Defense Export Compliance: The Importance of Knowing End Use and End Users

Exporting products and services to a foreign government or an overseas company can be very lucrative, but it’s important to know the rules and regulations involved in such transactions in order to have defense export compliance. Non-compliance can be extremely costly and can quickly ruin a business.

One of the most important things to know is who is ultimately going to be the end user of your products, and to what use they will be put. This is vital for you to be compliant with the International Traffic In Arms Regulations and the Export Administration Regulations, the two major treaties governing foreign sales.

Defense Export Compliance

Prohibited Or Restricted Products And Technology

The goal is to prevent weapons or technology that can be used in weapons from falling into the hands of terrorist organizations or hostile governments such as North Korea or Iran. Specifically, any product designated a ‘weapon of mass destruction’ or can be used to deliver such a weapon is subject to strict export control. Also controlled are products that have a nuclear-related end use as well as microprocessors and other high technology.

The U.S. Department of State and the U.S. Department of Commerce both maintain lists of foreign parties who are either prohibited from receiving such products or are strictly regulated, meaning you will need an export license before shipping them any goods or services.

Look For The Red Flags

They also have a list of certain ‘red flags’ that you should be aware of before agreeing to do business with any foreign entity. If they have a history of sponsoring terrorist organizations or even just a record of corrupt business dealings, they’ll probably be found on the lists. In short, any organization or individual, government or private, that the government has determined might pose a threat to the national security of the U.S. will be controlled or prohibited from buying certain products and services.

DXL Has The Experience And Solutions to Get Defense Export Compliance

DXL provides compliance solutions to make sure you don’t unwittingly run afoul of these sometimes complicated rules and regulations. We have the expertise and knowledge of export licensing practices to ensure you’re fully in compliance with the law. We can assist you with Technical Assistance Agreements of Manufacturing License Agreement from beginning to end.

We are your ‘boots on the ground’ in the countries you want to do business in, assessing both end use and end users and all other details necessary for compliance. We also offer comprehensive training programs to export companies, everything from a short 30-minute briefing on compliance awareness to all-day seminars for more advanced executive training.

Our Turnkey Program does it all for companies that don’t have an existing defense export compliance program, from the initial analysis through full program development of procedures and policies.

Defense export compliance can be complicated and difficult to navigate, and mistakes can be very costly. Let DXL show you how to do it right, the first time and every time.

Why You Need Export Compliance Professionals To Navigate FTR, EAR, ITAR

U.S. companies and manufacturers who are planning to do business overseas with foreign governments, militaries, or law enforcement agencies can certainly enjoy very lucrative and mutually advantageous relationships with their clients, but they should be aware that the benefits of foreign trade come at a price. The export of many types of goods and services will introduce the U.S. vendor to a maze of laws, rules, and regulations that can be incredibly complicated, even impossible, to navigate. Too many companies just getting into the export business assume that their products are innocuous enough that they won’t be subject to stringent controls, but that can be a costly assumption, both in terms of money and industry reputation. Strict compliance with government regulations is essential to foreign export success.

ExportComplianceProfessionals

FTR, EAR, and ITAR

The U.S. government regulates foreign trade in military and commercial under three basic systems of control and monitoring, as follows:

  • FTR – Foreign Trade Regulations– These are administered under the jurisdiction of the U.S. Census Bureau’s Foreign Trade Division. The purpose of these regulations is to gather statistics on trade through the Automated Export System (AES) and provide that data to other regulatory agencies. They also set the definition of valuation, record-keeping requirements, and powers of attorney.
  • EAR – Export Administration Regulations– These fall under the authority of the U.S. Bureau of Industry and Security (BIS). Their purpose is to control the export of dual-use goods, or commercial goods that can also be used for military or other undesired applications, or in countries that are embargoed, and all other products that aren’t addressed by other regulations. These can include technology and even certain business services.
  • ITAR- International Traffic in Arms Regulations – Administered by the Directorate of Defense Trade Controls (DDTC) of the U.S. State Department, these enforce the restrictions on export of defense-related products as required by the Arms Export Control Act.

A Constantly Changing Situation

These regulations are just the beginning. There are many other regulatory agencies involved in the exportation of goods to foreign entities. In addition, the rules are constantly changing. In 2010, President Obama launched the Export Control Reform Initiative, a plan to comprehensively overhaul existing regulations that is still ongoing. It has experienced significant roadblocks and problems causing confusion and penalties for U.S. companies.

The Solution to Bureaucratic Complexity

International export regulations are a tangled web that’s always changing its pattern. Non-compliance can result in considerable fines and other penalties, as well as damage to corporate reputation that can lead to a significant loss of market share. The answer is to partner with export compliance professionals who already have many years of experience navigating the bureaucracy.

DXL makes the process simple by providing turnkey solutions, from licenses and initial agreements, to ongoing assessment and training. Defense Export Logistics can ensure that foreign business transactions run smoothly and trouble-free. Contact them today learn more.

What are the Maintenance Considerations for the Robinson R-44?

What is the Robinson R-44? It’s a four-seater helicopter that many experts hold in very high acclaim, with some even considering it as the best helicopter ever designed. It’s also a very affordable helicopter, and the running costs are pretty small too. Aside from that, Robinson helicopters are very stable and do not require much maintenance at all, especially compared to other similar helicopters.

Some of the positive features of the Robinson R-44 helicopters are it’s light weight although being heavier than previous models, high engine power, and very little maintenance. The only maintenance you have to do for the Robinson R-44 helicopter is a service check up every 100 hours, which is very remarkable considering that other helicopters practically require maintenance and service after every flight. Another important point to consider is safety, and the Robinson R-44 stacks up very well in this area too.

Many pilots have ranked the Robinson R-44 as an extremely reliable helicopter, and some have even mentioned that their helicopter has never broken down. But even if it does break down, you can get replacement parts for your helicopter within 24 hours in most cases due to the fast shipping speed of the company. There are also many mechanics who are qualified to perform repairs on Robinson helicopters in most cities so should you need repairs done you won’t have to travel hundreds of miles, which is the case with a lot of other helicopter brands.

According to Robinson’s latest price guide, a new R-44 helicopter costs $333,000, which is pretty cheap for personal helicopters, and one guy even said: “It’s the best bang for the buck.”

robinson r-44 maintenance

One point you will need to keep an eye on is to check the blades occasionally. The latest blade design is quite fragile and is very thin stainless steel. They’ve been reported to get damaged from a minor options like plastic bottles or even high grass. Another point to keep watch on is the small screws on the metal sheet around the doors because they have been reported by some to become dislodged. Also when landing, if it is a very windy day, it is recommended that you don’t leave the Robinson R-44 helicopter pointing in the direction of the wind because there is a chance the blades will push back and hit the tail boom. That’s something you would want to avoid.

The main maintenance comes at the 2200 hour point or 12-year point. At that point, you can send the helicopter back to the factory, and they will replace virtually all aspects of the helicopter, bringing it to a nearly new condition.

Consider the full list of the scheduled maintenance for the R-44:

Robinson R-44 Scheduled Maintenance

First 25 hours:

  • Change oil and filter and inspect oil suction screen and filter per Lycoming SB480E.
  • Check alternator belt tension per Lycoming Service Instruction  SI 1129.

Every 50 hours:

  • Inspect and service engine per Lycoming Operator’s Manual, SL 1080,
  • Change oil, oil filter, and inspect oil suction screen and removed filter per Lycoming SB480E.

First 100 hours

  • Drain and flush gearboxes per Sections 1.120 1.130.
  • Inspection: Check engine exhaust valve guide clearance per Lycoming SB388C.

Every 100 hours:

  • Inspect per Section 2.400. Inspect and service engine per Lycoming Operator’s Manual, SB366, S11G8GB, SI1 1298, and SB342E (I0-540 only).
  • As required, inspect and service TCM ignition components per TCM SB643B.

Every 300 hours:

  • Lubricate C181-3 bearing per Section 1.140.
  • Replace hydraulic filter per Section 1.170.
  • Inspect valves and check engine exhaust valve guide clearance per Lycoming SB301B, S8388C, and Operator’s Manual.

Every 500 hours:

  • Drain and flush gearboxes per Sections 1.120 1.130.
  • Clean gearbox chip detectors per Section 1.115. Verify magneto drive cushion pliability.
  • Service collective spring assembly (manual controls only) per Section 8.221.
  • As required, inspect and service TCM ignition components per TCM SB658 and SB663A.

Every 2200 hours:

  • Overhaul helicopter per Section 2.700.
  • See R44 2200 Hour Inspection

Calendar

Every 4 months:

  • Change oil, oil filter, and inspect oil suction screen and removed filter per Lycoming SB480E.

Every 12 months:

  • Inspect per Section 2.400.
  • Clean gearbox chip detectors per Section 1.1 15.
  • Inspect emergency locator transmitter (ELT) per 14 CFR Part 91.207.
  • Inspect optional pop-out floats per Section 5.630.

Every 24 months:

  • Test and inspect transponder per 14 CFR Part 91.413.

Every 3 years:

  • Lubricate C181-3 bearing per Section ’1.140.
  • Inspect optional popout floats per Section 5.640.
  • Hydrostatic test pressure cylinder.
  • Every 4 years
  • Overhaul TCM magnetos per TCM 886438. Verify magneto drive cushion pliability.

Every 12 years

  • Perform 12-year inspection and limited overhaul per Section 2.600, or overhaul per Section 2.700.
  • See 12 Year Inspection

To receive expert Robinson R-44 Maintenance, Overhaul, or Repair Services please contact DXL Solutions. We will give you the exact timing to follow, whether it’s hourly, monthly, or yearly.