CTP Compliance Snapshot

One of the essential elements of a compliance system is the regular practice of measuring its effectiveness. Ideally these are comprehensive audits conducted by knowledgeable third party experts but there can be significant value also in internal assessments, be they department-specific or overall “snapshots.” Candid responses from objective observers can often provide significant insight quickly and with little expense.

Take five minutes to see this idea in action. Below we ask key questions, supported by sub-questions, regarding the compliance status of your company related to export controls. For each question, give us a response from 1 to 5 indicating your degree of affirmative agreement.
  • 1 – Negative, no confidence
  • 2 – Significant uncertainty
  • 3 – Mixed results/opinions
  • 4 – Confidence with reservations
  • 5 – High confidence, positive certainty
Two bits of guidance. First, do not deliberate at length since there is no penalty or prize. Second, if you’re unsure of the answer, choose (2 - Significant uncertainty) since these elements should be, at minimum, known about your company’s compliance system.

Question Title

* 1. Management Commitment - Is there strong and active commitment from senior management regarding export control?
a.       Is there a written Management Commitment Statement?
b.      Are there sufficient resources (staff and money) devoted to export control?
c.       Is management commitment communicated on an ongoing basis (e.g., awareness posters, training, manuals, performance reviews, incentives, etc.)?

Question Title

* 2. Export Control Official/Team – Is it well known in your company who is responsible for export control?
a.       Are people designated and trained in all necessary departments/areas?
b.      Are these appointed experts, and their duties, known to the general staff?
c.       Do these experts communicate regularly and effectively within the compliance team and, when necessary, to their respective departments?

Question Title

* 3. Commodity Classification – Has your company determined whether any or all of its products, software, technologies, and services are subject to export controls?
a.       Are your classifications up-to-date in light of ongoing export control reforms?
b.      Were they determined by in-house technical experts, an independent technical expert, or regulatory agency?
c.       Are all new products and parts classified when they enter the system?

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* 4. Human Resources & Training – Does the HR department adequately support the export control team and help them achieve their objectives?
a.       Are export control duties included in job description and performance reviews?
b.      Are appointed experts adequately and regularly trained in export control?
c.       Does the general staff receive “new hire” and “refresher” export control training?
d.      Are training materials updated as export regulations change?

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* 5. Order Processing & Shipping – Are export control procedures and requirements well known and fully executed in the Order Processing & Shipping departments?
a.       Are transactions subjected to all the necessary screens?
b.      Are staff members aware of, and abiding by, requirements regarding recordkeeping and end-use verification?
c.       Do shipping documents contain appropriate guidance regarding transfers and re-export so as to minimize diversion risk?

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* 6. Non-US Persons – Is there general awareness of the concern regarding “technology transfers” and “deemed exports” to non-US persons?
a.       Are all foreign nationals identified prior to hire, collaborations, meetings?
b.      Is training regularly provided to the general staff regarding these unique risks?
c.       Are deemed export licenses obtained and a technology control plan in place for foreign nationals if necessary?

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* 7. Physical & IT Security – Are there appropriate safeguards on all the physical and informational assets that would be licensable under the U.S. export control regulations?
a.       Do all visitors log in and receive badges before going on premises, with foreign national badges distinctively marked?
b.      Does the company Intranet have external and internal firewalls to prevent prying or inadvertent access by foreign nationals to licensable information?
c.       Is there a security policy regarding traveling with laptops and storage devices?

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* 8. Policy & Procedures – Are the above compliance concerns addressed by written company procedures, augmented as necessary by flow charts, checklists, job aids, etc.?
a.       Are these procedures used regularly and updated as circumstances change?
b.      Are they assembled into a comprehensive Export Compliance Manual?
c.       Are records generated and retained for all compliance procedures completed?

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* 9. Adaptability to Change – Does the export control team keep track of changes that may affect the compliance status of the company (e.g., new products, new partners/ acquisitions, new regulations, or loss of one or more members of the compliance team)?
a.       Does the compliance officer receive industry blogs and government announcements regarding compliance developments?
b.      Is the Export Compliance Manual a “living document” that is updated and referred to frequently?
c.       Are there regular audits to gauge compliance effectiveness and efficiency?

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* 10. Please enter in your contact information

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