How Export Compliance Will Keep You Out of Trouble
As an online retailer, shipping your products around the world really demonstrates your ambition for the sustainable success of your business. So, give yourself a pat on the back. However, with your desire to succeed comes a new set of rules when selling to consumers worldwide. As an international shipper, you are responsible for following all export laws. By not adhering to these rules, you could face serious consequences—from large fines and penalties to jail time.
Here are 3 basic questions you need to answer in order to be export compliant:
1. Do I need an export license?
Certain commodities require an export license, such as controlled products or goods whose value exceeds $2,500. If your products fall under either of these categories, you’ll need to apply for an export license.
For more information on export licenses, please click here.
2. Am I shipping to a Denied Person?
In the U.S., there is a Denied Persons List, which includes individuals and entities that have been denied export privileges such as drug traffickers, money launderers and terrorists. Any transactions with someone on this list that would violate the terms of its denial order are prohibited.
If a company, entity or person on the Denied Persons List appears to match a party potentially involved in your export transaction, additional due diligence on your end should be conducted before proceeding.
For more information on denied parties, please click here.
3. Am I shipping somewhere I’m not allowed to?
There are some restricted destinations, with the most restricted being the embargoed countries and those countries designated by the Department of State as state sponsors of terrorism. This list included Cuba, Iran, North Korea, (North) Sudan and Syria.
To see the full list, please click here.
Ultimately, it is your duty as the exporter to comply with the export laws that are in place. Building an export compliance program is not an overnight thing, but is essential to your continued success in the global e-commerce market.