Things to look for in Export Transactions

Use this as a check list to discover possible violations of the Export Administration Regulations.

  • The customer or its address is similar to one of the parties found on the Commerce Department’s [BIS’] list of denied persons.

  • The customer or purchasing agent is reluctant to offer information about the end-use of the item.

  • The product’s capabilities do not fit the buyer’s line of business, such as an order for sophisticated computers for a small bakery.

  • The item ordered is incompatible with the technical level of the country to which it is being shipped, such as semiconductor manufacturing equipment being shipped to a country that has no electronics industry.

  • The customer is willing to pay cash for a very expensive item when the terms of sale would normally call for financing.

  • The customer has little or no business background.

  • The customer is unfamiliar with the product’s performance characteristics but still wants the product.

  • Routine installation, training, or maintenance services are declined by the customer.

  • Delivery dates are vague, or deliveries are planned for out of the way destinations.

  • A freight forwarding firm is listed as the product’s final destination.

  • The shipping route is abnormal for the product and destination.

  • Packaging is inconsistent with the stated method of shipment or destination.

  • When questioned, the buyer is evasive and especially unclear about whether the purchased product is for domestic use, for export, or for reexport.