Frequently Asked Questions

The first step in most organizations’ export compliance program is typically Denied Party Screening, also known as Restricted Party Screening, among other names. Screening is the process of helping to ensure that organizations do not do business with any party on a government or international watch list.

People and entities on these watch lists face trade restrictions due to reasons ranging from terrorism, criminal activity, and money laundering, among others. Doing business with these entities can lead to criminal and civil penalties, large monetary fines, imprisonment, negative press coverage, a hit to an organization’s reputation, and a revocation of export privileges.

Our Denied Party Screening FAQ page goes into greater depth about denied party screening, and related obligations.

Governments around the world control exports for many reasons, including preventing controlled technology or dual-use goods from falling into the wrong hands. Exports are also regulated to advance foreign policy objectives, and to further economic and trade goals.

Generally speaking, every business transaction, and every party involved in that transaction, should be screened. This includes the end user, as well as all intermediaries. Organizations should also screen business associates, employees, partners, vendors, resellers, visitors, etc. Countries should also be screened to ensure they are not currently facing sanctions or under embargoes. Put simply, it is best practice to screen everyone, all the time.

Generally speaking, screening should be performed for every export or financial transaction, domestic and foreign. Ideally, screening should include every party involved in the transaction, including the final end user, and the chain of individuals and businesses in-between.

Screening should also be take place for any type of contact, including visitors, employees, business associates, re-sellers, etc.—though the lists screened may vary for each of these purposes. Countries where exports are destined should also be screened to ensure they are not currently facing sanctions or embargoes.

This can vary from organization to organization. Some may choose to screen potential customers or vendors at first contact. Some screen again when orders or finances change hands, and repeat this process with each order up until the time an order is shipped. Other organizations have an automated rescreening system in place instead of rescreening manually. Visitors may be screened when they sign up for a tour, and again when they arrive.

What is really important about when screening takes place is that it should fit the regulatory goals or risk objectives, of the organization—ensuring that finances, technology, information, or goods are not transferred in violation of regulations.

The specifics of this can vary from organization to organization, and on occasion, even from transaction to transaction. Some organizations may choose to screen potential customers or vendors at first contact. Some screen at every step of a transaction, while others screen right before delivery of an order is scheduled. Many organizations have automated screening solutions that are integrated with their ERP, CRM, and/or other business systems, to screen and re-screen entities on a schedule determined by the organization.

The important thing is that your screening activities help keep your organization in the clear. Exactly how that is achieved is, as mentioned, variable.

This varies from organization to organization. It depends on the location, or locations, in which a business operates, where they export, the nature of the products, technologies, and services, and the various parties involved with the transaction.

Some of the more common lists organizations screen against are:

As mentioned already, organizations should pick the lists it screens against based on the specific needs of the business. This is an area in which Descartes Visual Compliance™ can assist.

The simple answer is that there is no best way to maintain export compliance. For an organization to be truly export compliant, there should be a program in place that includes the following export compliance best practices:

Government agencies and bodies regulate and control exports by assigning unique export codes or numbers to individual items and components. These classification codes typically denote which restrictions apply to each item, and organizations that import or export are expected to correctly classify their products, as well as adhere to the restrictions that come with them.