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.