Foreign governments, international organizations and certain agencies of United States federal government publish lists of companies and entities that have been restricted or denied from doing business with. In this event, if the name of a person, entity or company who is a potential party, matches with the list of denied party list, will specify either of these subsequent situations. But this typically depends upon on which list the match has been found.
• A strict prohibition on trading or exporting.
• A specific or definite license would be required for trading or doing business with a sanctioned or authorized entity.
• Existence of “red Flag” in every transaction with an authorized company or entity.
Agencies that publishes this list of sanctioned and denied party screening says that before taking any actions, the organizations and the companies are to consult or discuss the requirements of the a particular list, depending on which, the person or entity has been identified. Violation or discretion of this rule can cause administrative or criminal penalties against the organization or a company. Moreover, the entity or person who had violated the rule may also become a subject to rejection from every export privileges. This rejection actually means that the company or entity would be prohibited from taking part in any future export or trade. Also note that the reputation and status of the company or organization would be hampered.
There are several reasons for which the agencies of United States add the companies, individuals and entities into the list of denied parties.
These reasons are commonly defined as:
• If a foreign party like a government organization, research institution, business and individual gets engaged in any activity that is contradictory to the foreign policy or the security policy of United States.
• Dealing with the Entities and individuals that have been restricted from export privileges are prohibited. Trading with these entities would violate the law.
• Some of the foreign individual or entities are restricted from receiving all or few items that are subject to EAR or US Export Administration Regulation until and unless the exporter or trader obtains a license. These entities or persons can be involved in a mass destruction programs like criminal activities, narcotic trafficking and terrorism.
• There are many cases, where you can find that the agencies of United States had failed to verify the end-user before the transaction. Thus, presence of such a party in the transaction list becomes a “Red flag” for the countries security.
There are many organizations and companies that enjoy using “applicable license exceptions” during the existence of “export license requirement”. However, no license exception can be used in a transaction with a party whose name already exists in the denied party screening list
• A strict prohibition on trading or exporting.
• A specific or definite license would be required for trading or doing business with a sanctioned or authorized entity.
• Existence of “red Flag” in every transaction with an authorized company or entity.
Agencies that publishes this list of sanctioned and denied party screening says that before taking any actions, the organizations and the companies are to consult or discuss the requirements of the a particular list, depending on which, the person or entity has been identified. Violation or discretion of this rule can cause administrative or criminal penalties against the organization or a company. Moreover, the entity or person who had violated the rule may also become a subject to rejection from every export privileges. This rejection actually means that the company or entity would be prohibited from taking part in any future export or trade. Also note that the reputation and status of the company or organization would be hampered.
There are several reasons for which the agencies of United States add the companies, individuals and entities into the list of denied parties.
These reasons are commonly defined as:
• If a foreign party like a government organization, research institution, business and individual gets engaged in any activity that is contradictory to the foreign policy or the security policy of United States.
• Dealing with the Entities and individuals that have been restricted from export privileges are prohibited. Trading with these entities would violate the law.
• Some of the foreign individual or entities are restricted from receiving all or few items that are subject to EAR or US Export Administration Regulation until and unless the exporter or trader obtains a license. These entities or persons can be involved in a mass destruction programs like criminal activities, narcotic trafficking and terrorism.
• There are many cases, where you can find that the agencies of United States had failed to verify the end-user before the transaction. Thus, presence of such a party in the transaction list becomes a “Red flag” for the countries security.
There are many organizations and companies that enjoy using “applicable license exceptions” during the existence of “export license requirement”. However, no license exception can be used in a transaction with a party whose name already exists in the denied party screening list