Businesses operating internationally are subject to regulations on export control, especially on “dual-use” products and technology and are increasingly facing substantial penalties for violating these regulations.
- Deemed as sensitive due to their intrinsic characteristics and their destination countries, the marketing of these items is subject to both European Union regulations on dual-use products (EU Regulation No. 428/2009) and US legal provisions. These provisions cannot be ignored due to their extraterritorial scope and their highly deterrent penalties.
- In addition, specific restrictions apply to countries subject to economic sanctions such as Iran, North Korea, Russia or Syria. The export of goods and strategic services to these countries may therefore be prohibited or require authorizations such as export licenses for proven civilian purposes.
Violation of these rules exposes the exporter to heavy fines by authorities in multiple countries and to loss of reputation as well. It is therefore their responsibility to comply with all of the different regulatory frameworks in order to ensure that their business activities do not violate existing prohibitions.
IKARIAN assists and advises exporters and their top management on the legal, regulatory and operational challenges they face to develop a strategy for management and mitigation of risk by implementing an internal compliance program. We assist you every step of the way in complying with national and international regulations on export control with economic sanctions and embargoes and with monitoring the destination country of your products and services. IKARIAN also assists you in training your personnel in export regulations and in obtaining the necessary authorizations.
IKARIAN’s services can be grouped into three key areas:
2/ COMPLIANCE WITH RULES
3/ DISPUTE RESOLUTION
They include assessment of risks, employee training and assistance during investigations by relevant authorities.
Due to its unique approach of teaming senior executives with significant experience in international negotiations, internationally renowned export control professionals and senior legal experts, IKARIAN has acquired a unique international experience. These key elements enable IKARIAN to help its clients increase their competitiveness by implementing compliance programs to manage their global compliance risks.
We offer a comprehensive program based on the review and enhancement of your export procedures, implementation of training tailored to your needs, and assistance with resolution of disputes with respect to export control and economic sanctions.
Raising your awareness to prevent risks of violating existing and future regulatory processes.
IKARIAN assists you in :
- Informing your teams about export control related risks and regulations governing your products on both EU and third country markets, in light of decision 1540 of the UN Security Council, European Regulation 428/2009, and other rules and laws applicable to your business in the country in which you operate.
- Identifying the main authorities and national and relevant international jurisdictions for the application of rules governing the export of strategic products.
- Closely monitoring regulatory developments by notifying you of forthcoming legislation (e.g., recast of EU Regulation No. 428/2009 by the European Parliament and the European Commission, extension of the regulation on “dual-use” products to include cyber surveillance instruments, etc.)
- Alerting you to political developments and new European and US sanction lists targeting blacklisted prominent individuals (CAATSA, Specially Designated Nationals List, debarred Parties List, the Entity List, etc.)
- Preparing you for the challenges ensuing from the revision of EU Regulation No. 428/2009 as amended by the Due Diligence provision (on human rights) and modification of the “catch-all” clause.
COMPLIANCE WITH RULES AND REGULATIONS
Formulation of a compliance program.
IKARIAN assists you in :
- Assessing your existing policies and procedures to ascertain if they comply with applicable regulations.
- Determining whether your products and services require export licenses or are prohibited from export due to:
- (a) their technical characteristics;
- (b) their potential misuse for military purposes;
- (c) the recipient countries being subject to restrictions;
- (d) the end use/user of your products.
- Obtaining end-user certification necessary for obtaining an export license.
- Implementing an internal compliance program to render your business compliant with export regulations of the Dual-Use Goods Control Office of the Directorate General for Enterprise within the French Ministry of Economy and Finance and with regulatory requirements of other countries.
- Optimizing management of international issues in light of existing regulations and ensuring that systems are monitored.
- Acquiring specific knowledge about the end user of your products and services as well as their intended use.
- Screening (Due Diligence and background checks) of all third parties involved in your transactions, as well as of your business partners to ensure they are not associated with persons or entities placed on European or US sanctions lists.
IKARIAN will assist you in implementing customized training programs for your executives, risk managers, regional or national directors, HR managers, compliance officers, logistics departments, project and supply chain managers, legal staff, marketing teams, sales and procurement directors, etc. All of our training programs are adapted to the specificities of your company in its industry, its sector of activity and its countries of operation.
Our training programs:
- Understanding common regulations of international regimes (such as Nuclear Suppliers Group (NSG), the Australia Group (AG), the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement (WA), the Chemical Weapons Convention (CWC), etc.), and assessing the issues such regulations pose for your business.
- Understanding the political and commercial context under which certain products may not be either directly or indirectly exported or re-exported , to a country subject to an embargo imposed by the US, UN or EU or to any country designated as supporting international terrorist activities, without authorization.
- Knowing which databases to consult to obtain an export license according to the type of product sold (EU Regulation No. 428/2009, “catch-all” clause, etc.)
- Knowing the US export regulations whether they concern defense-related articles subject to International Traffic in Arms Regulations (ITAR) – or dual-use products subject to U.S. Export Administration Regulations (EAR) as well as the types of sanctions imposed by the Office of Foreign Assets Control of the Treasury Department (OFAC)
- Raising awareness among your staff as to the potential penalties for violation of national, European and international regulations.
DETECTION OF VIOLATIONS OF REGULATORY PROCEDURES
IKARIAN helps you in :
- Monitoring your trading partners to ensure that they are not associated with individuals or entities placed on European or US sanctions lists by offering several levels of Due Diligence and Background Checks ranging from a quick scan of public documents to field enquiries with reliable sources;
- Conducting internal or external investigations in a rigorous and professional manner, once a potential problem is suspected or identified;
- Examining customs operations, including the management and/or completion of declarations (customs and/or tax), of authorization licenses; customs clearance procedures and/or administrative follow-up relating to the shipment of specific goods;
- Testing your existing procedures.
IKARIAN advises you on :
- The strategy to adopt during an administrative procedure when goods are blocked at customs, confiscated or if a license is suspended
- The arrangements to be made with the parties involved (employees, partners or business associates)
- Internal and external communication policies to optimize crisis management.
- Relations with the relevant authorities
- The policy and procedural changes to effect in order to minimize exposure to future violations
IKARIAN offers its vast experience in French, European and international export control to exporters (companies, universities and research centers) and banking and financial organizations to help them anticipate and integrate the applicable risks and obligations, so they can be prepared to tackle tomorrow’s challenges in an increasingly complex international regulatory environment.