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Denied trade screening is the process of screening parties involved in both domestic and export transactions for the purpose of complying with the safety standards of the U.S. Government. Effective trade screening not only includes denied parties but also controlled products and embargoed or sanctioned countries. The purpose of screening the receiving parties of finished goods is to exude "due diligence" and "reasonable care" when completing transactions with foreign entities, ensuring the safety and intention of the products and importers.
With 80-plus denied trade lists already published, more items and checks need to be included in an exporter's validation process. Exporters demonstrating "reasonable care" should perform screenings on a periodic basis as well as perform screenings throughout the movement of the goods within the supply chain. With more country-specific rules being applied, countries have their own denied party lists, some of which include: [1]
The U.S. government restricts all individuals or companies from exporting any service or product to any party contained in a U.S. government export denial, blocked, and debarred persons lists. The failure to comply with the above regulation is a violation of U.S. law and can result in criminal or civil prosecution, as well as denial of export privileges.
Every organization is responsible for updating and maintaining information about the parties to whom they ship. The U.S. government encourages exporters to perform screenings on a regular schedule. Companies, groups, and persons found on the lists are sanctioned by the United States government and are not allowed to receive exported goods from the U.S. or export goods to the U.S. [2] Typically, depending on which list the match was found, a match would indicate the either of the following situations: 1) A strict export prohibition, 2) A specific license requirement for exporting to or making a business with the sanctioned entity, or 3) The presence of a "red flag" in this transaction with the sanctioned entity. [3]
Software vendors, such as AEB, ThomsonReuters Global Trade Management, Visual Compliance, [4] Amber Road, Inc., and MIC Customs Solutions automate the process of searching for denied trade parties and restricted trade parties. [5] [6]
Companies such as Descartes Systems Group have established working software for screening against multiple lists. SAP, an ERP software, offers software since 2004. The software for SAP America is the Global Trade Services module (SAP-GTS) [7] which falls under their Governance, Risk, and Compliance (GRC) directory of software. [8]
International Trade Administration (ITA), US Department of Commerce started to provide open data via API for developers. [9] Developers need to register for the API to get a key. This API service provides many search options that could be used for US Sanctions Screening. [10]
The Bureau of Industry and Security (BIS) is an agency of the United States Department of Commerce that deals with issues involving national security and high technology. A principal goal for the bureau is helping stop the proliferation of weapons of mass destruction, while furthering the growth of United States exports. The Bureau is led by the Under Secretary of Commerce for Industry and Security.
The International Trade Administration (ITA) is an agency in the United States Department of Commerce that promotes United States exports of nonagricultural U.S. goods and services.
SAP SE is a European multinational software company based in Walldorf, Baden-Württemberg, Germany. The company is the world's largest vendor of enterprise resource planning (ERP) software.
An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an exporter; the foreign buyers is an importer. Services that figure in international trade include financial, accounting and other professional services, tourism, education as well as intellectual property rights.
Economic sanctions or embargoes are commercial and financial penalties applied by states or institutions against states, groups, or individuals. Economic sanctions are a form of coercion that attempts to get an actor to change its behavior through disruption in economic exchange. Sanctions can be intended to compel or deterrence.
International Traffic in Arms Regulations (ITAR) is a set of U.S. Department of State regulations that control the export of defense and military technologies to safeguard national security and further its foreign policy objectives.
Non-tariff barriers to trade are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs. Such barriers are subject to controversy and debate, as they may comply with international rules on trade yet serve protectionist purposes.
United States sanctions are financial and trade restrictions imposed against individuals, entities, and jurisdictions whose actions contradict U.S. foreign policy or national security goals. Financial sanctions are primarily administered by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), while export controls are primarily administered by the U.S. Department of Commerce's Bureau of Industry and Security (BIS).
The Export Administration Regulations (EAR) are a set of United States export guidelines and prohibitions. They are administered by the Bureau of Industry and Security, which regulates the export restrictions of sensitive goods. The EAR apply to most U.S. origin items, foreign-produced items that incorporate controlled U.S. items, and certain "foreign-produced direct products" of U.S. items or technology,.
Custom brokers or Customs House Brokerages are working positions that may be employed by or affiliated with freight forwarders, independent businesses, or shipping lines, importers, exporters, trade authorities, and customs brokerage firms.
A Certificate of Origin or Declaration of Origin is a document widely used in international trade transactions which attests that the product listed therein has met certain criteria to be considered as originating in a particular country. A certificate of origin / declaration of origin is generally prepared and completed by the exporter or the manufacturer, and may be subject to official certification by an authorized third party. It is often submitted to a customs authority of the importing country to justify the product's eligibility for entry and/or its entitlement to preferential treatment. Guidelines for issuance of Certificates of Origin by chambers of commerce globally are issued by the International Chamber of Commerce.
The Export Yellow Pages (EYP) was a multi-media trade and promotion resource for exporters that provides U.S. companies, exporters and export related service providers across all industries a convenient way to engage in export promotion and establish contacts and conduct business and trade around the globe with international buyers. Through the EYP, the Department of Commerce offers all U.S. companies and service providers a free online and print business directory listing and access to the directory and multi-media export.
Export control is legislation that regulates the export of goods, software and technology. Some items could potentially be useful for purposes that are contrary to the interest of the exporting country. These items are considered to be controlled. The export of controlled item is regulated to restrict the harmful use of those items. Many governments implement export controls. Typically, legislation lists and classifies the controlled items, classifies the destinations, and requires exporters to apply for a licence to a local government department.
Trade finance is a phrase used to describe different strategies that are employed to make international trade easier. It signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer. Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade. Trade finance manifests itself in the form of letters of credit (LOC), guarantees, or insurance, and is usually provided by intermediaries.
In international politics, food power is the use of agriculture as a means of political control whereby one nation or group of nations offers or withholds commodities from another nation or group of nations in order to manipulate behavior. Its potential use as a weapon was recognised after OPEC’s earlier use of oil as a political weapon. Food has a major influence on political actions of a nation. In response to acts of food power, a nation usually acts in the interest of its citizens to provide food.
The Special 301 Report is prepared annually by the Office of the United States Trade Representative (USTR) that identifies trade barriers to United States companies and products due to the intellectual property laws, such as copyright, patents and trademarks, in other countries. By April 30 of each year, the USTR must identify countries which do not provide "adequate and effective" protection of intellectual property rights or "fair and equitable market access to United States persons that rely upon intellectual property rights".
The Office of Export Enforcement (OEE) is a agency within the United States Department of Commerce, Bureau of Industry and Security (BIS).
An Export Management and Compliance Program (EMCP) is required by the U.S. Government to ensure that companies comply with export control policy for dual-use commodities, software, and technology. The policies and regulations are intended to enhance national security; as well as limiting the proliferation of weapons of mass destruction. If the regulations are not followed, heavy fines can be levied against the company. Individuals involved at all levels can also be penalized with fines, and imprisonment.
A number of country and international bodies have imposed international sanctions against North Korea. Currently, many sanctions are concerned with North Korea's nuclear weapons programme and were imposed after its first nuclear test in 2006. North Korea was the most sanctioned country in the world before the Russian Invasion of Ukraine. North Korea has had many sanctions from various countries such as: The United States, The European Union, The United Nations, Canada, Australia, Switzerland, Norway, India, Israel, Russia, China, South Korea, and Japan.
Colombia–European Union relations are the diplomatic and commercial relations between the Republic of Colombia and the European Union. Colombia has a free trade and free movement agreement with the EU. Colombia has an embassy in Brussels, which is responsible for managing relations with the European Union, while the latter has a representation through the Delegation of the European Union in Colombia in Bogotá.