U.S. Bans Exports by an Oregon Freight-Forwarder for Breaking Compliance Procedures

June 19, 2024 Uncategorized


In a significant move underscoring the critical importance of adherence to export controls, the U.S. Commerce Department has imposed a three-year export ban on Oregon-based freight-forwarder USGoBuy. This action highlights a clear message to the industry: strict compliance with U.S. export-control laws is non-negotiable.

As a company that values compliance and transparency, Baum Shipping is committed to upholding these standards, ensuring that the integrity of international trade is maintained.

Background: The Case of USGoBuy

USGoBuy, a company based in Portland, Oregon, recently faced severe repercussions due to non-compliance with U.S. export-control laws. Despite a 2021 settlement that required improvements in their compliance procedures, the company failed to meet the necessary standards. This led to a so-called denial order from the Commerce Department, which could significantly impact USGoBuy’s operations, given that their business model relies heavily on international shipping.

The denial order prohibits the company from exporting most goods from the U.S., which is a rare and severe step indicating the seriousness of their violations. These included shipping riflescopes to China and the United Arab Emirates without the appropriate export filings and maintaining adequate export records, among other infractions.

Analysis: What Went Wrong?

USGoBuy’s case is a stark reminder of the consequences of lax compliance protocols. After their initial settlement, an audit revealed significant flaws within their compliance program, uncovering 176 instances of failure in export filings and record maintenance.

The final straw came when, even after clear warnings, USGoBuy shipped a dummy package marked with export-control labels to China without the required procedures, demonstrating a clear disregard for U.S. laws.

Baum Shipping: A Model of Compliance

At Baum Shipping, we understand that the backbone of successful freight forwarding lies in stringent adherence to all applicable laws and regulations. We have established a robust compliance program that includes:

1. Regular Audits: Continuous internal and external audits ensure that our processes meet or exceed regulatory standards.

2. Training Programs: All employees undergo comprehensive training on export-control laws and regulations to ensure everyone is informed and vigilant.

3. Clear Communication: We maintain open lines of communication with regulatory bodies to stay updated on any changes in the legal framework, ensuring our practices are always compliant.

4. Rigorous Oversight: Our compliance team closely monitors all shipments to prevent and address any discrepancies or violations immediately.

The Importance of Vigilance

The recent action against USGoBuy serves as a critical reminder of the need for constant vigilance in the freight forwarding industry. It is a clear warning shot to all that non-compliance with export control regulations can have severe consequences.

At Baum Shipping, we remain dedicated to upholding the highest standards of compliance, ensuring that we not only meet but exceed the expectations set forth by U.S. and international regulations. This commitment to compliance is not just about adhering to laws—it is about ensuring the integrity and reliability of the global supply chain.

A Wake-Up Call for the Freight Forwarding Industry

For those in the freight forwarding industry, this incident is a call to action to review and strengthen their compliance programs. Baum Shipping stands as a testament to the feasibility and benefits of stringent compliance measures, ensuring safe, legal, and efficient operations in a complex global marketplace.

Contact Baum Shipping today by calling (800) 383-3157 to learn how we follow compliance and how we can help you with your freight forwarding needs.

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Torrance, CA 90501
(800) 383-3157
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