The United States Export Control Regulations, mostly referred as the Export Administration Regulations (EAR) or International Traffic in Arms Regulations (ITAR), prohibits any trade with banned, restricted and denied parties within or outside the country. The regulations also describe the reasons for listing those entities and persons. Such reasons would include global terrorism, narcotic trafficking, money laundering and violations of export regulations. The organizations and companies that are found to be violating the regulations can be fined and their employees can even face imprisonment. This could certainly cause the company losing all its credibility, reputation and to be stripped of its export privileges.
Notably, a solution in the form of watch list screening software offers to check the parties before anyone goes on a deal or verify about the current trade partners. It is much needed in the USA due to several reasons and here’s the following:
1. Automated software – A web based software, that is deployed almost in every organization and they may be having their own business software. Automated software for screening saves a valuable amount of time and efforts. Surprisingly, several companies and organizations are yet to get connected with the world of automation.
2. Denied party lists – Presumptively, organizations believe that only lists that are published by the BIS and OFAC are sufficient for screening purposes. However, that’s not true. Since the centralized screening software contains many other lists in combination, such as European Union Sanctioned Party lists, Interpol red notice list and others, one could easily identify an internationally restricted and denied person or company.
3. Bulk screening –A company may put down their manual labor on work for long and tedious hours for manual screening of hundreds or thousands of the customers and suppliers. This is time-consuming and slows down the entire manufacturing and shipping process. Thankfully, a feature like bulk screening allows filtering trade parties or business partners against the restricted/denied party lists in a few moments.
4. Quick processing – Some studies suggest that though denied party software packages are available at several companies, but they weren’t quick enough to reduce delays. It only minimizes the efficiency level one expects from the software. On the other hand, there are software packages available where it speeds up the processing of searching capabilities.
5. Clearance processes – If a trade partner’s name crops up in the list of denied party lists, then it requires to stop the business transaction and review the whole transaction. It is important that the authorized person gives a clarification on procuring or selling any product or service. Without entertaining such plea, an organization is debarred from doing any business traction with that company.
6. Regulations update – Sometimes, the information about export regulations might get missed by companies and it would lead to further confusion. In order to get saved from that, the software updates about new regulations and it helps in keeping track with the compliance standards. Thus, the software offers maximum functionality.
7. Record retention – For export or HTS classification or for screening of your business partners the record retention is an important process that can’t be neglected. A scalable software package has multiple modules for making it cost-efficient and user-friendly. The screening records are needed for audit purposes and that is why they need archival. Moreover, it allows printing of those records when required to show the proof of compliance.
After learning about all this, a company must search for a reliable software vendor, asserting all parameters to judge them.
About the Author:-
Fred Danny has written numerous articles about the watch list screening software and non-compliance features along with the export classification features. Notably, the vendors have come up with top-class software products featuring HTS classification and other screening options.