Expeditors International of Washington, Inc. (EXPD) Earnings Call Transcript & Summary

All right. Great. We will go ahead and get started. So again, thank you so much for joining us on this webinar. Just kind of go over some housekeeping items. It's going to be about 50 minutes and then we'll go through about a 10-minute Q&A session. This webinar actually will be recording. It is recording right now. So if you want to ever refer back to this, you can. [Operator Instructions] And in that Q&A session, our host will answer your questions. And if we don't get to them, we will be sure to follow up with you and get those questions answered. There will be a feedback survey that is sent to your e-mail following the conclusion of this webinar, so we just ask that if there's anything that you would like to say your thoughts about the webinar, please feel free to share them in that survey. And then another e-mail will be sent with the reference material and recording. So without further ado, I'll pass this over to Petia, and we'll get started.

All right. Thanks, Cherokee. Good morning, everyone. My name is Petia Iordanova. I'm the compliance manager for the South Central region based in DFW, I've been in compliance for about 8 years, with the company 20 years. So excited to present export compliance basics.

Hello. My name is Sarah Smith. I'm the compliance manager here for the Houston District, as it says there. I've been with the company just over 10 years and about 6 of those have been in the compliance realm. So happy to be here. Happy to answer questions and see where the conversations take us towards the end.

Good morning, everyone. My name is Lorri Singleton. I am the Trade Compliance Manager for the Dallas district. I've been with the company almost 25 years and in compliance for a little over 12. So exciting times. We have a lot to go over. But this is -- since it is the basics, it is all going to be very high-level information. We are happy to take questions and talk about anything more in depth after the seminar if you have further questions. So first off, we're going to talk a little bit about exporter responsibilities. So there are a lot of things that you need to know as an exporter and it can be daunting. It's a long list. The first thing for sure is you need to know the regulations. There are a lot of regulations because there's a lot of government agencies, and we'll go through that a little bit more as to get further. You do need to know your customers, your vendors, who's going to be moving your freight. You need to know and screen all of those parties and you need to know what your end use is, where it's really going because of transshipments. There are a lot of countries that are really small that have a lot of imports, and that's because that stuff is not staying where it goes. It is being transshipped to other countries. And then we need to make sure that we are getting the right information that we're submitting to the U.S. government upon export, make sure that you're understanding the dangerous goods regulations as more and more products get lithium batteries in them, more and more people are having to become DG-certified because of the way the rules are written because they are still regulated. And don't sell blind. That is an exporter responsibility, don't just pretend that you don't know that it's going to a bad place or a bad person. So those are the big responsibilities. So what is the export control system? Well, the government wants to keep us all safe. That is the goal of this. And so they want to make sure that our national security is strong. It will keep limiting the access of information to not only information but of products getting into the wrong hands. We want to make sure that we're stable -- we're promoting regional stability. We are -- any of the countries where maybe they are in political turmoil and they need food that while we might not want to send other products, we're going to keep them stable and keep their people fed. And then we're going to -- that goes also to human rights, promoting those human rights. And we want to prevent weapons from getting into the wrong hands. I think all of us want that, right? But those are some of the regulations. And then we're going to comply with all of the international commitments that we have with the UN Security Council, all of that. So that's the overview of the export control system. These are some of the U.S. government agencies that control exports. There's over 40 different government agencies and a lot of these are broken down like some of them will be under Department of Treasury or under OFAC. But they all start going in there. You have like the Department of Commerce that, high level, they're going to do anything that's dual use. So if you can use it to hunt deer or use it for a military use, they're going to control it. And the Department of State is going to do your military items. Treasury is all about the money, right? Treasury and Department of Justice, they have a couple of different arms. So there you'll have Bureau of Alcohol, Tobacco and Firearms and also your DEA that are controlling those different products going out. And we want to make sure that the medications are getting to the right places, which is what the DEA does and also that the bad stuff is not coming in. And then we have the NRC, which is about nuclear materials. So we have to determine which regulatory requirements you have to follow. So I mean I use an example of one of a current customer of ours that called me in one day and they said, we don't know how to export this. We're a little scared. There's a lot of regulations. There's a lot of rules. What are we supposed to do? So I started talking to them and asking, well, what are you guys exporting? Well, they were exporting vinyl stickers. So I'm like, okay, well, that doesn't seem like a really bad substance. So let's ask where is it going to? Well, it's going to the United Kingdom. All right, we're good there, too. Next is like who is it going to? Well it was going to a store that is a book shop. Okay. Everything is going good there, and then what's it going to be used for? Well, it's a bookstore for an elementary school. So it's stickers going to an elementary school. So just by talking through what they're exporting and where it's going and who it's going to, we were able to talk through this big, huge book, which is the export administration regulations and help them determine if they needed a license or not. So if you go to the next screen. So here are some of the possible outcomes. Once you figure out what you're exporting, where it's going to, who it's going to and what it's going to be used for, you could either need a license, you could have a license exception or no license required at all. I would say that the majority of shipments that we see are under the no license required or the license exceptions. It's very specific when you get to the licensing that's required. So there are some export regulations. So the first one is ITAR, which is the International Traffic in Arms Regulations. That's the military defense. These are very, very specific regulations. But then we also have the export administration regulations. ITAR is always going to take precedence over the export administration regulations. But you do have to look in both -- but the first one is going to be really the EAR to determine if it falls under -- to help you determine if you need to look into the ITAR. Then we have the foreign trade regulations, 15 CFR Part 30. So this is whenever you have an export clearance is required. This is going to be most of your exports leaving that are over $2,500, you have to follow these rules or if it's on a license, no matter what the value is. And then the next one is the Part 31, which is OFAC, Office of Foreign Assets and Control. And this is all about your sanctions and embargoes. All of these are important, but we don't expect you to know every single part of all of them. Another thing to keep in mind is, where is your stuff going to. There are a lot of countries of concern. We have general embargoes, which are Cuba, Iran, Syria, North Korea, Crimea region of the Ukraine. And then there's Security Council's arm embargoes. And then there's also sales that are prohibited by the UN Security Council, and then we have arms embargo. So it just goes on and on about where we want to send freight to or products to. And I really like this heat map because to me, it was a good indicator of kind of what the safe places are. And you'll notice that even the U.S. is not in the safest color because a lot of things make it transship or people don't realize that they're not supposed to ship to Iran. And so they'll just try to put it on FedEx or DHL and then we have a problem. So we do need to make sure that you are screening your parties. And we need to make sure that we're looking for any denied parties. So that's any individuals that have been denied export privileges. We can't deal with those. That is part of the U.S. regulations. We need to look at the BIS' Unverified List. So that means that they haven't been able to verify them. So it's a red flag, and we need to look further into them before we go on. And then there's an Entity List. And those can trigger license requirements simply because of what the company name is and where they are located. And then the specially designated nationals, those may be prohibited from export transactions based on OFAC regulations. There's more. There's lots of them. The next one is the Debarred List. So those are prohibited from participating directly in the export of defense articles, including technical data and defense services. So that one is not just the actual products, that could be the data, the information about it. And then you have your nonproliferation sanctions. So those are parties that are -- there's different statutes. Maybe they were caught trying to get arms to somebody else. And so -- or not trying to get arms but just other various statutes. And then you have your federal -- your foreign sanctions list. Those are foreign individuals that have might have violated our rules or are trying to get freight out of the country. And then there is a whole consolidated screening list, you'll see at the bottom. And every exporter is expected to look at these lists every time you are exporting from the U.S. It's a lot, I know. And we are very grateful that there is a consolidated list now because it used to be just books and books and books that we had to look through years ago. Thankful for the Internet for that one. So you need to be aware of the use. A big question to ask is, can the item be used more than for its intended purpose. Can your machine be modified to make bad things instead of good things that you're trying to do. You have to look at what all your machines or product can do. And what if you take one part out and put a different part in, does that change the end use of the items? And will it be used for nuclear-related activities? How about biological-related activities or chemical-related activities? You don't want your items to fall into the wrong hands. That's the biggest message of this all is knowing who it's going to and what it can be used for at the end.

All right. Thank you very much, Lorri. So we looked at kind of a general overview. What you need to know as an exporter, as an entity who made an international sale. You became -- you got the title of international exporter, so there a lot of responsibility comes with it. Like Lorri already went over, you have to know the regulations. You have to know what are you exporting, where is it going to, who is it going to and what it will be used for. So this is just general understanding regardless of what you're exporting, you need to have those. Now we'll take a mainstream look at some of the most commonly used regulations that we see. So first, we'll touch on, again, very high level on ITAR regulations, the International Traffic in Arms Regulations. Those are published by the Department of State. And we mentioned earlier, they -- the scope of coverage is defense articles. So any articles specially designed for military use. So again, this is not the dual use items, but we showed the machine there that might do one thing, but it might do something else. These are specially designed defense articles, and they are regulated by the Department of State. In order to export, you need to be registered with them, the Directorate of Defense Trade Controls, DDTC, a lot of acronyms. I'm sorry about that, but that's how it works in the export world and in our world. So you must be registered with the DDTC to have the privilege to export regardless if your item needs a license or not. The ITAR, the regulations, they set out the requirements for how you're supposed to handle, which items need a license, going where, which items can be exported under a license exemption, meaning that you would normally need a license, but because of where the goods are going to or what is the end use, you might qualify for an exemption. And again, since these are highly sensitive articles, the Arms Export Control Act, the AECA requires that the Department of State must provide an annual report on the export authorizations, the licenses that are given and certain articles actually must be the -- the Congress must be notified of their exports. So every time you have like a huge arms deal with one of the NATO members that one must be approved by Congress. So again, very sensitive articles. We're not going to go through all of these. This is just for your reference, again, since you will get the slides in the end, we try to put a little bit of information so you can actually reference it without actually putting you to sleep, hopefully not. But there are 21 categories in the U.S. Munitions List, USML.So you may have heard of it earlier on the slide that showed the most common export control agencies. We also had [ unlawful ] list. A lot of government agencies, they publish lists, whether it's list of items they control, list of individuals and so on and so forth. So the ITAR, the International Traffic in Arms Regulations, there is a U.S. munitions list which details 21 different categories of defense articles, and those must be reported. So this is as far as we're going to go on the ITAR regulations. Again, this is a very basic seminar. This is for people who are just now starting their journey into exporting, just join the export department and need to understand. We'll be happy to provide more seminars. And if you're interested in those, please make sure to tell us in the survey that you'll receive after the seminar. Now the next one we'll spend a little bit more time here. But again, we're not going to go deep into license determinations or anything like that. So the Export Administration Regulations, the EAR, like it's most commonly named. This is the Department of Commerce. So the Department of Commerce basically controls every export that is not controlled under the Department of State. So we mentioned earlier that there are 46 government agencies just about, that control export. Now Department of Commerce and Department of State, I know one of those will apply with very, very, very few exceptions. Pretty much everything that leaves the country will either be under the EAR or the ITAR, Department of Commerce or Department of State. It might be subject to various other government agencies controls, but it will definitely be either EAR or ITAR, Commerce or State. So Department of Commerce controls the dual-use items. So the items that can be used for more than their intended purpose. You may export a laptop to an office building somewhere to -- somewhere's office, that same laptop might be used to support terrorist activities or other prohibited functions. And then again, everything else that is being exported even the stuff that is not necessarily dual use, that one is still controlled by the Department of Commerce, it still falls under their scope. Department of Commerce can also have export controls for foreign policy reasons. So again, certain products may be okay to move to one country without the license, without restrictions. But going to some other country, it may need a license or it may just be prohibited. The Department of Commerce also has their own kind of short list of sanctioned countries that you simply cannot export or there are a number of controls. So definitely something to consider there. Again, what they're concerned with is that the items that can be used for something more than their intended purpose do not fall in the wrong hands. So very important. Again, what is the item, where is it going to, like which country, what entity. Like Lorri mentioned earlier, there are several list of entities that the Department of Commerce publishes like the Entity List, the Unverified List and so on. And then what will the item be used for. So certain products, and I don't want to go too deep into that. But in the past few years with the export control reform, certain products that were formerly under the Department of State Jurisdictions, so defense articles that are not as sensitive, they were moved from the Department of State to Department of Commerce jurisdiction because it's easier to issue licenses and so on. But again, those could still be defense articles. So you have to be very mindful and ensure the terms and regulations if you're exporting those to see where they're going to and who they're going to. These are just kind of some basic definition of terms. So what is an export. The active shipping or transship or transmitting an item subject to the EAR from U.S. to a foreign destination. So this could be, again, it could be items, products, it could be technology, know-how, software and so on. So again, not just the physical items are called exports. Now it's important to know what is the difference between reexport and transfer. Reexport is when the product is sent to a country somewhere outside the U.S. and then it goes to a third country outside of that one. The transfer is when the product is moved from one entity to another within the same country. So it doesn't leave that original destination country. It still stays there, but it's given to someone else. So we mentioned earlier and you have to know who is your end user. It's important to, again, like we mentioned do not sell blind, be mindful of who you're doing business with. One example that we actually see a lot and many companies don't actually think about, are you selling to a trading company? If you are, you need to ask questions. That every set of regulations basically states that you must know who is the end user of your item and what is its end use. If you're selling to a trading company, unless you're selling them like laptops, computers that are needed for their office work, anything else that you sell to them will be resold. So it's your responsibility to let them know that they are not allowed to resell it to countries that are subject to U.S. export controls. So definitely, please be mindful of who you're selling to. And like Lorri mentioned, certain countries are non-transshipment points, reexporting points, meaning that you send something to UAE, which happens to be in close proximity with countries that are subject to U.S. sanctions. So be mindful of that, please. What is an item? What is an item that is being exported? Again, it's not just a commodity, it's software, it's technology. So very important to kind of understand the basics. Now how do you know if you're subject to the EAR? So easiest way is, again, if you're not subject to the ITAR, if you're not exporting defense articles, chances are you are subject with EAR with very few exceptions. If it's publicly available technology and software, Microsoft Windows or whatever, then you are -- if you're exporting publicly available software, then you're not under the U.S. export controls. And if it's publications that are artistic, nontechnical, so you're exporting issues of your art magazine, Vogue, whatever it is, those are not subject to the EAR. But if you're exporting like technical information, manuals and so on and so forth, those actually are subject to the regulations. Now another thing that is important is so your item might be subject to the EAR, but it may also be subject under another government agency like we mentioned earlier. So some of them have exclusive rights. So if it's a ITAR -- if you're -- if the item is ITAR controlled, then it's not EAR controlled, basically. That's what we're saying with this. Now the final bullet there, very important to understand is your item is subject to export controls even after it's exported out of the U.S. So again, that's why you need to be mindful of who you're selling it to and where it's going to because even after it's exported, it's still subject to U.S. export control. So if it ends up in the wrong hands, you might be responsible. You might be held responsible if you did not ask the right questions. There are a number of cases out there where companies were penalized for wilfully sell blinding, which is another thing that we said that you should not do. You should not sell blind. You cannot sell to a trading company and then act surprised when your product is resold somewhere else. You have to know that when you sell to them, they will resell it somewhere else and you have to tell them that they are not allowed to resell it to someone who is under your export sanctions. Even certain foreign-made items may be subject to export controls if they have a percentage of U.S. raw materials basically in them. Then the last is U.S. persons and foreign nationals for certain activities. Easiest way to think about it, we are a multinational company, but we are based in the U.S., pretty much all of the people who work for Expeditors. Even if they have never set foot in U.S., they are still subject to the U.S. export control regulations because all of their e-mails go to our servers and we are a company that is based in the U.S. So again, for the purpose of U.S. regulations, everyone who works for Expeditors is "U.S. person." So that is the case with a lot of multinational companies. Like we mentioned earlier, just like with any side of U.S. regulations, you can have 3 possible outcomes. So once you go through the regulations and you figure out what is your product, who it's going to, you will either need a license, in which case you need to apply for one. There is no registration needed. There is a process for applying for a license, you may qualify for a license exception, meaning that, again, certain products going to certain destinations might made a license but going to other destinations don't need a license or as I said, in most cases, 90% or so of the items that we export, they just go on there, no license required and a lot as you may have heard that we mentioned. Again, this is a very basic session. So we don't really have the time to go into Schedule Bs and ECCNs and license determination and all of that. But again, we'll be happy to put together a more in-depth seminar on that topic. We'll touch very quickly on the OFAC, the Office of Foreign Asset Control regulations because we briefly touched on it earlier. But again, since it's very kind of hot topic right now with a number of sanctions that are there to not just Syria, Iran, Cuba and so on, Russia, they can be very complex. So the Office of Foreign Asset Control, what do they care about? They care about the money, the assets. They administer and enforce economic and trade sanctions based on U.S. foreign policy, national security. That's basically what it boils down to. So again, in most cases, it doesn't matter what you're shipping, you -- nothing can move. So there are places where there is a full embargo. In some cases, like Russia and other places, certain items are okay to be exported, but others are not. So you can export humanitarian aid to Russia, but not technology to put it very simply. So what are sanctions? We hear about them a lot. We hear about them in the news all the time. I think most people are kind of very well familiar these days with what are sanctions. So they are economic tools, basically, used by countries or organizations to persuade certain governments to act or not act a certain way, change their policies and so on. And they are normally the easiest way to persuade someone to do something is to restrict their money, freeze their assets. So that's what OFAC is doing. Economic sanctions, maybe trade embargoes or boycotts, basically, nothing goes in, freezing of assets, ban on cash transfers, ban on technology and so on. So again, OFAC regulations can be very, very complex. They are very complex. So that's why, again, it's important to know where you're shipping to. Thankfully, while the sanctions may be complex, they only apply to a very kind of very small geographical areas. So if you stay outside of any of those countries and they are under OFAC sanctions, you don't have to worry about understanding exactly what you can and cannot move to Belarus or Russia and so on. The sanctions can be unilateral and multilateral. So Russia, for example, they are multilaterals. EU and U.S. and a number of other countries have issued sanctions to Russia. In some case, it's only 1 country like only we, only U.S. has the sanctions. They may be applied to countries that want to develop weapons of mass destruction, for example, violate human rights, treat them unfairly and so on. So again, a very hot topic today. I don't think there is probably hardly anyone out there who doesn't know what they are. So I'm not going to be harping on them too much. This is a very fluid list. So please don't just go off of this because a lot of it changes very much. But these are basically the embargoed and the strongly sanctioned countries on the left. So Cuba, Syria, North Korea and the Ukraine regions that are annexed by Russia. So there is basically full embargoes to those. Venezuela, Russia, Belarus, there are certain items that can be exported and others that cannot. Some items may need a license and some may qualify for what is called a general license, basically a list of items that you can move to a sanctioned destinations. Those usually include humanitarian aid and so on. Also, when the sanctions are first put into place, the government understands that it takes time to wind down operations. So when the Russia sanctions were first put into place, there was a number of general licenses issued basically saying, okay, company, you have 6 months to wind down operations in Russia. During those 6 months, you can still export goods there under this "general license." So it's not a paper license, it's basically just a number that you reference. And after that period of time, you cannot export anymore. Again, we mentioned all of these, but important to check who you're doing business with. This is not an all-inclusive list. Like Lorri mentioned, there is a number of lists out there published by various government agencies. So I do not recommend going through this list manually. Most big companies actually have subscription to software providers that does the screening for them. For us, every time we create a new customer profile is what we call it, we have restricted party screening software in the background that checks that party and then it tracks regularly all of the customer profiles that we have in our system and updates the status as it changes. So again, I strongly recommend that you do that. If you're a smaller business and you cannot afford a software, then at the minimum, check that consolidated list that is published on the Department of Commerce website. The link is in the presentation. So once you have the presentation, you will have it at a minimum, you have to check that. It's a very good tool because it allows you to check multiple U.S. lists. Again, U.S. is not the only country that publishes lists. A number of other countries do as well. But at a minimum, if you're an U.S. exporter, you have to check the U.S. lists. So we're on the home stretch, not that much to go. Last, we'll spend a little bit more time on the foreign trade regulation. So if you think about the slide before where we had Department of Commerce and Department of State, either one of those always applies. Others may or may not apply. This one applies every time you have to submit export clearance. It used to be called SED, Shipper's Export Declaration, it's now referred to as EEI, Electronic Export Information. Basically, every time you must submit clearance for the goods bound out of the U.S., you're subject to these regulations. So they kind of overlay everything else. So the Foreign Trade Regulation, the FTR, like we call it, they're published by Department of Commerce with the Bureau of Census. So the EAR is Bureau of Industrial Security. The FTR, the Foreign Trade Regulation is Bureau of the Census. The main purpose of the census, as you know, is to collect data, what do we export, how much, what weight and so on, but it also helps to facilitates the clearance for all of the other government agencies. So the FTR, again, this one basically sits upon what do you have to do in order to perform a successful export clearance. So any export of physical goods including shipments, moving to orders received over the Internet, they are all subject to the FTR and the EEI, Electronic Export Information must be submitted. They're not very complex regulations. There is a lot about who is who and all of that. But one thing that we felt it's important to understand here is to understand the difference between a standard and a routed export transaction. So what does that mean? Standard transaction is you have a party, U.S., United States Principal Party in Interest. So your company in U.S., you sell to a company somewhere outside of U.S., we say overseas, so we sell to some other company, and you ship it to them. This is a standard export transaction. You control the transaction. You control who is going to do the transportation, do the export clearance and so on. Now on the other side, in a routed export transaction, you are a U.S. exporter, you make an international sale, you sell it to a company overseas, and they decide who's going to do the export, who is going to file the export clearance and all of that. So this is called a routed export transaction. So the foreign company, the buyer controls the transaction. They say what's going to happen. We see quite a few of these. This is normally driven by Incoterms. So not exactly correlated, the Foreign Trade Regulation doesn't really go into Incoterms, but normally, again in an Ex Works transaction where the buyer pays for everything. Those usually are routed export transactions, meaning that the seller doesn't really control the transaction. However, according to the U.S. export regulations, you as a U.S. exporter have responsibilities. So here is just to kind of set the record straight of who is who. So USPPI, the U.S. Principal Party in Interest, which is basically the party in the U.S. that monetarily benefits from the transaction. So you're the seller, pretty much most cases. So you may be also the manufacturer or just the ordering party or what have you, but you are the party in the U.S. that is monetarily benefiting from that transaction. Conversely, the FPPI, the Foreign Principal Party in Interest is the party outside of U.S., who monetarily benefits from the transaction. They may or may not be the ultimate company. You may have what we call a triangular transaction, where a company outside of U.S. buys from you and then ships it somewhere else. So it basically looks like triangle like this. The money may go from the FPPI to the USPPI, but the freight actually goes to another party. Authorized agent. This is an individual or a legal entity that is basically located or under the jurisdiction of the United States, that has power of attorney to act on their behalf and to file the EEI. So that's usually us. We, as a company, do not do license determination, we don't apply for licenses on behalf of companies, but we file the EEI. And then lastly, the carrier is who actually moves the goods. So whether it's airlines, steam ship lines, rails, trucking and so on. They don't usually have any part of the export clearance, but again, they are mentioned in the regulation. So we wanted to make sure that, again, you have a good understanding of who is who here. Now I mentioned earlier that regardless if it's standard or routed export transaction, the USPPI, [ USD ] called international exporter, they have responsibilities, whether it's a standard transaction or routed transaction. If you only go by Incoterms, in an Ex Works, you would think I'm only responsible to have the item available on my dock and nothing else. I don't care what happens to it after that, not my problem, not according to the U.S. regulations. According to those, it actually is your problem because you are responsible. The party of USPPI, so the party who benefited from the transaction, you're still responsible to provide most of the EEI data elements, including license determination unless the FPPI has given you -- has decided to do it on their own. But again, that's very technical, that's subject to another webinar. But even in an export transaction, keep in mind, you are still responsible for the accuracy of the EEI, of the data elements that are filed on the EEI. And you still have to retain documents. So that pretty much concludes what we had there for the various regulations. We're just going to recap it really quickly. So again, know what you're exporting, who you are exporting to, where, what country is going to, what it will be used for. As far as export regulations, pretty much every export out of the U.S. falls either under Department of Commerce or Department of State, unless those are dual-use items and everything else, State is defense articles. OFAC, those apply when you're shipping to a sanctioned or embargoed destination. And then the Foreign Trade Regulations, they apply when it comes to the actual process of export clearance. So you need to understand those as well because as a USPPI, you need to know what your responsibilities are. This is just a recap of the slide we showed earlier, again, a lot of responsibilities. It's a great thing to be an international exporter, but it comes with a lot of responsibilities. So please be mindful of those and all the regulations. And the last thing that I wanted to show you is we put together kind of a list of resources. There is a lot out there. There is a lot, it can be overwhelming. We didn't give you too many things because, again, it can be overwhelming. The main bullets are a list of the actual regulations. And then the Department of Commerce is very good about providing training. They understand that like 90% of the exports out of the U.S. actually fall under their jurisdiction. So they're really good about helping people, training them on what to do. They have those wonderful export compliance seminars. Those are very in depth. These are in-person, 2-day seminars where they go over how to classify your item, ECCNs, Schedule Bs, license determination and lists to check and how to actually apply for a license and so on. Very much in depth, way more than we can cover in 45 minutes here. So I strongly recommend that if you can join one of these seminars, you do. For smaller businesses, there is a Local Export Assistance Center. So these are people who are employed by the Department of Commerce. And a lot of the services they provide are actually free, again, especially for small businesses. They can help you determine whether or not your product has a ECCN, what is your schedule B and so on. They have some one-on-one training videos, they have a YouTube channel and some kind of basic publications, 20, 30 page publications, which can help you out. So a lot of resources definitely out there. So with this, that's basically the content that we had for you. Again, we said in the beginning, very basic. There is only so much that you can cover in 45 minutes. So if there are any questions, I guess we can go over them. I haven't been able to monitor, of course, if there are any questions.

No questions right now, but we will give you all some time -- one just popped up. Yes. This recording and the slide deck and some of the other content that Petia and Lorri have mentioned, will be made available to attendees. We'll be sending that out either later today or tomorrow.

Yes. So if you can please answer the survey, you will get the slides. The links that I show here, these are actual links. You can click on them, they'll take you to the regulations, take you to the page where you can watch the videos, download the publications. And like I said, if you want us to put together kind of a more in depth export compliance content, we will be happy to do that.

Yes. And I will also be sending the contact information for our host that spoke. So if you have any other questions that come up, they are willing, able to answer your questions, and you can reach out to them.

Yes, absolutely.

Great. Well, if that's it, then you can get 12 minutes of your day back, and thank you all so much. Be on the lookout for those e-mails, and we hope to see you again.

Thank you, everyone.

Thank you, everyone.