Exports in the Supply                Chain       Here there be monsters!
Export Regulation Outline● Why export regulation?● Sources● EU and UK rules● Compliance● Enforcement● Contractual Terms© B...
Why Export Regulation?● Protectionism – local production of resources – China rare     earth● Fiscal – taxes● Statistical ...
International Sources● UN – sanctions● Wassenaar – dual use● Australia Group – chemical, biological● Nuclear Suppliers Gro...
Rules - EU● Commercial Policy – EU competence● CFSP Decisions and measures against specific countries and     persons● EU ...
Rules - UK● Customs and Excise Management Act 1979 (CEMA)● Export Control Act 2002● Export Control Order 2008● Statutory I...
A few issues● Technology - Brochures, proposals - Whistle blowing procedures● Components - Where separable from the produc...
Compliance Objectives● Legal compliance – - Avoid penalties - Avoid publicity● Business risk – payments, supply chain disr...
Compliance Strategy● Product classification● Country of origin – how many rules● Country of destination● Payment structure...
Compliance Cycle● Compliance programmes● Licensing – ECO, Treasury Asset Freeze Unit – Single     Individual, Open General...
Enforcement● Member States● HMRC● CEMA – Arts. 67-68 export offence      - "Any person knowingly concerned in the         ...
Contractual terms● All parties must comply with the rules● Anticipate changes in targeted products, countries and     pers...
Thank you                                   Iain MacVay                                   Direct: +44 (0)20 7415 6617     ...
Upcoming SlideShare
Loading in …5
×

Export Compliance Management Seminar 31 May 2012: Exports in the Supply Chain

908 views

Published on

Iain MacVay - Bird & Bird

www.exportcompliancemanagement.com

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
908
On SlideShare
0
From Embeds
0
Number of Embeds
187
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Export Compliance Management Seminar 31 May 2012: Exports in the Supply Chain

  1. 1. Exports in the Supply Chain Here there be monsters!
  2. 2. Export Regulation Outline● Why export regulation?● Sources● EU and UK rules● Compliance● Enforcement● Contractual Terms© Bird & Bird LLP 2011
  3. 3. Why Export Regulation?● Protectionism – local production of resources – China rare earth● Fiscal – taxes● Statistical – trade data● Customs – outward processing, repair● Foreign and Defence policy© Bird & Bird LLP 2011
  4. 4. International Sources● UN – sanctions● Wassenaar – dual use● Australia Group – chemical, biological● Nuclear Suppliers Group● World Trade Organisation● Etc.© Bird & Bird LLP 2011
  5. 5. Rules - EU● Commercial Policy – EU competence● CFSP Decisions and measures against specific countries and persons● EU Customs Code and Implementing Reg● EU Dual-Use Regulation 428/2009● EU Common Military List - Notice© Bird & Bird LLP 2011
  6. 6. Rules - UK● Customs and Excise Management Act 1979 (CEMA)● Export Control Act 2002● Export Control Order 2008● Statutory Instruments● CHIEF, SPIRE electronic systems© Bird & Bird LLP 2011
  7. 7. A few issues● Technology - Brochures, proposals - Whistle blowing procedures● Components - Where separable from the product● Personal data - US ITAR compliance for third country nationals© Bird & Bird LLP 2011
  8. 8. Compliance Objectives● Legal compliance – - Avoid penalties - Avoid publicity● Business risk – payments, supply chain disruption● Reputational risk – bad publicity, reliable supply chain partners© Bird & Bird LLP 2011
  9. 9. Compliance Strategy● Product classification● Country of origin – how many rules● Country of destination● Payment structures● Actors in the supply chain - End users – military?● Contractual terms© Bird & Bird LLP 2011
  10. 10. Compliance Cycle● Compliance programmes● Licensing – ECO, Treasury Asset Freeze Unit – Single Individual, Open General● Record keeping● Audits – internal, external● Monitoring● Disclosure● Investigations – internal, external© Bird & Bird LLP 2011
  11. 11. Enforcement● Member States● HMRC● CEMA – Arts. 67-68 export offence - "Any person knowingly concerned in the exportation…of any goods with intent to evade shall be guilty of an offence and may be arrested" - Seizure, unlimited fines, prison up to 7 years● CEMA – Art. 152 compound penalties - No prosecution, financial penalty - £575,000 2009, 18 cases listed 2009-11© Bird & Bird LLP 2011
  12. 12. Contractual terms● All parties must comply with the rules● Anticipate changes in targeted products, countries and persons● Typical clauses - Prohibited countries - Compliance with rules – UN, EU, US, UK? - Force Majeure – narrowly defined? - Warranties and Representations - Indemnification - Choice of Law© Bird & Bird LLP 2011
  13. 13. Thank you Iain MacVay Direct: +44 (0)20 7415 6617 Tel: +44 (0)20 7415 6000 iain.macvay@twobirds.comBird & Bird is an international legal practice comprising Bird & Bird LLP and its affiliated businesses. www.twobirds.com

×