Requirement of Export Software in the Trading Process

International agencies, foreign organizations and certain government agencies of United States publish a list of companies, organizations and entities that are restricted or not permitted to do business with the country. If the name of any potential business entity appears on the list presented by these agencies, they will require a special permission or a specific authorization. However, it depends on which list the similarity is found, but any match found on either of these situations would be followed:

•    Prohibition in the export and import facilities.

•    Requirement of a special license if the company is about to do business with an authorized or certified business entity.

•    Existence of a “red flag” in the transaction process.

Before publishing the list publicly and taking any action against the restricted parties, the government agencies and organizations are to consult amongst them about the requirements and necessities of that specific list. It is this list, depending upon which a company, business partner or entity is identified as a denied and restricted partner. But, if this rule is discriminated or violated in any way, the company or trade partner will be charged with a criminal offense. Other than this, the company or a trading partner can also face rejection from every trading facility. This rejection or denial means that the company or entity would not be able to take part in any further export and import transaction with the country. Along with all these, the reputation and status of the organization or a trading partner will be hampered.

Digging out which trade partner is listed as a restricted party in the list through a manual process is simply impossible. This is because, the lists get updated at a regular interval. So, there has to be export software to control all these functions.

There are numerous reasons and purposes for which the government agencies of United States enlist companies and entities as a restricted party. Here are some of them:

•    If a research institution, organization, and individual gets involved in an activity that is conflicting and contradictory to the security and foreign policy of any state or the United States.

•    Dealing or doing business with a company or organization, who is enlisted as a restricted party would violate the rules and regulations of the country.

•    There are some foreign business persons and individuals who have been denied from receiving some items that are subject to US Export Administration Regulation or EAR unless the business person gets a specific license. This is done to reduce the risk of terrorist acts, narcotic trafficking, financial crimes and other criminal activities in the nation.

These are some of the reasons, but there are many other reasons for which an entity or business person can become enlisted as a denied party. Finding these entities manually is next to impossible so, some companies have brought Export Software, which makes the work a lot easier.