Case Study
Between January 2007 and August 2007, Intevac, Inc. provided technology subject to the Export Administration Regulations (EAR) to a Russian individual employed at its Santa Clara, California facility. This included releasing drawings, blueprints for parts, and identification numbers for parts, as well as development and production technology classified under ECCN 3E001, without obtaining the necessary license from the Bureau of Industry and Security (BIS). Intevac acknowledged these violations voluntarily an
The Penalty: On February 19, 2014, Intevac, Inc. consented to a civil penalty of $115,000 and actively cooperated with the ensuing investigation.
Our approach is a collaborative one, starting with a comprehensive risk assessment led by our designated compliance officers and senior management. We then join forces with your team to foster a culture of compliance commitment and provide extensive training to enhance awareness across your organization.
Prior to any transactions, conducting risk assessments is a crucial step in identifying preventable risks that could potentially harm your reputation and business. Our program is designed to help you spot and mitigate risks early on, thereby saving you valuable time and resources in the long run.
Here are ten common risks in global trade that our program addresses
- Failure to gain authorization for the release of sensitive data or intellectual property
- Failure to demonstrate due diligence through sufficient record-keeping
- Failure to conduct thorough watchlist, sanctions, and denied party screening
- Failure to accurately classify products, especially those with dual-use or military applications
- Failure to ensure business partners adhere to ethical standards
- Failure to obtain necessary authorizations, including licenses or permits
- Exposure to supply chain vulnerabilities
- Exposure to cyber and physical threats
- Improper understanding or application of trade provisions
- Risk of items being unlawfully diverted to unauthorized end users
Our proactive approach includes implementing the following risk mitigation strategies
- Establishing audit trails to demonstrate due diligence
- Leveraging the latest technology for automation and transparency
- Conducting thorough screening of all transaction parties
- Investing in improved security measures
- Ensuring accurate product classification through expert consultation
- Prioritizing ongoing compliance education
- Auditing organizational compliance efforts regularly
Effective Compliance Program
By choosing to partner with Phoenix Global Shipping, you not only demonstrate a commitment to regulatory compliance but also protect your business from financial, legal, and reputational repercussions. Don’t wait until it’s too late – invest in our export compliance program today to secure the future of your business interests. Phoenix Global Shipping Can help you create an Effective Compliance Program to avoid for falling to these costly mistakes.
