Could your company be facing a $100M fine?

Maybe it could if it chose to ignore certain trade compliances.  That’s what happened with federal defense contractor ITT.  Now, I know this is old news, but it came up in a conversation today and I was reminded at how important it is to make sure your company has established export compliance measures.

Basically what happened to ITT is that they got caught side stepping US laws while exporting night vision goggles to China.  They were supposed to have obtained permission from the State Department, but they failed to complete that step making them the first large US defense contractor convicted of a violation of the Arms Export Control Act and the recipient of the biggest penalty for a US defense contractor involving an export violation.

Although they were the biggest, they are not alone. Many companies face export fines, and while it’s possible that some are completely aware they are skirting the law, some may just fall victim to tough deadlines and an unprepared compliance system.

Maybe in this case there was pressure to get a sale done. But shouldn’t that pressure also include pressure to comply with all ITAR compliance checks? If your company is thinking of exporting, or already involved in exporting then you are probably aware that complying with all US laws is not a quick or easy process, but it can become much easier if you have the proper training and support for compliance in all levels, especially management.

Information gathered from Washington Post

Photo from Tracy Olson

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