Through the passing time, I watch people carrying printed lists of those countries that are not sanctioned posted adjacent to the computers; to make them remind of they cannot ship. The names of denied party lists act as the important reminders; most of them are merely updated. Actually, the regulations are not considered fixed.
For example- there are various countries having bad economic sanctions. However, later on, the sanctions ended in the later years. Still, there are some export companies that do not export goods to those countries, thus losing valuable business revenue. This is where the restricted party screening plays the important role. Sanctioned and Restricted party screening helps in checking the export parties, goods, and end-users and so on. Here are some of the critical reminders when you are performing the restricted party screening.
1. Check All The Parties To The Transaction-
This denotes that when you are screening the export parties, you have to screen the address along with the names. Most of the denied parties have tendencies to change the names but addresses are not possible to change. Export screening of both the names and addresses of the party offers additional protection against the unauthorized exports. Falling under the restricted party list can be dangerous for trade. The parties that are falling under the denied lists are not able to perform export without having a proper license. Even coming under this list can lead to payment of administrative fines to the government fines and even imprisonment.
2. Make A Strong Plan-
It is better to always have a strong plan that includes all the procedures helping the export compliance officer or another person on the responsibility to sanction the transaction on the hold until the problems are resolved. A strong compliance plan is very important before commencing starting each of the export sessions.
3. Always Keep Records-
It is better to keep the records for the restricted party screening. If you solve any problem regarding potential false cases, you should be sure that all the documents are kept properly and also keep the information with the export documentation for export transaction.
4. Better Not To Ignore The Red Flags-
The flags are red for some reasons. If you have determined the hit as the false positive, but there are still red flags persist in the process. Do not ignore the red flags. It is very easy to develop to rethink once again. Lastly, never compromise the standard of the company while exporting.
These are some of the tips that should be followed while you are performing the restricted party screening. Apart from screening process, checking the goods is also important. In the case of exporting technical data, software and defense items, exporters should follow the rules of ITAR compliance. Exporting defense items are critical and involve lots of complications.