Exporting to a Sanctioned Country

Is your company prepared to pay a hefty fine or have an individual jailed for exporting to a sanctioned country? Without the proper export control this could become your reality before you know it. Fortunately it is a relatively simple process to mitigate this risk as either a company or individual, but first it is important to understand what sanctions are.

Sanctions are domestic penalties applied on another country or person and can take the form of various trade barriers or restrictions on financial transactions due to economic circumstances or for a political/social reason.  Often the impetus behind a sanction is to prevent investment or aid of items other than food and water to countries that support terrorism or human rights violations. Additionally, an individual or organization can be subject to being blocked.

Civil penalties for violating a sanction can range from $1,000 to $250,000; however it can be supplanted by other statutory penalties. A criminal referral can also be levied in addition to the civil penalties, however criminal penalties vary based on the infraction and can be found in the OFAC Regulations for the Financial Community.

To avoid violating a sanction, first ensure that the country you are exporting to is not listed on the Country Groups supplement to the Export Administration Regulations. Additionally, the OFAC Specially Designated Nationals list should be consulted to check any names you have related to this export transaction as the individual could be blocked even if the country is not listed. To ensure export control, our trade compliance specialists at Allyn International are able to perform a comprehensive check of your consignee and any applicable sanctions or restrictions you should be aware of.

Publication Contributor: Dan Hernandez

 

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.