TradeLane

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.

Compliance manuals are excellent vehicles to help importers and exporters ensure that they are doing everything they can to operate in conformity with the various laws and regulations under which they operate. The trick, however, is in deciding what actually needs to go into the manual.

A good jumping off point is to take a realistic look at the way your enterprise operates, and then ascertain what kinds of risk your various activities present to a regulator.

As regional companies look to grow into multi-nationals in the never-ending search for new markets, an understanding of Global Trade Compliance becomes critical for several reasons.  One of the most obvious reasons is to reduce the risk of running afoul of local laws and regulations. Additionally, maintaining a consistent and reliable supply chain and taking advantage of various government programs such as Free Trade Agreements, Duty Drawback, Security Programs and other initiatives designed to benefit compliant importers and exporters speeds the supply chain and saves money. 

As companies expand into more and more markets, inevitably they reach a critical mass where the need to standardize compliance functions across multiple geographies, business units, and Customs regimes becomes apparent.  By “apparent,” we mean that you have done such a good job that you have been gifted compliance responsibilities for not 1 country, but 108. This is often a daunting task given the labyrinth of varying trade regulations. The first phase to this process is assessing the company’s current state compliance profile on a global basis, then moving to implement global frameworks to bring a level of consistency across the network.  Here are a few simple steps to get you started: