In the US, a case highlights the risks of over-relying on simple screening software.  Pilot Air Freight has suffered a $175,000 penalty ($75,000 suspended) for aiding and abetting attempted unlicensed export by a customer to IKAN Engineering Services (which is on the BIS Entity List).  The company had multiple interfaces for customers’ shipping data and one, the main interface, was linked to proprietary screening software that would screen recipients against the Entity List and other relevant lists.   However, the other interface allowed customers to enter shipment data, but this was not automatically linked to the screening software.   So, in this case, the shipment was not flagged, and was then stopped by US Customs in Long Beach.  It does not seem that Pilot Air Freight knew of the problem with their software, and the shipper would not have known either.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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