INTERNATIONAL TRADE LAW
International Trade Compliance Program Checklist
An international trade compliance program is the written system a company uses to follow U.S. rules on what it imports and exports — export controls, sanctions, and customs — and to prove that it did. This checklist is the umbrella over the more specific programs; it ties export controls, sanctions screening, and customs compliance into one structure with shared ownership and records.
Trade compliance fails when a company runs three disconnected efforts — an export person here, a customs broker there, no one owning sanctions. A single program with one owner closes the gaps between them.
The Three Rule Sets a Program Must Cover
Trade compliance is really three bodies of law, each with its own enforcer and its own core duty.
| Area | Enforced by | Your core duty |
|---|---|---|
| Export controls | BIS (EAR) and DDTC (ITAR) | Classify items and license controlled exports |
| Sanctions | OFAC | Screen parties; do not deal with blocked persons |
| Customs / imports | CBP | Use reasonable care in every entry |
The import side runs on a standard set by the Customs Modernization Act of 1993: CBP publishes guidance (informed compliance) and the importer owes reasonable care in declaring classification, value, and origin. The export and sanctions sides run on classification, screening, and licensing. A real program addresses all three.
The Program Checklist
Establish Ownership and Written Procedures
- Name a program owner with authority and a line to senior management.
- Document written policies and step-by-step procedures for imports, exports, and sanctions screening — not a binder, a usable workflow.
Run a Risk Assessment
- Map your real products, suppliers, customers, and destinations to trade risk.
- Identify which items are export-controlled, which markets are sanctioned, and which import flows carry classification or valuation risk.
Classify Correctly — Both Directions
- On imports, assign the correct HTS classification and customs value, and determine country of origin and marking. See a primer on customs classification.
- On exports, determine jurisdiction and classification (USML/ITAR, CCL/ECCN under the EAR, or EAR99) before shipping. See how to develop an export compliance program.
Screen Every Party
- Screen customers, suppliers, and intermediaries against the SDN List, consolidated sanctions lists, and the denied/entity lists. See denied parties screening in export.
- Apply OFAC’s 50% Rule: an unlisted entity owned 50% or more by sanctioned persons, in aggregate, is itself blocked.
Train, Audit, and Keep Records
- Train staff in risk-facing roles and document completion.
- Audit the program on a cycle and remediate findings.
- Mind the two retention clocks: customs records are generally kept five years from entry, while OFAC now requires 10 years for sanctions records (effective March 2025). Default to the longer period for overlapping transactions.
What Non-Compliance Costs — On Both Sides
The penalties differ by regime, and a trade program has to respect both logics. On the customs side, 19 U.S.C. 1592 penalizes material false statements or omissions on entries, scaled to culpability — negligence, gross negligence, or fraud — with the steepest exposure for fraud. A timely prior disclosure to CBP, made before an investigation starts and with a tender of any lost duties, sharply reduces that exposure; it is the import-side analog of voluntary self-disclosure. See how to make prior disclosures to customs.
On the sanctions and export side, the logic is stricter. OFAC civil penalties are imposed on a strict-liability basis — liability can attach with no intent — and willful violations of the sanctions and export-control statutes carry criminal exposure up to $1,000,000 and 20 years per violation, plus loss of export privileges. The common thread: in every regime, a documented, working compliance program is a mitigating factor, and its absence is an aggravating one.
Frequently Asked Questions
What does an international trade compliance program actually cover? Three areas: export controls (EAR/ITAR), sanctions (OFAC), and customs/imports (CBP). The program gives them shared ownership, procedures, training, and records instead of three siloed efforts.
What is “reasonable care” in customs compliance? It is the standard the Customs Modernization Act puts on importers: you must take reasonable steps to declare classification, value, and origin correctly. Meeting it is what keeps an honest mistake from becoming a 19 U.S.C. 1592 penalty.
How is a prior disclosure different from voluntary self-disclosure? They are parallel tools. A prior disclosure goes to CBP for customs violations; a voluntary self-disclosure goes to OFAC or BIS for sanctions and export-control violations. Both must come before the government’s own investigation and both reduce penalties.
How long do we keep trade records? Customs records are generally five years from entry; OFAC sanctions records are now 10 years. When a transaction touches both, keep everything for the longer period.
A trade compliance program is only as strong as its weakest of the three pillars. Reidel Law Firm helps importers and exporters build a single program that covers customs, export controls, and sanctions, delivered as a flat-fee compliance memo with direct attorney access. Get an import/export compliance memo →
