Five Reasons U.S. Export Compliance is Important to Your Business

1.It’s required. Ok, this is the obvious point. If you are going to export from the United States, you have to follow the requirements that come along with this privilege. But in some cases, exporters may not be aware of their requirements when they are using Ex Works (EXW) Incoterms or they are depending on their buyer or freight forwarder to handle everything related to the shipment. U.S. exporters should know ultimately they are held accountable for compliance with various regulatory agencies. Ignorance is not bliss, and U.S. regulatory agencies will not be forgiving because an exporter is not aware of their requirements. Even if a company doesn’t intend to export, it is good to be aware of red flags or how to spot a potential export. For example, a sale can look to be domestic, and then there is a request to deliver to a freight forwarder’s address. This is where you need to know to ask more questions to find out if it is intended to export, and to ensure you are remaining in compliance with all regulations.

2. It saves time. Having a clear plan for how your organization will comply with regulations is a proactive way to handle export sales. This is the better option than being reactive which could delay or lose sales, or cause violations if something goes wrong. An example of a procedure would be that new clients are screened from the front end of correspondence. Spending time on a sale to a denied party that would ultimately have to be stopped would not be time well spent, so we have the procedure to keep things efficient.

3. It saves money. When you don’t have violations, you don’t have fines. Fines and penalties have different ranges for the various regulatory agencies which can include monetary fines, but can also include prison sentences, or your privilege to export can be taken away. Having a written plan, an Export Compliance Program, will also be a mitigating factor in the case that a violation would occur. This would show that you are trying to comply with the regulations and have procedures in place to avoid violations.

4. It saves your reputation. Playing by the rules keeps you in good standing with regulatory agencies. Violations can be publicly announced which can hurt your company’s reputation. See real examples of violations in the Bureau of Industry and Security publication, “Don’t Let This Happen To You” at There are many free resources available to exporters to ensure they remain in compliance.

5. It is for the good of all of us. There are many reasons for the various regulations that relate to U.S. exports, such as human rights, nuclear nonproliferation, crime control, etc. You might see the item you are selling is harmless, where another entity could use for another purpose that is controlled by the US government. The overarching goal is to make sure the wrong items are not making it in the wrong hands, and it takes all of us to help with that goal.

These are just a few reasons export compliance is important.  Learn more about this subject and register for the free webinar through the Equipment Dealers Association. Contact us today for your free consultation at 641-751-2868 or