CES Export Controls & Sanctions Compliance 2

Question 1

What is a 'deemed export' under US export control regulations?

Accepted Answer

The release of controlled technology or source code to a foreign national within the United States

Answer

A deemed export is the transfer of export-controlled technology or source code to a foreign national in the US, treated as an export to that person's home country and potentially requiring a license.

Question 2

What are the maximum criminal penalties for knowingly violating the Export Administration Regulations (EAR)?

Accepted Answer

Up to $1 million per violation and/or 20 years imprisonment

Answer

Willful violations of the EAR carry criminal penalties of up to $1 million per violation and/or up to 20 years imprisonment, reflecting the serious national security implications of illegal exports.

Question 3

What does the 'red flag' rule require US exporters to do when warning signs appear in a transaction?

Accepted Answer

Pause the transaction and conduct reasonable inquiry to resolve the concern before proceeding

Answer

The red flag rule requires exporters who encounter indicators of potential diversion or illegal end-use to stop and make reasonable inquiries until satisfied the transaction is legitimate before proceeding.

Question 4

The Strategic Trade Authorization (STA) license exception primarily benefits exporters by:

Accepted Answer

Permitting export of specified controlled items to approximately 36 close US allies without individual licenses

Answer

STA allows exports of specified lower-risk controlled items to a defined group of approximately 36 US-allied countries without requiring individual BIS licenses, reducing administrative burden for routine trade.

Question 5

When determining whether a US export license is required, what should be the exporter's first step?

Accepted Answer

Classify the item by identifying its ECCN on the Commerce Control List

Answer

Classifying the item with the correct ECCN is the essential first step, because licensing requirements depend on the item's classification, the destination country, the end-user, and the end-use.

(CES) Certified Export Specialist Practice Test

(CES) Certified Export Specialist Practice Test

CES Export Controls & Sanctions Compliance 2