Compliance Policy Manual
Authorizations
President/CEO: Date:
Empowered Official: Date:
Export Compliance Officer: Date:
10000 rev x2 Page 1 Table of Contents 1. PURPOSE...... 3
2. DOCUMENT SCOPE...... 3
3. EXPORT COMPLIANCE MANAGEMENT SYSTEM SCOPE...... 3
4. COMPANY OVERVIEW...... 3
5. MISSION...... 4
6. EXPORT COMPLIANCE POLICY AND OBJECTIVES...... 4
7. ORGANIZATION...... 4
8. EXPORT COMPLIANCE MANAGEMENT SYSTEM MODEL...... 6
9. EXPORT COMPLIANCE MANAGEMENT SYSTEM POLICIES...... 8
9.1 MANAGEMENT COMMITMENT...... 8
9.3 RESPONSIBILITY AND AUTHORITY...... 8
9.4 EXPORT COMPLIANCE COORDINATION...... 9
9.5 EXPORT PRODUCT INTRODUCTION...... 9
9.6 DOCUMENT AND DATA CONTROL...... 10
9.7 SUPPLIER SELECTION AND CONTROL...... 11
9.8 TRAINING...... 12
9.9 FACILITIES ACCESS AND CONTROL...... 12
9.10 INTERNATIONAL TRAVEL...... 12
10. REFERENCES: THE COMPANY EXPORT CONTROL MANAGEMENT SYSTEM PROCEDURES...... 13
11. REVISION HISTORY...... 13
Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 2 1. Purpose This manual documents the Company’s export compliance policies and intentions. It describes the Company’s Export Compliance Management System (ECMS) organization and documentation structure, and assigns management responsibility for each Export Compliance Process.
2. Document Scope This document applies to all aspects of export compliance management under the Company’s control or influence. All processes impacting export compliance are identified within this policy manual. However, this manual is limited to defining the Company’s policy and does not contain any description on how this policy is carried out.
3. Export Compliance Management System Scope The Company’s Export Compliance Management System includes all activities affecting the control of product, technology, and software with regards to export compliance. This begins when the first contact with a customer is made and continues throughout the company until the product is shipped and the transaction recorded. The Export Compliance Management System encompasses the following requirements:
U.S. Export Administration Regulations (EAR), Title 15 Code of Federal Regulations, Parts 730- 774
U.S. International Traffic in Arms Regulations (ITAR), Title 22 Code of Federal Regulations, Parts 120-130.
Exclusions:
The following processes are excluded from the scope of the Company’s Export Compliance Management System:
- Designs and builds defense products
Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 3 - Builds defense products as a subcontractor - Distributes defense products (US only) - Provides a service to companies building or distributing defense products - Sells defense products only within the US - Sells defense products to companies within the US who sell to foreign entities - Sells defense products to foreign entities - Sells non-defense products to foreign entities - Does not export products or sell defense products or services 5. Mission
6. Export Compliance Policy
The Company’s intent is to comply fully with United States export/re-export laws and regulations. Through ongoing communications with the customer and suppliers the Company makes all reasonable efforts to understand the application and use of the product and any applicable laws and regulations. All company employees are responsible for ensuring that under no circumstance will a transaction occur contrary to this policy.> 7. Organization The Company operates its production facility at one location at The senior executive responsible for operations is the The Export Empowered Official responsible for ensuring continued ongoing compliance is identified in the following department structure diagram. The Company maintains a written organization chart designating positions and departmental responsibilities of company officers, managers, and supervisors/leads separate from the following diagram. Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 4 The Company’s Departmental Structure Board of Directors President/CEO Export Export Empowered Official Compliance Officer Order Entry Purchasing Engineering Sales & Marketing Manufacturing Material Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 5 8. Export Compliance Management System Model This diagram represents the Company’s business processes used to ensure compliance with the company’s export policies. The Business Model illustrates the business functions and supporting processes through which the Company ensures compliance with applicable US Export Laws. These business processes describe how the company fulfills its export policies. The Company bases the documented structure of its Export Compliance Management System on this Business Model. Responsibilities for business processes are assigned to individuals as defined on tier 2 and tier 3 documents (see document pyramid in section 9.6). The matrix in the appendix cross-references the export compliance policies to the tier 2 documents, thereby identifying the responsibility and authority for all export compliance activities. Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 6 The Company's Export Compliance Management System Customer Business Functions Order Entry Introduce Export Products Business Processes Engineering Design and Develop Product Purchasing Control and Qualify Suppliers Manufacturing Control Products and Materials Shipping Prepare Product for Shipment Customer Compliance Physical Resources Human Resources Coordination Control Facilities Access Coordinate Export Compliance Conduct Export Training Control Documents and Data Approve and Manage Travel Administer Communication System Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 7 9. Export Compliance Management System Policies 9.1 Management Commitment The Company is committed to compliance with the Export laws and regulations of the United States and other countries. The Company has established processes designed to comply with the requirements of the US Export Laws and U.S. International Traffic in Arms Regulations (Title 22 Code of Federal Regulations, Parts 120-130). All Company employees are trained on applicable Export Compliance processes related to their job responsibilities. Employees are made aware that violations of the US Export Laws and Regulations could subject the company to criminal penalties, civil penalties, including large fines, or the loss of export privileges. Disciplinary action will be taken against any employee who willfully violates U.S. Export Laws or Regulations or who is not forthright in reporting accidental violations of these laws. U.S. Export Restrictions apply not only to physical shipments, but also to the release of technical data. Proper controls have been established to ensure that shipments and technical data are not exported from the United States, or (re)exported from other nations without proper authorization from U.S. authorities. Company management is committed to the development and implementation of the Export Control Management System, and demonstrates this commitment through its focus on maintaining the ECMS effectiveness. Management has established the Export Policy and objectives, and conducts regular reviews to evaluate the ongoing effectiveness of the ECMS. Management further demonstrates its commitment by continually emphasizing the importance of complying with US Export Laws and Regulations. 9.2 Responsibility and Authority The company has assigned a full time employee as the Empowered Official and given this person the responsibility and authority to ensure compliance with all applicable US Export Laws and Regulations and be responsible for (1) signing/authorizing license applications or other requests for approval on behalf of the company; and (2) becoming familiar with the provisions and requirements of the various export control statutes and regulations, and the criminal liability, civil liability and administrative penalties for violating the Arms Export Control Act and the International Traffic in Arms Regulations; and (3) acting with independent authority to: (l) Enquire into any aspect of a proposed export or temporary import by the company, and Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 8 (ll) Verify the legality of the transaction and the accuracy of the information to be submitted; and (lll) Refuse to sign any license application or other request for approval without prejudice or other adverse recourse. The company has identified export control processes and has assigned a process owner responsible for carrying out each of these processes. Process owners have been made aware of their responsibility to define and document how their assigned process is to be carried out and ensure, through continued monitoring that the process is consistently carried out as prescribed. 9.3 Export Compliance Coordination The responsibility to oversee the Export Compliance processes has been assigned to the Export Compliance Officer (ECO). In this role, the ECO provides the leadership on all export compliance issues and ensures compliance with all US Export Laws and Regulations. The ECO has the overall responsibility to see that all aspects of processing export products are carried out in accordance with documentation approved by the ECO. Periodic audits of these processes provide assurance that the processes are carried out in accordance with the approved documentation. Any export licenses that are determined to be needed for the program are secured by the ECO. Once secured, the ECO ensures that transactions related to the license are recorded and new licenses are secured as needed. 9.4 Export Product Introduction New product introduction is coordinated by the process owner to ensure that Controlled Technical Data is adequately controlled upon initial receipt through to hand-off to designated personnel within the company. Upon initial acceptance of a program requiring Export Compliance adherence, a program plan is initiated and licensing requirements are determined. Once program plans are initiated, the end use/user and final destination of the product is established. Introduction of any new export controlled product is closely coordinated with the ECO. Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 9 9.5 Document and Data Control Process Development The Company has established, documented, and implemented the export control processes necessary to ensure that applicable US Export Laws and Regulation are understood and carried out consistently. The Export Compliance Management System (ECMS) documentation contains all documents needed to ensure effective planning, operation, and control of the Export Compliance processes. This documentation includes this policy manual, procedures and/or work instructions, and records required to ensure ongoing compliance with applicable laws and regulations imposed by regulatory authorities. The range and detail of the documentation has been designed to ensure the effective planning, operation and control of the ECMS processes. Document Control All ECMS documents, including records, are controlled to ensure that they adequately describe the specified product or process. The establishment and update of all controlled documents is managed through a defined approval process. A documented procedure describes the process for controlling the review, release, and distribution of all QMS documents. All documents are approved for release by the designated authority responsible for documenting, implementing, and updating their assigned process. The correct versions of documents are available at locations where they are needed. The distribution system for ECMS documents, including records, is designed to ensure that personnel have access to the current and relevant documents. A training process is implemented to ensure that personnel are aware of relevant documents. Customer and/or regulatory authority representatives are given access, as needed, to ECMS documentation. A list of the current version of all relevant external documents is maintained and their distribution is controlled. Additional controls have been established to ensure that access to Controlled Technical Data is limited to those individuals approved to access this data. Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 10 Record Control The ECMS records are collected and maintained to provide evidence of conformity to requirements and to demonstrate the effective operation of the ECMS. The process that generates these records defines and controls them. Each process owner is responsible for identifying and maintaining the relevant records resulting from carrying out the process. A documented procedure describes the controls for ensuring that the records are identified, stored, protected, made accessible, and dispositioned according to specified requirements. Records are made available for review by the customer and regulatory authorities in accordance with the contract or regulatory requirements. Any records containing Controlled Technical Data are limited to those individuals approved to access this data. ECMS Documentation Hierarchy Policy Tier 1 Manual Procedures Tier 2 Plans Work Instructions, Forms, Tier 3 Engineering Drawings, Specifications, etc. Tier 4 Records Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 11 9.6 Supplier Selection and Control Suppliers are selected based on their capability to ensure compliance with US Export Laws and Regulations. The process used to qualify suppliers determines their acceptable status with the US Government and their commitment to comply with all applicable Export Laws and Regulations. The export classification of product received from suppliers is verified upon receipt. An ongoing supplier monitoring process ensures continued compliance or disqualification depending on the supplier’s performance. 9.7 Training The export compliance training program targets those employees directly and indirectly involved in export related processes. All employees are provided an overview of the company’s export compliance program upon hiring. Process owners ensure that any employee who is directly involved with the process or interacts with the process is trained on their individual responsibilities for ensuring ongoing compliance. The process owners and/or supervisors monitor the performance of the employee to determine their capability to carry out their assigned responsibilities. Every employee’s training and capability level is recorded and periodically reviewed. 9.8 Facilities Access and Control Access to the facilities is controlled through a variety of means to ensure Controlled Technical Data is protected from unapproved access. Selected areas of the facilities are signed to restrict access and visitor and employee badging identifies access approval. Selected employees are trained on the visitor access control requirements and are approved to screen visitors to grant appropriate access to the facilities. Technology Control Plans are established as needed to control situations where the baseline controls may not adequately protect Controlled Technical Data. Foreign National Employees or Foreign National Visitors are screened to determine the appropriate export authorization required under US Laws. To establish which type of authorization is required, a determination is made regarding the exact controlled technology they will receive while at the company. Once determined, a Technical Assistance Agreement is drafted to document the determination and secure the agreement of the Foreign National Person. Export license requirements that are identified during the review of the Foreign National Person’s job responsibilities are documented and action is initiated to secure the license. 9.9 International Travel Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 12 International travel is controlled to prevent accidental transfer of Controlled Technical Data (CTD). Before travel approval is granted, employees traveling internationally on company business are trained on export compliance regulations and requirements to protect accidental transfer of CTD. Prior to traveling internationally, the employee ensures that all unlicensed CTD is deleted from electronic storage devices and no unlicensed defense article or CTD will be carried out of the country. When defense articles or CTDs are to be hand carried by the employee, the necessary licenses are secured before travel is approved. The transfer of the CTD or defense article is documented before traveling and reported to US Customs using the required Automated Export System. 10. References: The Company’s Export Compliance Management System Procedures For a complete list of ECMS documents, see the Document Control Master List. 30001, System Glossary 40001, Export Compliance Management System Model 40002, Export Law Documentation Cross-reference Matrix 11. Revision History Rev. Date Description X1 03-15-09 Initial Draft X2 04-26-09 Added Administer Communication System to table in appendix and ECMS diagram Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 13 Appendix: Procedure Cross-reference Matrix Note: this table provides a general, high-level reference. For a detailed list of Company document references, see 40002, Export Law Documentation Cross-reference Matrix. Export Compliance Policy Applicable EC Management System Procedure(s) 9.1 Management Commitment Processes 20100 to 21100 9.2 Responsibility and Authority 20100 Coordinate Export Compliance 20500 Control Documents and Data 9.3 Export Compliance Coordination 20100 Coordinate Export Compliance 9.4 Export Product Introduction 20200 Introduce Export Programs 9.5 Document and Data Control 20500 Control Documents and Data 20900 Design and Develop Product 21100 Administer Communication System 9.6 Supplier Selection and Control 20300 Control and Qualify Suppliers 9.7 Training 20800 Conduct Export Training 9.8 Facilities Access and Control 20700 Control Facilities Access 20400 Prepare Product for Shipment 21000 Control Products and Materials 9.9 International Travel 20600 Approve and Manage Travel End of document Export Compliance Management System Manual, 10000 rev x2 Uncontrolled when printed Page 14