Many mid-market companies are in violation of U.S. export regulations, according to recent research from global trade management solutions provider Amber Road.
“The good news is U.S. exports are growing, and mid-market companies in particular are increasing revenues by accessing foreign markets,” said Scott Byrnes, vice president of marketing at Amber Road. “Unfortunately, it appears that many mid-market companies aren’t fully aware of the regulatory requirements governing global trade.”
The survey found 23 percent of the 150 companies included in the survey do not screen for restricted parties before forming relationships with trading partners and customers, while only 41 percent had a comprehensive export compliance program.
Forbes provided some strategies things businesses can look out for to minimize risk when selling products in different countries, which SMB exporters may be wise to consult.
A few problematic things businesses can look for include transactions that are outside the buyer’s line of businesses and unusual contract terms such as payments in cash and high commissions, said the source.
In order to combat these potential problems, companies need to invest in the proper business insurance policies to ensure they are covered in case something goes wrong during international trade.
