Compliance, Colleagues, Communication

Gaining buy-in to a trade compliance program  may seem like a daunting task, but do not worry, it is possible to achieve.

Since the beginning of 2018, President Trump has issued three proclamations to address an imbalance in unfair trade practices. While mainly targeted at China, the second of the three actions has taken a protectionist stance on a global basis for the U.S. steel and aluminum industry. Heavy tariffs have been levied against many steel and aluminum products under Section 232 of the Trade Act of 1974 with more coming under, the now pending, Section 301 duties.

Every organization wants to find savings and efficiencies - and it often seems that these elusive stashes must be buried deep in nooks and crannies. But not necessarily - there are three places within your supply chain where savings may be hiding in plain sight.

Want to get me going? Tell me compliance is a necessary evil.

Necessary? Sure. Evil? Only if you lack imagination and ingenuity!

Foreign Trade Zone

Foreign Trade Zone (FTZ) areas are secure locations under the supervision of the United States Customs and Border Protection (CBP) and are considered to be outside of the U.S. Customs territory when considering duty payment. Ultimately, this means that you can find cost-savings through the use of these areas and framework.

If you believe knowledge is power, then partnering with your broker in the Broker-Known Importer Program (BKIP) is your answer. As an importer, you are required to provide detailed information regarding your goods when bringing them into the United States. Software and electronic communications are available in the marketplace to make the Customs clearance process more seamless and efficient. However, importers can also participate in voluntary programs to help prevent delays in the Customs clearance of their goods.

Customer experience (CX) and eCommerce is revolutionizing the supply chain. Determining how to deliver an end-to-end experience for your customer smoothly will improve profits. Overall, the industry agrees that the customer's experience is a top priority - especially for retailers. The Internet of Things (IoT) and supply chain management tactics are making progress in these days of rapid change.

Reporting requirements for the Food Safety Modernization Act (FSMA) Foreign Supplier Verification Program (FSVP) became mandatory on May 30, 2017. Although the initial struggle to comply with the new program has greatly diminished, there is still room for improvement. The Food and Drug Administration (FDA) completed only a few FSVP audits in the U.S. Federal Fiscal Year (FY) 2017, so importers should expect that FY 2018 will bring with it the promise for a larger number of reviews.

Customs Trade Partnership Against Terrorism (CTPAT) is a voluntary public-private partnership program that was implemented as a cargo safety and enforcement strategy following the September 11th terror attacks. More than 11,400 certified companies in the trade community currently participate in the program, and that number continues to grow.

U.S. Customs and Border Protection (CBP) held the 2017 CTPAT conference in the Detroit Metropolitan Area at the end of August. The current Director of CTPAT, Elizabeth Schmelzinger, was among the speakers during the general session. In addition to rolling out the updated name and logo, CTPAT – Your Supply Chain’s Strongest Link, Ms. Schmelzinger was excited to offer insight into program changes and ways that the security profile is being modernized as we look to the future.

The Enforce and Protect Act (EAPA) is a section of the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015 that sets established rules, regulations, and procedures regarding antidumping (AD) and countervailing (CV) allegations. Any 'interested party' can submit an electronic allegation (e-allegation) and report the evasion violations via EAPA. However specific documentation requirements must be met, including:

• Meeting the definition of an interested party;
• A statutory description of covered merchandise and AD/CVD order;
• Demonstrate that AD/CVD evasion has occurred.

Businesses with large ocean container volumes are always looking to remove costs from their supply chain.  Many organizations will issue request for quotations or seek competitive freight bids in an effort to save money. The results of such efforts are usually competitive pricing that is locked in for a period of time, thus lowering the cost of  ocean freight. Awesome, right? 

In today’s emerging marketplace, businesses strive to increase their profitability and simultaneously remain competitive in an unpredictable economy. While every organization is different with unique products and business strategies, transportation often represents one of the largest costs importers will face.  Cutting the cost of transportation is often the first place executives look to improve the bottom line.

When choosing the most cost effective method of transportation for your supply chain needs, there are several factors that come into play…so, how do you decide whether your international shipments should be transported via air or ocean freight?