During a business expansion meeting, if an executive made the statement, “Our software is one of the best-selling products in the United States. It’s time we start expanding our business,” would you be ready to start looking for potential markets right away? Just because the software is popular in the US market does not mean it is ready to roll out into the global market.
Selling your products in your own country and selling them in other countries is an entirely different process and requires an understanding of the various US export regulations. Without a thorough understanding, you might get yourself or your company in big trouble.
Most products require an export license before they can be shipped to other countries. In addition to US regulations, many foreign governments have their own export standards that need to be considered. Another important consideration is that there are several countries that are restricted from trading with US companies. Every US company must comply with these regulations or face prison time, financial penalties, revocation of export privileges, or a combination of any of these.
It’s important to understand that the government knows how you are doing your business. The Bureau of Industry and Security (BIS) of the US Department of Commerce has oversight and enforcement authority over export and reexport of products. To avoid issues, you must:
- Understand the scope of export regulations.
- Have knowledge about the licensing process and the exceptions to export licensing.
- Develop a compliance program for your company.
Being able to understand and address all export regulatory requirements helps you and your company avoid issues and also assists in accomplishing the goals of expanding your business on a global platform.
Have your company’s stakeholders decided to expand the business? Before moving ahead, stakeholders should have a proper compliance program in place and should understand the severity of noncompliance. The Accenture Academy course Fundamentals of Export Regulations in the United States will help you gain an understanding of the licensing requirements and regulations, identify the situations where a license may be exempted, establish a compliance program, and identify the civil and criminal penalties imposed due to noncompliance.