Here is an inconvenient truth: alliances and associations must abide by their country’s export control regulations. Three areas are impacted the most:
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Software: Custom software developed for product certification or testing needs to be examined before being exported outside the USA.
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Membership: The US Government maintains the Consolidated Screening List (CSL) detailing entities of all types currently under restrictions. Restrictions include prohibitions on who can join an alliance or association.
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Intellectual Property: Exports, re-exports, or transfers of intellectual property oftentimes created by alliances and associations ranging from training materials to technology specifications/standards.
Ongoing monitoring of sanctions and export restrictions is essential for the above, as they change daily. Needless to say, staying compliant requires constant vigilance and management expertise. Let us look at these three areas in more detail and what steps are required to stay compliant.
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Memberships come from all types of companies, organizations, and individuals. Privately held companies may be owned by individuals who are on a variety of lists that prevent organizations from engaging with them. Public companies are often listed on different lists than privately owned companies.
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All organizations must collect data from their existing and new members of privately held companies to determine if members have owners that are listed on CSL. If your organization is for individuals, no additional data collection is usually required to screen. Gathering this data is the first step; then, daily checks will need to occur against the CSL to ensure compliance.
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Memberships of any type from selected geographic locations are prohibited for alliances and associations based in the USA.
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One strategy is to use website domain blocking to prevent entities from these countries from accessing your website. However, a vigilant membership screening process is necessary to ensure compliance.
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Managing intellectual property such as software destined for distribution outside the USA requires an EAR 99 review to determine if distribution is legal and whether reporting to the US Government about who is receiving the software will be necessary several times a year.
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To conduct an EAR 99 review, the organization must engage with legal counsel experienced in export compliance. The development team will need to submit the software, documentation, know who made contributions to the software, use of open source software, and much, much more.
Inventures helps its clients navigate the twists and turns of government policies. Our clients, relying on our Executive Leadership and Business Operation Service, gain access to export control know-how. Our Executive Directors work with your legal counsel or help your organization find legal counsel with export control expertise. Our membership management processes are customized to ensure your membership is authorized to participate, and our Consolidated Screening List service simplifies ongoing membership compliance. Just another way Inventures help you stay focused on collaborating to achieve your mission.