Businesses engaged in the exchange of goods and services in the US need to comply with the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). In addition, they must adhere to the guidelines issued by the Office of Foreign Assets Control Regulations (OFAC). These two bodies have laid out a number of regulations pertaining to end-users, product classifications, and sanctioned parties. Businesses are dealing with these complexities by availing the help of automation. Global trade management has become a key segment of international trade, as companies look to deploy technology-based solutions. However, the use of technology alone does not ensure full compliance. Businesses must be aware of lists such as sanctioned parties, and execute trades accordingly.
RECORD KEEPING BEST PRACTICES
While most companies have chosen to go paperless, this often makes it harder for them to produce documentation on demand. Therefore, it is extremely important to choose the right automation software that allows a company to access previous trade records in an instant. Similarly, another best practice is to ensure the complete safety of records. Businesses must choose a global trade management software that is completely secure and restricts all forms of unauthorised access to documents. Thirdly, businesses must ensure that regular internal audits and reviews are taking place. This will help them in keeping their documentation database up to date. Finally, it is advisable that businesses create information asset registers that could help them in tracking their trades and related documents.
HOW TO MAINTAIN DOCUMENTS
Maintaining trade and licensing documents is also an important aspect of international trade. This is because regulatory bodies may demand such documents at any stage. Therefore, businesses must have easy access to these documents, even if they are in an electronic form. Further, shipping documents must be linked to the individual goods and services that are being traded. This is because the shipping information is a critical component of any trade, and non-availability of such documents may create unnecessary complications for a business. In an ideal scenario, businesses need to choose a global trade management software that allows them to customise their trade documents. This way, businesses can ensure that license determination information, product classification details, as well as shipping documents are accessible at any given time. This will ensure that the documents can be presented to the authorities whenever they are needed.
YOUR COMPANY’S NEXT STEPS
Get in touch to find out more about how we can help you manage your export control processes.