A denied party screening is the process by which a business verifies a potential client or business associate by cross-referencing them with several restricted party lists. This makes it easier to ensure the company isn’t doing business with someone who is a restricted party.
Companies should conduct a denied party screening search on every export transaction to ensure compliance with export regulations.
At iCustoms, before working with a new customer or business partner, we ensure they’re not on any restricted party lists. These lists include people or entities we cannot do business with. It’s an essential step in every export transaction to ensure we follow all the rules and regulations. This helps us stay compliant and do business with the right partners.
It is crucial to note that the existing commodity codes will remain in effect until 2023. Only make modifications when there are no more customs declarations required for this year, which should be toward the end of the year.
All entities that you do business with throughout an international transaction should be screened—including, but not limited to, vendors, suppliers, resellers, customers, end users, service providers, freight forwarders, customs brokers, recipients of software and technical data, and banks and financial institutions.
Screening is an ongoing process and should be carried out multiple times before shipping orders or exchanging money. However, denied party lists are changing almost constantly, and an entity that may not have been on one before may well be on it the next time an organisation deals with them.
It is, therefore, highly advisable to screen all entities an organisation engages with every time it deals with them. A denied-party screening tool with automated rescreening functionality, such as the iCustoms solution, can help minimise the friction and resources involved.
Failing to follow export regulations can have serious consequences. It might not only affect your current deal but could also impact your future transactions. The consequences can include hefty fines and delays. Staying compliant is not just good practice; it’s crucial for the long-term success of your business.
This is how choosing iCustoms can be beneficial for you:
Enhanced Compliance: Using advanced automated technology to screen every shipment, iCustoms generates accurate, easy-to-interpret results with due diligence.
Greater Efficiency: Automating denied party screening increases the number of orders screened daily to boost global growth.
Seamless Integration Salesforce: The iCustoms solution is seamlessly plugged into the integrated CRM platform to fit the company’s existing workflows quickly.
Cost Reductions: By implementing an automated screening solution, we can save you significant compliance-related costs.
Opting for an automated screening solution isn’t just about efficiency – it’s a smart move for your budget. It helps save you substantial costs related to compliance. By streamlining the screening process, we ensure your business stays on the right side of regulations without breaking the bank.
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