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What is an ‘Export Control Opinion?’
The ‘Export Control Opinion’ (ECO) is a legal opinion prepared by Customs Knowledge, providing a well-reasoned assessment of whether goods may be exported in a specific situation and under what conditions. The image above illustrates the various elements that Customs Knowledge examines to determine whether the export of specific goods is permitted. The result is then documented in a report, the ECO, which is always co-authored by a lawyer from Customs Knowledge.
The ECO helps organizations remain compliant with the complex laws and regulations governing the export of goods, technologies, and services. This applies not only to transactions involving military goods and dual-use items (products that can have both civilian and military applications) but also to everyday products subject to export-related sanctions. The ECO is relevant in all sectors involving sensitive technologies or products (e.g. defense and high-tech), but in the case of sanctions, the ECO may be relevant for all sectors.
The Export Control Opinion is carefully prepared and constitutes a well-founded legal assessment. However, the opinion does not qualify as an authorization or a binding advisory decision. Nevertheless, the ECO allows you to demonstrate to the authorities that serious work is invested in complying with the legal requirements for exports.
Importance for the exporter
The Export Control Opinion offers several key benefits for the exporter:
- Legal compliance: Exporters are required to comply with national and international export control regulations. This compliance is explicitly confirmed in the export declaration by including a document code. The ECO helps to understand which specific laws and regulations apply to export transactions and also serves as the legal basis for using the document code.
- Risk management: Exporting products to countries or entities subject to embargoes or sanctions can result in fines and criminal prosecution. The ECO maps these risks and supports well-informed decision-making.
- Authorizations and procedures: For goods subject to export control measures, obtaining the appropriate export authorizations is crucial. An Export Control Opinion can guide the exporter through the application process. An ECO can speed up the application process, which allows the exporter to obtain the authorization within a shorter timeframe.
- Competitive advantage: By being well-informed and compliant, companies can engage in international activities with greater confidence. This can provide them with a competitive edge in the global market.
- Proper documentation for authority inspections: Customs or other authorities frequently conduct retrospective checks to verify whether export conditions have been met. The ECO serves as a crucial part of the documentation to demonstrate the exporter’s compliance. Its value often becomes evident years later during an inspection, acting as a ‘memory aid’ for the exporter.
Added value of Customs Knowledge
Why is it important to have the Export Control Opinion prepared by Customs Knowledge?
- Confidential environment: While you as an exporter have nothing to hide, you want to ensure that your data, communications, and the various considerations for proceeding with, or refraining from, a transaction do not become public. This is especially important for confidential products with specific compositions or technical specifications which contain sensitive information. Additionally, you may prefer that authorities do not have unrestricted access to all discussions you have had with your advisor. In theory, however, authorities do have the right to request such information. We deliberately say “in theory” because an Export Control Opinion is always issued by one of the attorneys at Customs Knowledge. This ensures that what you discuss with us remains genuinely confidential.
- Expertise in complex regulations: Customs Knowledge has in-depth knowledge of the intricate export control regulations and sanctions, which are constantly evolving.
- Classification expertise: Customs Knowledge provides in-depth expertise regarding the accurate classification and categorizing of goods in the Combined Nomenclature, the Dual-use regulation, and the interpretation of sanctions regulations.
- Risk analysis: Customs Knowledge conducts a thorough risk analysis to identify potential issues. This enables the exporter to take proactive measures and adjust their compliance strategy accordingly.
- Training and awareness: Customs Knowledge can provide training for your employees on compliance with export controls and sanctions, which is crucial for fostering a culture of compliance within your organization.
- Preventing and resolving disputes: If a dispute arises regarding compliance with export regulations, Customs Knowledge can represent the exporter in discussions with the authorities or, if necessary, in legal proceedings.
More information?
Are you unsure whether your goods qualify as strategic goods or whether sanctions apply to the destination country? Do you want to assess the legality of your export in a confidential setting? At Customs Knowledge, we are ready to assist you. Contact us for specialized support or inquire about the possibilities of obtaining your own ECO, free of obligation.