In the wake of the Russian military’s invasion of Ukraine beginning February 2022, the United States, the European Union and countries around the world are enacting retaliatory sanctions on Russia. This includes new restrictions imposed by the U.S. on exports of items to Russia that could be used in Russian energy and industrial activities.
Companies large and small must be attentive to their export processes to ensure compliance with any relevant regulations that govern their business. This keeps you out of trouble with customs authorities at home and abroad, and it makes financial sense for your business to run as smoothly as possible by minimizing any risks that could affect your bottom line.
Today’s article outlines nine key activities that demonstrate you are a trade compliance professional who takes export compliance seriously.
If you are involved in shipping or logistics, you've probably heard of a master bill of lading and a house bill of lading. But if you're like many of us, you might not understand how they're different.
Before we unpack the difference between these two types of bill of lading, it is important to understand what a bill of lading is.
Shipping products seems simple, right? You simply package the product and send it to your customer. But did you know there are different types of shipment?
Depending on the size of your shipment, it may be considered parcel, less-than-load (LTL) or a full truckload (FTL) shipment. Your shipment may be too small for certain carriers, or conversely, if you have a large shipment, you may have to rely on a carrier certified to ship large containers. There are also unique considerations depending on the mode of transport—whether you’re shipping via air, sea, road or rail.
The wide variety of terms that relate to the process of moving goods through a supply chain may seem overwhelming. Understanding the different types of shipment and related terms is crucial to ensure your goods get shipped on time, within compliance and in good shape.
If you are involved in international shipping at your company, chances are you’ve heard mention of the term “landed cost.” Understanding the landed cost of your international transactions is a key factor in making strategic business decisions. But what exactly is landed cost?
This blog post explains what landed cost is, why it’s important, the role of Incoterms in determining landed cost, how to calculate landed cost, and the benefits of using landed cost software.
As an exporter, it’s important to know if your product requires an export license to send it to a particular country. The first step of that process is determining which government agency has jurisdiction over your goods. In the United States, that’s usually either the Commerce Department or the State Department, although other agencies have jurisdiction over certain types of items.
U.S. exporters quickly develop an awareness of two acronyms: ITAR, the U.S. Department of State’s International Traffic in Arms Regulations, and EAR, the U.S. Department of Commerce’s Export Administration Regulations. I often get calls from exporters asking similar questions: “How do I know if my items are controlled by ITAR or EAR?” or “I’ve determined that my items are covered by the EAR. Now what?”
The Bureau of Industry and Security (BIS), which is charged with enforcing the EAR, explains that there is a specific Order of Review process for determining export controls jurisdiction (which agency controls the export) and classification (the correct commodity classification code to use for the product being exported). This article breaks it down.
Depending on your industry, you may have heard mention of 600 series Export Control Classification Numbers (ECCNs). The 600 series includes items that were previously listed in the United States Munitions List (USML) and controlled by the U.S. State Department per the International Traffic in Arms Regulations (ITAR), or were covered by the Wassenaar Arrangement Munitions List (WAML). Instead, these items now have been moved to the Commerce Control List (CCL), administered by the U.S. Commerce Department under the Export Administration Regulations (EAR).
The first 600 series ECCNs went into effect in 2013. Though the 600 series has existed for almost a decade, many are still scratching their heads wondering what it’s all about.
All exporters—regardless of size—must comply with U.S. export regulations.
Export compliance entails that you are following the rules and regulations established by the U.S. government. Among those rules is a restriction on doing business with entities the government deems a danger to U.S. interests.
Failure to comply is a violation of U.S. law and may result in civil or criminal prosecution, as well as denial of exporting privileges.
In my previous blog post, I described how to determine if you need an export license by identifying the reasons for control and checking the Commerce Country Chart. In this article I will describe how to determine if there are any export license exceptions available and how to use these exceptions.