There are several steps you should take.
- Read and understand the "Know Your Customer Guidance" provided in the Export Administration Regulations (EAR) and as part of this website. It will help you recognize and avoid prohibited transactions.
- Be familiar with the "Red Flag Indicators" that can help you recognize illegal, or potentially illegal, transactions. Read about real-life case histories in our Don't Let this Happen to You! Publication. If Red Flags are present you must exercise appropriate due diligence to either resolve questions before engaging in the proposed transaction; or, if questions cannot be resolved, either refrain from the transaction or submit a license application to BIS.
- Check the parties to your transaction (including freight forwarders, intermediate consignees, and the ultimate consignee) against key U.S. Government Lists to Check to identify parties subject to denial orders or otherwise restricted or prohibited from engaging in U.S. export transactions. Note that the presence of a party's name on BIS's Unverified List, which identifies parties whose bona fides BIS has been unable to determine in End-Use Checks, is considered a "Red Flag" calling for you to exercise due diligence (see Point 2, above).
- If you are being asked to participate in an export transaction that you believe may be illegal, or if you have information that such an illegal transaction may be about to occur, you are encouraged to contact BIS's Office of Export Enforcement immediately. You may also confidentially report these situations by completing the Confidential Lead/Tip Form on this website.
Please use the subject "Enforcement Leads/Tips" to ensure your information reaches BIS. Submissions using this form are kept confidential.
Finally, you may want to review our web page on "Recognizing and Reporting Possible Violations."