Trade risks for the companies in the scope of the export controls

Ebru Çakmak

Even though the countries, in the era of globalization, acknowledge the necessity of creating a freer and facilitating trade environment for the companies engaged in foreign-exchange earning activities in order to strengthen the economy, some international and national regulations are clearly in contradiction with this view. The export controls covering these regulations in general terms are defined as "domestic regulations that countries make with national security concerns, as well as controls on the transfer of goods, services or technology subject to international trade as a requirement of international responsibilities and co-operation".

 

In this context, it is possible for the companies that violate the export control regulations to face with the risks including penalties, damage to the reputation of the brand in the international market, and experiencing difficulties in the subsequent export operations. The measures to be taken generally can be listed as the assignment of a team within the company for the export controls, the regular training of employees on the current legislation and regulations, and creating the export control compliance guide.

 

 

Explanations in this article reflect the writer's personal view on the matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any responsibility in respect of the information and explanations in the article. Please be advised to first receive professional assistance from the related experts before initiating an application regarding a specific matter, since the legislation is changed frequently and is open to different interpretations.