Exporting high-tech spare parts across international borders can be a risky and complex process. There is a labyrinth of Export Administration Regulations that control the movement of “dual-use” goods — items that have both commercial and potential military applications. That is why it is a great business practice to have a service supply chain partner who has established a solid global trade compliance program.
A well-executed trade compliance program offers OEMs controllable and predictable outcomes in a business ecosystem that significantly reduces the risk of violating trade regulations and facing major penalties. The peace of mind stemming from knowing all your details are taken care of empowers a forward-thinking mindset that drives business expansion.
One key element to a successful trade compliance program is having an automated Export Management System. In addition to monitoring and curating all country-specific rules and regulations, an EMS will also verify information against a client’s Master Parts List. Before any shipment leaves a warehouse, whether it is bound for a destination here in the U.S. or a foreign land, we must be able to answer the following four questions:
1. What is the item?
2. Where is it going?
3. Who will receive it?
4. What will they do with it?
Exporting High-Tech Spare Parts: What Is the Item?
First, consider what is being exported.
Does it require a license to comply with EAR?
Its Export Control Classification Number (ECCN) on the Commerce Control List (CCL) determines the need for a license. High-tech OEMs provide up-to-date ECCN information for exporting high-tech spare parts on their Master Parts List.
Where Is it Going?
When exporting high-tech spare parts, the country of destination for export or re-export might also trigger regulatory requirements. There may be sanctions or embargoes in force against the country where the goods are being shipped.
Who Will Receive It?
Certain individuals and entities cannot legally receive U.S. exports of goods or services. There are also prohibitions on financial transactions with such parties. The government publishes and regularly updates lists of such individuals and entities. No one on the Denied Parties List or Restricted Parties List may have any part of any transaction that involves exporting high-tech spare parts, whether as a purchaser, freight forwarder/another intermediary, or the end-user.
What Will They Do with It?
Some regulations prohibit certain end uses while other uses require a license. For example, there are rules that prohibit exporting items intended for use in a nuclear-related activity or in missile construction.
Flash Global Specializes in Exporting High-Tech Spare Parts
Flash Global has teams dedicated to Trade Operations and Global Trade Compliance, as well as in-region and in-country network partners, who are Exporters of Record that work in tandem with our service logistics teams to help facilitate the successful exporting of high-tech spare parts. Our automated trade management system verifies details against the data on a client’s Master Parts List before the shipment ever leaves a warehouse. To learn more, make your next move and contact a Flash expert today. For more trade compliance insights, follow Flash Global on LinkedIn.