These acronyms—and many more—frequently are used in conversation with U.S. export agencies and authorities.

All U.S. companies (from solely-owned Internet companies to medium-sized manufacturers and, of course, large corporations) need to be aware that export regulations apply to virtually every shipment they make from one country to another. This does not just include the manufacturing, sale or transfer of “everyday” goods and services. It also applies to sales made over the Internet, visits by foreign persons to your company and the exchange of non-publicly available technical information.

Another, often overlooked, export is the re-export transaction—a shipment of goods from a foreign country that is subject to U.S. regulations. For example: If you have a warehouse in Germany to which you ship goods, then upon receipt of an order, you ship those goods to your customer in Andorra.

Export Expertise
Most large corporations are already aware of these regulations and have specialized export compliance personnel on staff, or a legal department that helps to ensure they are in compliance with applicable laws. A few of these companies have “learned” about export compliance the hard way.

Criminal and civil penalties—fines, export privileges revoked and even jail time for senior officers or other personnel—can wreak havoc on a large, well-known company. The effect on a company’s reputation and public perception is another by-product of not understanding and complying with export regulations. Then there are the legal fees, lost productivity from employees involved in the research, investigation and support of the company’s defense case and other associated costs that impact bottom line profitability.

If large corporations can run into trouble with experts on staff, imagine the difficulty for small and medium-sized companies, many of which simply started exporting in response to a request from a company in a foreign country, or a desire to increase sales by entering the ever-growing global market.

Unfortunately, most small and medium-sized companies don’t have access to the expert resources that many larger companies do. The need, however, is absolutely the same.

Enforcement
Recently, the Office of Export Enforcement (OEE) joined forces with the Department of Homeland Security’s Immigration and Customs Enforcement (ICE) and the FBI. This gives the OEE extra resources to identify, investigate and prosecute U.S. companies that are violating U.S. export regulations. (To their credit, the first visit to a company they are “interested” in consists of a “drop in” because they were “in the area.” They ask a few questions, make a few statements and give the company a nice packet of information on export regulations and its responsibilities as an exporter.)

Companies can come to the attention of export authorities in a variety of ways:

1. A customs agent reviews the export paperwork, has questions and contacts the exporter. A few simple questions can provide the agent with a good idea of the level of compliance understanding.

2. The customers and suppliers of a previously prosecuted company come under the scrutiny of the regulatory groups. A classic example is the Bushnell case. Soon after Bushnell settled their case with the Justice and Commerce departments, three of their customers were investigated, charged and settled with the federal government for export violations.

3. Competitors or disgruntled employees anonymously contact the agency/agencies

4. An employee inadvertently asks a question or makes a statement to a representative of a regulatory agency that raises a “red flag”

Avoiding Trouble
So what can small companies do to help ensure that their global sales and overall company profitability are not threatened by inadvertent export violations?

1. Get a commitment to compliance from the board of directors and senior level executives is mandatory

2. Research and understand the export regulations as they apply to your company

3. Assign an individual or group to direct the export compliance processes for the company

4. Create an Export Compliance Management Program that fits the needs of your company. The ECMP should be balanced between export sales and export compliance.

Following these recommendations will make it easier to maximize your export profits while remaining in compliance with all applicable export regulations.

Leah Martino is a certified U.S. export compliance officer with more than 10 years experience in international business. She is the president of Export Compliance Management Group, a newly founded export compliance-consulting group. She can be reached at (913) 397-8835 or at .