Jurisdiction, Classification & Marking (JCM) are critical capabilities in a compliance program. Export jurisdiction and classification define how an “object” (e.g. hardware, software, technical data and services) must be controlled, including the legal means of exporting the object. In the absence of dependable and readily available jurisdiction and classification determinations, the only way to achieve export compliance is to prevent exports.
Historically, the “export prevention” approach has focused on enforcing export shipment controls. For example, if an object had not been classified at time of shipment, the shipment would be blocked until export classification could be determined. Once triggered, the export classification process involved regulatory Subject Matter Experts (SMEs) manually collecting information about the object, reviewing regulations and making a one-off, regulatory interpretation based on tribal-knowledge.
Although physical shipping controls remain an integral part of an export compliance program, in today’s globally-networked, information-driven economy, the risk of unauthorized exports has shifted to information and Information Technology (IT) systems. In an era of nationally diverse workforces, globally distributed supply chain, international marketplaces, and shared IT resources, the traditional approach to export compliance and JCM is woefully inadequate. A new approach and new capabilities are needed. To meet today’s export compliance needs, JCM capabilities must be standardized, automated and integrated with the business systems where information is being created, stored, and shared.
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