TradeLane

As a part of U.S. Customs and Border Protection’s (CBP) commitment to educate the Trade Community, Informed Compliance Publications (ICP’s) provide guidance around complex import regulations. On July 9^th 2014, CBP issued a draft revision to the ICP entitled “Bona Fide Sales & Sales for Exportation to the United States”. This ICP is key in outlining the requirements to appraise imported merchandise using the First Sale for Export value. In this early draft, CBP is proposing significant changes to this 2005 publication.

It is important to understand how these changes may influence an importer’s First Sale for Export program structure and is a great opportunity to evaluate its risks and rewards. Please remember that the ICP update is draft of the proposed language at this date. Some of those proposed changes highlight and reiterate the following:

We’ve never had a problem before. Do I need to worry?

Many companies regard export compliance as a low priority. Money talks and unlike the import side of the ledger, there are no duties that must be paid on exports out of the United States. If there are no duties to collect, does anyone really care?

I have come to realize that a very, very common question in social settings is “So, what do you do for work?” I will give my general elevator speech and when I am done, often times, get a look of “Huh?”

I always walk away thinking the same thing “Pull it together, Nara, simply explain what you do.” Then I remember, there is no simple explanation. I realize, that a quick elevator speech of “We focus on import and export consulting, classification, trade preference programs, duty mitigation and supply chain security”  Well, quite honestly, it would have to be a VERY long elevator ride….

This realization circles me back to an oldie but goodie.  The simple reasoning of why yes, you do need a compliance expert. 

As a supposed trade expert, I am in daily contact with a variety of import and export clients. I assess compliance risk, write procedure manuals and offer advice when things go terribly wrong in the course of a client’s importing or exporting process. One particular conference call reminded me that while the vast array of acronyms and abbreviations are useful and necessary within the international trade community as a whole, they can be mystifying to folks working in logistics but not directly in trade compliance.  That call went something like this...

When was the last time you made an appointment with your doctor for a check-up? If you are anything like me, it’s been awhile. In fact, as I’ve set out to write this blog I’ve realized I haven’t had a physical in probably close to a decade. But, what really could have changed in just 10 years? Has my body changed that much?

Truth is, there is probably a lot that has changed, and with the health risks that run in my family such as heart disease, this really isn’t something I should let slip.