Policy Reference: _____________________________________________
Version: _____________________________________________
Effective Date: _____________________________________________
Review Date: _____________________________________________
Policy Owner: _____________________________________________
1. Purpose and Scope
This Export Control Compliance Policy (the "Policy") sets out the principles, obligations, and procedures that govern the organisation's compliance with applicable export control laws, regulations, and international trade sanctions in connection with its trade facilitation and commercial intermediary activities.
This Policy applies to all employees, officers, directors, contractors, agents, and any other persons acting on behalf of the organisation (collectively, "Personnel") in all jurisdictions in which the organisation operates or conducts business.
The organisation is committed to conducting all cross-border trade activities in full compliance with applicable export control legislation, including but not limited to: the laws and regulations of the country of export; European Union dual-use and arms export regulations; the United States Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), to the extent applicable; and the export control laws of any other jurisdiction relevant to a given transaction.
2. Prohibited Activities
The organisation shall not, and shall ensure that no Personnel shall, engage in any of the following activities:
Exporting, re-exporting, transferring, or facilitating the export of any goods, technology, software, or services in violation of applicable export control laws or regulations;
Engaging in any transaction with any person, entity, or country that is subject to applicable trade sanctions, embargoes, or export restrictions, including persons or entities listed on: the EU Consolidated List of Sanctions; the UK Financial Sanctions List; the US Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons List (SDN List); the UN Security Council Consolidated List; or any other applicable sanctions list;
Exporting or facilitating the export of goods or technology classified as controlled items under the applicable control list without first obtaining all required export licences or authorisations;
Making false statements or misrepresentations in connection with any export documentation, including commercial invoices, packing lists, export declarations, or certificates of origin;
Engaging in transactions that circumvent export control laws through the use of intermediaries, re-routing through third countries, or other methods;
Exporting SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) items without obtaining the required authorisation from the applicable authority.
3. Sanctions Screening
Prior to entering into any new commercial relationship or transaction, all Personnel engaged in trade facilitation activities shall conduct sanctions screening of the counterparty (including any known beneficial owners, directors, and key officers) against all applicable sanctions lists referenced in clause 2.2.
Sanctions screening shall be repeated: (a) annually for all ongoing commercial relationships; (b) at any time when there is a material change in the counterparty's ownership, management, or jurisdiction; and (c) promptly upon any significant update to applicable sanctions lists.
Sanctions screening shall be documented and records of screening results shall be retained for a minimum of five (5) years.
In the event of a positive match or a potential match requiring further investigation (a "Hit"), the relevant Personnel shall immediately escalate the matter to the Compliance Officer. No transaction shall proceed with a party subject to a confirmed Hit without written clearance from the Compliance Officer.
False positive screening results shall be documented with a written rationale explaining why the match does not apply to the counterparty in question. Such records shall be retained and made available to regulators upon request.
4. Product Classification
The organisation shall take reasonable steps to determine the applicable export control classification of all goods, technology, or software it exports, facilitates for export, or uses in connection with its trade facilitation activities.
Where there is doubt as to whether a product is subject to export controls or requires an export licence, the matter shall be referred to the Compliance Officer, who may seek external legal or technical advice.
The organisation shall maintain records of the classification status of all products it regularly facilitates for export, including HS codes, Export Control Classification Numbers (ECCNs) where applicable, and any licence determinations obtained.
5. Know Your Customer (KYC) and Due Diligence
The organisation shall conduct appropriate due diligence on all counterparties, including end-users and intermediaries, to verify their identity, jurisdiction, and stated end-use for goods or services.
Red flags that shall trigger enhanced due diligence include, without limitation:
The counterparty is located in, or goods are destined for, a high-risk jurisdiction subject to trade restrictions;
The end-use stated for the goods is implausible given the counterparty's apparent business;
The counterparty requests unusual payment terms or routing arrangements;
The counterparty is reluctant to provide information about the end-use of goods;
The goods requested have potential military, dual-use, or proliferation-sensitive applications;
The transaction involves unusual shipping routes or intermediate destinations with no obvious commercial rationale.
Where enhanced due diligence is required, the organisation shall obtain and document: the counterparty's full legal identity and jurisdiction; confirmation of beneficial ownership; an end-user statement specifying the intended use and destination of goods; and, where applicable, evidence of the counterparty's authorisation to import the goods in the destination country.
6. Export Documentation
All export documentation prepared or facilitated by the organisation shall accurately reflect the true nature, value, origin, and destination of the goods or services being exported.
The organisation shall not assist any counterparty in preparing documentation that misrepresents the nature, value, origin, or destination of goods, or that is designed to circumvent export controls or customs requirements.
All export documentation shall be reviewed by the relevant Personnel for accuracy before submission, and records of all export documentation shall be retained for a minimum of five (5) years.
7. Training and Awareness
All Personnel who engage in trade facilitation activities, commercial negotiations, or the preparation of export documentation shall receive appropriate training on export control compliance at least annually, and upon joining the organisation.
Training shall cover: applicable export control laws and sanctions regimes; sanctions screening procedures; product classification requirements; red flag identification; and escalation procedures.
Records of training attendance shall be maintained by the Compliance Officer.
8. Compliance Officer
The organisation shall designate a Compliance Officer responsible for: overseeing implementation of this Policy; maintaining awareness of changes in applicable export control laws and sanctions regimes; managing the sanctions screening process; responding to escalations from Personnel; liaising with regulatory authorities as required; and reviewing and updating this Policy at least annually.
The Compliance Officer shall be: _____________________________________________.
In the absence of the Compliance Officer, their responsibilities shall be assumed by: _____________________________________________.
9. Breach and Escalation
Any Personnel who becomes aware of an actual or suspected breach of this Policy, or of any export control law or sanction, shall report the matter immediately to the Compliance Officer.
Reports may be made in writing, by email, or through any confidential reporting mechanism established by the organisation. The organisation shall not retaliate against any Personnel who reports a breach or suspected breach in good faith.
Upon receipt of a report, the Compliance Officer shall investigate promptly, take any necessary interim measures to prevent further breach, and determine whether voluntary disclosure to the relevant regulatory authority is appropriate or required. The organisation shall seek legal advice before making any regulatory disclosure.
Where a breach is confirmed, the Compliance Officer shall: document the facts and circumstances; assess the risk of regulatory exposure; implement remedial measures to prevent recurrence; and report the outcome to senior management.
10. Consequences of Breach
Breach of this Policy by any Personnel may result in disciplinary action, up to and including termination of employment or engagement. Breach of applicable export control laws or sanctions regimes may result in civil and criminal penalties for both the organisation and the individuals involved, including fines, loss of export privileges, and imprisonment. The organisation reserves the right to terminate any commercial relationship where it becomes aware that a counterparty has breached applicable export control obligations.
11. Record Keeping
The organisation shall maintain records sufficient to demonstrate compliance with this Policy and with applicable export control laws for a minimum period of five (5) years from the date of the relevant transaction or activity. Records shall include: sanctions screening results; due diligence documentation; export documentation; training records; and any compliance escalations and their outcomes.
12. Review and Update
This Policy shall be reviewed by the Compliance Officer at least annually and updated as necessary to reflect changes in applicable export control laws, sanctions regimes, or the organisation's business activities. Updated versions shall be communicated to all relevant Personnel promptly upon adoption.
ACKNOWLEDGEMENT
By signing below, the undersigned confirms that they have read, understood, and agree to comply with this Export Control Compliance Policy.
Name: _____________________________________________
Title: _____________________________________________
Department: _____________________________________________
Signature: _____________________________________________
Date: _____________________________________________
Doc 12 — Export Control Compliance Policy — Neutral Template