The aerospace industry is constantly ranked among the top U.S. export industries, with sales of $148 billion worth of aerospace-related products such as commercial airliners, satellites, military aircraft, engines, components, and more to customers abroad. They are also the most affected by export controls and must deal with unique export compliance concerns.
Take Heed of Export Control Laws
Today’s Aerospace and Defense (A&D) companies share this common pain point: the lack of automated controls to protect export-controlled data and intellectual property. One implication is the inability to control who has access to sensitive data and intellectual property across multiple systems.
What vital regulations do A&D companies need to look out for to avoid non-compliance?
Two vital U.S. export control laws that influence technology manufacturing, sales, and distribution are the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR).
Export compliance matters because it protects U.S. national security interests. Non-compliance means severe legal, reputational, and business risks plus penalties amounting from $250,000 to $1,000,000. Thus, manufacturers and exporters must ensure that they understand the laws and conform to the necessary regulations.
Stay Compliant with SAP Global Trade Services
With SAP Global Trade Services (GTS), A&D companies can effectively manage export compliance with its export management solution.
Fast and compliant export clearance is vital for your global supply chain. With SAP GTS, you can utilize automated export control checks along the supply chain to provide timely and accurate export compliance to clear customs faster.
Classify products for export.
Proper product classification is crucial. With SAP GTS, you can identify products needing categorization from a list, such as ITAR-covered items from USML (United States Munitions List) and EAR items from CCL (Commercial Control List).
Create export declarations and documentation.
Complete and timely export declarations and documents are essential to ensure streamlined supply chain processes. Automating manual document generation can improve process efficiency and reduce delays with SAP GTS.
Control export of physical and digital goods.
The complexity of digital and technical data must be considered and managed to avoid missteps and violations. With SAP GTS, you can manage individual licenses, including license forms from the U.S. Department of State, and maintain regulations associated with digital and technical data such as ITAR, EAR, and ECO (Export Control Organization)
Integrate export across the supply chain.
Export compliance is built into the export supply chain. With SAP GTS, you can take advantage of these critical features across the supply chain: product classification, partner screening, export license determination, embargo check, letter of credit, export documents, electronic customs communication, country localization, and event management visibility.
Simplify Trade Compliance with a Trusted “TRADEblazing Partner”
Ropaar offers services to help A&D companies manage the risk and complexity of a globally distributed supply chain while staying compliant with onerous export and re-export controls.
With our A&D industry domain expertise, you can gain the following from an SAP deployment with Ropaar:
We understand that export compliance is a complex and detailed undertaking. Let us help. Talk to our experts today!