Export Compliance for Newcomers
More than one newcomer to the export business has made mistakes that have proven costly. It is so easy to communicate with people in all parts of the world and make sales. However, some sellers do not realize what they must do for export compliance with the products they wish to ship outside the country.
Export Compliance Is Still Not Easy
Even though communications between countries by email is as easy as it is for people on the same street to speak to each other, export rules are an entirely different matter. No one is exempt from following export compliance and failure to do so can result in stiff penalties, restrictions on export and important rights, and even imprisonment. It is not getting any easier to send products to other countries.
Companies Must Specialize to Follow the Rules
Most companies who need to export are in the business of manufacturing, and the challenge is how to implement export procedures with existing personnel. Someone in the organization has to be responsible for checking customers against the Restricted Party lists to even know if a sale is legal. If each step of export compliance is not handled correctly, shipments may be delayed and, in some cases, not allowed to take place at all.
The Problem with Restricted Party Screening
The government does not make compliance easy because of its bureaucracy. Restricted Party screening is a very important step in exportation, but there is no one place to go for information on who is or is not on the list. The list includes organizations, institutions, individuals, and companies. The problem exists because each government agency concerned with exports has a list of their own, and these lists can change quite often.
The Importance of Keeping Track of Export Compliance and Controls
Based on where a shipment is to be exported, licenses may need to be purchased even if a client is determined to be non-restricted. Often the export compliance and import regulations from one country to another do not match up. Anyone in charge of an export shipment has to check these rules before every export because the compliance procedures may change. Every piece of paperwork must be checked thoroughly for accuracy.
Product Classification and Determining License Requirements
Product classification is another necessary part of export compliance that determines the Harmonized Schedule numbers for every product exported. Each item must also be checked against the Export Administration Regulations to be sure that the government does not recognize it as a controlled item. This is necessary to determine the Export Control Classification Number (ECCN). This number indicates if an export license is required.
Following strict procedures requires a very dedicated effort on the part of any company shipping products out of the country. Even though there are strict steps in how to meet export compliance and remain in the good graces with the government, special care has to be taken to follow these steps explicitly.
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