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15.05 Form: Export Compliance Due Diligence Inquiries The following is an overview of suggested inquiries for the due diligence team. Based upon the information gathered during these inquiries, the due diligence team should be able to determine the risk of potential liability for violations committed by the target company.1. Is there an individual or group of individuals responsible for ensuring export compliance? * Does that export compliance group have access to current export laws and regulations? * Does that export compliance group communicate with the various governmental agencies in an effort to understand and confirm proper export practices? * Does that export compliance group have authority to review all export transactions? * Is the export compliance group independent of other departments, such as sales and marketing? 2. Does the target company have a written export compliance policy?* Are all employees, particularly those in the following areas, made aware of the export compliance policy? * International Sales and Marketing * Finance/Accounting and Legal Departments * Export Administration * Orders and Shipping * Classifications * Does the policy address the following issues: * Clear commitment to compliance with all U.S. export regulations * Procedures for addressing questionable transactions or potential violations * Resources available for determining restriction and prohibitions under export laws and regulations * Potential penalties for failure to comply with export laws and regulations 3. Does the target company have a centralized record-keeping system? * Are all employees involved in exporting knowledgeable about documentation requirements and the procedures for the maintenance of documents? * Does the target company have a system for collecting and reviewing documents before filing? * Does the target company maintain a record of relevant dates for documents to ensure that each document is retained for the required period of time? * Is the record-keeping system designed in such a way that documents are easily identified and accessible? 4. Does the target company have a system for classifying goods and determining the applicable laws and regulations for its products? 5. Does the target company have a system for verifying the end use and end-user for each export shipment?6. Does the target company have a procedure for determining the necessary licenses and for making applications to the appropriate authorities where needed? 7. Does the target company have procedures in place to assure compliance with the following prohibitions on exports and international transactions?: * Denied persons or entities, * Anti-boycott laws, * U.S. Embargoes, * U.S. Foreign Treaties, and * Foreign Corrupt Practices Act. 8. Does the target company conduct self-reviews or audits of the following? * Procedures for processing orders * System for classification of goods * License application procedures * Documentation procedures * Maintenance of records 9. Has the target company ever been subject to an investigation by export authorities? 10. Has the target company ever been charged with violating any export law or regulation? 11. Have penalties ever been assessed against the target company for export violations?