U.S. Export Controls: Best Practice for Freight Forwarders

BIS Updates Guidance for Freight Forwarder Best Practices for Export Control Compliance

In a press release published on March 28, 2024, the Department of Commerce’s Bureau of Industry and Security (BIS) announced an updated “Freight Forwarder Guidance and Best Practices” document to help ensure compliance with U.S. export controls and regulations.

The guidance document contains information on:

• Freight forwarder roles and responsibilities;

• Responsibilities for routed and non-routed exports;

• Expectations of the exporter or U.S. principal party in interest (USPPI);

• Best practices for selecting a freight forwarder;

• Antiboycott guidance; and

• Red flags for freight forwarders and exporters.

"The freight forwarding community plays a critical role in securing the global supply chain," stated Assistant Secretary for Export Enforcement Matthew S. Axelrod. "This guidance underscores the need for a risk-based compliance program to prevent sensitive items from falling into the wrong hands, including terrorists and malign actors."

Freight forwarders have a vital responsibility in safeguarding the global supply chain and curtailing illegal exports, crucial in preventing activities detrimental to U.S. national security and foreign policy. The guidance provides insights on freight forwarder roles, exporter responsibilities, antiboycott regulations, and red flags for potential violations.

To report suspected violations, use the BIS online tip portal or contact the Enforcement Hotline at 1-800-424-2980 or email EELead@bis.doc.gov.

The press release for this announcement can be found here:https://www.bis.gov/press-release/bis-updates-freight-forwarder-guidance-and-best-practices

The “Freight Forwarder Guidance and Best Practices” document can be found here:https://www.bis.doc.gov/index.php/all-articles/24-compliance-a-training/export-management-a-compliance/48-freight-forwarder-guidance