First, let me say that having practiced business and Federal law for the past 20 plus years, selling to the wrong person or company by accident can have dire consequences. You need not worry about who you cannot sell to, especially as a  US based company.

The Bureau of Industry and Security (BIS) maintains a "Red Flag" list as part of its compliance guidelines to help businesses identify potential warning signs and perform enhanced due diligence when dealing with customers, partners, or transactions that might raise concerns related to export compliance and potential violations of Export Administration Regulations (EAR). The Red Flag list is a tool to help companies assess the risk associated with certain transactions and entities. It aims to prevent the unwitting involvement in activities that could breach export controls or support unauthorized end uses or end users.

The Red Flag list typically includes indicators or circumstances that might signal an increased risk of diversion or misuse of controlled items, technologies, or services. These indicators could encompass a range of factors, such as unusual order requests, discrepancies in information provided, changes in shipping destinations, and involvement with countries subject to sanctions or embargoes.

While the specific details of the Red Flag list may change over time, its purpose remains consistent: to encourage businesses to exercise due diligence and take proactive steps to mitigate the risk of inadvertently contributing to illegal or unauthorized activities. Companies are encouraged to consult the BIS website or relevant official resources to access the most up-to-date version of the Red Flag list and other compliance guidelines.

It's important for businesses engaged in international trade, especially those dealing with controlled items or technologies, to be aware of and familiarize themselves with the Red Flag list and other resources provided by BIS. This proactive approach can help prevent violations of export regulations and support responsible global business conduct.

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