TradeLane

A few months back, I posed the question to you, “Do I really need a trade compliance expert?”  The overwhelming response, was that yes, in fact, I (you) do.  However, let’s dive a little deeper into some of the reasons why you need an expert.

As seasons change, so does the make-up of your product line. If you are an apparel company, last season’s shorts and tee shirts can turn into next season's flannel underwear and parkas. Maybe you work for a technology company and the cases you make for last season’s hot phone have become less in demand since the new model came out.

So, what happens to all that unsold merchandise? Do you recycle it? Do you throw it in the dumpster in the warehouse? Does it get used for kindling at your company’s annual fall cookout? Bottom line, are you recovering any import duty on that unused merchandise that you are destroying? There’s an ‘app’ for that. Apply for Duty Drawback privileges on destroyed merchandise.

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:

The UN Convention on Registration of Objects Launched into Outer Space defines a "space object" to include component parts of a space object as well as its launch vehicle and parts thereof.  All well and good for keeping track of things floating around in the stratosphere, but what if you made your space object here in the US using imported (read “duty-paid”) components.  That space object lifts off, and there go all those dollars in duty payments.  Can you get any of that back?