“The United States has one of the most robust export control systems in the world.”


Shipping and Logistics provides leadership of supply chains and distribution networks.

For most businesses, these are critical functions, which if performed to world-class standards, result in significant competitive advantages—including world-class trade compliance processes.

Trade chain partners and intermediaries—freight forwarders, customs brokers, trucking companies, airlines, ships, warehouse and storage facilities, consignees, agents, sub-contractors—all pose significant compliance risks.

Containing that risk is important. Penalties for export compliance violations can range from $50,000 to $10,000,000 per transaction, plus denial of export privileges, and even prison terms. Equally compelling are the consequent damage to corporate reputation and image, loss of customers, costs of legal representation, management distraction, and business interruption.

It’s one of the reasons companies look for partners with Customs-Trade Partnership Against Terrorism (C-TPAT), Partners-in-Protection (PIP), Authorized Economic Operator (AEO), and other government security certifications; and why trade compliance solutions are so essential to ensuring you can legally do business with or allow others contact with ITAR or EAR controlled goods.

It’s also why supply chain intermediaries themselves invest in trade compliance solutions—particularly those based in the EU, where agents are responsible for export compliance for non-EU purchasers of ex- works goods.

Continuous screening of trade chain partners

Pressing trade compliance issues raised by the selection of trade chain partners include determining if you can legally do business with existing, proposed or ad hoc partners, and whether you can do business with that partner’s various partners.

While some systems are not as effective or efficient as they could be, generating too many false positives and creating significant human resource burdens, others are difficult to learn and use. Some do not adequately integrate with or provide audit trails to other corporate technologies involved in trade compliance mitigation. Others do not provide fully current and comprehensive regulatory content against which to screen. Most importantly however, many do not provide a full range of deployment options that include internet-based, batch and multiple technology integrations and are thereby severely limited for the 24/7 world of logistics.

Companies doing business with any federal agency, government contractor, or subcontractor need to be additionally concerned with screening suppliers and contractors against the GSA EPL, and ensuring access to these screening results for audit control purposes.


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