Export Control Update

As PRI strives to adapt our industry managed process to adjust to the Export Control laws and regulations - many things are changing. Recently PRI changed our approach to auditing non US suppliers with US auditors. Learn more

We are now asking for more information than ever before about the EC-LR/Restricted* materials you have in your facility, to maintain effectiveness, accuracy, and compliance.

Through all this change there is one constant: the dedication of the industry – primes – suppliers – PRI to continue to serve the industry with the highest quality, value added audits and accreditation system in any industry. Together we have established an 18-year record of pro activity – focused on establishing and implementing industry best practices for special processes and products – all the while never losing sight of improved reliability and the safety of the flying public.

What has PRI learned about Export Control?

PRI has learned that:

• Export Control laws and regulations are complex and challenging.
• Complete and accurate flow down to suppliers is critical, of not only part specifications and requirements, but also of clear, accurate, and understandable information as it relates to the Export Control status of all materials. Suppliers and their sub tiers must be informed about the EC-LR status of all materials they are working on – and these suppliers need to understand the ramifications of these regulations for their business.
• Export Control Compliance Plans and Technology Control Plans at suppliers and sub tiers must be designed and implemented to safeguard EC-LR material as per the regulations.
• Understanding and establishing compliance plans takes a great deal of dedication on the part of companies’ management – and considerable resources to establish these plans to properly control materials, parts, technology and information.

Companies need to review the Export Control regulations, including the information offered in various web sites – especially the Commerce and State Department websites (see below); attend training seminars put on by those experienced in the Export Control laws; and determine if they should engage consultants, or legal counsel or others who have expertise in Export Control to work with them.

Why is this so important?

The main reason to do this is to enable your company to continue to work on Export Controlled materials in compliance with applicable laws and regulations and to avoid the penalties and sanctions which can result from non-compliance. The penalties for non-compliances can range from administrative warning letters – to fines (some in the millions of dollars) - to your company losing its’ Export privileges – to individuals going to jail. The government’s web sites describe the most recent penalties that have been levied on companies and individuals. PRI administers the Nadcap process for the benefit of the aerospace industry. The guiding principles, policies and procedures which we use in the Nadcap process are determined by the industry. The entire industry needs to pull together to understand how the Export Control regulations affect the Nadcap process – and secure effective ways to manage our process while ensuring 100 % compliance to all laws and regulations.

All parties involved in the “Nadcap community” need to exhibit patience and understanding as we all continue to learn and adapt out process – as we do everything in our power to help our process thrive and continually improve.

Useful Links

The US Government’s main web sites are as follows:

ITAR (Department of State)

EAR (Commerce Department)

If you have any questions, please contact Don Buehler via email at donb@sae.org  or + 1 (513) 662-5190.

* The term EC-LR/Restricted refers to all Defense Articles and Technical Data controlled by the ITAR, any foreign origin Defense Articles and Technical Data that would be controlled by the ITAR if of U.S. origin, and any dual-use or civil items or Technology controlled by the EAR under any ECCN except EAR99.

An Export Control Roundtable will be held on July 24, 2008 from 1:00PM – 4:30PM in connection with the Pittsburgh Nadcap meeting. All primes and interested suppliers are encouraged to attend. If you wish to attend, contact Julie Rubright at julier@sae.org.