Deze pagina is ook beschikbaar in het Nederlands. Klik hier voor de Nederlandse versie.
Export controls is best described as all measures that governments take to restrict the distribution and/or use of certain goods or services. This usually relates to national and international security, (the production of) weapons of mass destruction and oppression. In this context, restrictive measures can be broadly divided into two categories: military goods and dual-use goods. The first category concerns purely military use, the second category concerns goods or services that could fulfill civilian and military purposes. This concerns both goods (hardware) and services such as technology, software, financial services, etc.
Sanctions are restrictions, or prohibitions, imposed by countries or international organizations (such as the United Nations, European Union, etc.) on countries, organizations and/or persons to supply certain goods or services (trade restrictions). The aim is often to protect international security but also to enforce, for example, human rights. A number of concrete examples in this context are the sanctions that have been imposed on Iran, Russia and North Korea. For a wide range of goods and services it is simply prohibited to export to these countries.
Your company could be confronted with the consequences of export controls and sanctions if you supply goods/services in violation of the restrictions. In many cases you need an export authorisation to be allowed to export (especially with export controls). If you do not posses one, you are not authorized to do so. As mentioned, sanctions often involve an explicit prohibition. This means that it is not only about goods but also about the export of software and technology. The requirements apply to a wide range of sectors (for example energy, aerospace, telecommunications, electronics, chemicals, pharmaceuticals, computers, etc.).
The consequences of non-compliance with the requirements in this context are far-reaching. For example, a violation is an economic offense for which serious penalties (high fines and even imprisonment) can be imposed. In addition, your supply chain runs a big risk of goods being held up in the event of a violation. Perhaps more importantly, there is a risk of reputational damage to your company. Trading without authorisation or with sanctioned countries is often widely reported in the media, with all the (commercial) consequences that entails.
It is therefore essential to permanently ensure that you comply with the requirements in this framework. Compliance must be part of the business rules/ethics within your organization and responsibilities must be clearly assigned. For this purpose, it is preferable to ensure that there is awareness among your people and management is on top of it. The best result is achieved by having documented procedures, that are accessible to everyone. Compliance with these procedures must be regularly checked internally/audited. We also recommend you specifically train your employees on this topic.