Don’t be frantic. Don’t invite lounging. Just follow the rules!
Over time, there has been a lot of talk about the denied party list and so on. Still, the awareness campaign is still short in some areas. When companies run out of information on rules and regulations, there are no stops for disaster. Furthermore, catastrophic damage is sustainable in nature, especially when it comes to reputation.
As an exporter, you need to know how the US government prohibits dealing with unscrupulous or undesirable entities that are on federal denied party lists. Although OFAC has the central repository of these lists managed by several government agencies, it is difficult to accumulate general information at the same time. Additionally, the selection of denied parties is not limited to just the BIS and OFAC lists.
Below, you will learn about certain facts that you cannot afford to be insensitive about. Read to know more.
1. Orientation of government departments. Being punctual is a must. Since technology is always on the edge, there is no way back to the slower methods. You can go online to browse the BIS website and extract vital information. The US Department of Commerce and Treasury provides guidance on selecting restricted parties and related details.
2. Steps for dealing with business partners. You could be doing business with anyone, be it a natural person or a company. However, you can’t put on a show of suspicion for everyone. It is much easier to follow a standard procedure with a “Know Your Consumer” assessment. Prevents you from transacting with denied entities.
3. Red flag indications. Do you know that your partner could be doing illegal business? In fact, several exporters have paid heavy penalties for not complying with US export regulations for that. If there are red flags on one of the parties, follow the procedures for a proposed transaction. If in doubt, refrain from dealing with them.
4. International list of denied parties. Not just the United States government, there are denied party lists from various countries. You can refresh your knowledge of international treaties and agreements on them. Put your first priority on updating information.
5. Confidential communication with the BIS. The Bureau of Industry and Security allows you to communicate any information about a possible illegal transaction in a highly confidential manner. Contact the BIS Export Control Office to obtain the same.
6. Denied Match Detection Software. Several software companies have developed screening software for companies to evaluate their business partners. You can extract references from these and find a solution yourself.
7. Cloud-based detection system. Small-sized exporters have faced financial problems to install a high-end software system for selecting the watch lists of trading parties. This is the main reason why cloud-based solutions were innovated and provided to empower exporters. It is reasonable and fast.
While browsing the Internet, you can also find real-life cases related to non-compliance with US export regulations and sanctions.