Screening for Export Risks

Screening for Export Risks

Whenever an order requires shipping to a customer’s facilities outside of the U.S. or to another foreign company, due diligence is necessary because you may be required to get a license.  The license process is possible but time consuming.  Do your due diligence when working with a new customer or a new carrier, as you may be prohibited from working with them at all.   If you do not secure a license or are prohibited from doing business with a company, then each shipment is an export control violation and subject to criminal, civil and administrative sanctions, which could have a great impact on your business.

Ensure that the customer’s order has the correct export control classification.  You will use this to determine if a license is required for the requested destination.  One option in cases where the customer requires a quick delivery schedule is to ship the parts back to the customer’s U.S. facility and they can ship to the foreign location under their existing licenses.

Even still, in these cases make a destination and end-use control determination.  Use your Export Control Intake Certification to ensure that the people (including brokers and shippers), company, and country do not have export restrictions.  Exemptions and exceptions do not automatically apply to all situations, but you need to gather all the facts in order to identify any red flags.  Also be mindful that some red flags must be reported to the U.S. government.

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