International Trade Blog

Exporting software is an area of increasing inquiry and concern. A growing number of companies doing business online or adding “Internet of Things” functionality to their products are using software that is subject to U.S. export control and sanctions laws—whether or not they acknowledge it.

Often, companies fall into a pattern of developing and exporting their own software without thoroughly (or intentionally) thinking through how they’re doing it, which puts them at risk for compliance issues.

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One of the most common questions I hear almost daily is, “How do I find distributors abroad?” When the pandemic started and travel restrictions were imposed, the question became, “What do I do now? How do I find distributors abroad without traveling?” 

I wrestled with this question while working in the private sector, and I have helped clients answer it countless times using the lessons I learned. The answer, whether pre-pandemic or today, is a two-part answer.

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What a year and a half we’ve had. 2020 kicked off with the coronavirus spreading around the world, and concluded with a peak season that put all other peak seasons to shame. Global GDP slowed down by 4-5%, depending on who you ask. Supply chains had just enough time to fall apart before having to ramp up to meet e-commerce and vaccine distribution demands (at the same time, of course).

Not that 2021 hasn’t come with its share of excitement. Nearly halfway into the year, shippers are still dealing with the fallout from a week-long obstruction in the Suez Canal while imports continue to pile up on both coasts. 

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Denied party lists (often referred to restricted party lists) are the lists of organizations, companies or individuals that various U.S. agencies—and other foreign governments—have identified as parties that one shouldn’t do business with. Whether it’s because they may be a terrorist organization, may be affiliated with terrorist organizations, have a history of corrupt business practices or may otherwise pose a threat to national security, it’s every exporter’s duty to ensure they check denied party lists for every single export transaction. This duty is accomplished through denied party screenings. In this article, we’ll explain how a denied party screening works and how to make the screening process easier for your organization.

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To say that 2020 didn’t turn out as expected would be an exercise in understatement. A combination of global economic disaster and trade-hampering policies marked the year. The coronavirus ripped through supply chains, disrupting economies worldwide. Trade wars raged. Policy changes kept importers and exporters in the United States on their toes. As the U.S. (and indeed, the world) struggles to overcome last year’s challenges, exporters have their own set of obstacles to grapple with.

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May is World Trade Month, and with it comes many events designed to celebrate the importance of international trade to the U.S. economy and to teach new and experienced exporters and importers about various aspects of international trade in this changing global economy.

This year's theme is "Growing exports in uncertain times."

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What does “trade compliance” mean? To understand, we first need to look at importing and exporting as a whole. In the United States, trade compliance hinges on the fact that we need to protect the physical safety of our country and citizens, as well as our economic security.

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Those expecting a dramatic reversal in some of former President Trump’s protectionist trade policies were surprised to see that one of the first trade-related proclamations in the first days of the Biden administration was “Buy American.” The executive order—Executive Order on Ensuring the Future Is Made in All of America by All of America's Workers—was issued without Congressional approval on Jan. 25, 2021, just 10 days after inauguration.

The executive order promotes enforcement of the existing Buy American Act of 1933 by tightening the test for measuring domestic content (the amount of a product that must be made in the U.S. for a purchase to qualify under Buy American law) and more tightly controlling when waivers are granted. The decree would make changes to Federal Acquisition Regulations (FAR), which deal with sales to the U.S. government, including some military and NASA contracts—a large sector of the economy.

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People sometimes call me a control freak. And when it comes to my company, I can’t deny it—I like to know what’s going on when it comes to my business. That’s why I can’t stand the idea of a routed export transaction.

You see, when you agree to a routed export transaction, what you’re ultimately doing is giving up control. And when you give up control, you’re much more likely to get in trouble.

Here are just a few notable risks exporters take when they agree to routed export transactions:

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If you ship goods domestically, you may wonder why you need to understand Incoterms. FOB is FOB, isn't it?

Well, actually, no—it's not!

While the vast majority of companies in the United States use the shipping terms identified under the U.S. Uniform Commercial Code (UCC) when shipping domestically, these shipping terms aren't appropriate to use when exporting.

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