Export Control Management - Denied Party Screening, Export Control Classification and more

Overview

Export control compliance is a challenging task for exporting companies. Global supply chains are constantly at risk because companies must adhere to numerous regulations which are quite complex and change frequently. This includes export control classification, denied party screening / restricted party screening resp. checking sanctions lists and embargos, determining licensing requirements (including license management), as well as checks of end use and/or end users. Therefore, commitment to export control compliance and effective risk management requires the use of appropriate software tools.

MIC’s Export Control Management (MIC ECM) allows for central management of all company transactions under export control law and detailed checks of  business transactions with respect to the relevant regulations. Clear status information and comprehensive check reports for each transaction ensure a complete and consistent audit trail. This includes screening of the persons and organizations involved in a given transaction against different sanctions lists, checking of the goods in consideration of dispatch and destination country, and documentation of end use and end users.

MIC Export Control Management modules enabling Export Compliance Automation

  • Central administration of all information relevant for export controls
  • Supports both interactive and transaction-oriented real-time screening of transactions
  • Configurable transaction types (e.g. export, customer visit, data transmission)
  • Embargo check (total embargos and screening based on tariff number, export control classification, country of dispatch and destination, business partners)
  • Check of end user and end use including configurable red flag questionnaires
  • Assessment of licensing requirements
  • Assessment of import control regulations
  • ELAN-K2 integration for request of licenses
  • Use of general licenses
  • Administration & monitoring of individual licenses (deadlines, obligations, approved quantities/values, documentation of use, deduction by quantity/value, etc.)
  • Configuration of rules for application of licenses
  • US re-export checks
  • De-minimis calculation
  • Manual compliance checks
  • Overview and full transparency of the entire process  (workflow & escalation management)
  • Interface integration with different ERP systems (e.g. SAP) including blocking of suspicious transactions directly in ERP systems
  • Integration with other MIC modules (MIC DPS, MIC CCS ECC, MIC-CUST® Import and Export)
  • Up-to-date export control content through integration of MIC’s Global Trade Content Service (GTCS) for different countries (e.g. country lists, reasons for control, embargo regulations)
  • Complete audit trail
  • Standard reporting as well as data analytics

Denied party screening: MIC DPS

  • Denied party screening against sanctions lists based on a configurable screening algorithm and configurable screening profiles
  • Supports interactive, transaction oriented real-time screening as well as batch screening
  • Automation by “white lists” and “positive lists”
  • Daily updated content of sanctions lists by integration of MIC’s Global Trade Content Service (GTCS) for EU, US, UN, JP, UK, CH and many other sanction lists
  • Screening against internal “blacklists” and keywords
  • Ultimate Beneficial Owner (UBO) screening for more than 200 million companies worldwide with automated interfaces to the Orbis data base of Bureau van Dijk (BvD) as well as Dun & Bradstreet's (D&B) Bisnode database
  • Integration with MIC-CUST® and/or ERP systems (e.g. SAP) for automatic blocking of the consignment in the event of a positive screening result
  • Definition of stop words to be ignored for screening, e.g. GMBH, LTD, LIMITED etc.
  • Comprehensive audit trail of screening results and decisions including individual documentation (file attachments and comments) 
  • Standard reports included
  • Overview and full transparency across the entire process (workflow & escalation management)

Export control classification: MIC CCS ECC

  • Identification of controlled products
  • Manage an unlimited number of export control classifications for each product. (e.g. ECCN, German Export List number, relevance for embargo)
  • Workflow management for export control classification tasks
  • Automated and/or semi-automated allocation of export control classifications based on intelligent suggestion logic using artificial intelligence and machine learning (AI&ML), as well as user-defined selection and matching rules
  • Up-to-date export control commodity list content including correlation tables by integration with MIC’s Global Trade Content Service (GTCS) for multiple countries (e.g. EU Dual-Use Regulation, German Export List, US Commerce Control List, US Munitions List or in general item-lists that are subject to the Export Administration Regulations (EAR)) 
  • Support of correlation tables
  • Complete audit trail in case of changes
Benefits

01

Central administration

of all information relevant for export control

04

Daily updated content

by integration of MIC’s Global Trade Content Service

02

Overview

across the entire process and thus full transparency

05

Ultimate Beneficial Owner (UBO)

screening for more than 200 million companies worldwide 

03

Comprehensive audit reports

for each transaction ensure a consistent audit trail

06

Detailed examination

of business transactions based on relevant export control regulations incl. blocking of suspicious transactions in ERP systems (e.g. finance, logistics) through seamless return interfaces

Resources

Chip shortages hit global automotive supply chains

Industry News | | MIC Customs Solutions |

Several major auto manufacturers have been forced to halt or reduce production due to problems acquiring essential computer chips.


Automakers around the world are facing production problems as they struggle to import vital computer chips, with factors such as coronavirus-related travel restrictions and the US-China trade war contributing to the shortage.

Bloomberg reports that manufacturers including Toyota in Japan, Ford in the US and Volkswagen in Germany have all warned of difficulties securing the semiconductors needed for their vehicles.

Several firms have therefore looked to cut back on production until the shortage can be resolved.

Honda, for instance, has reduced output at five North American factories as it becomes harder to procure chips, while Ford told Bloomberg: "The global semiconductor shortage is presenting challenges and production disruptions." 

One reason for the shortage is that supplies are being diverted to household goods such as smart TVs, laptops and games consoles. These items have been in especially high demand in recent months as Covid-19 restrictions have led to more people seeking entertainment at home.

Meanwhile, sanctions imposed by US president Donald Trump on Chinese tech firms have also had an impact. This has constrained supply from key manufacturers such as Semiconductor Manufacturing International Corp and forced customers to look elsewhere.

The problem will need to be solved quickly as cars become more dependent on these technologies.

By 2030, semiconductor-based parts will account for more than 50 per cent of a car’s manufacturing cost, up from about 35 per cent now, according to a report by China EV 100 and Roland Berger. 

As a result, ensuring global trade in these components is as smooth and frictionless as possible will become a top priority for the sector.
 


News | Export Controls | Central Classification | Customs Filing | Origin Calculation 8 March 2024
News | Export Controls 14 November 2022
News | Export Controls | Central Classification | Customs Filing | Origin Calculation 6 July 2022
News | Export Controls | Central Classification | Customs Filing | Origin Calculation 29 April 2022

Contact us