The divide between operation management (get this product out fast) and compliance (rules and regulations) is the number one reason why organizations may find themselves in a non-compliant situation, says J.A. Rodriguez Jr., CSP. In his Safety 2012 session on international export and import controls, Rodriguez discusses the importance of a union between these two areas of operation. “Violations of U.S. export controls can result in significant penalties such as suspension or loss of export privileges, seizure and forfeiture of good and criminal penalties including imprisonment.” To avoid these penalties, Rodriguez suggests that companies not only seek professional help, but also be wary of governmental regulations. Here’s what to look out for:
International Traffic in Arms Regulations (ITAR):
- Administered by the Department of State
- Covers all items that could be used in the military
Export Administration Regulations (EAR):
- Administered by the U.S. Department of Commerce
- Covers commerce and items listed on the Commerce Control List
- Covers the “dual-use ban” meaning that although the equipment can be used in a military fashion, it is only being used commercially
Office of Foreign Assets Controls (OFAC):
- Administered by Treasury Department
- Enforces economic embargoes and trade sanctions based on U.S. foreign policy and national security goals
- Covers items that may be used as weapons of mass destruction
- Lists countries the exporters and importers cannot do business with
According to Rodriguez, any equipment currently being used in the military or able to be used by other militaries, such as a bullet proof vest, would fall under ITAR. However, a Hummer truck built for commercial use would fall under EAR. There are a lot of gray areas when defining whether an item falls under EAR or ITAR but no matter what the item is, paperwork and tracking are extremely important, he adds. The overall message Rodriguez gives is that when working with international PPE, both operation and compliance managers should know these regulations well and abide by them.