.(1) Access the US Department of Commerce Bureau of Industry and Security (Links to an external site.) website. Based on what is listed on that website, summarize the steps a firm must take to process an item for export. (2) Access the Society for Worldwide Interbank Financial Telecommunications (Links to an external site.) website. What is the purpose of SWIFT? The President of the United States recently referred to how the US Government was using SWIFT. Do you know why? (3) How would you compare the perils of maritime shipping to that of airfreight? (4) What is Lloyds of London and under what conditions might you use their services? Solution (1) In the event a company, entity or person on one of the following lists appears to match a potential party in an export transaction, additional due diligence is required before proceeding. Depending on which list the match was found, a match indicates either: there is a strict export prohibition; a specific license requirement; or the presence of a \"red flag\". Prior to taking any further actions, users are to consult the requirements of the specific list on which the company, entity or person is identified by reviewing the webpage of the agency responsible for the list. Denied Persons List A list of individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited. Entity List The Entity List identifies foreign parties that are prohibited from receiving some or all items subject to the EAR unless the exporter secures a license. Those persons present a greater risk of diversion to weapons of mass destruction (WMD) programs, terrorism, or other activities contrary to U.S. national security or foreign policy interests. By publicly listing such persons, the Entity List is an important tool to prevent unauthorized trade in items subject to the EAR. BIS can add to the Entity List a foreign party, such as an individual, business, research institution, or government organization, for engaging in activities contrary to U.S. national security and/or foreign policy interests. In most instances, license exceptions are unavailable for the export, reexport, or transfer (in-country) to a party on the Entity List of items subject to the EAR. Rather, a prior license is required, usually subject to a policy of denial. For guidance concerning the prohibitions and license application review policy applicable to a particular party, please review that party\'s entry on the list. Procedures for removal from the Entity List appear in section 744.16 of the EAR. Unverified List A list of parties whose bona fides BIS has been unable to verify. No license exceptions may be used for exports, reexports, or transfers (in-country) to UVL parties. A statement must be obtained from such parties prior to shipping items not subject to a license requirement. See Section 744.15 of the EAR. Consolidated Screening List The Consolidated S

1. (1) Access the US Department of Commerce Bureau of Industry and Security (Links to an
external site.) website. Based on what is listed on that website, summarize the steps a firm must
take to process an item for export.
(2) Access the Society for Worldwide Interbank Financial Telecommunications (Links to an
external site.) website. What is the purpose of SWIFT? The President of the United States
recently referred to how the US Government was using SWIFT. Do you know why?
(3) How would you compare the perils of maritime shipping to that of airfreight?
(4) What is Lloyds of London and under what conditions might you use their services?
Solution
(1) In the event a company, entity or person on one of the following lists appears to match a
potential party in an export transaction, additional due diligence is required before proceeding.
Depending on which list the match was found, a match indicates either: there is a strict export
prohibition; a specific license requirement; or the presence of a "red flag".
Prior to taking any further actions, users are to consult the requirements of the specific list on
which the company, entity or person is identified by reviewing the webpage of the agency
responsible for the list.
Denied Persons List
A list of individuals and entities that have been denied export privileges. Any dealings with a
party on this list that would violate the terms of its denial order are prohibited.
Entity List
The Entity List identifies foreign parties that are prohibited from receiving some or all items
subject to the EAR unless the exporter secures a license. Those persons present a greater risk of
diversion to weapons of mass destruction (WMD) programs, terrorism, or other activities
contrary to U.S. national security or foreign policy interests. By publicly listing such persons, the
Entity List is an important tool to prevent unauthorized trade in items subject to the EAR.
BIS can add to the Entity List a foreign party, such as an individual, business, research
institution, or government organization, for engaging in activities contrary to U.S. national
security and/or foreign policy interests. In most instances, license exceptions are unavailable for
the export, reexport, or transfer (in-country) to a party on the Entity List of items subject to the
EAR. Rather, a prior license is required, usually subject to a policy of denial. For guidance
concerning the prohibitions and license application review policy applicable to a particular party,
please review that party's entry on the list. Procedures for removal from the Entity List appear in
section 744.16 of the EAR.

2. Unverified List
A list of parties whose bona fides BIS has been unable to verify. No license exceptions may be
used for exports, reexports, or transfers (in-country) to UVL parties. A statement must be
obtained from such parties prior to shipping items not subject to a license requirement. See
Section 744.15 of the EAR.
Consolidated Screening List
The Consolidated Screening List is a downloadable file that consolidates export screening lists of
the Departments of Commerce, State and the Treasury into one spreadsheet to assist in screening
potential parties to regulated transactions. If the potential match is from the consolidated list,
please follow the detailed instructions on the Consolidated List homepage to determine what list
the potential match is from and under what government agency’s jurisdiction.
(2) Society for Worldwide Interbank Financial Telecommunications. Global communication
network that facilitates 24-hour secure international exchange of payment instructions between
banks, central banks, multinational corporations, and major securities firms. A member owned
cooperative organized in 1977 under Belgium law, it now includes over 6,500 participating
members from more than 180 countries which together process in excess of a billion messages
every year (about 300 million messages every day).
In 1973 SWIFT SCRL was founded on the principle that collaboration and cooperation can solve
big, common problems. Four decades on, the banking co-operative operates a financial
messaging platform that brings together 10,500 financial institutions and corporations across 215
countries. Built on this are a variety of financial applications, business intelligence, reference
data and most recently compliance services. The network and its members exchange more than
22 million payments, securities, trade finance and treasury messages daily in a highly reliable,
secure and resilient manner.
SWIFT India Domestic Services Pvt Ltd (“SWIFT India” or “the Company”), founded on similar
principles, is a financial messaging services provider formed by SWIFT SCRL and Indian banks,
for the domestic Indian financial community and by the community.
Through shared resources and capital, SWIFT India functions with the objective of enabling
harmonised exchange of structured financial information between domestic participants in the
domestic Indian community, thereby
a) reducing costs and risks,
b) expanding the reach of automated, standardised and secure exchange of information across
the industry,
c) enabling new instruments, opportunities and markets for the industry.
(3)
In life and business, there are always choices to make. When it comes to international shipping,

3. there are many choices. Of all these choices, the most basic is the decision of what kind of
transport to use: air freightor ocean freight. Whether you’re a business that will be shipping
overseas all the time or an individual moving to a new country, deciding whether to go with
ocean freight or air freight is an important choice. There are four key factors you should consider
when making this decision.
1. Cost
You probably don’t have to be told to consider the costs before an undertaking. As a business
person, you consider the bottom line and as an individual, you have a budget. Naturally, you’re
going to want to know which will cost you less, air freight or ocean freight. Typically, you will
hear that shipping by ocean is cheaper than shipping by air.
2. Speed
When it comes to speed, there is no question that air freight is usually much faster. Since time is
money, this
faster. Since time is money, this factor could more than make up for a higher cost of flying
cargo. Many sea shipments can take around a month to arrive while an air shipment takes a day
or two. For most business shipping, faster is better. When it comes to the individual moving a
household, it is often good to have the extra time to prepare for the arrival of household goods in
a new country. It should be noted that technology keeps moving forward in the international
shipping world. Ships are getting faster. Canals have created shorter shipping routes. There are
many ocean freight shipments crossing the oceans and being delivered in as few as 8 days.
3. Reliability
Reliability is something we all look for in people, businesses, products, and services. How does
ocean freight and air freight stack up against each other in this category? Air freight shipping has
a much, much shorter history than ocean freight shipping, yet air freight tends to win the battle of
reliability. Flights get delayed by weather and other factors, but airlines tend to be very on top of
their schedules. Ocean carriers are notorious for being bad about this. It is not uncommon for
ships to be off schedule. For many, a day or two here or there doesn’t hurt; however, for many
businesses, a day or two could have serious cost effects. With airlines, there are usually daily
flights back and forth between major cities around the world. Because of this, missing a flight
doesn’t cause much of a delay for a cargo shipment. Ocean lines tend to have weekly schedules.
Missing the cutoff at a seaport means a longer delay.
4. Environmental Impact
Not everything is about the bottom line and convenience. While the social awareness of
environmental issues can change the way the public looks at a company and affect its bottom
line, we all have a responsibility of taking care of the planet on which we live. It would seem that
ocean freight wins this category. CO2 emissions are much higher in air freight transport than

4. ocean freight transport. This causes cargo shipping by air to have a much larger carbon
fingerprint than cargo shipping by sea. However, considering oil spills and the water ecosystems
affected by ocean freight, gives pause. Perhaps the jury is still out on this final factor.
(4)
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