|An Export Management
System (EMS) is an optional program to assist exporters in complying with the
Export Administration Regulations (EAR). A vital part of an EMS is the
establishment of mechanisms within the company that provide checks and
safeguards at key steps in the order processing system, helping to better
manage the overall export process. Such checks and safeguards help to ensure
that the right questions are being asked to preclude exporters from making
shipments that are contrary to U.S. export controls and, therefore,
inconsistent with the exporter's best interests.
|How can an EMS be
management policy to comply with U.S. export laws and regulations.
structure and organization for the processing of export transactions.
accountability for export control tasks by identifying who is responsible for
performing each part of the process and who is responsible for overall
effectiveness of the system.
|provides a map of
the order processing flow and export control safeguards to ensure consistent
compliance with export decisions.
instructions for employees to "screen" export transactions against
general prohibitions of exports, reexports and selected transfers to certain
end-uses and end-users.
with tools to help ensure they are performing their export control functions
accurately and consistently.
transactions that could normally be exported without a license, but because
of the end-use or end-user, require a license.
process and reduces time spent on compliance activities because employees
have written instructions, tools and ongoing training.
and awareness programs to help employees understand and comply with the EAR.
|protects a company,
through implementing an ongoing compliance program, against violations of the
|The establishment of
an EMS soundly implemented, coupled with good judgment, can greatly reduce
the risk of inadvertently exporting to an unauthorized party or for an
unauthorized end-use. The establishment of an EMS, in and of itself, will not
relieve an exporter of criminal and administrative liability under the law if
a violation occurs. Companies and/or persons that act contrary to the EAR
could lose their export privileges, be fined, or even be criminally
|An EMS is not a U.S.
Government-mandated requirement. However, in a changing export control
environment, it is a program that companies may consider establishing to
ensure their actions are handled in a way that they comply with the EAR.