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An Export Compliance Policy sets clear rules and procedures for how a company handles its international sales and shipments while following India's Foreign Trade (Development and Regulation) Act and related regulations. It guides employees on checking restricted items, securing proper licenses, and screening business partners against sanctioned parties lists.

This policy helps companies protect themselves from costly violations and trade penalties while maintaining smooth export operations. It typically includes specific procedures for product classification, documentation requirements under DGFT guidelines, and steps to prevent unauthorized technology transfers. Good compliance policies also cover staff training and internal audits to ensure everyone follows export control rules.

Companies need an Export Compliance Policy when they start selling products or services internationally from India. This becomes especially crucial when dealing with dual-use items, technology transfers, or goods that might have military applications under the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) list.

The policy proves essential during customs clearance, license applications with the DGFT, and when entering new international markets. It's particularly important when expanding into countries with complex trade relationships with India, handling sensitive technical data, or working with new foreign partners where compliance risks increase significantly.

• Basic Export Compliance Policy: Covers fundamental DGFT requirements, documentation procedures, and restricted item screening - ideal for small exporters starting international trade
• Technology-focused Policy: Emphasizes software exports, technical data transfers, and digital service compliance under India's IT Act
• Manufacturing Export Policy: Detailed protocols for physical goods, SCOMET items, and factory-level compliance checks
• Comprehensive Trade Policy: Combines export and import compliance, suitable for large trading houses handling diverse product categories
• Industry-specific Policy: Tailored versions for sectors like pharmaceuticals, chemicals, or textiles, addressing unique regulatory requirements

• Export Compliance Officers: Lead the development and implementation of Export Compliance Policies, ensuring alignment with DGFT regulations
• Legal Teams: Draft and review policy language, update requirements based on trade law changes
• Shipping Department Staff: Follow daily procedures for export documentation, customs clearance, and compliance checks
• Senior Management: Approve policies, allocate resources for compliance programs, and bear ultimate responsibility
• Sales Teams: Must understand and follow export restrictions when pursuing international deals
• External Consultants: Provide specialized guidance on complex regulatory requirements and policy updates

• Product Analysis: List all items your company exports, identifying those on SCOMET or restricted lists
• Market Research: Document target countries and any special trade restrictions or sanctions
• Process Mapping: Chart your export workflow from order to shipment, noting compliance checkpoints
• Team Structure: Define roles and responsibilities for export compliance across departments
• Risk Assessment: Identify potential compliance risks in your current export operations
• Documentation Review: Gather sample export forms, licenses, and certificates you typically use
• Training Needs: Plan how staff will learn and follow the new policy requirements

• Purpose Statement: Clear outline of policy objectives and commitment to DGFT compliance
• Scope Definition: Products, technologies, and activities covered under export controls
• Legal Framework: References to Foreign Trade Act, SCOMET regulations, and other applicable laws
• Compliance Procedures: Detailed steps for screening, documentation, and license requirements
• Restricted Party Rules: Guidelines for checking sanctioned entities and prohibited destinations
• Record Keeping: Requirements for maintaining export documentation and transaction records
• Violation Reporting: Procedures for reporting and addressing compliance breaches
• Training Requirements: Mandatory staff training protocols and frequency

An Export Compliance Policy differs significantly from a Compliance and Ethics Policy in several key ways. While both address regulatory compliance, their focus and scope serve distinct purposes in Indian business operations.

• Scope and Focus: Export Compliance Policies specifically target international trade activities and DGFT regulations, while Compliance and Ethics Policies cover broader organizational conduct and internal governance
• Regulatory Framework: Export policies primarily align with Foreign Trade Act and SCOMET guidelines, whereas Ethics policies address multiple corporate governance laws and industry standards
• Implementation Level: Export policies require specific operational procedures for each shipment and transaction, while Ethics policies guide overall organizational behavior
• Risk Management: Export policies focus on preventing trade violations and sanctions breaches, while Ethics policies address broader reputational and compliance risks