The United States Government agencies along with the international organizations and other country governments publish lists of business entities and persons that are either denied or otherwise sanctioned. The companies that are falling under the denied or restricted party lists are unable to carry out the business with the U.S. based entities or U.S. nationals and they are prohibited from enjoying privileges of exporting. In the process of screening, if an individual, company or a group conducts a transaction - without previously issued government authorization or license- with the an entity or person whose name is listed in one of the denied or sanctioned party lists, individual or company can be penalized and be subject to hefty fines.
Depending On the Screened Lists and Match Is Found, Situations Are-
1. A definite export prohibition
2. Certain export license requirement for the export with restricted business parties
3. The presence of “red flag” during the process of transaction within the sanctioned parties
Due to the improvement of science and technology, there are various complications in this process. It is better to export to sanctioned party lists rather than exporting the goods to third parties that are restricted. In the earlier times, manual checking of the trade parties is carried on to screen whether the export parties is coming under the denied or sanctioned party lists. Restricted party screening is a complex process involves checking each of the entities, end-users, intermediates and so on. The manual screening takes lots of time and expertise. To minimize the involvement of labor and time, the screening is now possible with the help web-based solutions.
There Are Various Benefits of Using Software-
1. The online tools take very less to screen the trade parties, intermediates, end-users and customers. They give the exact results within short period of time. There is no question of delay and malfunctioning of the software.
2. They are capable of bulk and individual screening. If you want to screen one single business entity, you can use the software. The bulk screening is used for checking more than 100 entities one at a time.
3. You can perform customized screening at times depending upon your requirements. This helps the businesses to perform the screening as they want. This helps in reducing time. Tailor-made checking involves false positives with 100% match, help in checking the sensitivity functions. You can choose the process that is suitable for you.
Apart from screening, the process of Export classification is very important. Each of the goods and export products that are falling under the USML lists should have an ECCN number denoting the category of the product. The software is also useful in categorizing the items and giving the ECCN number to them.
