10 General Prohibitions

1. Export and re-export of controlled items to listed countries.(Get your export licenses!)
2. Re-export and export from abroad of foreign-made items incorporating more than a de minimis amount of controlled U.S. content.
3. Re-export and export from abroad of the foreign-produced direct product of U.S. technology and software
4. Engaging in actions prohibited by a denial order.
5. Export or re-export to prohibited end-users or end-uses (aka Denied Parties)
6. Export or re-export to embargoed destinations.
7. Support of proliferation activities.
8. In transit shipments and items to be unladen from vessels or aircraft.
9. Violation of any order, terms and conditions.
10. Proceeding with a transaction with knowledge that a violation has occurred or is about to occur.

What do you think of the list? Any additions to these 10 or further explanation?

The Obama administration is scrambling to assemble a package of harsher economic sanctions against Iran over its nuclear program that could include a cutoff of investments to the country’s oil-and-gas industry and restrictions on many more Iranian banks than those currently blacklisted, senior administration officials said Sunday.

The administration also is seeking to build a broader coalition of partners for sanctions so that it may still be able to act against Iran even if China and Russia were to veto harsher measures proposed in the United Nations Security Council.

Read the complete article at the New York Times: US Is Seeking a Range of Sanctions Against Iran.

BIS explains their reasoning in a recent news release on their website:

Evidence obtained by BIS shows that Mahan Airways continues to disregard U.S. export controls. BIS evidence also shows that Mahan Airways has violated the Export Administration Regulations (EAR) and the TDO involving re-exports to Iran of U.S. origin aircraft and that such violations have been significant, deliberate and covert, and there is a likelihood of future violations.

For additional information view the BIS news release.

The EAR plays an important role in trade compliance, and the penalties for violating these regulations can range from denial of export privileges like the above to corporate fines and even imprisonment.

OFAC charged that DHL violated OFAC regulations, mainly dealing with recordkeeping, for thousands of shipments to Iran and Sudan between 2002 and 2006.

BIS charged that on eight occasions between June 2004 and September 2004, DHL caused, aided and abetted acts prohibited by EAR when it transported items subject to the EAR from the United States to Syria, and that with regard to 90 exports between May 2004 and November 2004, DHL failed to retain air waybills and other export control documents required to be retained under Part 762 of the EAR.

OFAC charged that DHL violated various OFAC regulations between 2002 and 2006 relating to thousands of shipments to Iran and Sudan. Like DHL’s EAR violations, its OFAC violations primarily involve DHL’s failure to comply with applicable recordkeeping requirements.

As a result, DHL will be paying the $9.44 million as well as conducting external audits on exports to Syira, Iran, and Jordan from March 2007 to December 2011.

This case is also the largest joint settlement for BIS and OFAC. For the complete details, visit the BIS Website:  DHL Signs $9.44 Million Joint Settlement Agreement with BIS and OFAC

Screen for Denied Parties & Sanctioned Countries

Restricted Party Screening is a must-have procedure for any company engaging in global trade. The risks associated with not having a system in place are becoming increasingly large when you consider the possible sanctions,fines and penalties that are being dealt by the Department of Homeland Security, BIS, and OFAC. The first step to achieving this is implementing a program focused on Trade Partner screening.

Management Dynamics’ offers a Restricted Party (RPS) On-Demand solution that provides a secure, comprehensive method to automate this process, enabling companies to quickly screen their customers, suppliers and other trading partners against all restricted party lists from governmental institutions worldwide.

Learn more about denied party screening by downloading the white paper, Six Best Practices to Improve Compliance with a Restricted Party Screening Solution.