Shipping office services, helpline, consultancy and supply chain security

Thursday 24 May 2012

International Trade Compliance - a thought

I have noticed that compliance has been raising its head recently, what with all the goings-on in Iran and Syria. I am continually emailed information from both the US and UK authorities advising me of new regulations which, if I fail to comply, will result in fines, prosecutions and even jail.
Experience tells us that there are many UK exporters who don’t take compliance seriously, or in some instances, don’t really understand what it is all about it. This is particularly the case where someone has decided to start exporting without any previous experience or training. I wouldn’t be at all surprised if some of them don’t even know there are embargoes and/or sanctions for certain countries they are selling to. And when it comes to the “less serious” issues like correct tariff classification and checking Customs entries for accuracy, how many exporters, or indeed importers, take the time, or even have the time, to perform this task? I would suggest that the number is fairly low; firstly because they possibly assume this is their forwarder’s responsibility (it isn’t!), and secondly because perhaps they don’t even know they should ask their forwarders to provide them with the information. And even if they do receive a copy of the entries, how many comprehend all the information contained on them?
Of course, none of this becomes an issue… until the company gets a Customs audit; and how often does that happen?
But perhaps things are changing. A more positive slant to international trade compliance is being championed - selling the benefits.
The flip side of all the perceived hassle of compliance is that if you do take the time to get things right then costs, delays and “the aggro factor” can all go down, and consequently customer satisfaction goes up. And don’t forget, if you are an importer, you are the customer! But as an exporter, think of the benefits for your customers. Their goods arrive on time, documentation is correct, accurate and appropriate, they clear Customs without any fuss, and the import costs are unambiguous and can be known in advance. What’s not to like?
If exporters, and in particular export sales staff were to adopt this positive mentality and see compliance as an opportunity and even a unique selling point rather than a burden, the benefits could far outweigh the perceived negatives. Your company reputation would be enhanced, your knowledge valued and your business could gain an advantage as customers see the benefits of working with a professional, well organised company who care about the customer; all leading to an increase in business.
There are benefits in having people with specialist knowledge working in this area. Many companies have done away with the good old fashioned Shipping Manager who had the time to do the “shipping” job properly; looking at the details in depth, and with a good understanding of compliance requirements. Maybe the current preference for wrapping up the shipping function into the “Logistics Manager” or “Supply Chain Manager” role means that these individuals just have too many strings to their bow, too many other pressures, to treat compliance as a core function and get best advantage from it.
Dave Heaver

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