Shipping Solutions Newsletter

Shipping Solutions announces the latest version of its best-selling software, Shipping Solutions Professional. The easy-to-use Shipping Solutions Professional guides novice and experienced exporters as they easily complete dozens of standard export forms, which can be printed or emailed to freight forwarders, custom brokers, or consignees.

In addition to the time- and money-saving features of previous versions of the program, Shipping Solutions Professional adds new export forms; an updated Integration Utility that makes it easier to link Shipping Solutions with a company’s accounting, order-entry or ERP system; and a new Export Compliance Module that makes it easy for users to screen their shipments against export regulations to ensure they are not violating U.S. laws and regulations.

“We first introduced Shipping Solutions seven years ago because there were no easy-to-use and affordable export documentation options for small and medium-sized companies that make up the vast majority of U.S. exporters,” said David Noah, President, Shipping Solutions. “This new release builds on our commitment to this under-served market by adding the first affordable and easy-to-use option for ensuring export compliance.”

Companies and individuals who export to entities on any of the government restricted parties lists or who export goods without a required export license can lose their export privileges, be fined, or even be criminally prosecuted. With Shipping Solutions Professional, exporters can avoid these potential liabilities by:

Screening the parties in their export transactions against the various U.S. and other government restricted parties lists to ensure that they are not exporting to banned parties that have been sanctioned for performing illegal acts;
Screening their products against the U.S Export Administration Regulations to help determine if they may require a license or license exemption based on the country to which they are shipping; and
Selecting the documents needed to ensure the shipments to a particular country are not delayed in Customs.

Other New Features in Shipping Solutions Professional

Building upon the successful Shipping Solutions 2000 platform, the new Shipping Solutions Professional brings many new functions and enhancements, including:

Redesigned database engine optimizing the software.
New export forms including the CARICOM Invoice and Non-Dangerous Goods form and an updated IMO Dangerous Goods form.
Improved Packing List Utility that lets users easily organize products by carton, pallet or container.
Currency Converter that displays multiple currencies on invoices while displaying the value of goods on the Shipper’s Export Declaration (SED) in U.S. dollars.
Expanded functionality gives the ability to add company logos to non-regulated forms.
Updated Automated Export System (AES) to meet new U.S. Census Bureau and Customs requirements.

According to the United States Department of Commerce, close to 97 percent of the $623.4 million exporting industry is controlled by small and medium-sized exporters. With Shipping Solutions Professional, these exporters can afford to save time and money, streamlining the export documentation process while also allowing companies to completely and correctly fill out export documents to speed up the shipping process.

Shipping Solutions Professional is available for $1,499 for a single-user license, while a network version – that includes a license to install the software on up to four workstations – is available for $3,999. Both versions of Shipping Solutions Professional include a one-year subscription to the Annual Maintenance Program that provides users with free updates of the software, access to the Export Compliance Module, and toll-free technical support.

About Shipping Solutions

Upon its release in 1996, Shipping Solutions quickly became the best-selling export documentation software. Thousands of exporters use Shipping Solutions to prepare export forms up to 80 percent faster than before and at a considerable cost savings. Shipping Solutions’ customers range from small and medium-sized companies, which make up the largest percentage of companies that export, to large firms such as Advanced Micro Devices (AMD), Dell Computers, Siemens International and UPS Global Logistics. For more information on system requirements and other information, please visit http://www.shipsolutions.com.

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The U.S. Bureau of Industry and Security (BIS) announced fines levied against eight companies in June 2003 for violating U.S. export regulations. In addition to the fines, one of the cases included a denial of future export privileges. Included in the eight cases:

Bio Check, Inc. (Bio Check), of Burlingame, California, agreed to pay a civil penalty of $22,500 to settle allegations that the company violated the Export Administration Regulations (EAR) when it exported medical diagnostic kits to Iran without approval from the Treasury Department’s Office of Foreign Assets Control (OFAC), and without filing the required Shipper’s Export Declarations.
The U.S. Department of Commerce imposed a one-year denial of export privileges on Bassem Alhalabi to resolve charges that Mr. Alhalabi caused the export of a thermal imaging camera to Syria without the license required under the EAR.
Zooma Enterprises, Inc. (Zooma), of San Diego, California, and its president, Issa Salomi, agreed to pay $32,000 in civil penalties to settle charges that they made false statements to the U.S. Government in connection with an attempted export of medical equipment to Iraq. Mr. Salomi will pay a $24,000 fine and Zooma will pay an $8,000 fine. BIS charged that Zooma violated the EAR by listing the country of ultimate destination on a Shipper’s Export Declaration as Jordan, when the destination was, in fact, Iraq.

Kamino International Transport, Inc. (Kamino), a freight forwarder with offices in the United States and overseas, has agreed to pay a civil penalty of $5,000 to settle allegations that it violated the Export Administration Regulations (EAR) when an employee of the company made misstatements in connection with its retention of export control documents.

The U.S. government is stepping up enforcement of export rules and regulations through changes in export requirements. Exporters should visit the BIS website for a summary of the export enforcement program.

In addition, programs like the new Shipping Solutions Professional export documentation and compliance software can greatly enhance exporters' ability to ensure compliance by checking the various restricted parties lists and export license requirements.

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By Catherine J. Petersen email | bio

An export is any item sent from the U.S. to a foreign destination, organization or individual. Here are some examples of when an item is being exported:

An item to a foreign embassy in the U.S.,
It is leaving the U.S. temporarily,
It is leaving the United State but is not for sale,
It is going to a wholly-owned U.S. subsidiary in a foreign country,
A foreign origin item exported from the U.S., which is transmitted or transshipped through the U.S.,
An item being returned from the U.S. to its foreign country of origin,
Release of technology or source code subject to the EAR to a foreign national in the U.S. is "deemed" to be an export to the home country of the foreign national under the EAR.

It doesn’t matter how it was sent; it could be sent by:

Regular mail,
Hand-carried on an airplane,
A set of schematics can be sent via fax to a foreign destination,
Software can be downloaded from an Internet site, or
Technology transmitted via e-mail or during a telephone conversation.

There are some basic steps you will want to take once you make the commitment to sell your product internationally. You have the responsibility to seriously examine your products and your customers to assure that you comply the Export Administration Regulations (EAR).

The Bureau of Industry and Security (BIS), part of the U.S. Department of Commerce, enforces the EAR. The BIS and other government agencies require the submission of an export license application on a relatively small percentage of total U.S. exports and reexports.

License requirements are dependent upon four criteria:

An item's technical characteristics,
Destination,
End use, and
End user.

BIS has created a chart called “Processing Your Export.” It asks you a series of questions that trigger a yes, no or don’t know. If your answer is Yes, let the chart guide you to the next step. If you respond to a question with No or Don’t Know, you may have to stop and answer special questions or get some more information.

BIS is responsible for implementing and enforcing the EAR, which regulate the export and reexport of dual use items (see “BIS Dual-Use Licensing”). Dual Use items have a civilian application, but can also be used for military or strategic uses such as weapons of mass destruction.

BIS does not control all goods, services and technologies. The U.S. Department of State controls exports of weapons and military related items, such as Apache helicopters and parts. You can find a list of other agencies involved in export control is at the BIS website.

When determining whether a license is required for your export, consider:

What are you exporting and what can be extracted from the product?
Where is your export going?
Who will receive your export?
How will your export be used?

The remainder of this article will focus on understanding the answer to question 1.

What are you exporting?

A key in determining whether an export license is needed from BIS is knowing whether the item you are intending to export is on the Commerce Control List (CCL). The first step in making this determination is to "classify" your item. Is the item listed on the CCL? The proper classification of your item is essential in determining any licensing requirements under the EAR.

You can classify the item on your own, which is generally recommended. Once you have classified the item, you can ask BIS for assistance by sending a request for a commodity classification through BIS's automated Simplified Network Application Process - SNAP. SNAP is free and it speeds up the classification request.

Alternatively, you may use BIS form BXA-748P, "Multipurpose Application Form," to request a classification by mail with return receipt or by courier. You must complete this form with a typewriter. You may request forms by fax at 202-219-9179 or by calling BIS’s Exporter Counseling Division at 202-482-4811 or the Western Regional Office at 949-660-0144. You can also find the form on the BIS website.

The Export Control Classification Number

The key to classifying your item is the Export Control Classification Number (ECCN).

ECCNs are listed in the Commerce Control List (CCL), which is Supplement No. 1 to Part 774 of the EAR. You can view and print the list from the Government Printing Office website. You can also view and download the Alphabetic Index to the Commerce Control List.

In order to determine the ECCN for your item, you must decide in which of the ten broad categories your item is included. The first digit of the ECCN and the associated categories are:

0 – Nuclear Materials, Facilities and Equipment
1 – Materials, Chemicals, Microorganisms and Toxins
2 – Materials Processing
3 – Electronics
4 – Computers
5 – Telecommunications and Information Security
6 – Sensors and Lasers
7 – Navigation and Avionics
8 – Marine
9 – Propulsion Systems, Space Vehicles, and Related Equipment

Once you’ve identified the appropriate category, you will find the specific ECCN (if there is one that applies) by digging deeper into the category.

The ECCN is an alphanumeric code, e.g., 4A003, that describes a particular item or type of item, and shows the export controls placed on that item.

If your item falls under U.S. Department of Commerce jurisdiction and is not listed on the CCL, it will be classified as EAR99. Thus, it will not require a license to deliver the item to most destinations. The designation NLR, which stands for no license required, may be used for these exports on the Shipper’s Export Declaration or in the electronic version called the Automated Export System.

Don’t stop when you’ve determined that the goods are not on the Commerce Control List. If your item does not appear anywhere on the CCL, you need to check to see if it could be controlled for export by one of the other federal agencies (see above). If you are exporting an EAR99 item to an embargoed country, to a prohibited end user, or in support of a prohibited end-use, you may still be required to obtain a license.

In the second part in this series of articles, I will address the second questions I posed in this article, “Where is your export going?” I will show you an excerpt from the CCL and review an order for a shipment to Honduras.

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