Trade Finance Forum › Forums › Market Regulations › Compliance › How difficult is it to comply with export control requirements when dealing with trade financing? › Reply To: How difficult is it to comply with export control requirements when dealing with trade financing?
As far as I know, a detailed grasp of the final purpose of the commodities being funded and the route of the shipment is essential for trade finance to comply with export control requirements, which may be a significant challenge. Here are a few essential things to keep in mind:
Professionals in the field of trade financing need to be aware of end-use limitations and check that the funded items won’t be put to any illegal use.
Trade embargoes and other trade restrictions mean that exporting certain commodities and technology to certain nations is illegal.
A “denied party” is a person or business that is on a “denied party list,” which signifies that they are not eligible to purchase or receive the listed product or service.
Some items or technology may need export licences before they may be sent abroad.