Expeditors International Of Washington, Inc. · NYSE:EXPD
Expeditors International Of Washington — Investor Presentation (2023)
39 slides from Expeditors International Of Washington's investor presentation, 2023
Slide 1: Expeditors webinar will begin shortly
THANKS FOR TUNING IN; EXPEDITORS WEBINAR WILL BEGIN SHORTLY! Expeditors
Slide 2: Export Compliance 101
EXPORT COMPLIANCE 101 Presented by: Jennifer Walls, Expeditors Mid-Atlantic Regional Trade Compliance Manager
Slide 3: Agenda
3 AGENDA • Export Controls • Government Agencies Involved in Export Control • Determining Regulatory Requirements • Overview of the ITAR • Overview of the EAR • Overview of the FTR • Best Practices © Expeditors International of Washington Inc. All rights reserved.
Slide 4: Overview of U.S. Export Controls
4 OVERVIEW OF U.S. EXPORT CONTROLS The U.S. Government controls exports of sensitive equipment, software and technology to promote our national security interests and foreign policy objectives. Through our export control system, the U.S. government can effectively: 1 2 3 4 5 Provide for Promote Huma
Slide 5: Key U.S. Export Control Agencies
5 KEY U.S. EXPORT CONTROL AGENCIES President of the United States DDTC BIS OFAC DOE NRC Directorate of Bureau of Office of Department of Nuclear Defense Trade Industry and Foreign Assets Energy Regulatory Controls Security Control Commission Dept. of State Dept. of Commerce Dept. of Treasury Nuclear
Slide 6: Determining Regulatory Requirements
6 DETERMINING REGULATORY REQUIREMENTS Dependent Upon the Following Factors… WHAT are you WHERE are you WHO are you WHAT will the exporting? exporting? exporting to? item be used for? • Commercial • Prohibited • Is it permissible • Nuclear-related item? country? to conduct activity? • Military item?
Slide 7: Possible Outcomes
7 POSSIBLE OUTCOMES When Determining Regulatory Requirements WHAT are WHERE are EXPORT LICENSE REQUIRED you you exporting? exporting? OR LICENSE EXCEPTION / EXEMPTION / GENERAL LICENSE APPLIES WHO are WHAT will you the item be OR exporting to? used for? NO LICENSE REQUIRED © Expeditors International
Slide 8: What: Key Export Regulations
8 WHAT: KEY EXPORT REGULATIONS Military Defense Articles and Commercial and Military Various Sanctions Regulations Foreign Trade Regulations Services - 22 CFR Parts 120 - 130 15 CFR Parts 730 - 774 31 CFR Parts 500-599 15 CFR Part 30 Office of Foreign Assets Control Bureau of Census regulates admini
Slide 9: Where: Countries of Concern
9 WHERE: COUNTRIES OF CONCERN • General Embargoes or Sanctions – • U.S. Arms Embargoes - Belarus, Burma, Belarus, Cuba, Iran, Syria, North Korea, China, Cuba, Iran, North Korea, Syria, Russia Russia, and the Luhansk, Donetsk, & Crimean and Venezuela Region of Ukraine • Countries with certain prohibi
Slide 10: Who: Screening Parties
10 WHO: SCREENING PARTIES • The screening process is a due diligence review of a business’ party lists to ensure that transactions are not being conducted with denied, conditionally denied or concern parties. • Companies must screen their business parties to ensure that they are not doing business w
Slide 11: Who: Screening of Parties
11 WHO: SCREENING OF PARTIES Lists to Check • Denied Persons - Individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited. • Unverified List - End-users who Bureau of Industry and Security (
Slide 12: Who: Screening of Parties
12 WHO: SCREENING OF PARTIES Lists to Check • Debarred List - Entities and individuals prohibited from participating directly or indirectly in the export of defense articles, including technical data and defense services. • Non-prolifération Sanctions - Parties that have been sanctioned under variou
Slide 13: Use: Understand the End Use
13 USE: UNDERSTAND THE END USE • Will this be • Will the • Will the • Will the Will the item be used for chemical- related activities? used for item be item be item be military used for used for used for application? nuclear- biological- chemical- related related related activities? activities? acti
Slide 14: Are You Subject to the ITAR?
ARE YOU SUBJECT TO THE INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR)? 22 CFR PARTS 120 - 130
Slide 15: General Authorities
15 GENERAL AUTHORITIES Section 38 of the Arms Export Control Act (AECA) authorizes the President to control the export and import of defense articles and services. The AECA is the cornerstone of the U.S. munitions export control law. PRESIDENT OF THE U.S. Authorized under AECA to decide what are def
Slide 16: ITAR Scope of Coverage
16 ITAR SCOPE OF COVERAGE • If a defense article or service is covered by the U.S. Munitions List set forth in this subchapter, its export and temporary import is regulated by the Department of State... • The President has delegated the authority to control defense articles and services for purposes
Slide 17: ITAR Scope of Coverage
17 ITAR SCOPE OF COVERAGE • All persons or entities that engage in the manufacture, export, or brokering of defense articles and services must be registered with the U.S. government. • The ITAR sets out the requirements for licenses or other authorizations for specific exports of defense articles an
Slide 18: Authorization Requirement for Export Under ITAR
18 AUTHORIZATION REQUIREMENT FOR EXPORT UNDER ITAR When good are regulated under ITAR, there are only two possible outcomes: OR EXPORT LICENSE IS REQUIRED LICENSE EXEMPTION APPLIES License exemptions under the ITAR are not exempt from EEI filing. © Expeditors International of Washington Inc. All rig
Slide 19: What Is Subject to ITAR?
19 WHAT IS SUBJECT TO ITAR? The President designates the articles and services deemed to be defense articles and services. These items constitute the U.S. Munitions List (USML) specified under 22 CFR Part 121.1. © Expeditors International of Washington Inc. All rights reserved.
Slide 20: U.S. Munitions List (USML)
20 U.S. MUNITIONS LIST (USML) I. Firearms and Related Articles XII. Fire Control, Laser, Imaging and Guidance II. Guns and Armament Equipment III. Ammunition/Ordnance XIII.Materials and Miscellaneous Articles IV. Launch Vehicles, Guided Missiles, Ballistic Missiles, XIV. Toxicological Agents, Includ
Slide 21: Are You Subject to the EAR?
21 ARE YOU SUBJECT TO THE EXPORT ADMINISTRATION REGULATIONS (EAR)? 15 CFR PARTS 730 - 774
Slide 22: EAR Scope of Coverage
22 EAR SCOPE OF COVERAGE • The Export Administration Act of 1979, as amended, authorizes the Department of Commerce, in consultation with other appropriate agencies, to regulate the export, re-export, and transfer of U.S.-origin dual-use goods, software, and technology. • The Department of Commerce
Slide 23: Definition of Terms
23 DEFINITION OF TERMS TRANSFER - When an EXPORT - Act of RE-EXPORT - When item subject to the shipping or an item subject to the ITEM - May be a EAR is shipped or transmitting an item EAR is shipped or commodity, software, transmitted from one subject to the EAR transmitted from one or technology p
Slide 24: Are You Subject to the EAR?
ARE YOU SUBJECT TO THE EAR? 24 All items in the All items in the Items located Certain U.S. Persons U.S. except: U.S. and U.S. outside of the foreign-made and Foreign origin wherever U.S. may be items if: Nationals located, except: subject to the Publicly available EAR Item exceeds Certain activitie
Slide 25: Authorization Requirement for Export Under EAR
25 AUTHORIZATION REQUIREMENT FOR EXPORT UNDER EAR When good are regulated under EAR, there are three possible outcomes: OR OR EXPORT LICENSE IS REQUIRED LICENSE EXEMPTION APPLIES NO LICENSE REQUIRED © Expeditors International of Washington Inc. All rights reserved.
Slide 26: Are You Subject to OFAC Regulations?
26 ARE YOU SUBJECT TO OFFICE OF FOREIGN ASSETS CONTROL REGULATIONS (OFAC)? 31 CFR PARTS 500-599
Slide 27: Office of Foreign Assets Control (OFAC)
27 OFFICE OF FOREIGN ASSETS CONTROL (OFAC) The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, int
Slide 28: What Are Sanctions?
28 WHAT ARE SANCTIONS? Sanctions are used by countries or international organizations to Sanctions may be applied to persuade (or coerce) a particular countries that develop weapons of government or group of mass destruction, violate human governments to change their rights or trade unfairly, or in
Slide 29: Embargoed or Heavily Sanctioned Countries
EMBARGOED OR HEAVILY 29 SANCTIONED COUNTRIES • Belarus • Cuba • Iran • Syria • North Korea • Russia • Luhansk, Donetsk & Crimean Region of Ukraine Minimal items are allowed to be exported. An OFAC license may be required in most if not all cases. © Expeditors International of Washington Inc. All rig
Slide 30: Are You Subject to the Foreign Trade Regulations?
30 ARE YOU SUBJECT TO THE FOREIGN TRADE REGULATIONS (FTR)? 15 CFR Part 30
Slide 31: Electronic Export Information (EEI) Filing
31 ELECTRONIC EXPORT INFORMATION (EEI) FILING • “The EEI shall be filed through the AES by the United States Principal Party In Interest (USPPI), the USPPI's authorized agent, or the authorized U.S. agent of the Foreign Principal Party In Interest (FPPI) for all exports of physical goods, including
Slide 32: Types of Export Transactions
32 TYPES OF EXPORT TRANSACTIONS Standard vs. Routed Transactions Standard Export Transaction USPPI selects the forwarding agent to arrange the export of goods from the U.S. Routed Export Transaction FPPI selects the forwarding agent to arrange the export of goods from the U.S. © Expeditors Internati
Slide 33: Parties to the Export Transaction
33 PARTIES TO THE EXPORT TRANSACTION • The U.S. Principal Party in Interest (USPPI) is the person or legal entity in the U.S. that received the primary benefit, monetary or otherwise, from the transaction. • Generally, that person or entity is the U.S. seller, manufacturer, order party, or foreign e
Slide 34: Parties to the Export Transaction
34 PARTIES TO THE EXPORT TRANSACTION • Authorized Agent is an individual or legal entity physically located in or otherwise under the jurisdiction of the United States that has obtained power of attorney or written authorization from a USPPI or FPPI to act on its behalf and to complete and file the
Slide 35: USPPI Responsibilities
35 USPPI RESPONSIBILITIES STANDARD TRANSACTION ROUTED TRANSACTION ✓ Act on his own behalf and file ✓ File on behalf of the FPPI if a the EEI, OR appoint an power of attorney or written authorized U.S. Agent to authorization is received prepare and file the EEI on its ✓ Provide authorized U.S. agent
Slide 36: EEI Data Elements
36 EEI DATA ELEMENTS • Name and Address of the USPPI • USPPI’s ID Number (EIN) • Ultimate Consignee • Ultimate Consignee Type • Country of Ultimate Consignee • U.S. State of Origin (or FTZ) • Commodity Description • Schedule B Numbers • Origin of Goods Indicator: Domestic (D), Foreign (F) • Quantity
Slide 37: Best Practices
37 BEST PRACTICES • Determine regulatory requirements before you export • Do not self-blind • Know your customers • Screen your business partners • Understand the end user / end use • Provide accurate and correct information • Dialogue with your service providers • Ongoing training • Commitment to c
Slide 38: Informative Resources
Informative resources 38 Bi-Weekly Newsletter Sent biweekly on Friday. Compiles industry articles, blog posts and podcasts on all modes of transportation. Gain access to our regular event invites as well! Anti-Dumping & SAVE America’s Customs: America’s Ocean Duty Mitigation: Countervailing Duties T
Slide 39: Expeditors
Expeditors YOU'D BE SURPRISED HOW FAR WE’LL GO FOR YOU.® EXPEDITORS.COM
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