Denied Party Digest

Valuable information about denied party screening

What is Denied Party Screening (DPS)?

DPS is a key element of any compliance program and helps ensure the permissibility of all export transactions even when you have an EAR99 shipment. The U.S. Government maintains a series of lists of entities and individuals who are subject to sanctions and generally with whom U.S. persons are prohibited from conducting business. It is a violation of export regulations to export to anyone on these lists. And even more compelling is that fact that Commerce/BIS has issued 3 Charging Letters to companies in the last year for not checking the Entity List. Under EAR section 744.11, a BIS license is required to export, reexport or transfer (in-country) any item subject to the EAR to a party that is listed on the Entity List. If you do not perform screening checks, you would not realize that a license is required and that exceptions may not be used.

Entities that are identified on the lists are subject to restrictions due to the following:
    Connections to or ties with sanctioned or embargoed countries;

    Previous export control violations;

    Involvement in certain types of activities such as narcotics trafficking or global terrorism sanctions regulations;

    Watch List restrictions.