Augustin
3 min read
Jun 7, 2019

Key Points:

  • A sanction is meant to penalize a country or certain groups and individuals within a country
  • OFAC stands for Office of Foreign Assets Control, and it's part of the U.S. Department of the Treasury
  • Visit the Sanctions Program and Country Information Resource Center to see the full listing and stay updated on any changes to OFAC sanctions

There’s been a lot of buzz in the news cycle around the United States raising tariffs with countries such as Canada, China, and Mexico.

Trade wars can directly affect eCommerce businesses that import their products from these countries, as it will force them to raise customer prices in order to maintain their margins.

Another aspect of international trade that can affect eCommerce revenues is the prohibition of selling goods to sanctioned countries.

Selling to sanctioned countries is a violation of the law and can result in fines and other penalties, so it’s best to be mindful of the restrictions in place and ensure your eCommerce store is in compliance.

There are different types of international sanctions; this post will cover economic sanctions that eCommerce businesses should be aware of.

How Do Sanctions Work?

A sanction is meant to penalize a country or certain groups and individuals within a country.

Economic sanctions are usually a ban on trading any goods with the sanctioned party, though certain exceptions such as importing food and medicine for humanitarian causes may be allowed.

Tariffs and restrictions on financial transactions are other ways economic sanctions can be enforced.

Sometimes, it’s possible to still do trade with a sanctioned country if you apply for a license from your country’s government. If it turns out your business is non-compliant and violates a sanction, penalties can be severe - online marketplaces such as Amazon can choose to suspend your seller account or the government can give you a hefty fine.

OFAC Sanctions

OFAC stands for Office of Foreign Assets Control, and it's part of the U.S. Department of the Treasury. They are responsible for administering and enforcing sanctions. They also issue the proper licensing needed to do business with sanctioned countries, should any exceptions exist.

What are U.S. sanctions?

U.S. sanctions can change at any time. It’s recommended to visit the Sanctions Program and Country Information Resource Center to see who is on the OFAC list.

The Resource Center is very useful in providing updates on what the sanctions involve, in addition to context on how the sanctions came into place. You can see any new legislation related to the sanctions, in addition to authorizations needed and other frequently asked questions.

Iran shipping sanctions

Iran has been hit hard by sanctions in the U.S., particularly on its oil exports. Commercial goods shipments to Iran that don’t require an export license are limited to certain agricultural commodities, medicines, and medical supplies. See the complete list.

When were sanctions imposed on Iran?

On November 5, 2018, the U.S. fully re-imposed sanctions on Iran that were lifted or waived under the Joint Comprehensive Plan of Action (JCPOA). They also imposed new sanctions on over 700 individuals, entities, aircraft, and vessels based in Iran. For additional details, visit the Iran Sanctions page on the OFAC website.

Who else is on the OFAC list?

In addition to Iran, other regions and countries on the U.S. sanctions list include:

  • The Balkans
  • Belarus
  • Burundi
  • Central African Republic
  • Cuba
  • Democratic Republic of the Congo
  • Iraq
  • Lebanon
  • Libya
  • Nicaragua
  • North Korea
  • Somalia
  • Sudan and Darfur
  • South Sudan
  • Syria
  • Ukraine (Crimea) / Russia
  • Venezuela
  • Yemen
  • Zimbabwe

Sanctions for these countries may change or be lifted, and new countries may be added at any time. Individuals, entities, and certain groups may also have sanctions. Visit the Sanctions Program and Country Information Resource Center to see the full listing and stay updated on any changes.

How to Avoid Violating a Sanction

Here are some tips to keep in mind:

  • Know where you’re allowed to ship. Familiarize yourself with the countries and regions on the OFAC list and restrict any shipments to these destinations. You can automate this by creating shipping rules that will prevent the processing of any label to these countries. It’s also useful to explain in your shipping policy or FAQ section that you cannot ship to those particular countries.
  • Understand the restrictions of the shipping destinations. It may still be possible to send shipments to sanctioned countries, but you have to confirm if there are any restrictions on the value of the items (for example, you may only be able to ship something that is under $100 in value). Sometimes, only personal gifts may be allowed, and you may need to obtain a license to sell commercial goods.
  • Implement a compliance program. If your business processes a lot of shipments to restricted countries, it may be wise to hire a third party to help you create and maintain a compliance program that follows OFAC guidelines.
  • Seek legal advice from an eCommerce attorney. An eCommerce lawyer may be able to advise you on sanctions laws or refer you to a specialist who can.

OFAC Sanctions: Know the Rules and Regulations

Even if it’s unintended, Violating a sanction can be costly for your business. It’s best to be mindful of countries that are problematic to ship to and proceed with caution if you want to move forward.

If you are actively processing shipments to these countries, consider working with a third party that can help you stay compliant with the ever-changing sanctions environment.

{{ watch-out-for-international-duty-and-tax }}

TABLE OF CONTENTS

Key Points:

  • A sanction is meant to penalize a country or certain groups and individuals within a country
  • OFAC stands for Office of Foreign Assets Control, and it's part of the U.S. Department of the Treasury
  • Visit the Sanctions Program and Country Information Resource Center to see the full listing and stay updated on any changes to OFAC sanctions
Get Your Ship Together.

By submitting the form, you agree to receive marketing emails from Easyship.

Save up to 91% on Shipping. Try for free.

Effortlessly compare 550+ courier services with one global account. Instant discounts. Start in minutes.

Shipping Internationally? Unsure What Tariffs or Duties Apply?
Try our FREE Tax & Duty Calculator

Trying to stay up to date on the latest cross-border shipping and import requirements? Get an instant estimate of all applicable taxes and duties for every country across 220+ global destinations or sign up and take advantage of our in-built HS Code lookup tool.

Calculate Tax & Duties Instantly (Free Tool)
Ready to Stop Overpaying for Shipping?
Try our FREE Shipping Rate Calculator

Looking for the cheapest way to ship a package? Get an instant shipping quote and compare rates from 550+ courier services across the United States, Canada, UK, Australia, and more. Simply add your package size and delivery location, and you'll find the best deal in seconds.

Calculate Rates Instantly (Free Tool)
Planning Your Campaign?

Get in touch with us now and our shipping consultants can give you a detailed quote and additional info to help with your campaign.

Get in touch
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get in touch with our fulfillment experts!

We believe simple pricing is the best pricing. Get a quote with a simplified pricing structure and no hidden fees.

Contact us
Need help fulfilling your crowdfunding campaign?

We provide the necessary tools needed to keep you on budget for shipping and to safely deliver your product to backers around the world.

Learn more
Try our duty & tax calculator!

Need to estimate your shipping duties & taxes? Our calculator can give you an idea of what to expect.

TRY IT NOW
Save up to 91% on Shipping. Try for free.

Compare 550+ courier services with one global account. Start in minutes.

GET STARTED FOR FREE
Get a Free Quote for Your Campaign

Receive a personal cost estimate for your crowdfunding campaign from our trusted global fulfillment partners. Easyship is a certified Indiegogo partner.

GET FREE QUOTE
Looking for great rates from a top courier?

Save up to 74% on UPS shipping rates by shipping with Easyship. You can run a quote and generate your first shipments in literally minutes!

SHIP WITH UPS TODAY
The cheapest way to ship for eCommerce

Get instant access with volume-discounted shipping rates. Save up to 89% off on USPS, UPS, FedEx, and more. Easyship is free for 50 shipments each month.

SIGN UP FREE TO SAVE
Find your perfect fulfillment partner with expert help

Let Easyship connect you to the largest shipping and fulfillment network on Earth. You’ll find trusted partners for all things logistics. Guidance is free from our global shipping experts.

ASK AN EXPERT
Don’t miss our money and time-saving features!

Explore the powerful features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE ALL FEATURES
Start saving on shipping in seconds

Create your free Easyship account to streamline shipping and save with discounted rates. No hidden fees. No minimums. Just savings.

CREATE YOUR FREE ACCOUNT
Create Your Shipping Policy Free

Use our guided walk-through to build the perfect shipping policy for your eCommerce business.

CREATE YOUR POLICY FREE
Looking to intergrate your Shopify store?

With 550+ pre-negotiated shipping services available with discounts of up to 91%, you can save time & money today when you integrate your Shopify store with Easyship

REGISTER FOR FREE
Use Easyship Free Every Month

Easyship is free to use for 50 shipments every month. You’ll save big on our discounted shipping rates up to 91% off, and save time with smart automation. Signup is fast and free.

CREATE YOUR FREE ACCOUNT
Don’t miss the key steps to fulfillment success

Follow the easy path to fulfillment success. Easyship’s free fulfillment checklist provides a proven step-by-step so you can ship at scale without the guesswork.

VIEW THE CHECKLIST
Ship for less with any courier, guaranteed

Save up to 89% off all shipping rates. Easyship offers the guaranteed cheapest volume-discounted rates on the market from USPS, UPS, FedEx, and 250+ global couriers.

SIGN UP TO SAVE
Don’t miss all our money and time-saving features!

Explore the innovative features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE FEATURES
Want the cheapest rates?

Register for an Easyship account today and you will gain access to the cheapest rates, instantly.

REGISTER FOR FREE
Watch out for international duty and tax!

What exactly does it cost to ship cross-border? Use the free duty and tax calculator from Easyship to view accurate import costs for any shipment to anywhere.

USE FREE
Protect Your Crowdfunding Budget from Cost Creep

Prices are rising, deliveries are slowing. Get up to speed on the state of crowdfunding shipping with expert Easyship analysis and keep your campaign on budget.

LEARN MORE
Discover the Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 550+ courier services at a glance.

GET A FREE QUOTE
Discover Your Cheapest Way to Ship

Find the guaranteed cheapest shipping in seconds with Easyship’s free shipping rate calculator. Compare discounted rates from USPS, UPS, FedEx, and 250+ global couriers at a glance.

COMPARE RATES FREE
Compare the best rates in seconds

Get an instant estimate of the cheapest shipping rates with our free calculator tool.

GET FREE RATE QUOTES
Save money on every shipment

Save up to 91% off shipping with Easyship’s discount courier rates. Create your free account to save instantly on 550+ courier services, including USPS.

CREATE YOUR FREE ACCOUNT
Ready to ship internationally?

Get help from our global shipping experts on warehousing, global shipping and to connect with our network of trusted 3PLs.

GET FREE SHIPPING TIPS
How’s Your Covid Shipping Policy?

Use our free shipping policy generator to formulate your safest, most customer-friendly shipping policy in seconds.

GET YOUR SHIPPING POLICY
Try Pre-generated Return Labels For Free

Register for an Easyship account today and get 30-days access to a Premier plan with access to Pre-generated Return Labels.

Generate Return Labels Today
Discover the Cheapest Shipping from USPS, UPS® & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get Up to Speed On Covid Shipping

Explore our Covid shipping resources to make sure your shipment arrives on time and in good condition.

LEARN MORE
Free Shipping for the Holidays 101

Learn how the leading brands offer free shipping, calculate costs, and ship on a budget for the holidays in our free shipping guidebook.

LEARN MORE
Your Perfect Shipping Policy, Ready in Minutes

Use Easyship’s free shipping policy generator to formulate your perfect holiday shipping policy for returns, tracking, and more. Just follow the prompts and you’re done!

GET YOUR SHIPPING POLICY
Scale Your Growth Internationally With Pro Tips

Learn how to ship internationally without missing a step. Our case studies show you proven tactics for shipping worldwide from Easyship users who did it right.

READ CASE STUDIES
No items found.
Share on:

Related Articles

No items found.