EU Code

EU Export Compliance: Introduction    

The European Code of Export Compliance (EU-CEC) aims to encourage the dissemination of best practices and principles in Export Compliance Management as defined in the EU-Export Compliance Framework (EU-ECF) with all EU and non EU actors involved in import / export of goods and services.

This Code describes the guiding principles and practices to promote an European culture of compliance with the rules and laws (Compliance) within the financial, economic, industrial, associative system of private and public sectors.

EIFEC aim to contribute by all appropriate steps to disseminate among the Organizations behaviours of excellence through proper management, transparency and audit of the activities performed in the production and transfer of goods and services.


Definition of Export Compliance

Export Compliance is a specialized multidisciplinary framework, which provides support to Organizations in Compliance Risk Management, i.e. the risk of legal or administrative sanctions, financial losses or reputation deterioration for failing to comply with laws, regulations and legislation, codes of conduct and good practice (“laws, regulations and rules”).

Export Compliance covers all activities of import and export of goods and/or services, tangible and intangible assets (including the transfer of means of payment, that somehow are subject to regulations applicable to transactions between two different states/jurisdictions.

The term Organizations refers to all Bodies, companies of any nature, associations, both public and private undertakings that have activities falling within the scope of this Charter.

The term Export is also intended as import in a broader sense, as an indissoluble operation. Each export has an import

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EU Export Compliance: Principles and Values    

Transparency:

All Organizations act and communicate in a transparent manner, in their relation with EU, member states Institutions and all stakeholders, about operating Export Compliance policy, and the economic, financial and legal implications of each activity undertaken. (Commitment to Transparency)

Compliance: 

All Organizations act in conformity and compliance with all EU regulations as well as rules and laws of the EU Member States where business and activity or import and export are having place. (Commitment to Export Compliance)

Accountability:

All Organizations are deem to act acknowledging, assuming responsibility for and being transparent about the impacts of their policies, decisions, actions, products and associated performance.

Consistency:

All Organizations act consistent with prior acts and statements. Organizations must be consistent in applying the Export Compliance principles, methods, practices, and procedures. Organization will ensure that the same rules and behaviors are followed in all activities being reported. If a change is made to an Export Compliance method, the effects of the change must be clearly disclosed.

Effectiveness:

All Organizations undertake to use all its available means, including labor, financial resources, and goods and services either received or created, in such a way as to pursue the Organization’s Export Compliance purposes to the highest degree possible

EU Export Compliance: Code of Practice   

Organizations adopting the European Code for Export Compliance aim to implement the Principles written above and will develop, adopt and put into operation Export Compliance policies and procedures that uniquely addresses their Organization- specific requirements (Unicuique suum Principle or Appropriateness).

Several factors such as the Organization’s size, the end-use and sensitivity of products, the geographic location of business and customers, the relationships with business partners, volume of exports, product restrictions, and complexity of national export procedures will influence how an Organization structures its operative activity.

However, there are certain key elements that are recommended for all Organizations, because those key elements serve as a foundation for accountability for any Organization. By establishing best Export Compliance practices from the beginning, you will have a program that evolves and grows along with the business, and is flexible to adapt to regulatory changes.

10 key elements has been identified by major experts in Export Compliance: Governments, Regulatory Bodies, Banks, Institutions, and special professionals.


EU Export Compliance: 10 key elements       

  • 1. Management Commitment to Compliance 
  • 2. Export Compliance Administration Program / Procedures 
  • 3. Appointment of Person in charge 
  • 4. Risk Assessment 
  • 5. Written European Export Compliance Administration Program (EU-ECAP) 
  • 6. Information and Training 
  • 7. Record Keeping 
  • 8. Compliance Monitoring and auditing/ assessment 
  • 9. Handling/ reporting Compliance problems /Corrective actions 
  • 10. Integration with quality management practices



European Code for Export Compliance  EU-CEC download

Here you can download the text of the EU-CEC pdf

 

European Code for Export Compliance: Glossary

 

Accountability Principle of acknowledging, assuming responsibility for and being transparent about the impacts of their policies, decisions, actions, products and associated performance.
Bodies Alternative term for Organisation.
Consistency Principle of having coherent behaviour with policies and statements. The behaviour must be regular and constant.
Effectiveness Principle of using all available means with highest efficacy to pursue the goals to highest degree.
EIFEC Is the acronym for the European Institute for Export Compliance.
EIFEC Number ERN Is the ID number of a Certified Organization (EU-C/ECO) attributed for the purpose of identifying Organizations or persons in order to ensure their traceability on an EU level.
EIFEC Standards Are principles-based standards providing frameworks to help organisations become compliant. They address issues affecting governance, export models and organisational strategy, as well as providing operational guidance on export management and stakeholder engagement.
EU Is the acronym for European Union.
EU Directive Is a legislative act of the European Union which requires member states to accomplish a specific result without commanding the methods of attaining that result.
EU Regulation Is a legislative act of the European Union that becomes immediately enforceable as law in all member states at the same time.
EU-CEC Is the acronym for European Code of Export Compliance.
EU-C/ECO Is the acronym for European Export Compliant Organization. Certification issued to Organizations or Individuals that have succefully past the Verification/ Certification process becoming a Charter member. Categories are EU-C/ECO for Organizations, EU-EC/ECOP for individuals; EU-C/ECOF for Compliance Officer.
EU-ECAP  A set of formal written policies and procedures - an Export Management and Compliance Program - that provides sufficient safeguards at each key step in the supply chain management to guard against sales of sensitive or dual-use technology to unauthorised parties or for unauthorised activities.
EU-ECGL Is the acronym for EU Guidelines prepared, based on the EU-CEC and EIFEC EC1001 Standards.
EU-ECR Is the EU Export Compliance Register for all Organisation and self-employed individuals engaged in EU import/export.
Export Compliance  Export Compliance provides support in compliance risk management, i.e. the risk of legal or administrative sanctions, financial losses or reputation deterioration for failing to comply with laws, regulations and legislation, codes of conduct and good practice (“laws, regulations and rules”). Export Compliance is inclusive of all activities or import and export of goods and/or services, tangible and intangible assets (including the transfer of means of payment, that somehow are subject to regulations tied to transactions between two different states/jurisdictions.
Organizations All bodies, companies of any nature, associations, both public and private undertakings which have activities of export or import and falling within the scope of the EU-CEC Code.
Transparency Principle of being transparent according to EU frameworks.
Unicuique suum Principle This principle requires that all measures are appropriate to the uniquely- specific organisations size and requirements. (Appropriateness)