for Strategic Trade Control Compliance

Transaction screening is a process to evaluate and determine whether a prospective transfer of items or the performance of a business activity or service would be subject to national or foreign strategic trade controls and/or would have an unacceptable risk of diversion to unauthorized end-uses, end-users, or destinations. In terms of operational implementation of an enterprise ICP, transaction screening is the most critical element. The transaction screening process can begin upon receipt of an order or request for quotation or proposal. How an enterprise designs its screening procedures will depend on the nature of the enterprise’s customers, industry sector and product line(s), trade volume, and supply chain. Transaction screening can be done manually or with the aid of automated screening tools, depending on a given enterprise’s needs and available resources.

The key goal (and challenge) of transaction screening is reducing compliance and diversion risk in a way that fits well with existing business processes and flows, so that business operations and activities are not impacted to the point where the enterprise cannot function.

Transaction screening for strategic trade control and compliance purposes typically involves at least five sub-processes: 1) item classification and screening; 2) party screening; 3) destination screening; 4) end-use screening; and 5) diversion risk screening.

Implementing transaction screening processes requires your enterprise to accomplish the following tasks:

  1. Determine who will develop the transaction screening processes;
  2. Design the specific procedures for each transaction screening process;
  3. Assign the personnel that will be responsible for conducting each type of screening;
  4. Establish procedures to keep the transaction screening processes and inputs up-to-date; and
  5. Document the screening process and its outcomes.

Click on the links to the left to explore each of the transaction screening sub-processes.

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