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V O L . X X I I N O. I X M AY 2 , 2 0 1 6 20 E xport compliance may not sound like a sexy topic compared to the excitement of selling products internationally. But it can get exciting quickly if you ignore it: civil penalties for export license violations or sending sensitive goods to banned coun- tries, for example, can run up to $250,000 per violation, and criminal penalties can carry jail time with fi nes topping $1 million, experts say. Companies may even be prohibited from exporting going forward. "A lot of companies in Maine don't have compli- ance offi ces," says Janine Bisaillon-Cary, director of the Maine International Trade Center, which helps companies export and import. Companies like IDEXX are large enough to have internal compliance offi ces, Bisaillon-Cary says, but most Maine companies are small- to medium-sized enterprises, and have to rely on freight forwarders, consultants, groups like MITC and others to make sure they're selecting the correct paperwork to export a certain type of sneaker, for example, rather than a boot in the regulator's list of codes for export products. " ese businesses, if not properly trained, can face serious penalties if they don't fully comply to export regulations," Tom Conley, international trade specialist at MITC, writes in an email. Some 85% of Maine's 2,183 those that exported in 2012 were small- or mid-sized companies, defi ned as having 500 employees or fewer. International trade is a major contributor to jobs in Maine, with 177,519 workers. Exports totaled $2.74 billion in 2015, about double the $1.38 billion in 1996. Compliance need not be a roadblock Bisaillon-Cary and others say fi rst-time exporters shouldn't be scared off by the paperwork, time, research and potential fi nes. MITC, consultants, trade lawyers, some freight forwarders and other agencies off er help to navigate export compliance for each shipment of a product and steer companies around the do's and don'ts. For example, MITC is holding a full-day training session on export compliance June 16 in Brunswick at TechPlace headed by Mike Allocca of Allocca Enterprises Inc. of York, S.C. He has a background in freight forwarding and export compliance. " ere are 41 partner federal government agencies that can regulate exports," Allocca says. "Exporters need to know who to go to." While exporters may seek advice from others, they ultimately hold the responsibility for any problems with everything from export paperwork to doing due diligence on their customers. ey are responsible for assuring the end users are actually the ones receiving and using the businesses' products, and that the products don't end up in a banned country or with an illegal user. at MITC workshop with Allocca will cover a wide spectrum of the issues beyond paperwork that exporters need to know to avoid pitfalls. On the agenda are new export security requirements, a checklist to guide businesses through compli- ance on every export, using due diligence to avoid sanctioned countries, identifying common red fl ags an overseas customer may raise, country-specifi c requirements and export documentation. An important part of the session will be on how to determine if an export license is required, as that is a common mistake among exporters, whether your products qualify for NAFTA treatment, if you are using the correct product export code, number and where to fi nd this information. Insurance, pack- aging, labeling and record-keeping strategies and responsibilities also will be covered. MITC's Conley says fees for such training may be reimbursed to eligible small businesses by the Small Business Administration's State Trade and Export Promotion, or STEP grant. MITC administers STEP in Maine, aiming to increase the number of businesses that export. Where to start Kelly L'Heureux, general manager of OCEANAIR Inc., a broker and freight forwarder in Falmouth, says such seminars, in addition to consultants, online P H O T O / T I M G R E E N WAY Navigating export compliance With help, even small companies can export successfully B y L o r i V a l i g r a F O C U S Resources for export compliance Maine International Trade Center PORTLAND OFFICE: 511 Congress St (207) 541-7400 / info@mitc.com BANGOR OFFICE: 20 Godfrey Drive, Orono U.S. Export Assistance Center of Maine 312 Fore St., Portland Jeffrey Porter, director (207) 780-3756 / Jeffrey.Porter@trade.gov Maine Small Business Development Centers Locations throughout Maine 55 Exeter St., Portland (207) 780-4420 / www.mainesbdc.org Schedule B export code information uscensus.prod.3ceonline.com International Traffic in Arms Regulations (defense) www.pmddtc.state.gov/regulations_laws/itar.html U.S. Department of Commerce, Bureau of Industry and Security bis.doc.gov S O U R C E S : Allocca Enterprises, OCEANAIR Kelly L'Heureux, general manager and licensed custom broker for OCEANAIR, left, and Kristen Morneau, senior advisor for Mohawk Global Trade Advisors, at the International Marine Terminal in Portland.

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