Shipping Solutions Newsletter

Really? Wow, a statement like that makes the hair on the back of my neck stand up. If a government agency like the Department of Homeland Security or the Bureau of Industry and Security just happens to stop by your office for a visit, you are not going to do yourself any favors by making such a declaration.

Freight forwarders play an important role in managing the movement of freight worldwide. One may think that a freight forwarder that does everything for an importer and/or exporter is providing you with really great service. In reality, however, the freight forwarder that does everything is really doing you a disservice and, in some cases, may be opening you up to increased compliance risks and exposure to fines and penalties. Strongly reconsider your choice of a forwarder or Customs Broker if they do not regularly involve you in the imports and/or exports they handle on your behalf.

There are some really great freight forwarders and Customs Brokers out there that want to assist you in your compliance efforts. Assist you; not just do it for you! As an importer you are required by law to use reasonable care when classifying and declaring your imports coming into the United States. As an exporter, you are required by law to perform your due diligence when exporting your products, which includes ensuring that the Electronic Export Information (EEI) is correctly filed through the Automated Export System (AES) as required by law.

Think about it. Who knows your products better than you? You are the only one that is in the position to affirmatively classify your products. And you know your customers. (Let’s hope so, anyway.)

My mom would always say, “If you are not going to do it right, don’t bother doing it at all.” Same can be said for importing and exporting. If you, as a company, are not going to put the necessary effort and resources into doing it properly, you are much better off not doing it at all.

Authorized agents are required to provide the U.S. Principle Party in Interest (USPPI) with a copy of the export information filed in a mutually agreed upon format (15 CFR Part 30.3(c)(2)(iv)). If you are not currently receiving this information on any transaction where a freight forwarder was used and you relied on them to file the EEI your behalf, contact them and request the information sighting the above citation.

When economic times are tough companies tend to do everything they can to cut costs. Cutting back compliance efforts may seem like an easy cost-saving measure. However, in the long run it may cost you much more than you think. If your senior management thinks they can cut corners in compliance respectfully remind them that fines, penalties and enforcement efforts are on the rise.

Want to learn more about Shipping Solutions export documentation and compliance software?

Need to stay current with mandatory AES and the new, higher penalties for export violations?

Want to network with other export professionals from around the country?

Come to the Shipping Solutions User Conference on Sept. 25 and 26, 2008, to do all this and more:

Shipping Solutions staff will be demonstrating all the features of the Shipping Solutions software including export document creation, electronic filing through the Automated Export System (AES), and export compliance tools including restricted party screening and export license determination.

A representative of the U.S. Census Bureau's Foreign Trade Division will discuss the current status of mandatory AES filing and answer your questions.

Industry experts will discuss the newly revised Export Administration Regulations; free trade agreements including NAFTA, CAFTA and the U.S.-Chile FTA; export document basics; and export compliance issues.

A representative of the U.S. Commercial Service will outline the assistance available to U.S. companies to help them identify export opportunities and complete their export transactions.

All attendees will also have the opportunity to attend small-group or one-on-one sessions with Shipping Solutions staff to learn more about the software, see demonstrations of new features, and get their specific questions answered.

The Shipping Solutions User Conference will be held at the Minneapolis Airport Marriott located right next to the Mall of America in Bloomington, Minnesota. Contact the Marriott at 800-228-9290 or 952-854-7441 for reservations.

You'll find a complete agenda and registration information for the two-day conference at the Shipping Solutions website.

Registration for this two-day user conference is only $595. Two or more attendees from the same company will save $50 each. Shipping Solutions Annual Maintenance Program (AMP) subscribers will save an additional $100 off each registration.

For more information about the Shipping Solutions User Conference or to register for a guaranteed spot at the conference, visit the Shipping Solutions website or call Shipping Solutions at 888-890-7447.

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By Richard Vitas Palaikis II email | bio

Have U.S. exporters forgotten about the economic sanctions and the trade embargo that the United States government has placed upon the Islamic Republic of Iran? In the last year the Bureau of Industry and Security (BIS) has issued monetary fines and/or criminal charges against several individuals and companies for violating the Export Administration Regulations (EAR) and the Iranian Transactions Regulations (ITR).

At present most goods, technology and services may not be exported, re-exported, sold or supplied directly or indirectly from the United States, or by any citizen of the United States regardless of his/her geographic location, to the Islamic Republic of Iran or the government of Iran.

There are some exceptions, however, such as donations of articles that can be utilized as humanitarian aid, as well as licensed agricultural commodities, medicine, medical devices and trade in information materials.

If violations of the EAR and/or the ITR are discovered, corporate penalties can be as high as $500,000, while individual penalties can be as high as $250,000 along with 20 years imprisonment. With that being said, it is certainly in our best interest to abide by the letter of the law when it comes to dealing with Iran.

In the last year there have been several violations of the EAR and ITR. These violations include:

In July 2007, the U.S. Department of Commerce revoked the export privileges of Winter Aircraft Products SA for a period of 10 years due to the diversion and transshipment of aircraft parts of U.S. origin through Spain to Iran.

In December 2007, the Mine Safety Appliances Company (MSA) of Pennsylvania agreed to pay a civil fine of $470,000 in connection with 107 various violations of the EAR from May 2001 through December 2005. The Abu Dhabi MSA apparently conducted re-exports of EAR99 and other controlled items such as helmets, gas masks, detection equipment, filters and other safety equipment to Iran and Syria without having U.S. government approval.

In April 2008, Cryostar SAS, formerly known as Cryostar France, based in Hesingue, France, pled guilty to an attempted export of cryogenic submersible pumps of U.S. origin to Iran. Cryostar must pay a criminal fine of $500,000 and adhere to a corporate probation program for two years.

In April 2008, Engineering Dynamics, Inc., of Louisiana agreed to pay a civil fine of $132,791 in connection with a plot to market, sell and service an engineering software program of U.S. origin through a Brazilian counterpart to Iran without having U.S. government approval.

In June 2008, BIS suspended the export privileges of Galaxy Aviation Trade Company, three of its shareholders, as well as Iran Air for 180 days for planning to re-export a Boeing 747 Cargo Aircraft of U.S. origin to Iran from Turkey.

We can learn a great deal from these companies: abide by the letter of the law or be prepared to pay the consequence.

When dealing with foreign companies and individuals, it behooves you to take the time to explain your obligations and their obligations to the EAR and ITR. Taking the extra time may save you and your foreign client a great deal of time and aggravation and, most importantly, money and the continued ability to conduct business internationally.

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Thousands of successful exporters are using Shipping Solutions to complete their export documents faster, easier and less expensively than ever before. Why aren't you?

If you're too busy trying to complete your export documents by hand to spend some time reviewing the Shipping Solutions Professional export documentation and compliance software yourself, let us do it for you! Sign up for one of our free online demos and let us give you a one-hour overview of the software.

We'll take you step-by-step through the process of completing your export forms, filing your SEDs electronically through AES, and checking your exports against the various government restricted parties lists and export regulations to make sure your shipments are in compliance, and you—and your company—stay out of trouble.

These free online demos are available on Tuesdays at 1:00 p.m. and Thursdays at 10:00 a.m. Central Time. All you need is an Internet connection to watch the demo and a phone to listen in and ask questions about the software. It's the perfect opportunity to get your first view of Shipping Solutions or to convince your co-workers and your boss that Shipping Solutions is the perfect solution for your company.

See why Shipping Solutions is America's #1 export software. Sign up for the free online demo today!

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