Denied trade screening

Denied trade screening is the process of screening those parties involved in an export transaction for the purpose of complying with the safety standards of the U.S. Government. Effective trade screening not only includes denied parties but also controlled products and embargoed or sanctioned countries. The purpose of screening the receiving parties of finished goods is to exude "due diligence" and "reasonable care" when completing transactions with foreign entities, ensuring the safety and intention of the products and importers.

With 80-plus denied trade lists already published, more items and checks need to be included in an exporter's validation process. Exporters demonstrating "reasonable care" should perform screenings on a periodic basis as well as perform screenings throughout the movement of the goods within the supply chain. With more country-specific rules being applied, countries have their own denied party lists, some of which include:^[1]

• World Bank Listing of Ineligible Firms
• U.S. Bureau of Industry and Security
• EU Financial Sanctions Unit
• U.S. Food & Drug Administration
• United Nations Sanction List
• Alqaida and Taliban UN Consolidated List
• Office of Foreign Assets Control
• International Criminal Tribunal for Rwanda

The U.S. government restricts all individuals or companies from exporting any service or product to any party contained in a U.S. government export denial, blocked, and debarred persons lists. The failure to comply with the above regulation is a violation of U.S. law and can result in criminal or civil prosecution, as well as denial of export privileges.

Every organization is responsible for updating and maintaining information about the parties to whom they ship. The U.S. government encourages exporters to perform screenings on a regular schedule. Companies, groups, and persons found on the lists are sanctioned by the United States government and are not allowed to receive exported goods from the U.S. or export goods from the U.S.^[2] Informed, voluntary compliance with U.S. export controls by the export trade community is an important contribution to U.S. national security and a key component of BIS's export administration and enforcement programs. All parties to U.S. export transactions must ensure their exports fully comply with all statutory and regulatory requirements.^[3]

References

1. ^ Irmen, Melissa. (March 2009)"10 Ways to Reduce the Cost and Risk of Global Trade Management" Journal of Commerce. Retrieved April 15, 2009.
2. ^ "Blocked, Denied Entity and Debarred Persons Lists" CBP Retrieved April 15, 2009.
3. ^ "BIS Compliance Program" Retrieved April 15, 2009.

External links

• U.S. Customs and Border Protection
• Export Control Classification Number
• US Census Bureau