TradeLane

This is one of those scenario’s we see all the time:

Asia Customs Broker: Hello, Mr. Ahmad, we are sorry. The customs manual documentation cannot be completed because we are missing the HS codes. Can you provide us with the correct one so that we can proceed with the permit application and import declaration, please?

Logistics Employee: Can’t you check our previous shipments? This is not the first time we have imported similar materials into our warehouse! You should have all the details!

I’ve just joined Tradewin Asia from a large European industrial and consumer company where I was responsible for regional Asia trade compliance.  Almost every week, I would receive emails or telephone calls which required immediate attention. Common inquiries included: “URGENT! Cargo stuck at port!”; “No FORM D/E”; “The business is asking why we have to pay extra duties now.”; “Why nobody is telling us we need special licenses?”

Those were the days, when we didn’t have any compliance regime in place. No internal trade policies or standards, and everyone was doing whatever they felt was right. Norms and bad habits just continued on. Occasionally, I was praised for implementing good practices. Sound familiar?

Being audited is pretty unpleasant. Having people go through your things in minute detail looking for mistakes you have made. Most companies’ normal reactions to a customs audit in Korea is probably ‘Why us?’ or ‘We are doing just fine’.

Well, unfortunately it looks like customs auditors have different views on how well companies are doing on customs compliance. In 2013, the Korea Customs Service imposed $200 million USD in additional duties collected through customs audits and investigations; more than 4.4 times the 2012 figure. And this number has been steadily growing ever since.

On April 5, 2016, the Ministry of Commerce and the General Administration of Customs of the People’s Republic of China released a joint announcement (No. 11 of 2016), which published a list of products that are embargoed in trade with the Democratic People’s Republic of Korea (DPRK).

It was alleged in the announcement that the embargoes are based on the relevant resolutions enacted by United Nations Security Council and the Foreign Trade Law of P. R. China.

On January 16 2016, the United States announced that they are lifting certain US sanctions against Iran that are consistent with the announcement of Implementation Day and in compliance with the Joint Comprehensive Plan of Action (JCPOA). The United States Department of Treasury, Office of Foreign Assets Control (OFAC) released a general guidance document regarding the lifting of US sanctions under the JCPOA.