In Anti-Corruption Report, Emerson Siegle Examines Which Companies Are at Risk Under U.S. Trade Controls

In “A Primer on Trade Controls for Compliance Professionals: Which Companies Are at Risk?”, an article in the Anti-Corruption Report, litigation & enforcement partner Emerson Siegle discusses how broadly U.S. trade laws and regulations apply, including sanctions, export controls and customs requirements, and which companies need to pay attention to them.

Emerson stresses that trade controls reach far beyond a narrow set of businesses: “manufacturers, universities conducting research, and shippers must all comply with trade controls, although the regulations that will be most relevant will depend on the given industry.” He explains that non-U.S. companies are not outside their reach. A common way a non-U.S. entity can become subject to U.S. sanctions jurisdiction is by involving a “U.S. financial institution in a transaction,” and entities subject to secondary sanctions can be cut off from the U.S. market, “which is a serious outcome that can be crippling for a business.” The same is true for customs: “anyone, whether they are a U.S. company or not, who acts as the importer of record and imports into the United States, has to comply with U.S. Customs requirements (and pay duties in connection with the import).”

As Emerson notes, the compliance task is growing more complex for global businesses. He suggests that multinational companies increasingly should “assess compliance not only with a diverse array of U.S. trade laws and regulations, but also with overlapping – and, at times, conflicting – non-U.S. trade laws.”

The article is the third installment in a four-part primer on trade controls for compliance professionals. Anti-Corruption Report also spoke to Emerson for part one of the series, which defined and differentiated common trade controls, including sanctions, export controls, customs and tariffs, and for part two, which explored the current trade enforcement landscape. The final installment will address how companies can strengthen their trade control compliance programs.