International trade controls are a critical component of global compliance frameworks. These rules are implemented to safeguard national and international security, prevent the spread of sensitive technologies, and support foreign policy objectives. Companies engaged in cross-border trade—whether exporting goods, transferring software, or handling logistics—must understand and comply with these regulations to avoid significant legal, financial, and reputational consequences. Core areas include export controls, dual-use goods classification, sanctions and embargoes, and denied party screening protocols.
International Trade Controls & Sanctions
Export Controls
Export controls regulate the cross-border transfer of goods, software, and technologies that may pose a risk to national or international security or be used in the development of weapons of mass destruction. These controls are designed to prevent the misuse of sensitive goods and are enforced to block unauthorized access by end users or destinantions. They cover a broad range of strategic goods and activities, including military equipment, nuclear-related materials, and technical know-how.
In the European Union, export controls are governed by Regulation (EU) 2021/821, which sets out the common rules for the control of exports, brokering, technical assistance, and transit of sensitive goods. In the United Kingdom, the Export Control Joint Unit (ECJU) oversees licensing under the UK Strategic Export Control Lists. Businesses must determine whether their goods, technologies, or services require an export license and apply to the appropriate authority. Export controls may also apply to intangible transfers, such as sending controlled technical information by email or providing technical support remotely.
Dual-Use Goods
Dual-use goods are products, software, and technologies that are primarily used for civilian purposes but also have potential military or security applications. These include a wide range of goods such as advanced electronics, navigation systems, goods with aerospace applications, and certain chemicals that could be used in weapon production. Because of their dual potential, these goods are subject to specific control measures
Exporters are responsible for determining whether their products are classified as dual-use and must conduct thorough assessments before export. Accurate classification and licensing help mitigate the risk of unauthorized use and ensure full compliance with international security commitments.
Denied Party Screening
Denied Party Screening (DPS) is a critical compliance process that involves checking customers, suppliers, and business partners against official government watchlists. The goal is to ensure that no party involved in a transaction is subject to trade restrictions, export controls, or sanctions.
Screening should be integrated into multiple points in the business workflow—from onboarding new clients and reviewing orders to final shipment processing. Reliable sources for screening include the EU Sanctions Map, the UK HM Treasury Consolidated List, the US OFAC SDN List, and the UN Security Council Consolidated List. For companies with a high volume of transactions, automated denied party screening solutions ensure consistent and timely checks while minimizing disruption to business operations.
Neglecting denied party screening can result in accidental breaches of international regulations, with potentially severe legal and commercial consequences.
Risks of Non-Compliance
The consequences of failing to comply with international trade controls and sanctions are wide-ranging and serious. Regulatory agencies can impose substantial fines, prosecute individuals or businesses, and revoke export privileges. Shipments can be delayed, confiscated, or returned, causing disruptions in supply chains and financial losses. Moreover, reputational harm can be long-lasting, affecting relationships with customers, suppliers, and financial institutions.
A proactive trade compliance strategy—including internal audits, staff training, and denied party screening—can help mitigate these risks and ensure business continuity.
