Use this Exporter-Importer Business Transaction Checklist to discover possible violations of the Export Administration Regulations and 10+2 Importer Security Filing Regulations.
Here is a list of Red Flag Indicators:
o The exporter, importer or its address is similar to one of the parties found on the Commerce Department and U.S. Customs and Border Protection lists of Blocked, Denied, Entity and Debarred Persons.
o The exporter, importer or purchasing agent is reluctant to offer information about the end-use of the item or it’s country of origin.
o The product’s capabilities do not fit the exporter’s or importer’s line of business, such as an order for sophisticated computers for a small restaurant.
o The item ordered is incompatible with the technical level of the country to which it is being shipped to or from, such as semiconductor manufacturing equipment being shipped to or from a country that has no electronics industry.
o The exporter or importer is willing to pay cash or accept cash for a very expensive item when the terms of sale would normally call for financing.
o The exporter or importer has little or no business background.
o The exporter or importer is unfamiliar with the product’s performance or characteristics.
o Routine installation, training, or maintenance services are declined.
o Delivery and shipping dates are vague, or deliveries are planned for out of the way destinations.
o A freight forwarding firm or third party is listed as the product’s exporter or seller on the shipping or commercial invoice.
o The shipping route is abnormal for the product.
o Packaging is inconsistent with the stated method of shipment.
o When questioned, the exporter or importer is evasive.
If you have reason to believe an exporter or importer is doing an illegal violation, you may report it to the Department of Commerce by calling its 24 hour hot line number: 1 (800) 424-2980.