Question 1

Why does compliance matter for freight forwarders and customs brokers?

Accepted Answer

Because they touch the physical movement of goods that may be subject to trade sanctions, dual-use export controls, embargoes, anti-dumping duties, and forced-labour import bans. Liability for sanctioned shipments often attaches to the forwarder or broker — not just the importer / exporter — unde...

Question 2

Which screening obligations apply?

Accepted Answer

Sanctions and watchlist screening of: shipper, consignee, notify party, ultimate consignee, carrier, vessel, vessel owner / operator / beneficial owner, port of loading and discharge, transhipment ports, and known intermediaries. Pattern-based checks for sanctions evasion typologies: ship-to-ship...

Question 3

What is the OFAC Maritime Advisory and why does it matter?

Accepted Answer

OFAC has issued sector advisories (notably the 2020 Maritime Advisory and successor guidance) outlining expected due-diligence practices for the maritime industry — including KYC on counterparties, monitoring AIS for manipulation, screening vessels and beneficial owners, and contractual sanctions...

Question 4

What is dual-use cargo and how does it affect a freight forwarder?

Accepted Answer

Dual-use cargo is goods, software or technology that have both civilian and military applications and that fall under export-control regimes (EU Regulation (EU) 2021/821, US Export Administration Regulations (EAR) with the Commerce Control List, UK Export Control Order 2008, Australian Defence an...

Question 5

What is the UFLPA?

Accepted Answer

The US Uyghur Forced Labor Prevention Act (effective 21 June 2022) creates a rebuttable presumption that any goods made wholly or in part in the Xinjiang Uyghur Autonomous Region of China, or by entities on the UFLPA Entity List, are made with forced labour and are prohibited from import into the...

Logistics, freight forwarding & customs brokerage