Customs play a major role in implementing and policing economic sanctions in relation to countries under sanction, such as North Korea. A prime example is the control of arms exports and dual-use goods. Dual-use goods are those goods produced for civilian purposes that could also have a military use. Some chemicals, for example, can be used to make both fertilisers and explosives.
U.S. Export Controls as embodied in the Export Administration Act, the Foreign Assets Control Regulations, the Cuban Assets Control Regulations; etc. further complicate matters, since any business re-exporting specified US origin products; or products made with or containing US technology may have to obtain a US re-export licence. Failure to do so could lead to serious consequences, particularly for the US subsidiary.
How can we help?
We could help businesses establish which products (goods/technologies) require an export license and what type of license would best suit, taking into account the product, its usage, customers and destinations. We could help businesses establish an internal compliance regime. As a precursor, we would examine the current modus operandi. We would look at inter alia: the personal involved; the goods and technology involved; customers and suppliers; current instructions; and record keeping. On completion of the internal audit, we would prepare a compliance plan and assist with its implementation.