Dealing In Global Exports? Make Sure You Don’t Land In Prison

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So your business has been growing steadily over the last few quarters. Congratulations! Perhaps you’re moving beyond local demand. You need to get your stuff exported to other countries. It could be to our immediate neighbors, Canada or Mexico. It could be a little way across the sea, like the United Kingdom. You could even be sending stuff all the way over to the other side of the world – in our case, to China or Iran.

It doesn’t matter how far away you’re sending products, data, or any other item. If it’s going out of the country, you need to make sure you’re complying with export trade laws. And in the United States, these laws are pretty strict. You need to make sure you’re not flagrantly dodging them. The chances are that any “bad behavior” here will be quickly discovered. And the global trade institutions of America don’t always go easy on troublemakers here. You could be dealt with a heavy fine. In some cases, you could even go to prison.

Don’t worry: prison terms for breaking global trade laws aren’t the likeliest things in the world. Most of the time, people who don’t comply with these laws seem to do so by sheer accident. That’s why it’s important that you know as much as possible about this tricky area of business. We’ve got a few quick tips for you when it comes to trade law compliance.

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What are the main institutions here?

The U.S. Department of State and the U.S. Department of Commerce are the ones you need to concern yourself with. More specifically, you’ll be dealing with specific branches of these institutions. The Department of State administers the International Traffic in Arms Regulations. More likely, you’ll be dealing with the Export Administration Regulations. They’re administered by the Department of Commerce.

Identify the export requirements ASAP

As soon as you know you’ll need to export something, start your research. Get to know the export laws of the specific product or service you’re selling or producing. Remember that these things are going to differ depending on where you plan on sending them. It’s possible you won’t have too much trouble beyond this. Other times, you may need to acquire a bunch of special permissions from the aforementioned authorities.

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Make sure logistics/shipping tools are compliant

Most companies involved in this sort of work are using shipping solutions software. This is good; it helps streamline the whole process. It also helps you get a hold of the analytics you need to assess business performance in this area. But you have to make sure the software is compliant with trade law. In fact, the right software can actually simplify the entire trade compliance process.

Address the requirements with the other party

If you’re sending things to a party in another country, you’ll presumably use a contract at some point. All contracts and transactional documents should be thoroughly reviewed. Acknowledgement of trade compliance is crucial. The other party will also have to make sure their dealing in this matter is compliant with U.S. trade law. Make sure this is dealt with in any contract!