Multilateralism Increases Odds of Catching Export Violations

Sep. 20, 2024
By: Marvin E. McPherson

The U.S. hosted the second export enforcement five conference. Representatives from the United States, Australia, Canada, New Zealand, and the United Kingdom, collectively known as the Export Enforcement Five or E5 attend the meeting and published a joint statement re-affirming their commitment to collectively control dual- use items destined to Russia. The statement emphasized the E5’s focus on exchanging intelligence, keeping each other informed of sanctions designations and Entity List additions, and harmonizing export control lists.

Exporting businesses face increased scrutiny as governments around the world strengthen enforcement measures and enhance data sharing efforts. As seen by the second year of the E5 conference, countries are working more closely than ever to detect and prevent illegal exports, particularly those involving sensitive technologies, dual-use goods, or exports to Russia and other embargoed countries.

This increase in international data sharing means that discrepancies or red flags in export documentation are far more likely to be caught. As a result, companies exporting goods across borders must take extra care to ensure the accuracy and completeness of all paperwork. Even minor errors in documentation can lead to delays, investigations, or penalties.

The consequences of non-compliance with export laws can be severe, and the likelihood of the government catching a mistake or reckless intent significantly increases with multilateral enforcement and collective action.

Recent cases highlight the importance of proper documentation. In the case against Intertech Trading Corporation, a New Hampshire company fined $140,000 and a two-year probation by the U.S. Department of Commerce for failing to failure to file EEI related to exports of scientific equipment designated EAR99 to Russia and Ukraine.

To avoid costly mistakes, companies should implement rigorous compliance protocols and review processes. Exporters should have policies and controls that focus on accuracy in export documentation and maintaining an up-to-date knowledge of export regulations. If you have any questions regarding export filings or classification, please contact any attorney at Barnes Richardson and Colburn.