Export Control Compliance
Policy
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"EADS is committed to complying with all import and export control regulations that govern the exports and imports of commodities, technical data and technical support.
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EADS always obtains export licenses and other government approvals prior to exporting products and technology controlled by governments or the EU."
According to the particular nature of the industries that it is active in, EADS has put a special focus on the overall compliance with export control regulations and laws. Especially in the area of defence and dual use goods, the governments are important customers, EADS has established a cascading system of export control procedures and policies, also taking into account that export policy is an important element of foreign policy of the governments of EADS home countries.
Organisation
In the Western world, export legislation has a high degree of commonality and export control rules are harmonised by various international export control regimes by the governments. Therefore, the ultimate decision for exports is always in the hand of relevant governments and EADS does not export any product without a respective export licence.
Within EADS, there are national export control organisations in each country, assuring compliance with the respective national laws and regulations. They give approval or advice for all export activities (prospecting, negotiation, offers, proposals, licensing, shipment) at the earliest possible point in time. These organisations are also responsible for adequate education and training of all export control officers in the Divisions and communication of actual laws and regulations. They also ensure harmonised licensing procedures according to the respective national regulations. Meetings between the national export control organisations are held on a regular basis.
In addition, in each of the Divisions there is a cross country export control organisation in place handling both the business specific issues and the day to day business and controlling compliance with licenses at the final stage of the delivery of the goods, technologies or services.
In each of its home countries, EADS is known as a reliable exporter. It works closely together with the government in the ultimate goal of preventing proliferation of sensitive goods and technologies to non reliable countries or persons. For any delivery, EADS checks the reliability of the end use and the end users according to various criteria.
In recognition of EADS seriousness and reliability, the Group is a privileged partner to the governments of its home countries and e.g. holds Global Project Licences and simplified approval and exporting procedures.
Although the responsibility and liability for exports is in the hand of its business units, the CEOs reserve personally the ultimate decision for any export in sensitive countries by a special directive and special procedures. This procedure is based on a case by case review in which EADS International provides EADS’ top management with legal elements and geo-politics inputs for the final decision.
If a planned export may be of concern for one of EADS home countries, the situation is checked in the political environment in close connection with the governmental authorities.
Performance and Best Practices
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Export Control Committee
The national Heads of Export Control form the Export Control Committee and hold quarterly meetings for the exchange of information, establishing specific cross country recommendations tailored to the operative business (space, defence, aeronautics).
The Export Control Committee has prepared an EADS Compliance Directive in export matters and maintains the information about sensitive countries up to date. The national Heads of Export Control are also responsible to issue national export control compliance manuals on the basis of EADS common principles and rules.
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Training and Education
The export control professionals hold training and education sessions for employees and managers of all operative organisations involved in export control (e.g. procurement, sales, and project management). Export control education is also part of EADS management development programmes.
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Procurement Directive
Due to the extraterritorial application of export and re-export regulations in some countries (e.g. U.S.), EADS is forced and committed to complying with these laws and regulations. In order to ensure compliance and to manage economic risks, EADS has issued a procurement directive. This directive asks for export classification of foreign products already in the phase of procurement in order to be able to be compliant during the whole supply chain and to minimize economic risks of compliance cost for further phases.
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Audits
The EADS export compliance system is regularly audited and approved by governmental authorities. Also external ex post controls of compliance with laws and regulations are performed.
In 2005, a comprehensive internal audit took place for the export control systems in each country and in each Division. There were no major findings neither by external audits nor by the internal audits concerning legal compliance. However, the internal corporate audit team requested and recommended improvements concerning commercial and business risks.
During 2006, all of the requested actions and the majority of the recommended actions were implemented.
