No one wants to do it or likes to do it. But not doing it, or doing it poorly, will most likely result in fines, seizure of property or worse. The thorn? All parties to U.S.export transactions must ensure their exports fully comply with all statutory and regulatory requirements.
Today, trade compliance is more complex than ever. It involves controlled goods, technologies, restrictions on shipping to certain countries, companies, organizations and/or individuals. The solution? Trade Compliance Screening.
Deciding to perform Trade Compliance Screening is perhaps the easiest decision, but how to go about executing the screenings and determining the resolution process is a challenge for most.
The questions are many, and the answers not always easy.
- What lists need to be screened against?
- What parties or transactions should be screened?
- Who should be responsible for overseeing the screening process?
- How should screening failures be resolved?
- How many times during the shipment fulfillment process should screening take place?
- What parties (if any) not involved directly in a transaction should be screened?
- What are the costs associated with implementing a screening program?
- Are certain risks not substantial enough to mitigate?
There are two ways to perform compliance screenings: manually or automated. Often a combination of efforts is needed, particularly for large organizations with multiple systems, processes and people.
Best Practices in Trade Compliance Screening are to:
- Screen everything – all trading partners, all transactions, and all party relationships
- Automate the screening process to ensure screening initiatives are enforced.
- Perform ongoing proactive screening of parties against changes to the government lists.
- Establish an Export Management Compliance Program to demonstrate senior management commitment and clearly define who is responsible for each part of the process .
Follow these steps and thorn no more !