Know Who is Allowed at the Party ............................................................
We all know people who can ruin a good party, so we don’t invite them. It’s
no different in the export business. More and more countries and govern-
ment agencies maintain growing lists of “restricted parties” that can not be
shipped to. These bans are usually on terrorist-related groups and can
change daily. In addition, shipping some goods to countries that are embar-
goed or are sanctioned is illegal. Needless to say, violating these restrictions
can result in major penalties, bad press, and jail time. The best way to avoid
these pitfalls is to implement an automated system to flag shipments that
might violate embargoes, “restricted parties” lists, or other government
regulations.
Know Who You’re Shipping to ....................................................................
Security can be tricky to navigate in the post-September 11 world. One of
the trickiest aspects for exporters is making sure that their goods don’t fall
into the wrong hands. Under global trade regulations, a shipper can be held
responsible if terrorists use its goods for nefarious purposes — even if the
goods are used in a way that the company never intended. (For example,
coffee filters were used by terrorists to sift anthrax, a use coffee filter makers
never anticipated.) Companies can sidestep these potential headaches by
setting up a system to flag goods that could possibly cause problems if they
are exported.
Get the Right Licenses .................................................................................
It seems like there is a license for everything these days. Exports, it turns
out, are no different. The licenses aren’t just required for obvious goods like
firearms, but for advanced technology, medical devices, and other classes
of goods. Failing to get a proper license can result in major fines.
Take the Free Money....................................................................................
Companies leave millions of dollars on the table each year by not taking
advantage of international trade agreements. The North American Free Trade
Agreement (NAFTA), the Central America-Dominican Republic-United States
Chapter 17: Ten Best Practices in Global Trade 307
