Customs & Global Trade Overview has been added to your bookmarks.
Customs & Global Trade Overview
Strategy, Automation, Compliance and Export Controls
When managing global supply chains, US companies exporting products from the United States, or other countries, are often surprised at the multiple jurisdictions where they are subject to export controls. For example, when a US based company exports from a UK subsidiary they may have to comply with EU, UK, and US export rules and regulations; and in certain circumstances, exporters may be required to obtain an additional license from the country to which they export.
Companies engaged in global trade face a maze of complex import, export, and border security regulations. These must be carefully navigated to maintain compliance and pursue the benefits of cost-savings opportunities.
An importer or exporter can address risks while managing operational and resource efficiencies by developing standardized trade processes and automating trade compliance. Moreover, process standardization and automation can provide a stronger foundation to achieve potential benefits from special trade programs available around the globe. This may not be so easy, though, when:
- The ever-growing complexity of each country’s import and export rules, trade preference agreements, and audit initiatives make import and export compliance increasingly burdensome.
- The global focus on national border security issues and trade security programs require greater awareness of compliance obligations and planning opportunities.
- To remain competitive in today’s global market, companies need to make their supply chain procedures, especially cross-border transactions, as cost-effective as possible while limiting inventory build-up.
The demands for internal controls, risk management, and overall competitiveness mandate that companies leverage their financial, accounting, and business systems more effectively. In this way, they can have access to the data necessary to properly manage and plan for customs duties, manage export control licenses, screen transactions, and report international trade data in an efficient and compliant manner. Companies need special trade experience to help them select, implement, and customize effective trade automation solutions.
Global export control issues
When managing global supply chains, US companies exporting products from the United States, or other countries, are often surprised at the multiple jurisdictions where they are subject to export controls. For example, when a US-based company exports from a UK subsidiary they may have to comply with EU, UK, and US export rules and regulations; and in certain circumstances, exporters may be required to obtain an additional license from the country to which they export.
The determination of when, and which, export regulations apply requires an understanding of the laws and practices of the country-specific authorities that administer export controls. This can prove to be difficult for exporters.
Despite the shift in focus on supply chain management, global export control issues are still often missed during strategic planning. Many companies are unaware of their exact export responsibilities and/or mistakenly believe that their compliance obligations are being met by deploying US export compliance programs across their global organization. Even the most effective distribution, logistics, and planning strategies can fail if global export control issues are not appropriately considered.
Non-compliance with other country regimes can result in significant supply chain delays, forfeiture, penalties, and even imprisonment. Yet, global export control issues remain overlooked by many businesses.