ATC :: Export Controls

Export controls derive from laws and  regulations at the national and European level. Even United States laws may apply through extra-territorial claims. The aim of such rules is to monitor and control the export of arms and dual-use goods – goods with a potential for both civilian and military use. This oversight extends beyond the goods themselves to the parties involved in the business transactions.

It is also important to ensure that the export does not violate embargoes against specific country or licencing requirements.This presents export companies with the great challenge of checking their export processes for compliance with such guidelines.

ATC :: Export Controls from AEB screens exports directly in the SAP® system at all relevant points in the business process for compliance with both European and US law. ATC :: Export Controls features quick, convenient, plug-and-play integration into your SAP®system. Daily updates ensure you always have the current export control data.

Screening task number 1: Is the shipment prohibited?

• TOTAL EMBARGO: A total embargo refers to comprehensive foreign trade restrictions prohibiting business relations with a particular country.
• PERSONAL EMBARGO: Any direct or indirect trade, consultation or financial support with or on behalf of persons, companies and organisations that appear on sanctions lists is prohibited.
• PARTIAL EMBARGO: Partial embargoes are also directed against defined countries but are limited to specific economic areas, activities or legal transactions.
• ARMS EMBARGO: Some countries under UN, EU and OSCE sanctions are subject to an arms embargo. All arms shipments to such countries are prohibited.

Screening task number 2: Does the shipment require a licence?

A licence is required for the export or transport of goods deemed critical, shipped to specific countries or intended for a particular end use.

• INDIVIDUAL EXPORT LICENCE: An individual export licence is issued on the basis of an order to supply goods to a recipient. There are also other types of individually issued licences that allow shipments to multiple recipients or shipments up to a defined maximum quantity or value.
• GENERAL LICENCE: General licences may be issued at the national or EU level or by US authorities (“licence exceptions”). General licences do not require an application but typically require a one-time registration. Some general licences or licence exceptions require that you submit regular reports to the licencing authority on how the licences were used – over the past six months, for example.
• MAXIMUM AMOUNT LICENCE: The maximum amount licence is a special type of individual export licence that allows the shipment of multiple orders to a single recipient up to an approved maximum monetary value.
• COLLECTIVE EXPORT LICENCE: The collective export licence allows the export of a group of goods to various recipients based on a large number of exports.

Screening task number 3: Does US (re-)export law apply?

The first step is to determine whether the transaction is subject to EAR. If so, you must carry out US EAR export control checks and may need to obtain a US license. US ITAR always applies to arms that originated in the US.