The United States maintains strict regulations governing imports and exports to protect national security, economic interests, and public safety. Companies conducting business with the US must ensure compliance with these laws to avoid penalties, fines, and potential bans on trade.

One way to check if you are compliant with US Trade Laws is called “Know Your CPR”, which provides an overview of key requirements and considerations to review your level of compliance:

Screen Transactions & Parties:

☐ Have you implemented screening tools to verify that no parties involved in transactions are listed on restricted or denied party lists (e.g., the Consolidated Screening List, OFAC’s Specially Designated Nationals list)?

☐ Are you compliant with US sanctions programs restricting trade with certain countries, entities, or individuals?

Red Flags:

☐ Have your teams received training on Red Flags to look for regarding US import/export laws, especially those handling logistics, procurement, and customer relationships?

Classify Products Accurately:

☐ Have you determined the correct Harmonized Tariff Schedule (HTS) code for your imports?

☐ Do you know the Export Control Classification Number (ECCN) for your exports?

☐ Are your classifications affecting duties, licensing requirements, or eligibility for freetrade agreements (FTAs)?

Mark and Label Goods Correctly:

☐ Do your imported goods meet country-of-origin/hazard goods markings or applicable licensing requirements?

☐ Are you aware that non-compliance can result in penalties or delays at customs?

Adhere to De Minimis and Re-Export Rules:

☐ Do you understand US rules on the percentage of US-origin content in foreign products (De Minimis)?

☐ If re-exporting US-origin goods or technology to third countries, have you obtained proper U.S. authorization?

Understand Key Regulations:

☐ Are you familiar with the Export Administration Regulations (EAR) and their governance of dual-use items, software, and technology?

☐ Do you understand the requirements of the International Traffic in Arms Regulations (ITAR) for defense articles, services, and technical data?

☐ Are you complying with US Customs and Border Protection (CBP) regulations for imports, including correct classification, valuation, and origin documentation?

Obtain Required Licenses:

☐ Have you verified whether your goods, services, or technology require export licenses (e.g. ITAR-regulated items, sensitive EAR items)?

☐ Have you worked with Bureau of Industry and Security (BIS) or Directorate of Defense Trade Controls (DDTC) to secure the necessary licenses?

Maintain Proper Documentation:

☐ Are you keeping records for at least five years for imports and exports, as required by US law?

☐ Do your records include invoices, bills of lading, packing lists, purchase orders, CBP 7501 entry summaries/EEI Filings and potential licenses?

Consequences of Non-Compliance with U.S. trade laws can result in severe consequences, including:

• Civil or criminal penalties.
• Revocation of import/export privileges.
• Damage to your company’s reputation.

By following these guidelines and investing in a robust trade compliance program, companies can successfully navigate U.S. trade laws and build long-term, trustworthy business relationships in the United States.

If you answered “No” to any of the questions above, contact us here to learn more about how Woodland can support.

At Woodland Group, we specialize in providing comprehensive trade compliance consulting services tailored to meet the needs of businesses navigating the complexities of international trade. Our team of experts is well-versed in regulations such as the Export Administration Regulations (EAR), US Customs & Border Protection (CBP), among other compliance requirements.

Whether you need assistance with classifications, licensing, restricted party screening, or developing robust compliance programs, we are here to help. We work closely with your team to ensure your business stays compliant while optimizing your supply chain and minimizing risk.

With Woodland Group as your trusted partner, you gain the confidence to trade globally, knowing your compliance processes are managed by experienced professionals dedicated to your success.