If your goods are export controlled, then you’re probably all too aware of the U.S. government’s rules for your item. Yet what about the rules of the country to which you are exporting? Are you at all familiar with their export controls? If you’re not, then you may be a target for illegal diversion, especially if you ship to Hong Kong, Singapore, or the UAE. According to the U.S. Bureau of Industry & Security (BIS), these three countries represent the highest risk for transshipment diversion.
While the BIS doesn’t expect exporters to know the ins and out of a foreign government’s export control regime, it does recommend a simple solution for exporters shipping controlled items to these countries: Before exporting, ask your foreign customer for copies of any import/export permits required by their country. If your customer fails to honor your request, then you should recognize this as red flag for potential diversion.
For other more tips on preventing transshipment diversion, see the Bureau of Industry & Security’s list of best practices.