TradeLane

Ah, summer!  Fun, sun, smuggling, and conflict minerals. Around this time last year, a Chinese-owned gold mining company was gifting cash and guns to local militias, while at the same time smuggling approximately $17 million of gold out of the Democratic Republic of Congo (DRC).

If you happen to be reading this on a mobile device, you currently have gold embedded in an electronic circuit right beneath your fingertips…

I originally wrote this blog back in 2013 and it’s as important now as it was then. The landscape has changed a little, with NAFTA now front and center, but good trade compliance is still good business!

When your organization is faced with compliance issues that never seem to go away, an objective review by a third party may allow your company to focus on the aspects of the business that you do best. Importers and exporters are held accountable for compliance with Customs requirements, and must use “reasonable care” in their international trade processes.

What does this mean, and how do you know when it’s time to engage a trade compliance expert?

Whether you are a large multinational corporation or a small family owned business, all manufacturers, exporters, and brokers of defense articles, related technical data, and defense services (as defined on the United States Munitions List, Part 121 of the ITAR) are required to register with the Directorate of Defense Trade Controls (DDTC).

Don't forget, registering with DDTC does not automatically provide for export rights or privileges, but it is a precondition for the issuance of any license or other approval for export.

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?