Exporting to another country has become very challenging and
complex task. Most of the trading business occurs across the international
borders today. It is necessary for the exporters to check their trade partners
and end-users for maintaining a compliant trading business. Previously, as the
trade was only confined to a single country, it was possible to check the
business partners and exporters through manual means. Increased possibility of
failure and violation has motivated the exporters to solicit support from the
online software vendors on this task. There are certain online tools that help
the business entities to screen their trade partners and trading products.
Benefits of Online
Tools for Maintaining Trade
There are some companies that offer software applications to
those who carry out business through international borders. As manual screening
is not feasible in lightning speed of export transactions, these online tools
have proved to be very effective. The export software helps in checking and
screening the trade partners. The U.S government agencies regularly publish
several denied, restricted and otherwise prohibited party lists. The companies can
do business with most of the entities and persons who are listed on the sanctioned
list as long as the transaction is reviewed and licensed/authorized by the
issuing government agency. On the other hand, it is almost not licensable and
authorized to do a business transaction with those business entities that are
part of the prohibited party lists. Failure to comply with the export control rules
is a shameful offense. Companies that conduct a business with the parties that
are denied for trading have to pay a lot of penalty to the government. They
lose their export privileges, licenses and the brand recognition is also
affected.
ITAR Compliance
Programs
The U.S government requires that all the brokers,
manufacturers, and exporters who manufacture, handle, forward and export
defense articles or provides defense services should be ITAR (International
Traffic in Arms Regulations) compliant. Full compliance with the U.S ITAR rules
and determination of the trading license is important steps before considering
an export business. ITAR compliance
is very important in case of exporting a defense product to non-US entities;
the trade compliance consultants carefully go through the projects and the
business transaction and help the companies in the complicated world of ITAR.
Some of the services include review of the technologies and materials of the
applicable controls, technology control plan preparation, commodity
jurisdiction and license exemption and many more. Suffice to say it is significantly
important and mandatory to comply with the ever complicated export control laws.
Other compliance tasks and programs which should be included
in the manufacturing and exporting process are export classification of goods
and technology and sanctioned and denied party screening. There are software
applications that help the business entities to maintain a compliant trading
between countries. The export compliance
classification program plays a vital part in export.
