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BIS Updates Freight Forwarder Guidance And Best Practices

By: Adrienne Braumiller, Founding Partner, Braumiller Law Group

Quick Answer

The Bureau of Industry and Security (BIS) recently issued new guidance for freight forwarders and exporters to ensure compliance with U.S. export controls and enhance global supply chain security. This guidance highlights the shared responsibility of both parties, with freight forwarders needing to ensure clear communication, conduct comprehensive screening of parties, and understand their roles in various transaction types. Exporters are responsible for providing accurate and complete transaction information, while freight forwarders are encouraged to offer compliance resources and identify red flags to uphold national security interests.

The Bureau of Industry and Security (BIS) has recently published a guidance document on its new website aimed at helping freight forwarders and exporters uphold compliance with U.S. export controls and regulatory requirements. The document emphasizes the significant role that freight forwarders play in securing the global supply chain and preventing the proliferation of illegal exports. It highlights the responsibility of freight forwarders and exporters to work together to ensure compliance with U.S. national security and foreign policy interests.

The guidance outlines the roles and responsibilities of freight forwarders, including the need for clear communication with exporters to ensure that all necessary information is provided for compliant export transactions. In addition to a list of best practices for freight forwarders to follow such as offering resources to an exporter when potential compliance issues are apparent or by conducting comprehensive screening of known parties to a transaction even when the Freight forwarder is not filing the EEI , the document also covers the expectations that freight forwarders may have of exporters, emphasizing the importance of providing accurate and complete transaction information.

Furthermore, the guidance discusses the responsibilities of freight forwarders in non-routed and routed export transactions, as well as the importance of selecting a reputable freight forwarder. The document also provides an overview of antiboycott regulations that apply to U.S. persons, including freight forwarders, and highlights red flags for both freight forwarders and exporters to watch out for. 

Overall, the guidance aims to support freight forwarders and exporters in their efforts to comply with U.S. export regulations and enhance the security of the global supply chain. For more information and resources on export compliance, freight forwarders and exporters are encouraged to visit the BIS website.  (The full guidance can be found here.)

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Frequently Asked Questions

1 What are the primary responsibilities for freight forwarders and exporters outlined in the new BIS guidance to ensure export compliance?

The guidance emphasizes that freight forwarders must ensure clear communication with exporters, conduct comprehensive screening of parties, and understand their roles in various transaction types. Exporters are responsible for providing accurate and complete transaction information to facilitate compliant exports and uphold national security interests.

2 What best practices does the BIS guidance recommend for freight forwarders to enhance global supply chain security?

Recommended best practices for freight forwarders include offering compliance resources to exporters when potential issues arise and conducting thorough screening of all known parties involved in a transaction, even if not filing the EEI. These measures are crucial for preventing illegal exports and securing the global supply chain.

3 How does the BIS guidance address the roles and responsibilities in both non-routed and routed export transactions?

The guidance specifically discusses the distinct responsibilities of freight forwarders in both non-routed and routed export transactions. It underscores the importance of clear communication and accurate information exchange between freight forwarders and exporters to ensure compliance regardless of the transaction type.

4 What types of "red flags" should freight forwarders and exporters be vigilant about according to the BIS update?

The BIS guidance provides an overview of specific "red flags" that both freight forwarders and exporters should watch out for to identify potential compliance issues. Being aware of these indicators is critical for preventing violations of U.S. export controls and antiboycott regulations.