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What Destinations Should I be Screening for Restricted Parties?

May 23, 2022 Author: The Global Wizard Team

Do we have to screen every export to every destination? Like many aspects of global trade compliance, it depends. An export compliance plan should assess the risks a company faces relative to the countries they export to and the commodities they export.

There are countries that offer less risk with exports than others, so it would be perfectly acceptable to also say that you put more effort into one country versus another to be extra sure there are no restricted party violations. Exporting only to Canada presents different risks than exporting only to China. And exporting defense and aerospace products present different risks than exporting cork.

In current events, we know that there are many countries that fall into the “Thou Shall Not Ship to” category; Russia, Belarus, North Korea, and Iran, just to name the most familiar.  These countries have sanctions and trade embargoes because of their involvement in world conflicts, violations of human rights, and ties to terrorism.

So the destination is as important as the individuals or commodity. With the “who”, we’re referring to people or company entities. Interestingly. the “what” can include modes of transport such as ships and planes. Due to the ongoing situation in Russia, ships and planes appear in the Restricted Parties databases. The individual piloting the boat may not be restricted, but if an export shipment gets loaded onto a restricted vessel, once that ship hits a port, it will be confiscated. If the vessel is confiscated, so are all the shipments aboard.