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Industry Officials Highlight Importance of Restricted Party List Screening

Export compliance professionals stressed the importance of restricted party screening, telling this week's American Association of Exporters and Importers’ annual conference the screening process has become even more pivotal as the pace of new U.S. sanctions and export controls increases. Karen Wyman, who heads the trade compliance division at thermal imaging company Teledyne FLIR, said part of that effort is ensuring screening lists are constantly up to date.

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“Whatever system you use, make sure it is one that is literally updated daily, because in the past year there have been how many changes to it? How many additions?” she said. Wyman cited an example wherein her company has begun a transaction, cleared all parties against U.S. sanctions and export control lists, but one of the parties becomes sanctioned while “we’re about to send it out the door.”

Phillip Poland, a trade lawyer with Poland Trade Law, also said he has seen a company complete the manufacture of a part, prepare to ship the item, but “all the sudden” the party is added to a U.S. sanctions list. “You can’t finish the order. What do you do?” said Poland, formerly of Boeing, calling it the “worst thing that can happen.” Wyman added: “Just make sure” your lists are “definitely updated daily.”

Dennis Krepp, a former Bureau of Industry and Security official now working at Caterpillar, said restricted party screening is “the most important thing that I see on a daily basis.” It “gets a lot of attention, trying to keep those transactions moving.”