The European Commission (the Commission) recently issued draft guidelines on the core elements that European industry should take into account when implementing internal export controls and sanctions compliance programs. The guidance – which is legally non-binding – will be finalized upon the results of a public consultation providing the opportunity for EU exporters to comment on its core elements. Companies can participate by responding to a survey until November 15. It is the intention of the Commission to share the results of this survey with a Technical Expert Group before finalizing its guidance.
Internal compliance programs (ICPs) have long been part of a culture of compliance in the US, but much less so within the European Union. However, ICPs are increasingly viewed in the EU as a key element for an effective export control system. While not expressly alluding to ICPs, the EU Dual Use Regulation has encouraged Member States to take into consideration whether a company employs adequate means and procedures for compliance when assessing applications for global export authorizations. In addition, ICP guidelines have been introduced by some Member States as a tool to better monitor compliance with EU and national export controls. The EU Dual Use Regulation Recast Proposal formally introduces standardized operational ICPs as part of the assessment in the granting and control of global export authorizations and certain general export authorizations. In implementing these ICP guidelines, the EU is acting pursuant to the multilateral provisions of the Wassenaar Arrangement that have expressed support for ICPs and for this type of regulatory guidance.
Continue Reading EU Promotes Export Controls and Sanctions Compliance Programs