Screening for Export Compliance: What & Why

May 11, 2022 Author: The Global Wizard Team

Preparing a shipment for export includes an export compliance routine where Restricted Parties Screening (RPS) is performed against the entities related to the shipment.

Entities may include but are not limited to, the freight forwarder, the shipping company, the bill to entity, any financial institutions, and the ultimate consignee. Essentially, any entity connected to this export should be screened. This is to ensure that the shipment complies with U.S. export regulations and that an exporter is exporting legally. An example of an illegal export would be one where a sanctioned Russian financial institution is connected to the shipment.

What exactly is screened from the above-mentioned entities? Export compliance automation software screens the entities’ names, addresses, and individuals’ names connected with the shipment. That software aggregates lists of denied parties, checks to see if any are related to the shipment in question, and then flags those that appear on the aggregated list.

If any results are returned for any entity involved, the person responsible on the internal compliance team there is a potential export compliance violation that could result in fines, prison time, or, in egregious cases, even winding up on a restricted parties list.

“Can I put an entity on an internal denied persons list?”

When who you are screening is not returning the expected results and you want to put a restriction on an entity for internal purposes, create a company restricted parties list! That will address any entities where you may not want to do business with them because they are slow to pay, for instance. Check out our blog about creating a custom restricted parties list using the Global Wizard Restricted Parties module.