DEFENCE · AEROSPACE · STRATEGIC TRADE
Compliance for defence and strategic trade
Companies operating in defence, aerospace and other strategically sensitive sectors work in a complex international environment. Customers, end users, products and destinations can bring additional compliance risks.
TradeRisk supports organisations in assessing these risks and carrying out appropriate due diligence, screening and trade compliance checks.
Complex supply chains call for insight
In defence and strategic trade, the direct contracting party is not always the ultimate end user. Products can reach other parties through distributors, integrators or international trading structures.
That is why insight into the entire supply chain matters.
TradeRisk helps investigate relevant parties, corporate structures, end users and potential compliance risks surrounding international transactions.
Where can we help?
End-user screening
Research into the ultimate user of goods, technology or services.
End-use assessment
Assessment of the intended use and potential risk factors.
Counterparty due diligence
Research into customers, distributors, intermediaries and other trading partners.
UBO & ownership research
Insight into ownership structures and ultimate beneficial owners.
Sanctions screening
Screening against relevant international sanctions regimes.
Strategic trade risk assessment
An integrated assessment of risks relating to parties, products, destinations and transactions.
Example situation
A company receives an order and it turns out that the product will ultimately be used for defence applications.
Questions that then arise:
- “Are we allowed to supply?”
- “Who is the real end user?”
- “Do we need to apply for a licence?”
- “Are there sanctions?”
- “Is this product dual-use?”
When are additional checks advisable?
Additional compliance checks may be relevant when:
- a product may have a military application
- goods are supplied through several international parties
- the end user is insufficiently clear
- sensitive technology is involved
- an intermediary is involved
- the destination carries elevated geopolitical risks
- a transaction deviates from the usual business profile
Who it is for
Our risk-based approach
STEP 1
Inventory
We map the transaction, the parties involved, the goods, the destination and the available information.
STEP 2
Risk assessment
We identify relevant risks relating to ownership, sanctions, export control, end use and end user.
STEP 3
Additional research
Where needed, we carry out additional screening or due diligence.
STEP 4
Practical next steps
The findings are translated into clear points of attention and possible next steps.
Frequently asked questions
What is strategic trade compliance?
Strategic trade compliance focuses on the risks of international trade in goods, technology and services that may be sensitive from a security, sanctions or export control perspective.
Why is end-user screening important?
The direct customer is not always the one who ultimately uses a product. Insight into the end user can therefore be important for transactions involving sensitive goods or technology.
Does TradeRisk also support defence suppliers?
TradeRisk can support organisations operating directly or indirectly in defence, aerospace and other strategically sensitive supply chains.
What is brokering in strategic goods?
Brokering means arranging the sale, supply or transfer of military or strategic goods between parties in other countries, even without the goods themselves touching Dutch territory. Brokering activities can also be subject to a licence.
Are software and technical knowledge also subject to export controls?
Yes. Transferring technical knowledge, source code or software to foreign parties can also fall under export controls, even when no physical product crosses the border.
What if the end user is unclear?
When the end user is insufficiently clear, additional research may be needed before a supply decision can responsibly be made.
Do you have a question relating to defence or strategic trade?
Discuss your situation with TradeRisk.
Book an introduction