- Category: Blog - Denied Party Digest
Just Because You Have an EAR99 Shipment Doesn’t Mean You Can Export without Checking Denied Party Screening Software!
Several recent export enforcement cases have been based on companies that shipped EAR99 items to prohibited parties. EAR99 items are those that are subject to the Commerce Department’s Export Administration Regulations (EAR), but not specifically listed on the Commerce Control List (CCL). Typically, no license is required for the export of an EAR99 item. However, licenses are required for exports to prohibited end-users and end-uses—especially those companies or individuals that appear on the Entity List. The only way to determine if an end-user is prohibited is to perform 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.
What does ECScreening.com provide?
With ECScreening.com, users can screen all parties involved in export transactions with the purpose of exploring whether each party is eligible to participate in the transaction.
Country alerts include State Department 126.1 prohibited destinations, countries subject to Commerce Department restrictions, Anti-Boycott Warnings, and countries subject to OFAC sanctions programs.
ECScreening.com utilizes state of the art security measures to keep data safe. Our site utilizes SSL/TLS to ensure that connections to our server are secure and the data that passes through the connections is encrypted. Servers that host ECScreening.com are subject to 24/7 network monitoring. Additionally, the servers have redundant routers for consistent connections, are backed up with an uninterrupted power supply, as well as a backup diesel generator to keep things running smoothly in case of power significant power issues.
Search results may be printed or saved for future use. Once users have a positive hit, they can save results as a pdf and save to their hard drives. Users can also save the information in “My Saved Results.”
Of note, ECScreening.com features a continuous search list in “My Search List” for continuous dynamic screening of ongoing customers, suppliers, and business connections.
At ECS, we know reaching the highest compliance standards in your export transactions involves the need to uncover individuals and entities that have been denied export privileges. Studies show when combining sales time, proposal preparation time, engineering design time, and management review time, your costs equate to over 100 labor hours! Because of this, ECS believes that it's important to know with whom you are trying to do business early in the process. In fact, the earlier the better.
It's Fast - Simply log onto ECScreening.com and begin the vetting process by entering name, alias, entity name, and/or dba into the search field.
It's Easy-to-Use - Simply do your manual search, hit the information button to learn demographic information, program definitions (e.g., Foreign Narcotics Kingpin Sanctions Regulations, 31 CFR Part 598), source information and then save to "My Results".
It's Reliable - Simply do your search and create "My Search List" to continuously search names for daily screening. You can then press PDF to save your generated, highly accurate searched report. Place the report in "My Searches" for quick and accurate saved reporting and record keeping. Scroll to review all country alerts and program definitions.
It's Affordable - We have competitive and very reasonable pricing that is well-below anyone in the market.
It's Tailored to You - Whether large or small, your company can choose one of 3 plans that best suits your company's needs.
Don't wait! Contact us today for an ECScreening.com trial run, and let our experience be your one-stop advantage!