If you are a business entity and want to export goods and documents across the international borders, it is better to know several things before making transaction. In a particular export channel, there are several points. At first, you should check the business partners and end-users against the sanctioned and denied party lists. Then, if the goods or technology that you are planning to export fall under the jurisdiction of EAR and ITAR, in other words items are listed on Commerce Control List (CCL) or U.S. Munitions List (USML), exporting process will require further review. You have to research and classify the exported items in one of CCL or USML categories. Determining the need for export license is also very critical and important. In the earlier times, most of the exporters manually conducted the process of screening the products and the business partners.
Due to increasing number and complexity of products, exporters and end-users, checking through manual means is no longer easy. It requires lots of time and expertise knowledge, the customers also want the access the products quickly. Keeping in mind these factors, the exporters are taking help of the online software applications. The online tools are performing bulk and individual screening as per requirements.
Business Partner and End-User Screening:
It is one of the important parts in the export. The exporters check the business parties, end-users and the freight forwarders against the sanctioned and denied party lists. The parties that fall under the sanctioned party lists have the right to export their products outside the US premises. The export parties that come under the restricted party lists, they require the license before exporting. Violating the trade rules is a crime. The business entities that violate the rules and regulations have to pay administrative fines and other financial penalties to the government. In these days, the export companies are using the software applications to screen the parties. The online tools are effective in bulk and individual screening too.
EAR, ITAR and OFAC Compliance:
When you are selling the dual-use and defense items across the international borders, you have to be very careful in determination of the true end-use application and destination country and the end-user. Many times exportation of dual-use goods and related technology (i.e. EAR controlled items) to restricted countries and for restricted end-uses would require an export license or an authorization from the U.S. Department of Commerce – Bureau of Industry and Security (BIS). Export or foreign sale of ITAR controlled goods and technology would be even more restricted. The export of the defense articles out of the U.S. and provision of a defense service to a foreign national requires through checking against all the regulations and generally an export license or authorization is needed from the U.S. Department of State – Directorate of Defense Trade Controls (DDTC). Full compliance with the U.S. regulations and determining the need for a license are some of the important steps before you are exporting the dual-use and defense articles and also providing defense services to the non-U.S persons and business entities. U.S. persons and U.S. based businesses and their subsidiaries should also be very careful about doing business with the nationals of and entities located in the U.S. embargoed entities. Many times, such activities are regulated by the BIS or OFAC. There are some of the companies that offer software applications for the business entities. Some of the ITAR related services include DDTC registration assistance, license exemption analysis and guidance, technology control plan and preparations and many more.
Thus, in the recent days, most of the business entities are using the software applications to screen the products and determining the trade license as well. Classification of products and compliance with the rules are so very important.