AEB offers to help tackle US Export Control Reform
AEB (International) Ltd, a leading provider of supply chain management and global trade solutions, In August 2013 kicked off a comprehensive compliance campaign ahead of the Obama Administration’s Export Control Reform (ECR).
Now, just before the first effective date of the ECR changes in October, AEB is offering free educational literature to explain how the reform affects British businesses, and how to ensure compliance with U.S. laws.
The US Export Control Reform , initiated by the Obama Administration, means that some goods originally controlled under the International Traffic in Arms Regulations (ITAR) will now fall under the Export Administration Regulations (EAR).
The first pair of the new rules comes into force on October 15, 2013 and the second set of rules will take effect on January 6, 2014, with more to follow. The reform ultimately aims to implement a single licensing agency with a single control list and one single IT system for all US licence applications.
The reform involves significant changes for many UK companies operating in a wide range of industry sectors, including aerospace, automotive, defense, information technology, telecommunications, and software. Violations of export control regulations may result in severe criminal and/or civil penalties, including fines and even imprisonment for those responsible, such as managing directors or members of the managing board, and may also lead to cancellation of export privileges.
Companies could find themselves on restricted party lists, leading to unwanted publicity and reputational damage. Pleading ignorance to the law will not prevent anyone from being fined or prosecuted for U.S. export control violations, as many successful prosecutions of non-US companies demonstrate.
To help businesses understand when U.S. export controls apply, and to guide them through the latest changes and mandatory global trade control obligations, AEB is offering free educational literature:
· Poster 1: First aid for export controls – A1 poster illustrating the required export control checks in accordance with EU law and U.S. regulations, introducing dual-use goods and de-minimis calculations, and focusing on checks for country embargoes, critical goods, critical end-use, and restricted parties.
· Poster 2: EU and US trade controls workflow – A1 poster illustrating what needs to be controlled, which legislation applies in which case, and what follow-up processes are required. What are companies required to do if partners appear on sanction lists or the de-minimis threshold is exceeded?
· White Paper 1: The five most common myths about export controls – This white paper provides qualified, unbiased information on export controls, dual-use goods, denied-party address screening, and applicable EU and U.S. export control regulations.
· White Paper 2: US export controls, a global challenge – This white paper offers qualified, unbiased information on U.S. export controls, latest changes in light of the reform, authorities involved, applicable penalties and legal implications, and explains why U.S. law can even apply to EU traders and verbal communication.
AEB’s General Manager Claire Umney said: “The upcoming US Export Control Reform has highlighted to many previously unaware UK businesses that U.S. export control laws may apply to them and their business transactions.
“The US government keenly enforces export control regulations that prohibit business activities involving certain technologies, entities, persons or countries. The legal consequences of violations are severe, and companies are well advised to revisit their current processes and implement comprehensive compliance programmes and solutions.
“We hope our free educational literature will shed some light on obligations and latest changes and will assist UK businesses in securing their supply chains.”
Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.