Determining the Credibility of the Freight Forwarder Through EAR Provisions

Do you have goods or products to be shifted from California to the other parts of the globe? If yes, what kind of forwarding agency you entrusted your good with?


Freight forwarding services play a great role in ensuring the security and safety of your good in the international supply chain. After you have paid your exporting fee, you have no idea on the who's who and the where to's of your package and on what kind of hands or people that would assist the flow of your good efficiently and directly to the address you have provided for it. Of course, you want safety and security, and not directing your goods to the chain of illegal exports.

The credibility of the California Freight Forwarders is the number one issue in here. The agents must have their responsibilities being complied under the Export Administration Regulations or EAR even when their actions are dependent on the instructions provided to them by the person who uses their freight services. However, freight forwarders have a greater responsibility for the representations they make in the filing of the export data. They are the ones who know whether this good is appropriate, or does not contain any illegal materials or violations to the EAR. Those agents who are acting as exporters should understand the EAR's “Know Your Customer” and “Red Flags” guidance found in supplement no.1 to part 732 of the Export Administration Regulations. Agents or forwarders should know if Red Flags are present. They must exercise due diligence in asking information about them and making sure that the important suspicious incidences are not being ignored. Failure to comply these terms is a violation to the EAR.


Moreover, the Freight Forwarders California where you will entrust your goods with must thoroughly familiar with the 10 General Provisions provided in part 736 of the Export Administration Regulations, and also with the violations mentioned in the part 736 of the same provision as well. You must know if your current freight forwarder or agents do not have a past history of committing suspicious or illegal acts of exporting and forwarding of goods and products. 


Since the end result is yours to see, exporting a good must also adhere to the standards provided by the EAR. You should not include any suspicious elements in your transaction that will violate the “Red Flags” of the Export Administration Regulations. You should detail clearly your purpose of the export. You must have valid reasons when asked about the end receiver of the product. Make sure to exclude suspicious data like delivering your sophisticated good to a small bakery or store in town. Do not pay in cash for the very expensive item instead call for financing. For more idea about this “Red Flag” indicators, you can visit any online site about US Department of Commerce. 


Keep in mind to write everything clearly in complete and exact address where the good should be delivered. It is not of the forwarder's discretion if your good was not delivered or lost in the process. Theirs is only watching the flow of the stem, of the where to's of the good to the door where the good will be delivered.

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