In a move to support transparency and accountability across international trade, the European Commission has released a factsheet clarifying that exporters remain fully responsible for sanctions compliance—regardless of which Incoterms are used in a transaction.
This guidance is particularly relevant for businesses operating in global supply chains, as it reinforces the importance of aligning trade practices with regulatory obligations. Specifically, the clarification addresses the “Ex Works” (EXW) term, which traditionally transfers risk and logistics responsibility to the buyer at the point of collection. While this Incoterm defines commercial responsibilities, it does not override legal requirements under EU sanctions.
The Commission underscores that all entities under EU jurisdiction—including exporters, logistics providers, and supply chain partners—must take active measures to ensure goods are not delivered to restricted destinations. This includes conducting due diligence on end-users, verifying routes, and assessing risks of circumvention.
For supply chain professionals, this update serves as a constructive reminder that legal compliance is a shared responsibility across the logistics and procurement process. With growing global scrutiny on ethical sourcing and responsible trade practices, this guidance helps strengthen operational integrity and trust across the value chain.
Moreover, aligning contracts and operations with compliance best practices not only reduces risk but also enhances resilience in supply networks. By encouraging proactive measures, the EU is fostering a trade environment where transparency and security go hand in hand with efficiency.
This development reinforces the role of compliance as a cornerstone of modern supply chain management—empowering companies to operate confidently in an evolving global trade landscape.
#ICTTMNews #SupplyChainNews #TradeCompliance #NewsUpdate #ExportRegulations #BreakingNews
