What are the best practices for screening your export customers?

1 Check the destination country

Before you export any goods or services, you should check the destination country for any sanctions, embargoes, or restrictions that may apply. Some countries are subject to comprehensive or partial sanctions that prohibit or limit trade with them. Others may have specific restrictions on certain types of goods or services, such as military, dual-use, or sensitive items. You can find the latest information on country-specific sanctions and restrictions on the websites of the U.S. Department of the Treasury, the U.S. Department of Commerce, and the U.S. Department of State.

2 Verify the end-user and end-use

Another important aspect of screening your export customers is verifying the end-user and end-use of your goods or services. You should obtain and review the end-user statement, which is a document that identifies the final recipient and the intended use of your export. You should also conduct due diligence to verify the identity, legitimacy, and reputation of your export customer. You can use various sources of information, such as company websites, business directories, trade references, credit reports, and online databases. You should also ask your export customer to provide any relevant licenses, permits, or authorizations that may be required for your export.

3 Consult the denied parties lists

One of the most essential steps of screening your export customers is consulting the denied parties lists, which are lists of individuals, entities, or organizations that are prohibited or restricted from receiving U.S. exports. These lists are maintained by various U.S. government agencies, such as the Bureau of Industry and Security (BIS), the Office of Foreign Assets Control (OFAC), and the Directorate of Defense Trade Controls (DDTC). You can access these lists online or use a consolidated screening tool, such as the Consolidated Screening List (CSL) or the Export Compliance Screening List (ECSL). You should check these lists before every export transaction and keep a record of your screening results.

4 Update your screening process regularly

Finally, you should update your screening process regularly to reflect the changes in the export regulations and the export environment. You should monitor the updates and announcements from the U.S. government agencies that regulate export licensing and controls. You should also review your export customers periodically to ensure that their status and activities have not changed. You should also train your staff and partners on the best practices and procedures for screening your export customers.

Screening your export customers is a vital part of your import/export operations. By following these best practices, you can reduce your export compliance risks and avoid potential violations.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?