What are the Export Administration Regulations? Your Obligations Under the EAR & Why Do You Care? If you find this information useful, we invite you to visit our blog, and register for our mailing list to receive our articles on the FCPA and other compliance topics. Visit us at www.ethicsresources.org This material is confidential and proprietary to IntegTree LLC and may not be reproduced, published or disclosed to others without the express authorization of IntegTree LLC. IntegTree LLC is not a law firm and is not engaged in providing legal or other similar professional advice or services. In providing our services, IntegTree LLC attempts to provide its clients with “effective practices” in light of then-current laws and/or regulations. IntegTree’s services should not replace advice from your in-house or outside counsel or their opinions concerning company practices.

1. Copyright © IntegTree
(2014)
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Export controls:
Export Administration Regulations
Dr. Nitish Singh & Thomas J. Bussen (J.D./MBA)
E-mail: ncsingh@integtree.com

2. Copyright © IntegTree
(2014)
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What are the
Export Administration Regulations?
• Products, software and technology that have a primarily
commercial use fall under the EAR.
• The EAR restricts :
– Direct exports from the US;
– Re-exports of U.S. products, software and technology
from countries outside the US, and;
– The disclosure of U.S. origin technology to non U.S.
nationals, wherever situated
• Technology is broadly defined to include any information
for development, production or use of a product

3. Copyright © IntegTree
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Your Obligations Under the EAR
• Companies may need to:
– Obtain a product license
– Obtain a license to export to certain persons or
entities identified by the U.S.
– Screen for "red flags" prior to exporting
– Ensure no exports are sent to embargoed or
sanctioned countries, even indirectly

4. Copyright © IntegTree
(2014)
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Why Do You Care?
• Every company that exports products, software or
technology is subject to U.S. export control, as well as
any transfers to non U.S. citizens - even those within the
United States.
• Companies subject to EAR must maintain internal
controls to ensure compliance.
• It may not be obvious that the EAR applies to
you. Putting internal controls in place now may lead to
significant savings later.
• Fines are steep, and include serious criminal penalties
Violations may also lead to "denial orders", prohibiting
your organization from exporting for a period of time

5. Copyright © IntegTree
(2014)
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What Can You Do to Comply?
• Evaluate whether your company is subject to
export controls
• Put in place internal compliance policies.
– Communicate those policies, train your workers, and
publish the policies in your code of code
• Train your managers to handle their own
investigations of licensure and transfer
requirements and limitations, and identify red
flags that signal export restrictions.
• Teach your workforce to recognize the
situations in which the EAR may apply to you.

6. Copyright © IntegTree
(2014)
www.IntegTree.com
About the Authors
• Integtree President Dr. Nitish Singh Associate Professor at
Saint Louis University’s John Cook School of Business, has
been at the forefront of ethics and compliance management
and developed a University Certification program used by
business executives and lawyers worldwide.
• IntegTree Vice President Thomas J. Bussen holds a J.D., MBA,
and Ethics and Compliance Certification from Saint Louis
University’s John Cook School of Business, where he is adjunct
faculty. A former litigator at an AV rated law firm, Thomas
knows first hand the unforeseen problems that arise with
inadequate risk management.

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(2014)
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Additional Resources
• Join The Ethics & Compliance Professors
complementary subscribers list by clicking here.
• IntegTree specializes in the worldwide localization of
ethics and compliance programs, regulatory and
ethical training, and psychometric testing to provide
deep insights to improve existing compliance
programs.

8. Copyright © IntegTree
(2014)
www.IntegTree.com
Disclaimer:
• This material is confidential and proprietary to IntegTree LLC and may not be
reproduced, published or disclosed to others without the express authorization of
IntegTree LLC. IntegTree LLC is not a law firm and is not engaged in providing legal
or other similar professional advice or services. In providing our services,
IntegTree LLC attempts to provide its clients with “effective practices” in light of
then-current laws and/or regulations. IntegTree’s services should not replace
advice from your in-house or outside counsel or their opinions concerning
company practices.