Santa is stuck in U.S. Customs!
Export Compliance and Controls apply to everyone, even Santa Claus. The complexities involved with exports have a broad range in scope and can often cause unnecessary headaches.
Today, things could hardly get any worse! It's late afternoon in the middle of the holiday and Santa is currently held up at customs.
While authorities try to clear up the problems with Santa's sleigh full of toys, millions of children all over the world are at risk of late or no delivery of those brightly wrapped gifts for under the tree on Christmas morning.
What could possibly be the hold up and what can be done about it!? Santa is in desperate need of some help. Below are just a few of the problems he is facing.
No ECCN for the laptop
Export Controls are in place for a reason and dual-use items in the EAR are a big part of those controls. Santa did not do all of his compliance homework and now finds himself waiting in Customs for a determination to be made regarding his laptop's ECCN number.
The destinations were not screened
Kids all over the world need toys and games but it's no secret that Santa delivers to adults as well. Part of compliance is making sure that these adults and their companies are not on any of the Sanctions lists posted by the U.S. Government. Because his Naughty list was out of date, Santa has even more problems on his growing list of issues.
Documentation is a mess
The Commercial Invoice looks like a Harry Potter novel and none of the information is correct. Data in ACE does not match up and now CBP is asking a lot of questions that Santa does not know the answer to. It appears his compliance elves dropped the ball on several things that have left Santa in a terrible spot!
Santa's issues were fixable. With some quick thinking and resource allocation, Santa solved his problems by:
Proper ECCN Classification & License Determination
Differing from Schedule B and HTS classifications, ECCN’s are crucial to determining Dual Use item licensing requirements. Santa was pleased to learn Star USA determined the ECCN for his laptop and that no license would be required.
Properly Screened End-Users and Destinations
Even if items are EAR99, sanctioned or embargoed countries may still require a license. Star USA did a screening of all Santa’s end users and determined the user and destinations were in compliance with U.S. regulations.
Santa’s responsibilities are driving and delivering, not paperwork. He had no idea his elves had accidentally created incorrect documentation. Fortunately, Star USA was able to provide Santa and his elves with corrected and acceptable documents.
Don't End up like Santa!
Understand what compliance is. It isn’t scary, overwhelming or a check box.
Instead, be proactive and educational.
Adhering to a documented policy and regularly practicing controls allows your business to mitigate risk and gain advantage over the competition.
It’s the right way to do business.
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