Of the 150 mid-market companies surveyed, 23 percent do not screen for restricted parties prior to engaging with trading partners and customers.
"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, formerly Management Dynamics. "Unfortunately, it appears that many mid-market companies aren't fully aware of the regulatory requirements governing global trade."
According to a March U.S. Bureau of Economic Analysis report, U.S. exports grew 7.7 percent from January 2011 to January 2012. Small and mid-market companies make up the bulk of those exporting as well as export volume growth. In 2010, SMEs accounted for 97.8 percent of all U.S. exporters, according to the most recent report by the U.S. Department of Commerce's International Trade Commission. SME export volumes increased 24.1 percent in 2010 from 2009, noted the report.
Of survey respondents who perform restricted party screening, 30 percent execute checks manually using spreadsheets or websites. Furthermore, only 41 percent had a comprehensive export compliance program.
Survey respondents pointed to a lack of executive sponsorship as a primary reason for their companies' trade compliance deficiencies.
For the full results of the survey, click here.
Source: Amber Road
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