��������Ƶ

An Export Compliance Policy outlines how a Canadian company manages its international trade activities to follow federal export laws and regulations. It spells out the rules, procedures, and responsibilities for shipping goods, technology, and services across borders while meeting requirements under the Export and Import Permits Act and other trade control measures.

A strong policy helps businesses prevent export violations, maintain proper documentation, and screen transactions against restricted parties. It covers key areas like product classification, license requirements, end-user verification, and staff training. For Canadian firms doing international business, this policy acts as their roadmap for legal and secure exporting.

Canadian businesses need an Export Compliance Policy when they begin selling or shipping products, technology, or services internationally. This becomes especially critical for companies dealing with controlled goods, dual-use items, or strategic technologies that fall under the Export and Import Permits Act.

The policy proves essential during customs audits, when expanding into new foreign markets, or when onboarding staff who handle international shipments. It's particularly valuable for manufacturers, tech companies, and research institutions working with sensitive materials or data. Having this policy in place helps avoid costly delays, fines, and potential criminal penalties under Canadian trade laws.

• Basic Policy: Covers fundamental export compliance requirements, focusing on restricted goods screening and documentation for smaller businesses with straightforward international trade.
• Comprehensive Policy: Includes detailed procedures for controlled goods, technology transfers, and sanctions compliance, suited for large manufacturers or tech companies.
• Research Institution Policy: Emphasizes dual-use technology controls and intellectual property considerations for academic and research organizations.
• Defense Industry Policy: Features stringent controls for military and defense items under the Controlled Goods Program.
• Service-Based Policy: Tailored for consulting firms and service providers, focusing on intangible exports and technical data transfers.

• Export Compliance Officers: Lead the development and maintenance of the Export Compliance Policy, ensuring it aligns with Canadian trade regulations.
• Legal Counsel: Reviews and validates policy content, ensuring alignment with the Export and Import Permits Act and other trade laws.
• Senior Management: Approves the policy and provides resources for implementation across the organization.
• Shipping Department Staff: Follows policy procedures for international shipments, documentation, and compliance checks.
• Sales Teams: Must understand and follow export restrictions when pursuing international business opportunities.
• External Auditors: Review policy implementation during trade compliance audits and certifications.

• Product Assessment: List all goods, technology, and services your company exports, including their classification codes and control status.
• Regulatory Review: Gather current Export and Import Permits Act requirements and any industry-specific regulations affecting your exports.
• Risk Analysis: Map out high-risk areas in your export operations, including sensitive destinations and restricted end-users.
• Process Documentation: Detail your existing export procedures, screening methods, and record-keeping systems.
• Staff Responsibilities: Identify key personnel involved in export activities and their roles in maintaining compliance.
• Training Needs: Determine required training programs for staff handling international shipments and compliance matters.

• Policy Statement: Clear commitment to export compliance and legal trade practices under Canadian law.
• Scope Definition: Detailed coverage of controlled goods, technology transfers, and applicable trade regulations.
• Compliance Procedures: Step-by-step processes for screening transactions, documentation, and restricted party checks.
• Roles and Responsibilities: Assignment of export compliance duties to specific positions and departments.
• Record Keeping: Requirements for maintaining export documentation and transaction records.
• Training Requirements: Mandatory staff training protocols and frequency of updates.
• Violation Reporting: Procedures for reporting and addressing potential export violations.
• Review Process: Schedule for policy updates and compliance assessments.

An Export Compliance Policy differs significantly from a Due Diligence Policy, though both play crucial roles in corporate risk management. Let's explore their key distinctions:

• Primary Focus: Export Compliance Policies specifically govern international trade activities and controlled goods, while Due Diligence Policy covers broader business risk assessment across all operations.
• Regulatory Framework: Export policies align with the Export and Import Permits Act and international trade controls, whereas due diligence policies address general corporate governance and risk management requirements.
• Implementation Scope: Export compliance targets specific departments handling international shipments and trade documentation, while due diligence applies company-wide to all business decisions and partnerships.
• Enforcement Triggers: Export policies activate with every international transaction, but due diligence policies typically come into play during major business decisions, acquisitions, or new partnerships.