Compliance Gets Personal: Why Forwarders Now Face Liability Under New U.S. Rules

When Routing Decisions Become Liability

Freight forwarders are used to managing complexity — tariffs, sourcing, documentation, delays. But in 2025, the compliance landscape has shifted from guidance to enforcement. Forwarders can now be held legally liable for export routing decisions — even when they’re simply executing the shipper’s instructions.

The updated BIS guidance, published in March 2024, expanded expectations for due diligence — especially in routed transactions. In 2025, the consequences have begun to land. Even unintentional actions — like routing through a third country — can be interpreted as “circumvention” and trigger fines or criminal penalties.

This post breaks down what forwarders need to know about the risks, the red flags, and how to stay compliant without losing customer trust — or losing sleep.

What’s Different Now: From Guidance to Enforcement

Forwarders now share legal liability for routing decisions that appear to enable tariff circumvention — even in routed export transactions.
BIS guidance (Mar 2024) emphasizes due diligence, record keeping, and proactive risk assessment.
“Deemed circumvention” applies even without intent — meaning good faith mistakes can still result in penalties.
Red flags include: high-risk destinations, unclear origin information, or frequent routing changes to avoid listed countries.
Penalties: Civil fines up to $300,000 per violation, plus criminal exposure in cases of “willful blindness.”

What was once a gray area is now black-and-white: If your routing decisions help goods skirt export controls — even indirectly — you could be held responsible.

🚨 What’s a Routed Transaction?

A routed export transaction is one where the foreign buyer (not the U.S. exporter) authorizes a U.S. freight forwarder to handle the export. In these cases, forwarders may think the legal burden falls entirely on the buyer — but under new guidance, you’re still responsible for verifying compliance.

Key takeaway: If you know (or should have known) that a shipment might violate export controls, you could be held liable — even if it’s not your customer.

Why Routing Decisions Are Under the Microscope in 2025

In previous years, freight forwarders could often rely on their documentation trail to deflect liability. That’s no longer enough. In 2025, routing choices — especially those that appear to bypass controls via third countries — are under the microscope.

The Bureau of Industry and Security (BIS) has made it clear: forwarders can’t claim neutrality if their decisions contribute to potential circumvention. This applies even in routed export transactions, where the shipper designates the forwarder.

Key scenarios where forwarders may now be at risk:

Routing through third countries known for transshipment to embargoed destinations.
Repeated changes to origin or destination with unclear justification.
Missing or suspicious paperwork — such as inconsistent commercial invoices, export codes, or license references.

If it looks like circumvention — and the forwarder is involved in the routing decision — enforcement agencies may assume complicity, even without intent.

What This Means for Customer Relationships

These compliance shifts aren’t just legal — they’re relational. Freight forwarders must now balance risk exposure with the expectations of their customers, many of whom may not fully grasp the implications of the new rules.

Here’s how it’s reshaping forwarder–client dynamics:

Higher expectations for compliance expertise: Customers now expect forwarders to act as partners in avoiding risk, not just facilitators of movement.
Proactive education is essential: Forwarders must explain how routing decisions affect compliance — especially in routed transactions — and document those conversations.
Risk of disputes: If a shipment is flagged, customers may push blame back onto the forwarder. A lack of clearly defined roles increases this risk.
Reputational pressure: One high-profile compliance failure could cost the forwarder multiple customers — not just the one involved.

In short, compliance is now a customer service issue — and an opportunity to differentiate.

🚧 Common Customer Misunderstandings

“It’s a routed transaction, so the liability’s not ours.”
“We’ve always used this route — it’s fine.”
“As long as we’re not listed, the shipment should be okay.”
“The forwarder handles compliance, right?”

Forwarders must anticipate and clarify these assumptions early. Compliance is now a shared responsibility — but misunderstandings can leave one party holding all the risk.

How Freight Forwarders Can Stay Compliant: A 2025 Checklist

The good news? Compliance doesn’t have to be chaotic. With the right systems and habits, forwarders can reduce liability and build resilience. Here’s a practical checklist to navigate the new rules:

Action	Why It Matters
Screen all parties	Avoid dealing with restricted or denied entities (EAR/ITAR compliance)
Know the transaction type	Understand routed vs. non-routed roles and responsibilities
Maintain detailed records	Be audit-ready with documented shipment history and licensing
Use tech-enabled compliance tools	Automate screening, EEI filings, and export control checks
Train your team regularly	Ensure staff can recognize red flags and know what to report

Bonus tip: Bookmark the official BIS freight forwarder guidance and share it with your ops team.

Compliance Isn’t Just Survival — It’s Strategy

While these new rules bring challenges, they also create opportunity. In an era of regulatory uncertainty, the forwarders that win are those that lead — not just react.

Shippers want risk-mitigation partners, not silent operators.
Compliance expertise becomes a selling point — a value-add, not overhead.
Visibility tools like TRADLINX allow forwarders to proactively track, document, and defend every shipment decision.

In this compliance climate, showing your customers that you’re in control of risk may be the most profitable service you offer.

Frequently Asked Questions (2025 Freight Compliance Edition)

Can freight forwarders be held liable for export violations?

Yes. Under BIS’s updated 2024 guidance, forwarders can be held liable for export control violations — even in routed transactions — if their decisions or lack of due diligence contribute to tariff circumvention.

What’s the difference between routed and non-routed transactions?

In a routed transaction, the foreign buyer authorizes a U.S. forwarder to manage the export. In a non-routed transaction, the U.S. exporter does. Compliance responsibilities differ, but in both cases, the forwarder has a duty to verify legality.

What are the penalties for non-compliance?

Violations can result in civil penalties of up to $300,000 per incident, criminal charges, and even suspension of export privileges.

What’s considered a “red flag” routing decision?

Examples include routing through countries with known re-export risks, inconsistent paperwork, or frequent destination changes that suggest circumvention.

How can forwarders protect themselves?

Implement screening procedures, document everything, understand BIS rules, and train your staff. Technology can help you scale this without slowing operations.

Enforcement in Action: 2025 Cases Every Forwarder Should Know

The risks of non-compliance aren’t theoretical — and 2025 has already delivered a wave of aggressive enforcement actions targeting freight forwarders. Here are some of the most high-profile cases making headlines:

Israeli Forwarder Sentenced (March 2025)

Gal Haimovich received a two-year prison sentence for violating U.S. export controls by smuggling aircraft components to Russia. He used falsified documents and concealed end destinations to bypass sanctions. This case highlights how U.S. authorities are cracking down — even on foreign-based forwarders involved in dual-use exports.

Haas Automation EAR Violations (April 2025)

Haas admitted to 41 violations of EAR, including unauthorized servicing of CNC machines sold to Entity-Listed parties in China and Russia. Inadequate screening and documentation led to exposure — despite cooperating with authorities.

Apelsin Logistics Denial Order (Feb 2025)

Kirill Gordei and Apelsin Logistics (Florida) received a Temporary Denial Order from BIS for rerouting restricted U.S.-origin goods to Russia via Turkey. The case involved document falsification and coaching clients on how to avoid U.S. controls.

ExHigh Air Space Ltd. Case (March 2025)

BIS issued a TDO against ExHigh and partners for shipping aircraft parts (under ECCNs) to Russia, ignoring repeated seizures and continuing prohibited activities. This shows that enforcement isn’t just about fines — it’s about denying access entirely.

⚠️ Real Risk, Real Fast:

If your documentation is incomplete, your routes suspicious, or your screening process weak — enforcement agencies won’t wait. 2025 isn’t just about compliance posture. It’s about survival.

The Bottom Line: Risk Is Rising — So Should Your Visibility

The 2025 compliance landscape is not forgiving. It doesn’t matter whether a routing decision was intentional, or whether the forwarder “just followed instructions.” Liability now follows action — or inaction.

But this shift also creates a moment for forwarders to lead. The more proactively you manage risk, the more valuable you become to your customers. In the chaos, trust becomes currency.

Don’t just stay compliant. Use compliance to stand out.

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