Checking goods for sanctions using Globas

In the recent years, the global economy has been a subject to a number of sanctions restrictions that have made international trade more difficult for many companies. One of the key elements of sanctions policy is commodity sanctions – bans or restrictions on the export and import of certain categories of goods. These measures can be imposed both by the certain states and international organizations. To avoid financial and reputational risks, all participants of the supply chain are obliged to check goods for compliance with sanctions lists.

Commodity sanctions are measures aimed at restricting the circulation of specific goods among countries or economic entities that are subjects to sanctions. Such measures may be introduced for foreign policy purposes to put pressure on certain countries or companies, as well as to prevent violations of international norms, for example in the area of security or human rights.

Commodity sanctions often affect strategically important categories of goods, including:

Sanctions may include either a complete ban on transactions with certain goods or the introduction of quotas or licenses for their export or import. Violation of these restrictions may result in serious consequences, such as fines, accounts blocking, cargo delays at customs, additional logistics costs, secondary sanctions, seizure of products, and even administrative or criminal prosecution.

Modern sanctions regimes that restrict trade in certain goods are an important instrument of international policy. The main initiators and beneficiaries of such measures are the United States, the European Union and Great Britain. Along with them, China, the Republic of Korea, Canada, Australia and other countries maintain their own systems of export control and sanctions restrictions. These measures are regulated by national laws.

In response to external sanctions, Russia introduced its own special economic measures (SEM), including a ban on the import of certain categories of goods from countries supporting sanctions and restrictions on the export of strategically important resources.

One of the key tools for adapting to sanctions restrictions has become parallel import, which allows goods to be imported without the consent of the copyright holder, bypassing sanctions barriers. This mechanism helps to fill the gap in products on the domestic market, maintaining economic stability in the context of global trade restrictions.

Commodity sanctions can seriously affect business processes:

It is extremely important for business to promptly monitor changes in the sanctions lists and avoid transactions that may violate sanctions restrictions. However, performing this task manually is associated with a number of difficulties.

Legislation on commodity sanctions is complex and varied. The analysis of sanctioned goods is often labor-intensive and requires significant time resources, since there are no uniform sources, classifiers and standards. For example, in the United States, commodity restrictions can be published both in the text of laws without indicating product codes, and in separate appendices to regulations specifying product codes and names. In other countries, like Japan, sanctions may be published exclusively in national languages.

When checking goods for sanctions, companies face difficulties related to:

All this makes the process of monitoring sanctions extremely complex and requires significant resources.

All necessary data is collected and structured in a single space in Globas with Sanctions Compliance module. This allows companies to promptly check goods and counterparties for sanctions restrictions, avoiding potential risks and simplifying compliance procedures when conducting foreign economic activities.

For companies engaged in foreign economic activity, it is especially important to have an IT solution for checking counterparties and goods for compliance with sanctions requirements.

Sanctions Compliance, Globas module, offers an effective solution that allows to minimize risks when making international transactions.

Globas contains the world's largest database of sanctioned goods - both among participants in the information market in the Russian Federation and abroad.

We analyzed hundreds of sanctions and counter-sanctions documents from a dozen countries: Russia, the USA, the European Union, Great Britain, Switzerland, etc.; translated them into Russian; highlighted the most important things and presented information in a concise and convenient form.

Sanctioned Goods section will help to speed up the verification of export-import restrictions and save you from having to manually parse through Resolutions and Decrees.

Globas solution differs fundamentally by analysis of a wide range of sources and the maximum list of countries that impose sanctions and counter-sanctions. The search is conducted not only by goods and services, but also by technical descriptions of chemical elements, and the search result is presented in a structured and concise form. The list of sanctioned goods is updated promptly as the lists in the primary sources are updated.

Checking for commodities sanctions is available in Globas for users of Sanctions Compliance. The module allows to check not only goods, but also Russian and foreign counterparties, individuals, as well as water and air transport according to the consolidated sanctions list, including the 50% Rule.

We also offer flexible API integration solutions to suit your business and unique audit requirements, with the ability to customize queries to meet your individual needs.