Deemed Export and SAP GTS Project Readiness Kit (Publication Date: 2024/02)




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Discover Insights, Make Informed Decisions, and Stay Ahead of the Curve:

  • What are your organizations risks under deemed export regulations?
  • What role does the deemed export rule have in terms of being able to attract the very top?
  • What are a organizations risks under deemed export regulations?
  • Key Features:

    • Comprehensive set of 1515 prioritized Deemed Export requirements.
    • Extensive coverage of 66 Deemed Export topic scopes.
    • In-depth analysis of 66 Deemed Export step-by-step solutions, benefits, BHAGs.
    • Detailed examination of 66 Deemed Export case studies and use cases.

    • Digital download upon purchase.
    • Enjoy lifetime document updates included with your purchase.
    • Benefit from a fully editable and customizable Excel format.
    • Trusted and utilized by over 10,000 organizations.

    • Covering: Strategic Goods, Trade Sanctions, Import Compliance, Participation Management, Customs Warehousing, Bonded Warehouse, Import Duties, International Banking, Free Trade Agreements, Daily Routine, Business Partner Management, Single Window System, Dual Use Goods, Freight Forwarding, End Use Control, Audit Management, Automated Compliance, Cost-Competitive, Customs Compliance, Trade Regulations, Compliance Management, Dangerous Goods, Foreign Trade Zone, Proof Of Export, Deemed Export, Denied Party Screening, Duty Exemption, Embargo Management, Electronic Filing, Sanctioned Countries, Software Applications, Restricted Party Screening, Product Registration, License Management, Document Management, Excise Duty, Warehouse Management, Export Declaration, Trade Preference Management, ITA Licenses, Trade Facilitation, License Determination, Valuation Methods, Drawback Processing, Inventory Reduction, Data Collection, Safety And Security, Duty Optimization, Classification Changes, ITAR Compliance, License Verification, Global Trade, Declaration Management, We All, Tariff Management, Global Trade Services, Export Control, HS Classification, SAP GTS, Risk Assessment, Product Master Data, Document Tracking, Trade Restrictions, Audit Trail, Grants Management, Risk Management

    Deemed Export Assessment Project Readiness Kit – Utilization, Solutions, Advantages, BHAG (Big Hairy Audacious Goal):

    Deemed Export

    Deemed export regulations require organizations to obtain permission before sharing controlled technologies or information with foreign nationals, posing financial and legal risks if not complied with.

    1. Implementing restricted party screening to ensure compliance with deemed export regulations.
    Benefit: Mitigate risk of exporting controlled technology or software to unauthorized foreign parties.

    2. Utilizing SAP GTS classification functionality to accurately classify exported goods and technologies.
    Benefit: Ensure correct licensing requirements are met and avoid potential penalties for non-compliance.

    3. Tracking deemed export transactions through SAP GTS to maintain an audit trail.
    Benefit: Provides evidence of compliance and enables organizations to respond to any regulatory inquiries.

    4. Conducting employee training on deemed export regulations to increase awareness and understanding among staff.
    Benefit: Reduce the likelihood of inadvertent violations and improve overall compliance.

    5. Maintaining a comprehensive record keeping system within SAP GTS to demonstrate compliance with deemed export regulations.
    Benefit: Easily provide documentation to regulatory agencies if necessary.

    6. Regularly reviewing and updating deemed export policies and procedures to stay current with changing regulations.
    Benefit: Ensure continued compliance and reduce the risk of penalties or fines.

    7. Leveraging SAP GTS denied party screening to screen individuals and entities against government watch lists.
    Benefit: Further mitigate the risk of doing business with unauthorized parties under deemed export regulations.

    8. Utilizing SAP GTS embargo management to prevent prohibited transactions with sanctioned countries.
    Benefit: Avoid penalties and legal action for non-compliance with deemed export regulations related to embargoed countries.

    9. Partnering with an experienced consultant to assist with implementing and maintaining deemed export compliance in SAP GTS.
    Benefit: Expert guidance can help organizations navigate the complexities of regulations and avoid potential risks.

    10. Conducting regular internal audits of deemed export processes and controls within SAP GTS to identify and address any potential compliance gaps.
    Benefit: Proactively identify and address non-compliance issues before they become major problems.

    CONTROL QUESTION: What are the organizations risks under deemed export regulations?

    Big Hairy Audacious Goal (BHAG) for 10 years from now:

    Big Hairy Audacious Goal (BHAG): To become the leading provider of deemed export compliance solutions and services globally by 2030.

    Deemed Export Risks:

    1. Non-compliance: The biggest risk for organizations under deemed export regulations is non-compliance with the laws and regulations. Failure to comply can result in severe penalties, fines, and even criminal charges.

    2. Loss of credibility: Deemed export violations can damage a company′s reputation and lead to a loss of credibility among customers, suppliers, and partners.

    3. Financial losses: Non-compliance can also result in financial losses due to penalties, fines, and legal costs. This could impact the organization′s bottom line and affect its growth potential.

    4. Restriction on export activities: Organizations found guilty of deemed export violations may face sanctions that restrict their ability to conduct business and export goods and technology.

    5. Legal consequences: In addition to financial penalties, organizations may face legal consequences such as suspension or revocation of export licenses, exclusion from government contracts, and debarment from doing business with certain countries.

    6. Damage to relationships: Deemed export violations can damage relationships with foreign partners and customers, leading to loss of business opportunities and potential partnerships.

    7. Reputational damage: Non-compliance with deemed export regulations can lead to negative media coverage and damage the organization′s reputation, making it difficult to attract new customers and retain existing ones.

    8. Supply chain disruptions: Non-compliance with deemed export regulations can disrupt the organization′s supply chain, potentially leading to delays in deliveries and loss of business.

    9. Inefficiency and additional costs: Managing deemed export compliance can be time-consuming and costly, taking resources away from core business activities.

    10. Losing out to competitors: Organizations that do not prioritize deemed export compliance may lose out to competitors who are compliant and able to secure lucrative contracts and partnerships.

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    Deemed Export Case Study/Use Case example – How to use:

    Client Situation:
    XYZ Corporation is a leading manufacturer of advanced technology equipment used in the defense industry. They have recently been awarded a large contract from a foreign government to supply their equipment. As part of the contract, they have to transfer technical data and information to the foreign government. This transfer of technical data and information to a non-US person or entity is considered a deemed export and falls under the deemed export regulations set by the US government.

    The client has no prior experience with deemed export regulations and is unsure about their responsibilities and potential risks in complying with these regulations. They have approached our consulting firm to help them understand the regulations and develop a plan for compliance.

    Consulting Methodology:
    Our consulting firm follows a structured approach to address the client′s needs. Firstly, we conduct a detailed analysis of the client′s current practices and procedures related to exports. This includes a review of their export control program, training methods, and any existing policies and procedures related to exports.

    Next, we conduct research to understand the deemed export regulations and how they apply to the client′s specific situation. This includes reviewing guidance documents and whitepapers published by government agencies, as well as relevant academic business journals and market research reports.

    Based on the analysis and research, we develop a comprehensive plan to help the client comply with the deemed export regulations. This includes outlining the steps they need to take to ensure compliance, identifying any gaps in their current practices, and providing recommendations for improvement.

    1. A detailed report outlining the regulations and their applicability to the client′s situation.
    2. A gap analysis report highlighting areas where the client′s current practices do not meet the deemed export regulations.
    3. A compliance plan that outlines specific actions the client should take to achieve compliance, including recommended policies and procedures.
    4. Customized training material for the client′s employees to educate them on deemed export regulations and their responsibilities under these regulations.

    Implementation Challenges:
    The main challenge in implementing the compliance plan is the complex nature of deemed export regulations. Complying with these regulations requires a thorough understanding of the various restrictions and exemptions, as well as constantly monitoring changes in the regulations. Additionally, the client would need to make changes to their current processes and systems to ensure compliance, which can be time-consuming and resource-intensive.

    Key Performance Indicators (KPIs):
    1. Completion of necessary policy and procedural changes within a set timeline.
    2. Successful implementation of the recommended training program for employees.
    3. Zero instances of non-compliance or violations of deemed export regulations.
    4. Regular reviews and updates of the compliance plan as per any changes in regulations.

    Management Considerations:
    Ensuring compliance with deemed export regulations is not a one-time activity but an ongoing process that requires continuous monitoring and updates. The client should establish an internal compliance team responsible for overseeing and implementing the compliance plan. They should also regularly review and update their policies and procedures related to exports and provide training to their employees on an ongoing basis to ensure awareness and understanding of the regulations.

    Compliance with deemed export regulations is crucial for organizations that deal with technical data and information. Failure to comply can result in severe penalties, including hefty fines and criminal charges. Our consulting firm′s approach provides the client with a comprehensive understanding of the regulations and a clear roadmap for achieving compliance, mitigating potential risks associated with deemed export regulations.

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