TradeLane

China Customs has been steadily making changes to the Customs Declaration Form (CDF) in order to better capture the data they believe is important to compliance enforcement and trade policy. This is the fourth major change to the CDF, which was announced in June and went into effect on August 1, 2018.

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.

If you grew up as a suburban, middle-class kid in Canada like I did, you probably had some household chores that you were responsible for. One of mine was taking out the trash every week. I’d collect it up and get it ready to put out by the curb. I’d ask my Dad if there was anything else. He would suggest I roll my old car down to see if they would take it. Once it left the end of my driveway, I never gave it a second, thought. Our trash, not my car. 

Was it bad for the environment? Could it cause harm to someone else? Could it be used to make a bomb? Ok, maybe a little dramatic.