Case Study: Denied Trade Screening Frees Company Resources And Reduces Potential Liabilities

Eastern Shipping is a $20 mil full service freight forwarder. Started in 2001, they have offices in Hamburg, Shanghai, New Jersey, Chicago, and Los Angeles. Their customers are various sized companies that import and export goods but do not have a large supply chain or logistics in-house department. The supply managers are typically very educated and want Eastern to provide them with accurate and timely trade data. Their ultimate interest is having confidence that their goods are moving efficiently and securely.

As a mid-sized forwarder, Eastern realizes that neither they nor their clients can afford a compliance failure which could effectively put either one out of business. Fines can be steep as CBP and other government agencies are ever more vigilant and penalizing companies for failing to comply with the numerous and ever changing trade laws and tariffs required. In a recent case, Cabela's, an outdoor equipment outfitter based in Nebraska, agreed to pay a $680,000 civil penalty to settle allegations that it committed 152 violations of the Export Administration Regulations (EAR). Non-compliance penalties may also include jail time and removal of export privileges all together.

As such, Eastern strives to provide the highest level of accuracy, visibility and reliability in their processes. One of the key supply chain security checks they perform is "denied trade screening" using an automated, web-based solution from Integration Point® Inc. Some companies focus only on denied parties, countries or products. The Integration Point Denied Trade Screening (DTS) Solution checks for all three simultaneously. The system also allows for manual overrides with a business' custom rules that otherwise may become burdensome during the process. Because the software is available via the Internet as a service (Software as a Service, "SaaS"), users access it anytime from anywhere, such as while traveling or working from home. Integration Point maintains the physical hardware and software as well as all the content to alleviate the installation and maintenance burden of its customers such as Eastern Shipping.