The role of Human Resources in foreign trade compliance is typically restricted to developing and managing company policies and processes for screening potential employees and contractors against federal government lists designed to protect the United States and its allies from threats of proliferation, trafficking, and terrorism.
Failures in screening processes can be the cause of government penalties—fines, losing export privileges, higher costs, shipment delays, incarceration; market consequences—losing customers and new business opportunities, and irreparable damage to corporate and individual reputations; and business ramifications—hiring people that cannot be used in their intended roles.
Companies with controlled goods
Human resource processes take on heightened levels of compliance and business risk for companies dealing with goods, technologies, or services listed on the United States Munitions List (USML) or Commerce Control List (CCL).
These companies have the formidable task of establishing and managing walls around their controlled technologies, segregating them from ineligible employees, contractors, and visitors, or going through licensing processes that can put projects months behind schedule if not anticipated. Human Resources' role is to ensure accurate determination of eligibility under Technology Control Plans that restrict access to export-controlled goods or technologies.