Exporters and importers would certainly prefer their business flourish by mitigating unnecessary risks that may hamper their brand name, reputation and import & export privileges.
On the other hand, the companies which failed to comply with export control regulations ended up with heavy fines and penalties. In fact, some companies still remain unaware of the set of laws codified as the US export control regulation, until they fall into the non-compliant companies and organizations situation when the U.S. government export enforcement office investigates them for violations.
- The governmental agencies, particularly, the U.S. Department of Commerce’s Office of Export Enforcement, U.S. DHS Immigration and Customs Enforcement (ICE) and U.S. Department of Justice request exporters to conduct certain safeguarding activities, widely known as checks and verifications under “Know Your Customer”, as in the following:
- Check customers, suppliers and other trade partners thoroughly prior to completing any business transactions with them,
- Check if ordered products match the customer’s businesses practice or not.
- Verify about modes of transportation and packaging requests.
- Check for the red flags in routing of shipment through multiple countries.
- Deny high-value transactions in cash.
- Carefully screen their names and addresses against Denied party lists.
The aforementioned methods would also be great steps in implementation of good export compliance posture. Several U.S. Government agencies and other country government agencies, including the International organizations, regularly publish red flags and lists of banned, prohibited and denied persons, entities and companies. Periodically referring to those large numbers of lists, one can discover whether an entity is acceptable to do business from the U.S. export control regulations perspective or not. But, would this be effective enough for you? Does it make easier or faster for you? Absolutely not! Unless there’s something as efficient as automated export control software, the fact-checking against restricted party lists will be quite difficult, cumbersome and labor intensive.
How the software can help your business?
In the current scenario, if you don’t keep up with the recent technological trends and the speed of international trading you may hinder your business’ progress. Having efficient and accurately working export control software is a definite must. Automated restricted party screening software will help you check your trading partners against several internationally barred and denied company lists. Not only that, it will also help you keep a tab over ever changing international and national import and export control regulations. You can request top software providers for a complete software package that also helps you with ECCN and HTS classification as quickly as possible. The advantages of using this software include:
Reliable trade partner screening prevents long hours of manual search operations. With greatly improved flexible searching capabilities, such as phonetic search and fuzzy logic search, screening software in the market today allow users to find accurate results in a fraction of seconds.
Batch/bulk screening of lists makes it highly efficient for businesses that have got a lot of work to do. You will have a cost-effective solution at work, which helps you with compliance measures and saves money at the same time.
Some companies were severely misguided when they’re told that verifying only BIS and OFAC lists were sufficient. But, that’s not it. Companies operating globally would be bound by screening their trade partners against 100-120 U.S. and international denied party lists.
Under the defense export control regulations, achieving high level of ITAR compliance prior to importing and exporting defense articles is a major requirement. Unauthorized trading will invite an application of criminal and civil penalties. Per violation may impose a fine up to $500,000 and debarment under criminal penalties.
Therefore, you should utilize robust compliance automation software in your business transactions that helps you in complying with US export regulations while you focus on your core business processes.