TradeLane

The Korea Customs Service (KCS) has benchmarked the successful US Importer Self-Assessment (ISA) program and decided to establish a similar program in Korea for importers to use. Similar to the US, the ISA process starts with membership in Authorized Economic Operator (AEO). Korean AEO import companies are eligible to utilize the newly implemented ISA program, which is expected to become effective this month.

On March 29^th, UK Prime Minister Theresa May sent a letter to European Council President Donald Tusk invoking Article 50 and providing formal notification that the UK will leave the European Union. The formal countdown clock is underway, and the UK and EU have two years to finalize the terms of the UK’s departure.

In reading the letter, there are a few statements that provide guidance on the potential future for customs legislation, as well as the trading relationship between the UK and EU.

There seems to be a great deal of uncertainty amongst those tasked with their company’s international trade compliance. There is ongoing discussions of a wall, of a trade war with Mexico one day, and with China the next, or a 20% tariff on certain manufactured goods coming into the US.

I know a lot of trade compliance people, and I mean a LOT. Most of us are cut out from a similar cloth, or at least the same weave.

Uncertainly isn’t something that sits well.

Many of my customers are starting to field questions from senior management on what the future will hold for their supply chain, and how they should be adapting.

As a customs compliance guru for 19 years, I can tell you a lot has changed in terms of technology and data. US Customs alone has spent billions of dollars improving the data that comes from international trade into the United States. When thinking about your supply chain, it is tempting to only think about transportation. But as a lot of importers can attest to, Customs audits can be costly and delays due to Customs can erode your customer’s confidence. Just as cycle and transit times are important, there is quite a lot of data reporting in the compliance world as well.

So what kind of compliance data exists and how will you make use of it?

I am often surprised when discussing export processes with Irish businesses how little is known about export controls, meaning the regimes and regulations that are in place controlling dual-use items by the Irish Authorities and the EU. Businesses who have been exporting for years and have strong compliance practices for customs procedures would respond with, “We don’t deal in military goods, so this doesn’t apply to us.” However, they don’t seem to have come across terms such as dual-use or sanctioned parties.