All posts by mitch

Regulatory Updates

Red Flags (cont.)

 In a previous post I discussed Red Flags to be aware of in export transactions. Here is more detail from the Bureau of Industry and Security about the Consolidated Screening List. The Department of Commerce lists that are included in the Consolidated Screening List are: Denied Persons List, Unverified List, and Entity List. For help with export compliance contact mitch@52.91.45.227

Consolidated Screening List

Prior to taking any further actions, users are to consult the requirements of the specific list on which the company, entity or person is identified by reviewing the webpage of the agency responsible for such list. The links below will connect you to the specific webpage where additional information about how to use each specific list is contained.

Department of Commerce – Bureau of Industry and Security

  • Denied Persons List – Individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited.
  • Unverified List – End-users who BIS has been unable to verify in prior transactions. The presence of a party on this list in a transaction is a “Red Flag” that should be resolved before proceeding with the transaction.
  • Entity List – Parties whose presence in a transaction can trigger a license requirement supplemental to those elsewhere in the Export Administration Regulations (EAR). The list specifies the license requirements and policy that apply to each listed party.
Regulatory Updates

Red Flags

Here is a list from the Bureau of Industry and Security (BIS) website of things to look for in an export transaction. My next post will discuss “Lists of Parties of Concern” including “Denied Persons”.  Make sure you are not doing business with the bad guys. A little due diligence up front saves a lot of trouble later on.

  • 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 re-export.

For help with export compliance contact mitch@52.91.45.227

Projects

Fair Tide

Proud to say that I have joined the board of directors of Fair Tide. The mission of Fair Tide is to provide short-term affordable housing in a safe dignified setting for people who are homeless. With the help of the community, Fair Tide will provide advocacy, support and referrals to assist residents in their move toward permanent housing, financial stability and self-sufficiency.

 

info@ fairtide.org

 

 

Projects

The Value of Professional Certifications

Next week I will complete re-certification of my CTL (Certified Transportation and Logistics) thru AST&L (American Society of Transportation and Logistics). I believe that professional certifications are a valuable credential. Professionals prefer to do business with other professionals. Chances are if you are looking to hire an accountant, financial planner, or engineer, their credentials are important. Preference would go to the accountant who is a CPA, the financial planner who holds the CFP designation, and the engineer who has earned PE status. Why should the field of transportation and logistics be any different? Before discussing the CTL designation let me comment on certificate programs vs. professional certifications. Most of us have collected a number of certificates from attendance at seminars or training programs. These are all good but do not constitute professional certification. Some of the elements of a true professional certification are:

  • the certification is widely recognized in the field
  • certification is based on testing, research, or other measureable criteria
  • the certifying organization publishes and maintains professional standards of conduct
  • continuing education and/or re-certification is a requirement
  • the certification is “portable”, not tied to a specific company or location

The American Society of Transportation and Logistics (AST&L), founded in 1946, is the premier professional organization for transportation and logistics practitioners and educators. The Certified in Transportation and Logistics (CTL) certification is granted to individuals who successfully complete six exam modules. Three of the modules, Transportation Economics Management, Logistics Management, and International Transport and Logistics, are compulsory. The other three modules are elective and include more specific subject matter and a creative component. Exams are written and graded by well known educators to ensure academic integrity. In 2012, as a member of AST&L’s Education Committee, I participated in creating the CTL re-certification program. In order to maintain certification members must complete 45 hours of continuing education every three years. Credit is earned by various activities including: taking courses, teaching, writing articles, participating in webinars, and tutoring CTL candidates. The CTL is a worthwhile certification to have in the field of transportation and logistics. For info on the program contact AST&L at astl.org.

Nuts & Bolts

Comment in Logistics Consulting

 

Mitch Kostoulakos CTL,LCB Good info to keep on file for responding to US Customs requests. One of the main take-aways is that a customs compliance program is a must for importers. The importer’s relationship with their broker is critical and will enable timely data gathering for the response. However, ultimate responsibility for violations rests with the importer.

 

Boo! What to Do when the Government Calls, or Writes, or Shows Up…When Shipping Cross Border – Freight Logistics Company | Cerasis okt.to

There are many occasions when the Government, for our purposes, let’s say US Customs, takes an interest in something your company is doing. Does that sound like attention? Yup, but not all attention is good! In fact, most government, let’s say Customs comm

    • Regulatory Updates

    Risk Management Must Include Compliance

    In the September issue of Logistics Management Magazine, Mark Pearson has written an excellent article on supply chain risk management (Pearson on Excellence p.22). Based on a survey of senior executives, the article names information technology and global economic turmoil as the most common and impactful drivers of supply chain risk. Pearson describes different supply chain risk management investments made by respondents and the ROI’s reported by management. I would add that export and import compliance is also a very big risk factor in supply chain management. Fines and penalties for non-compliance are high enough to be worthy of C-level attention. What you don’t know can hurt you.

     

    If you would like compliance help contact mitch@52.91.45.227

     

     

    Nuts & Bolts

    Comment in Customs Specialists

     

    Mitch Kostoulakos CTL,LCB commented on a discussion in Customs Specialists.

    • Mitch Kostoulakos CTL,LCB Good comments all. The freight forwarder relationship is key for exporters but don’t give up control of compliance. At a minimum you need to review all documents completed by your forwarder for accuracy prior to shipment.
    Regulatory Updates

    Comment in Logistics Consulting

     

    Mitch Kostoulakos CTL,LCB commented on a discussion in Logistics Consulting.

    Regulatory Updates

    Comment on discussion in Customs Specialists

     

    Mitch Kostoulakos CTL,LCB commented on a discussion in Customs Specialists.

    • Mitch Kostoulakos CTL,LCB Good info for importers and shows that due diligence is needed. I always recommend a review of classifications a couple of times per year. 

    Contact mitch@52.91.45.227 for review of your classifications.

    Regulatory Updates

    Comment on discussion in Customs Specialists

     

    Mitch Kostoulakos CTL,LCB commented on a discussion in Customs Specialists.