BPE Global working with Oracle on Export Control Compliance

Shippers attending Oracle's “Modern Supply Chain Experience” conference last week learned that progress is being made on the mandated Export Control Reform effort despite a few hiccups.

According to Beth Pride, president of the San Francisco-based compliance consultancy BPE Global, there are still issues with missing or incomplete definitions, but overall things are progressing well.

“Supply chain managers are extremely appreciative of the huge undertaking and the accomplishments to-date to modernize the U.S. export control system,” she says. “And we strongly support it, too.”

Pride was among the panelists addressing “The Politics of Trade: Reform, Sanctions and FTAs in Your Supply Chain.”

Andrea Appell, a director with BPE, will be sharing the same findings with the Committee on Small Business Subcommittee on Agriculture, Energy, and Trade on February 10th.

“A few years ago the export system in the U.S. was overcomplicated, inefficient, and did not keep pace with the constant evolution of technology,” says Pride. “That seems to be changing.”

Adding urgency to compliance issues are the new and remaining trade sanctions remaining with Iran, Russia and Cuba, According to BPE, managers must be proactive if they are to be successful in penetrating these new markets when new trade agreements come into play.

“Order-to-cash and fulfillment issues are a concern, as are sourcing strategies and planning for future manufacturing,” she says. “The full impact of international trade agreements must be understood before you initiate a process.”

For the time being, cautions Pride, shippers should not fulfill any existing contracts with sanctioned parties, nor enter into any new transactions with them.

“While some transactions may still be permitted, it's vital to understand why a party is sanctioned to begin with. Furthermore, many of these foreign companies may have multiple majority-owned subsidiaries…and all the screening software in the world won't catch these entities.”

SC
MR