Don’t panic. Do not invite maze. Just follow the rules!
In the course of time, much has been said about the list of refused parties and so on. Still, the awareness drive is still short in some areas. When companies wipe out information on rules and regulations, there is no stopping disaster. Moreover, the catastrophic damage is sustainable, especially when it comes to reputation.
As an exporter, be aware of how the U.S. government prohibits dealing with conscientious or unwanted entities listed on the federal denied party lists. Although OFAC has the central storage of these lists administered by several government agencies, it is difficult to gather comprehensive information at the same time. In addition, the denied party view is not limited to the BIS and OFAC lists only.
In the following, you will learn about certain facts that you cannot afford to be impenetrable. Read to know more.
1. Guidance from Government Departments. Being quick is a necessity. Since technology is always on edge, there is no going back to the slower methods. You can check on the Internet to browse the BIS website and extract important information. The US Department of Commerce and the Treasury offers guidance on limited-party screening and related details.
2. Steps to deal with trading partners. You can do business with anyone – individual or company. But you just can’t assume a view of suspicion for everyone. It is rather easier to follow a standard procedure with a “Know Your Consumer” form of evaluation. It prevents you from trading with the denied devices.
3. Red flag indications. Do you realize that your partner may be doing illegal business? Indeed, several exporters have paid hefty penalties for not complying with US export rules. If there are red flag indicators about a party, stick to the procedures for a proposed transaction. If in doubt, do not deal with them.
4. International list of refused parties. Not only the US government, which is denied party lists from different countries. You can update your knowledge of the international treaties and agreements on the same. Set your first priority by updating the information.
5. Confidential communication with BIS. The Bureau of Industry and Security allows you to communicate all information about a possible illegal transaction in a very confidential manner. Contact BIS’s Office of Export Enforcement for the same.
6. Rejected party screening software. Several software companies have developed screening software for companies to evaluate their trading partners. You can draw references from these and even seek a solution.
7. Cloud based screening system. Small-scale exporters have had financial difficulties installing an advanced software system for display of trade lot display. This is the best reason why cloud-based solutions were innovated and delivered to strengthen exporters. It’s reasonable and fast.
While browsing the Internet, you can also find real-life cases that concern US export regulations and penalties.