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