Import and Export Management

Import and Export Management

Case Study 1: The Wrong Way

Product Subjected to Commerce Control List

When a product is subjected to the Commerce Control List, the number of items that need to be reviewed increased. These additional items include:

The ultimate destination in terms of the country and the usage should be determined when the product is subjected to CCL.

The customers, end users and the end use should be known for these products. The denied person's list should be viewed before engaging in the export process. It is prohibited by BIS to deal with these people. The Specially Designated National Lists should also be reviewed to ensure that license requirements for the parties falling in this list are fulfilled along with the license requirements that are required for the export transaction (www.bis.doc.gov). There are certain end-use activities that require license or are prohibited to be exported if used for certain activities. The exporters are also required to know their customers based on the guideline provided (www.bis.doc.gov).

Three Potential Red Flags in the Transaction

The three potential red flags in the transaction were as under:

The first potential red flag is that the customer Trios Avion wanted the instructions for the installation of the parts in Arabic, but when Donna of Flying free said that it is not possible, the customer said that the shipment should be made on time and that Donna should not be concerned regarding the instructions. This shows that there is ambiguity from the customer side regarding the instructions for installation.

The second potential red flag is that the customer Trios Avion was willing to pay cash in order to accelerate the order when Donna said that the order is very large and Flying Free might not be able to process the order on time.

The third most important potential red flag ...