Export Compliance Blog

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With GM filing for bankruptcy today, looks like their plan to export cars from China will be one way in which they aim to make a comeback rather than prevent bankruptcy.

Thinking you can handle export compliance? Or, that your trading partners are reliable? Here’s an example of the consequences of export control violations: Atmospheric Glow Technologies and former University of Tennessee professor J. Reece Roth.

July 2006: Feds start inspecting.
June 2008: Company files for bankruptcy
August 2008: Company pleads guilty
May 2009: Prosecuters recommend 5 – 6 1/2 years in prison for Mr. Roth. Meanwhile sentencing will take place at another hearing at an undetermined date in the future.

Props again to International Trade Law blog:

Dr. Roth faces a maximum penalty of five years in prison and a $250,000 fine for the conspiracy and fraud convictions. The 15 convictions for violating the AECA each carry a maximum penalty of 10 years in prison and a $1 million fine.

Atmospheric Glow Technologies faces a maximum criminal fine of $1,000,000 and a maximum term of five years of probation for each of the 10 counts.

KnoxNews.com has good coverage of the whole saga.

American Shipper has a good article from last week: Informed Exporting. Looks like the BIS is trying to improve the amount of info available on their website for exporters. According to the article this includes online compliance training tools and information to assist exporters and a Web page where sources of publicly available information on export commodity classifications can be found. Good to see they are making an effort to improve and help exporters. Thanks, BIS!

There’s been a lot of talk about Cuba in the last few months, especially since January 20th. On April 13th, President Obama relaxed the travel restrictions for Americans going to Cuba, allowing Americans with relatives there to visit more frequently.

On May 20th, Sen. Max Baucus proposed a bill to promote agricultural exports to Cuba and remove the travel ban altogether. You can read his entire statement here – as it’s the statement, not the legalese-laden bill, it’s actually easy to read.

I’ll keep an eye out to see if it passes.

Special thanks to the World Trade Interactive newsletter, prepared by Sandler, Travis, & Rosenburg PA.  They do a great job covering all the latest legal developments in world trade. Now if only I could get these updates via RSS.

According to the Telegraph, “General Motors is planning to build cars in China and import them into the United States, a strategy that could trigger further job losses and union anger in the US.”

This is a topical example of ‘related party trade‘ – when one business is simultaneously importing and exporting among itself. Note how the headline says “export” and the tagline says “import”. GM is doing both importing and exporting. Their exported car from China is also the imported item into the US while staying within GM’s possession, which presents new challenges in keeping track of compliance. If they have a system in place, they can easily transfer the data of the exported car from their Chinese branch into the US branch’s system, which will then identify it as an import.

Hopefully, the cost savings they realize by building their products in China will assist in reviving the company from the brink of bankruptcy. Without a company, the union members won’t be employed, either. Read the complete article at the Telegraph.

Welcome to ExportCompliance.Org – resources for export compliance news, analysis, and other global trade management musings, focusing on the export side of things.

What is Export Compliance?

In case you’re just starting out or need a refresher, Export Compliance involves ensuring your products meet the legal requirements for crossing a border. That sounds simple, but the government regulations describing these requirements are not!

These laws regulate:

• Correct labeling and certification,
• Accurate Payment of duties
• Product classification
• Screening out denied parties (aka the ‘bad guys’)
• Documenting your shipment
• And managing your export licenses

Complying with these rules means your shipments reach your desitnation on time and without additional fees. Violate them, and your shipment could be held at customs, your company may be assessed with additional fines, and you will definitely be reaching for that extra-stregth Excedrin.

To learn more about it, I recommend this 3 minute flash video: Introduction to Automating Export Compliance