Rules that reach beyond the United States
U.S. export controls can follow items made abroad when they contain controlled U.S. content or are produced with certain U.S. technology, and re-exports from one foreign country to another can require U.S. authorization. Sanctions can affect foreign companies through dollar payments and through the risk of being designated. At the same time, the company's home country and each destination country have their own export, import, and sanctions rules, which may conflict with U.S. requirements in places. Antiboycott rules can apply to U.S. companies and their controlled foreign affiliates. A company with operations in several countries has to decide which rules govern each transaction.
What U.S. buyers ask of foreign suppliers
Importers in the United States increasingly push compliance obligations onto their suppliers through contracts. Typical requests include supply chain tracing for forced labor rules, origin documentation for trade agreement claims, classification information, and certifications about sanctions and export controls. These certifications can become contract warranties with indemnities attached, so the supplier should be able to support what it signs. Supply chain mapping often requires information from sub-suppliers that is not easy to obtain. Gather the certification forms you have been asked to sign, your existing compliance policies, and information about your material sources.
Setting priorities
Not every risk is equal, and a program should focus first on the products, destinations, and customers that carry the most exposure. Where past transactions raise concerns, the choice to make a voluntary disclosure to a U.S. agency depends on the facts and the regime involved. In a first meeting we review the transactions and certifications at issue, identify which U.S. and foreign rules apply, and discuss how contract terms with buyers and suppliers should allocate responsibility.
