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Compliance Program

The Compliance Program refers to a system in which companies manage strategic items by themselves and comply with the regulations by running their own systems in charge of export control of strategic items. It is also called ICP (Internal Compliance Program) or EMS (Export Management System). Introduction of the Compliance Program for manufacturing and trading companies is essential for determining whether their items are includedin the controlled items or following the licensing procedure. Especially, it is regarded as a risk management system that protects companies from putting themselves in unexpected jeopardy. It has been widely adopted in advanced countries like the USA and the EU. In order to promote and establish ICP among businesses, the Korean government provides a guideline for the ICP in the Combined Notice of Export/Import of Strategic Items and Technologies (Combined Notice). The government also runs a designation program for voluntarily compliant traders to assist them with export control.

Designation as Voluntarily Compliant Traders (VCT)

  Designation as Voluntarily Compliant Traders (VCT) Those who want to be designated as voluntarily compliant traders (VCT) must submit a company introduction, organizational chart of the voluntary compliance management setup, regulations for voluntary compliance management and a plan for linking their system with Yestrade (www.yestrade.go.kr). The Ministry of Commerce, Industry and Energy (MOCIE) may designate applicants as VCT after considering the linkage between the Yestrade and the applicants' computer systems as well as the budget and personnel in charge of developing and operating the voluntary compliance system. The Compliance Program has the following basic requirements and can be adjusted depending on the circumstances:

   - Organization of the voluntary compliance management setup
   - Deliberation procedures for exporting strategic items 
   - Management of shipment
   - Audit
   - Education
   - Management of documents
   - Guidance provided to affiliates or companies concerned
   - Reporting
   - Penalties

Those designated as VCT can apply for a comprehensive export license. They are also granted privileges with regard to the submission of some required documents.

Duty to Report

Companies designated as VCT should regularly report the production and export performance of strategic items and operating status of the voluntary compliance system along with other matters to MOCIE.