International sale of IT equipment is governed by a great number of laws, regulations, standards, and rules. The more complicated the equipment, the stricter the requirements. In the current climate of international crisis and unrest, the grip is now tightened – especially when it comes to trade of network equipment and other so-called dual-use products such as drones, surveillance cameras, scanning equipment, and the like. The consequences of overlooking or ignoring this can be fatal for a corporation. At Danoffice IT and edgemo, we have an in-house division managing Export Compliance. Here, the team will guide you through the new and increased regulations.
These days, sanctions are imposed and updated at an increased rate. However, for us and our customers, this has not resulted in many changes – yet we maintain this focus at the core of our business, and we take action to remain best in class. According to Kamilla Egehav, Compliance Specialist at Danoffice IT, the explanation is quite simple: “We just got out of a pandemic along with the resulting effect on several parts of the supply chain only to move directly into an international security crisis because of the situation in Ukraine. These factors have simply increased the focus on government export control both nationally and internationally.”
“Most countries have dedicated additional resources to this issue. This is especially the case because of the increased threat to IT security. As an example, during the most recent years, ten sanction packages have been imposed against Russia alone and there have also been a change in the rules for export to China. The frequency of the changes are expected to continue for quite some time and it is important to stay on task to keep up”, she says. Carina Lauridsen Mehanovic, Export Compliance Manager & Anti-Bribery Compliance Officer at Danoffice IT, adds to this: ”It is somewhat similar to GDPR. The rules were always in place, but they do not come into focus until the governments become more consistent.”
The equipment cannot fall into the wrong hands
So where lies the problem with the dual-use equipment? - ”The legislation related to IT equipment differentiates between simple products and more advanced products, such as dual-use products. This term refers to products that serve multiple purposes such as military purposes, mass-surveillance, and the like, however, it can also be used for common office purposes,” Carina says and elaborates: “if the products fall into the wrong hands, the risk is great for both national and international security and because of this, the products are subject to increased export control.”
Difficulty in sending the products into the world
This matter is fairly serious for the customers who need to send their equipment to several international locations. The lack of time and resources makes it difficult for many to properly gain an understanding of the application processes, the legislature, and the vast amount of follow-up reports and documentation required. Because of this, some are forced to no longer export. According to Kamilla Egehav, it is pretty black and white. “Do you want to continue to send your dual-use equipment to the furthest parts of the world? If the answer is yes, there is only one way forward, which is to adhere to the applicable legislation and rules. Any breach of the sanctions will result in anything from administrative sanctions, large fines, and incarceration.”
Carina elaborates: ”It is because of this that we offer to our customers the service which includes having all paperwork and export permits in order and after the fact, we also handle the necessary reporting. This is a highly specialized feature we offer from this team and we are among the only ones in the business here in Denmark who have a division dedicated to this field of expertise.”
A surprise to many
At Danoffice IT, we face the actual development of international commerce of network equipment as well as other dual-use equipment head on. Among other things, we screen every single order containing controlled equipment or heading for sanctioned destinations. Indeed, Camilla Pihlkjær Pedersen of edgemo's Inside Sales views this support as a positive. During her direct client contact, she notices that many are not aware of the requirements our screenings map out for each individual matter.
”From what I see, this is a surprise to many companies. Geez, you need all that? is typically the reaction I am met with. On our end, we ensure together with our customer that the proper documentation is in order,” she says.
We are Export Compliance Specialists!
”At edgemo and Danoffice IT we are pre-approved to export dual-use equipment by a number of governments and this makes the process more efficient,” Carina states. “Together with our customers, we ensure efficient and proper management of the export rules. This allows us to take quick action in matters that would otherwise normally be very time-consuming. Our skill-sets and experiences in this field are achieved through many years of dedicated efforts. We are proud to call ourselves specialists in this field and with us as your partner, you can safely export to the entire world.” With this statement, Carina Lauridsen Mehanovic, Export Compliance Manager & Anti-Bribery Compliance Officer at Danoffice IT, concludes.