The Outcomes Of Implementing Poor Export Screening Methods
It’s illegitimate to deal/transact with a denied party.
Earlier, it was a limited option of screening partners through the consolidated screening list maintained by the US government, which, in fact, had a strong accumulation of 11 denied party lists. However, it wasn’t convenient enough to go through this “mammoth” list to check against each entity. Moreover, it didn’t include the 100+ international and federal lists of denied parties.
As an exporter, if you aren’t maintaining with the trade compliance rules through the denied party, restricted party, and watch list screening, then you will discover unwanted outcomes like the following:
Criminal or civil penalization. The US government has strict export regulations and violating any one of them would incur criminal and civil penalization to the exporters. Some recent case studies have indicated how companies have been fined in the millions and individuals have been awarded rigorous imprisonment for export violations.
Denial of export privileges. Lack of export screening could inevitably result in denial of export privileges. Not only it would hurt the business of an exporter, but will also put the staff at risk of no payments. This outcome is warranted if the exporter is found flouting the norms carelessly.
Loss of reputation. It is likely to happen after the proceedings of penalization by the administration. If an exporter is discovered for export violations of serious nature, then they will be dealt sternly according to the rulebook. Besides, loss of reputation would further damage an exporter’s future prospects.