4 Global Trade Compliance Issues To Watch Out For
Whether you're just setting up a deal or looking to keep existing arrangement working smoothly, there can be a number of global trade compliance issues to navigate. Problems can occur at sources, in transit, and even upon arrival. In order to look out for your company's interests, try to keep these four potential challenges in mind.
Not Just Strict Compliance
In today's marketplace where every minor failure has the potential to blow up in a full-on PR disaster due to social media, staying compliant to the letter of the law isn't good enough. There are huge reputational risks that accompany dealings that are seen as shady. A company's stated values should now be seen as part of its compliance requirements and that means keeping close tabs on things like sourcing and suppliers. A jewelry company that prides itself on not using conflict diamonds, for example, doesn't want to find out that ones of its suppliers has been routing around the company's rules using shell companies and intermediary countries.
Acceptable Containers, Packages, and Pallets
On the more mundane side of things, all countries have rules requiring items to be shipped in specific ways. This can get very complicated as items move from port to port, and it's best to see that sources are using containers, packages, and pallets that are fully compliant with the regulations of each country where products will travel. For example, the European Union is known for being especially picky about wooden pallets and stamps for them in order to prevent pest problems from spreading. It can be difficult to track all these rules, and it may be best to have a global trade compliance officer around just to deal with such concerns.
Records, Payments, and Licensing
Production of written documentation for each shipment is a huge responsibility, such as producing receipts, logs for items, and proof that you're allowed to bring them into or through a country. Disputes over payments and resolution hold up about $140 billion of commerce each day worldwide. Likewise, the average wait in resolving transportation issues is 42 days. Streamlining the resolution process even slightly can provide a huge competitive advantage.
Tracking and Analysis
In addition to wanting to know where all cargo is at any time, you'll also want to use compliance data to study processes. Developing a database of previous and current shipments will allow you to analyze where problems are occurring, allowing you to make adjustments to your shipping chain.
You can get help with all of these compliance issues with a global trade compliance company like Braumiller Consulting.