5 Things to Include on Your Annual Export Checklist

An important part of building and managing a successful export company is paying attention to how well the processes and procedures of the company are working. What you learn from periodically reviewing these things will give you insight into what is working well and what you may want to consider changing. (And, it’s equally important to note that regulations require exporters and importers to keep records of the activities that caused the record to be created.)

Here are five items to include on your company’s annual export checklist. Keep in mind, this list is designed to help you cover many of the basics—but, like most checklists, it’s just a guide. Only you know the ins and outs of your company, so you should amend this checklist to include items that matter to your business!

1. Check the Bureau of Industry and Security (BIS) website for recent changes.

You need to stay up-to-date with changes in export regulations and policy on a regular basis, and the BIS website is the first place you should look. The BIS newsroom has information on BIS's current activities, as well as historical records. This is not the same thing as checking individual lists for export compliance (which you should be doing every single time you go through the export process).

2. Update your export policy with legal counsel and export staff.

Your company’s annual export checklist should include a periodic or annual review of your policies and procedures, including your Export Management & Compliance Program (EMCP) and manual. Do this with your whole team, as well as your legal counsel. Additionally, if it’s been a long time since you’ve created your policies, or if you are creating them for the first time, you may want to go outside of your organization and partner with a consultant. External consultants can bring qualities to a project that may not fully be found within the internal organization. 

3. Review your relationship with freight forwarders.

As you evaluate what’s worked well for your company and what you should change, don’t forget to consider your partnerships with your freight forwarder(s). If you’re not sure, take a look at the six questions you should ask yourself—the answers will help you discern if you should make any changes.

4. Review and update (as necessary) your Harmonized Tariff Schedule or Schedule B numbers.

It’s your responsibility to use the current Harmonized Tariff Schedule (HTS) or Schedule B codes that best fit the products you export. Once you've identified the proper codes, you must monitor those numbers every year to see if they change. Some years, none of your product codes will change; other years, one or more codes will be different.

It usually works best if you put together a team to select and update your product classification codes. This team might include your international legal counsel, international customer service, and an in-house product engineer or technical expert on your team. And don't forget to keep your freight forwarders in the loop whenever you make changes!

• Updated HTS Numbers: You'll find the current list of HTS numbers at the U.S. International Trade Commission (ITC) website, which includes a helpful lookup tool for searching the list. Keep in mind that you cannot use certain HTS codes for filing your electronic export information through the Automated Export System (AES). The Census Bureau publishes a list of these numbers.
• Updated Schedule B Codes: The U.S. Census Bureau publishes the Schedule B Codes and has made those numbers available at its website. You'll also find a list of current Schedule B Codes here. Census includes a list of obsolete Schedule B codes at the bottom of the web page.

Don't forget your export compliance responsibilities as well. That includes reviewing the Export Administration Regulations (EAR) and, possibly, the International Traffic in Arms Regulations (ITAR) to determine if there are any export restrictions. Download the free Shipping Solutions White Paper, What You Need to Know About Export Compliance, for more information about this topic.

5. Update product databases, systems and export paperwork with current information.

If you have any databases that reference or use HTS numbers, Schedule B codes, or any information about export licenses, you need to go through them with a fine-tooth comb to make sure they’re all updated. This may include your company's accounting or ERP system; databases, templates or other systems used to create export documents; product lists used to evaluate whether or not your products qualify for preferential treatment under NAFTA or one of the other free trade agreements; and whatever system you use to file your export information through AES.

It’s a time-consuming process, but it will be far more painful to deal with the ramifications if you are found in violation of export compliance. It's also one of the important advantages of using an export software program like Shipping Solutions that allows you to store your export information, create export forms including free trade agreements, run export compliance screenings, and file through AES all in one place. (You can download a free, no-obligation trial here.)

Use this checklist as a starting point to make sure you’re not forgetting to review some important aspects of your export program. Let me know what other important items are part of your annual export review by entering them into the comment section below.