If a red flag applies to a transaction and the circumstances cannot be explained or justified, what should the exporter do?

If a red flag applies to a transaction and the circumstances cannot be explained or justified, what should the exporter do?

• A. Contact BIS and wait for a reply
• B. Proceed with the transaction
• C. Ignore the red flag
• D. Document the flag but take no action

Answer: (A)

Red flags signal potential noncompliance and require escalation to official guidance rather than acting unilaterally. When a red flag appears and you can’t explain or justify it with your records, you should pause the transaction and reach out to BIS for a license determination or written guidance, then wait for their reply before proceeding. This step protects you from violating export control laws by shipping items without the proper license or clear eligibility. Proceeding anyway risks unlawful export; ignoring the red flag or doing nothing provides no assurance of legal compliance and leaves the transaction exposed to enforcement and penalties. Documenting the flag is good, but without BIS guidance you haven’t resolved the underlying risk.

Red flags signal potential noncompliance and require escalation to official guidance rather than acting unilaterally. When a red flag appears and you can’t explain or justify it with your records, you should pause the transaction and reach out to BIS for a license determination or written guidance, then wait for their reply before proceeding. This step protects you from violating export control laws by shipping items without the proper license or clear eligibility.

Proceeding anyway risks unlawful export; ignoring the red flag or doing nothing provides no assurance of legal compliance and leaves the transaction exposed to enforcement and penalties. Documenting the flag is good, but without BIS guidance you haven’t resolved the underlying risk.