As indicated in the NuFlare Technology Standards of Conduct, the basic export policies of NuFlare Technology,Inc.(“NuFlare Technology”) are “to refrain from any transactions that may undermine the maintenance of global peace and security,” “to comply with all applicable export laws and regulations in each country and region of operation, and with those of the Unites States if we are engaged in transactions involving U.S. products and technological information,” and “to prepare export control compliance programs.” In line with these policies, we maintains strict export controls.
The purpose of the “export control compliance programs,” which stipulates export control procedure and framework, is to promote the provision of training on export control, classification of goods and technology for determination of the necessity of export licenses, strict screening of transactions, and the like.
Basic Policies concerning Export Control
NuFlare Technology shall:
- Refrain from any transactions that may undermine the maintenance of global peace and security.
- Comply with all applicable export laws and regulations in each country and region of operation, and with those of the Unites States if we are engaged in transactions involving U.S. products and technological information.
- Prepare and implement export control compliance programs that stipulate corporate policies and procedures for assuring compliance with the foregoing laws and regulations.
Export Control Framework
The President of NuFlare Technology assumes the role of Chief Export Control Officer and appoints a director as the Export Control Representative (who is granted final authority to decide on export transactions). The Export Control Department manages the overall implementation of the export control program. The Export Control Representative works in coordination with the Internal Audit Department and the Export Control Committee (an organization that consists of export control personnel from each sector) to monitor and supervise export controls and promote sharing of export-control-related information.
Classification of Goods and Technology
The purpose of product classification is to determine whether or not an export license from the Minister for Economy, Trade and Industry would be required for products to be exported. At NuFlare Technology, product classification is conducted in individual departments by qualified engineers who are familiar with product specifications and performance. Each classification result is reviewed and approved by a “Product Classification Administrator.” Furthermore, the Export Control Officer in charge reviews classification results in light of all applicable laws and regulations. This ensures that all classification results are legally consistent and legitimate.
At NuFlare Technology, the Sales Manager identifies what uses are planned and screens customers in advance and has the results double-checked by the Export Control Department before the transactions are approved. In addition, transactions requiring an export license from the Minister of Economy, Trade and Industry or destined for a country or region of concern are subject to thorough review and approval by the Export Control Department to ensure that no problems arise. The Sales Department conducts transactions “only after receiving an export license” from the Minister of Economy, Trade and Industry or the U.S. Govemment, where necessary.
Export Control Audits
At NuFlare Technology, the Export Control Department performs periodic audits of practical operations departments involved in export to ensure that all such departments are in compliance with all applicable laws and regulations and implement appropriate export controls and operations. We also stipulates, in our “export control compliance programs,” that the Export Control Department itself shall be subject to periodic audits by the Internal Audit Department and an external auditor. In response to the results of these audits, corrective action plans are developed and implemented swiftly when necessary.
Export Control Training
NuFlare Technology implements various export-control-related training programs such as training based on the needs of different organizational levels and job functions (including those of new employees). We provides all our directors and employees with export-control-related training, as well as separate training programs for different departments to educate employees on export and import operations handled by their own departments.