EXPORT COMPLIANCE AND ENFORCEMENT

R&C: Could you provide an overview of the key global trends impacting the trade landscape and the obligations of exporters? What issues are adding to an already complex area?

Weinert: In the wake of the Russia-Ukraine conflict and the ongoing ‘chip war’, companies are re-evaluating their supply chains and assessing the potential impact of additional sanctions and export controls across their networks. In particular, we are starting to see companies that deal with sensitive technologies move operations out of China into other Asian nations. At every step of the supply chain, companies are scrutinising their business partners. This can help mitigate potential violations of the US Export Administration Regulations (EAR) and address reputational risks. For example, a drone manufacturer found that its products had appeared on the Ukrainian battlefield. The drones had likely gone through intermediaries, emphasising the importance of knowing not only the customer but also the customer’s customer and ultimate end-users.

Jul-Sep 2023 Issue

BDO USA, LLP

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