Darling Industries Consent Agreement

The findings of this Consent Agreement are particularly relevant for small and medium-sized enterprises that may not devote adequate resources to the recruitment, training and engagement of qualified export compliance personnel and to maintaining a robust ITAR compliance program. While it is necessary to use the personnel available for export compliance roles, companies must ensure that these individuals are adequately trained in ITAR and export compliance requirements. In the case of Darling`s consent agreement with DDTC, the offences at issue were not affected by any particular national security, as unauthorized exports to U.S. allies such as Canada and the United Kingdom were made. Among other things, a PO must be in a position of authority for policy or management within the company and understand the provisions and requirements of export control laws and regulations, as well as any civil, criminal and administrative penalties that may result from export violations. The letter of charge proposed by DDTC states that R.E. Darlings EO „was not in a position to have authority for policy or management,“ and since R.E. Darling did not provide ITAR training to the EO, the EO „did not understand the provisions and requirements of the various export laws and regulations.“ The darling consent agreement specifies that companies registered by DDTC must appoint EOs with appropriate export authority and expertise and cannot fulfill their obligations under the ITAR solely by designating an employee as an EO in the title. On February 28, 2019, the Directorate of Defense Trade Controls (DDTC) released the announcement of an additional consent agreement for ITAR violations. In this case, Darling Industries has learned the hard way that it is important to maintain an effective compliance program that includes ITAR and EAR rules.

Many of the violations found are consistent with other consent agreements entered into by the Agency against companies that either did not understand the requirements or ignored their regular export obligations under the ITAR. When reading these agreements, it is customary to see infringements of unauthorized exports of defence items, defence services or technical data related to defence articles.. . . .

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