The Merriam-Webster dictionary defines a "benchmark," in pertinent part, as "something that serves as a standard by which others may be measured or judged." The purpose of this article is twofold: (1) to provide a practical resource for trade compliance professionals-lawyers and non-lawyers alike-for benchmarking the effectiveness of a U.S. trade control compliance program against an integrated checklist developed from various recognized standards of compliance; and (2) to provide a conceptual backdrop against which senior executive management with responsibility for regulatory compliance and risk management can make the case to relevant stakeholders that an effective U.S. trade controls compliance program is both necessary and attainable. Future volumes may expand the scope of coverage to include specific consideration of other related areas of regulatory concern, including Customs and import requirements, anti-boycott law, anti-corruption law, anti-money laundering, USA PATRIOT Act compliance, and equivalent non-U.S. legal regimes. But as a point of departure, this article focuses substantively on elements of a compliance program specific to U.S. export controls and economic sanctions (with the general elements of an effective corporate compliance program set forth in the U.S. Federal Sentencing Guidelines serving as a baseline). The central premise of this article is that it is possible to synthesize various recognized standards of compliance into an integrated checklist that can be used to help undertake a comprehensive assessment of a program's overall effectiveness, and that adopting such an integrated approach yields significant benefits, as discussed in detail in the content that follows. Like a compass, this article is intended to help you find the right direction to begin or continue your journey. It is not intended to serve as a detailed map of what will be found along the way, as each journey will vary in the path taken and obstacles encountered. In future volumes, given sufficient interest, we may explore the detailed topography of applicable U.S. trade controls (and related areas of regulatory concern), as well as more specific paths for navigating them.
Global Trade and Customs Journal