CE CE Export Controls & Sanctions Compliance 3

Question 1

What is 'deemed export' under the EAR and why is it significant for U.S. companies employing foreign nationals?

Accepted Answer

The release of controlled technology to a foreign national in the U.S. is deemed an export to that person's home country and may require a BIS license

Answer

Deemed export rules mean that sharing controlled technical data or source code with a foreign national in the U.S.—even verbally—is treated legally as if you exported that information to their country of citizenship.

Question 2

What is the purpose of the Specially Designated Nationals (SDN) List and which agency maintains it?

Accepted Answer

OFAC maintains the SDN List, which identifies individuals and entities whose assets are blocked and with whom U.S. persons are generally prohibited from transacting

Answer

OFAC's SDN List names terrorists, drug traffickers, sanctioned government officials, and others whose assets are frozen; U.S. persons are broadly prohibited from doing business with any listed party.

Question 3

What civil penalty can OFAC impose on a U.S. company for a single willful violation of economic sanctions?

Accepted Answer

The greater of $1 million or twice the transaction value

Answer

OFAC can impose civil penalties up to $1 million or twice the transaction value per willful sanctions violation, with criminal penalties also possible for egregious cases.

Question 4

What is an export compliance program (ECP) and what are its key components?

Accepted Answer

A company's documented system for ensuring compliance with export control laws, including management commitment, classification, screening, training, recordkeeping, and auditing

Answer

An ECP is a comprehensive internal compliance framework covering classification of products, screening of parties, transaction review procedures, employee training, recordkeeping, and periodic audits.

Question 5

Under the EAR, how long must exporters retain export control records?

Accepted Answer

Five years from the date of the export, re-export, or other regulated transaction

Answer

BIS requires exporters to retain all export-related records (licenses, EEI filings, contracts, correspondence) for five years from the date of the transaction.

(CE) Certified Exporter Practice Test

(CE) Certified Exporter Practice Test

CE CE Export Controls & Sanctions Compliance 3