Export Compliance Manager Runs Akin Article on Export Controls and Diversion Risks

“Four steps to take when your product is found in Russia (or somewhere else it shouldn’t be),” an article by Akin international trade partners Roy Liu and Tyler Grove and associate Omar Farid, has been published by Export Compliance Manager.

The article discusses trade controls and companies’ diversion risks regarding Russia and other controlled destinations. It notes that given the size of Russia’s economy and the cost of abandoning that market, “there are strong incentives for downstream parties to circumvent these controls, particularly with respect to high-risk industries such as electronics, industrial equipment, and luxury goods.”

The authors describe best practices for companies should their products be discovered in controlled jurisdictions. They, first, look at liability under the law and what that entails under the Export Administration Regulations, or EAR, and then offer and discuss next steps for companies in that situation: immediately conduct an internal investigation and cut off suspicious channels; consider filing a voluntary self-disclosure with the Commerce Department’s Bureau of Industry and Security and other relevant agencies; take action to remediate the root cause of the violation; engage with public relations and government relations professionals to manage reputational risks.