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Elements of an Effective Internal Compliance Programme For Export/Transfer of Dual-Use Items

December 13, 2022 1252 0 Public Policy

Elements of an Effective Internal Compliance Programme For Export/Transfer of Dual-Use Items

Given the technological advancements and the complexity of supply chains today, effective export controls depend largely on the awareness of companies and organisations and their active efforts to comply with export control obligations. For this, they establish a set of internal policies and procedures, also known as an Internal Compliance Programme (ICP). This booklet covers the elements of an effective ICP for export/transfer of dual-use items. Dual-use items include goods, software and technologies. This booklet provides a framework to help organisations identify and minimise risks associated with export/transfer of dual-use items, and to ensure compliance with the relevant national laws and regulations on export controls. This is especially relevant for the IT industry where exports of controlled items take place through an intangible medium. This booklet aims to assist organisations in formulating their ICPs or bringing their existing ICPs in-line with the essential elements. Common approaches and practices on ICPs can contribute to a consistent application of export controls in India. This document also provides a checklist that can be answered by the organisations when applying for a general authorisation with the Directorate General of Foreign Trade (DGFT) or Department of Defence Production (DDP). This is expected to assist the relevant authorities in easily navigating through the organisation’s ICP.

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This booklet identifies elements that are critical for an effective ICP for export/transfer of dual-use items subject to export control regulations. These elements provide a foundation for the basic structure of an organisation’s ICP. The manner in which these elements may be implemented depends on the size of the organisation, nature of its operations, geographic location of the organisation, its subsidiaries and customers, nature of the dual-use items that the organisation deals in, the potential end-use and end-users of these dual-use items, etc.

Elements of an ICP:

  1. Management Commitment
  2. Organisation Structure, Responsibilities, and Resources
  3. Training and Awareness
  4. Classification and Screening Procedures
  5. Performance Review and Audit
  6. Recordkeeping
  7. Reporting and Corrective Action
  8. Physical and Technical Security

 


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Garima Prakash
Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech



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