Voluntary Self Disclosure (VSD) is required if a person or organization believes they may have violated export control regulations. This disclosure can be seen as a mitigating factor when determining penalties for any violations that may have occurred.
Export Regulatory Agencies
ITAR (International Traffic in Arms Regulations) and EAR (Export Administration Regulations) are U.S. regulations that control the export of sensitive technologies and defense-related materials. ITAR focuses on military items, while EAR covers both commercial and dual-use items that can have military applications. Additionally, the Office of Foreign Assets Control (OFAC) enforces export controls to regulate trade and financial transactions with certain countries and entities deemed a threat to U.S. national security.
The ITAR are administered by the Directorate for Defense Trade Controls and the EAR are administered by the Bureau of Industry and Security.
DDTC VSD Requirements
VSD submitted to the DDTC for violations of the ITAR must contain the following information as specified in 22 CFR 127.12, description and extent of violation, identities and addresses of involved persons, surrounding circumstances, description of license, exemption, or authorization, classification of articles and technologies involved, descriptions of corrective actions taken, and identity and address of person making disclosure.
BIS VSD Process
The BIS differentiates between minor or technical violations and violations with aggravating factors. An abbreviated process can be taken for minor or technical violations. This process includes:
- a notation that the submission is an Abbreviated Narrative Account,
- the disclosing person’s identity,
- A description of the suspected violations causes,
- an explanation of why these violations are not considered significant, and
- a description of any mitigating circumstances, and remedial compliance measures taken.
VSDs with aggravating factors should include thorough reviews of any suspected transactions and conduct a review of all transactions going back for a period of five years.
Filing a VSD with the OFAC
When filing a VSD with the OFAC it is required that the following information be included:
- Whether or not the violation was a willful or reckless act
- If the reporting person was aware of the reported conduct
- If harm has been caused to US sanction objectives
- Commercial sophistication, volume of transactions, and sanction history of organization
- Existence and effectiveness the organizations compliance programs
- Corrective actions taken
- Intent to engage in cooperation with OFAC
Increased Enforcement Activity
The DDTC, the BIS, and the OFAC, along with international partners have greatly increased their activities in the enforcement of export regulations. Due to the complexities involved in export licensing, non-egregious violations can occur even in a company with a well-run export compliance program. CVG Strategy can assist in the filing of Voluntary Self Disclosures (VSD).
CVG Strategy Access Control Signs, Badges, and Visitor Logs
CVG Strategy’s Signs & Badges Store has a variety of signs, badges, and visitor logs for your organization’s export compliance program. CVG Strategy also offers a wide array of EZ-Test Plan Templates for product test and evaluation that meet the requirements of MIL-STD-810, MIL-STD-461, MIL-STD-1275, MIL-STD-704, and others. Each environmental test plan is compliant with MIL-STD-810 Task 405. EMI/EMC test plans are compliant with MIL-STD-461 per DI-EMCS-80201.