Building an Export Compliance Framework : Intangible Technology Transfer – Software offerings
Herranen, Aino (2024)
2024
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024051612656
https://urn.fi/URN:NBN:fi:amk-2024051612656
Tiivistelmä
The objective of this thesis was to develop an export compliance framework to verify and monitor the export compliance of software offerings. After the tumultuous events at the beginning of the 2020s, economic sanctions have affected numerous exporting companies worldwide. Additionally, advancements in digital infrastructure are making export control restrictions increasingly complex. Non-compliance with foreign trade laws poses legal, financial, and reputational risks. The export compliance framework for software technologies has been incorporated into the sponsor company’s 2023 Trade Compliance development plan.
This study commenced by reviewing relevant multilateral and national trade regulations related to the export control of software and technology. Using the existing knowledge, a conceptual framework was constructed to serve as a basis for supporting the co-creation process of the software export compliance framework. The co-creation process underwent multiple iterations and included several stages of data gathering. Subsequently, the current state analysis was conducted to examine the existing practices of Digital Services at the sponsor company. Drawing upon the conceptual framework and the results of the current state analysis, a proposal for the export compliance framework was formulated. Finally, the export compliance framework underwent refinement with input from key stakeholders of the sponsor company to produce the final outcome.
During the study, a clear need was identified to enhance risk mitigation in the export compliance process of software products within the organization. The framework was divided into two separate documents to address both, business conduct and the resource and responsibility matrix of software export compliance. The outcome is an export compliance framework that assists in mitigating the risks associated with the export control process of software offerings in the sponsor company.
Businesses operating in the software and technology sector should take proactive measures to adapt to emerging regulations, particularly in response to anticipated EU directives concerning the export of intangible technologies and the growing influence of geopolitically motivated protectionism. In this constantly evolving landscape, it is imperative to acknowledge that the regulations examined in this thesis reflect the state of affairs in 2023. It remains essential to verify current regulations whenever up-to-date information is needed.
This study commenced by reviewing relevant multilateral and national trade regulations related to the export control of software and technology. Using the existing knowledge, a conceptual framework was constructed to serve as a basis for supporting the co-creation process of the software export compliance framework. The co-creation process underwent multiple iterations and included several stages of data gathering. Subsequently, the current state analysis was conducted to examine the existing practices of Digital Services at the sponsor company. Drawing upon the conceptual framework and the results of the current state analysis, a proposal for the export compliance framework was formulated. Finally, the export compliance framework underwent refinement with input from key stakeholders of the sponsor company to produce the final outcome.
During the study, a clear need was identified to enhance risk mitigation in the export compliance process of software products within the organization. The framework was divided into two separate documents to address both, business conduct and the resource and responsibility matrix of software export compliance. The outcome is an export compliance framework that assists in mitigating the risks associated with the export control process of software offerings in the sponsor company.
Businesses operating in the software and technology sector should take proactive measures to adapt to emerging regulations, particularly in response to anticipated EU directives concerning the export of intangible technologies and the growing influence of geopolitically motivated protectionism. In this constantly evolving landscape, it is imperative to acknowledge that the regulations examined in this thesis reflect the state of affairs in 2023. It remains essential to verify current regulations whenever up-to-date information is needed.