Export Documentation & Compliance Flashcards

What is 'export classification' and why is it the first step in export compliance?

Answer: Identifying the correct ECCN or USML category to determine licensing requirements

Export classification assigns the correct Export Control Classification Number (ECCN) or USML category to determine what controls, if any, apply and whether an export license is required.

A U.S. exporter wants to ship dual-use software to a company in Germany. Which license exception under EAR would most likely apply?

Answer: ENC (Encryption Items)

ENC (Encryption Items) is the license exception that covers encryption software and technology exports to most non-embargoed destinations, including EU countries like Germany.

What is the 'know your customer' (KYC) principle in export compliance?

Answer: Conducting due diligence to ensure customers and their intended use of goods are legitimate and not prohibited

KYC in export compliance requires exporters to investigate and verify that customers, end-users, and their stated end-uses are legitimate to avoid facilitating illegal exports or sanctions violations.

Which U.S. government program allows certain exporters to self-classify their items and file directly in AES without an export license for eligible technology to approved destinations?

Answer: Validated End User (VEU) Program

The Validated End User (VEU) program allows BIS-approved foreign end-users to receive EAR-controlled items without individual export licenses, recognizing their demonstrated compliance track record.

A commercial invoice for international shipment must include which of the following to satisfy most customs requirements?

Answer: Detailed description of goods, quantity, unit price, total value, country of origin, and Incoterm

A commercial invoice must contain a detailed goods description, quantities, unit and total values, country of origin, and terms of sale (Incoterm) to allow the importing country to assess duties and clear goods.

What is a 'destination control statement' (DCS) and when must it appear on export documents?

Answer: A statement required on export documents for EAR or ITAR-controlled items notifying recipients that diversion contrary to U.S. law is prohibited

A Destination Control Statement must appear on commercial invoices and Bills of Lading for exports of items subject to EAR or ITAR, warning that the items may not be transferred to other destinations or parties without authorization.

Under the Foreign Corrupt Practices Act (FCPA), which of the following payments to a foreign government official would generally be permitted?

Answer: A small 'facilitating payment' to speed routine non-discretionary government actions like customs clearance

The FCPA contains a narrow exception for facilitating payments made to foreign officials to expedite or secure performance of routine, non-discretionary ministerial government actions such as processing visas or clearing goods through customs.