01. Purpose
HSO Petroleum Services LLC maintains a risk-based compliance framework intended to prevent violations of applicable economic sanctions, export controls, import restrictions and international trade laws.
This Policy does not represent that HSO is a financial institution or regulated exporter in every transaction. It describes controls HSO may apply to the extent appropriate to its business activities and legal obligations.
02. Scope
This Policy applies to Buyers, Partners, Suppliers, manufacturers, intermediaries, freight forwarders, consignees, beneficial owners, end users and other parties involved in Marketplace transactions.
03. Applicable Requirements
Transactions may be subject to:
- sanctions administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control;
- the Export Administration Regulations administered by the U.S. Department of Commerce, Bureau of Industry and Security;
- U.S. Department of State controls where applicable;
- customs and import laws;
- anti-boycott requirements;
- applicable foreign sanctions and trade-control laws; and
- Product-specific licensing requirements.
The applicable legal requirements depend on the Product, classification, origin, destination, parties, end user and end use.
04. Risk-Based Approach
HSO may apply controls proportionate to the risk presented by the Product, Buyer, Partner, destination, payment method, intermediary, end user and transaction. OFAC recommends a risk-based sanctions program incorporating management commitment, risk assessment, internal controls, testing and auditing, and training.
05. Transaction Screening
HSO may screen:
- Buyers;
- Business Buyers;
- Partners;
- Suppliers;
- beneficial owners;
- consignees;
- end users;
- payment parties;
- freight forwarders;
- intermediaries;
- vessels, where relevant;
- destination countries;
- Products; and
- transaction details.
HSO may use the U.S. Consolidated Screening List and other relevant governmental lists. BIS describes the Consolidated Screening List as combining screening lists maintained by the U.S. Departments of Commerce, State and Treasury.
06. Product Classification
The Buyer and Partner must provide accurate information reasonably requested to determine:
- Product description;
- country of origin;
- manufacturer;
- part number;
- technical specifications;
- Harmonized System classification;
- Export Control Classification Number, if applicable;
- licensing status; and
- applicable authorization.
HSO does not guarantee the accuracy of a classification supplied by a Partner, manufacturer or Buyer.
07. Restricted Parties and Ownership
A party may not use the Marketplace if it is:
- a sanctioned or blocked person;
- owned or controlled by a restricted person to the extent applicable law treats it as restricted;
- acting on behalf of a prohibited party;
- subject to export-denial restrictions; or
- participating in evasion or circumvention.
08. Restricted Destinations
HSO may refuse transactions involving a country, territory, region or destination subject to sanctions, embargoes, export restrictions, licensing requirements, Carrier restrictions or heightened diversion risk.
HSO does not maintain a permanent public list because applicable restrictions may change.
09. End-User and End-Use Restrictions
Products may not be sold, exported, re-exported, transferred or used for a prohibited end use or by a prohibited end user.
The Buyer must provide accurate end-user and end-use information when requested. BIS guidance emphasizes that export obligations may depend on knowledge of the end use, end user, ultimate destination and other transaction facts.
10. Diversion and Re-Export
No person may divert, transship, re-export or transfer a Product to evade applicable restrictions or to reach a destination, end user or end use that HSO or applicable law prohibits.
A Buyer intending to resell, export or re-export a Product is independently responsible for determining and satisfying applicable authorization requirements.
11. Red Flags
HSO may investigate circumstances including:
- reluctance to identify the end user;
- incomplete ownership information;
- unusual routing;
- payment by unrelated parties;
- inconsistent destination information;
- excessive secrecy;
- Product capabilities inconsistent with the Buyer’s business;
- refusal of customary installation or training;
- diversion through a freight forwarder; or
- documentation inconsistencies.
Unresolved red flags may result in suspension or cancellation.
12. Additional Documentation
HSO may request:
- identity and corporate records;
- beneficial-ownership information;
- end-user statements;
- end-use certificates;
- import or export licenses;
- government authorization;
- Product classifications;
- destination information;
- vessel information;
- purchase orders; or
- other supporting documents.
13. No Evasion
Users may not structure transactions, split Orders, use intermediaries, conceal ownership, alter documentation or provide misleading information to evade sanctions, export controls, screening or reporting requirements.
14. Suspension, Refusal and Cancellation
HSO may refuse, suspend or cancel an Order where transaction screening identifies an applicable sanctions, export-control, end-use, destination, diversion or compliance concern.
HSO may withhold shipment or payment while a review is pending. HSO is not required to complete a transaction that it reasonably believes may violate applicable law.
15. Licenses and Government Authorizations
Acceptance of an Order does not constitute confirmation that a license is unnecessary.
Where authorization is required, shipment will not occur until the appropriate authorization is obtained and verified. HSO is not obligated to apply for a license unless expressly agreed in writing.
16. User Representations
Each Buyer, Partner and Supplier represents that:
- information provided to HSO is accurate;
- it is not acting for a prohibited party;
- it will comply with applicable trade laws;
- it will not use or transfer Products for prohibited purposes;
- it will not evade or facilitate evasion of restrictions; and
- it will promptly notify HSO of relevant changes.
17. Record Retention
HSO may retain screening, transaction, shipping, licensing, end-use and due-diligence records for the period required by applicable law or HSO’s record-retention procedures.
18. Cooperation and Reporting
Users must cooperate with reasonable compliance inquiries.
HSO may disclose information to Carriers, financial institutions, service providers, regulators or governmental authorities when reasonably necessary or legally required.
19. Violations
A violation may result in:
- rejection or cancellation;
- account restriction;
- Listing removal;
- payment hold;
- termination;
- reporting to authorities; or
- legal action.
20. No Legal Advice
HSO does not provide export-control, sanctions, customs or licensing advice. Users should obtain professional advice concerning their own obligations.
21. Updates
HSO may update this Policy to reflect changes in law, government guidance, Product categories, geography or operational risk.
22. Contact
- Email: contact@hsopetroleum.com
- Phone: +1 (866) 954-5938
- Postal address: 204 Hays St, Batesville, Mississippi, 38606, USA