Import & Export Trade Compliance: Building an Effective Corporate Program
What is Import and Export Compliance?
Adhering to government regulations that apply to the transfer of Goods, Services, and Technology between countries:
- Who can you trade with
- What you can trade
- Where you can trade
- How you can trade
- Protecting and collecting revenue
- Collecting trade statistics
The reasons the Government controls Imports and Exports:
- National Security
- Foreign Policy
- Crime Control
- Anti-Terrorism
- Non-Proliferation
- Nuclear, chemical, and biological weapons
- Missiles
A trade compliance program begins with management commitment. Then includes:
- Written Policy
- Training & Awareness
- Risk Assessment
- Compliance Processes – the following should be part of both import & export compliance program:
- Classification – harmonized system (import / export) – HTS/Schedule B
- If you import & export – recommend use of HTS
- COO – Country of Origin processes
- Marking, Qualifications, and Solicitation
- Security – C-TPAT, AEO PIP, etc.
- Consider participating in C-TPAT and understanding these other government supply chain security initiatives
- NAFTA – Qualification & Validation
- Process in place to determine – qualifying for & validating & Recordkeeping
- FTA’s procedure
- Processes in place to determine qualifying for Free Trade Agreements & validating participation
- Incoterms guide
- Understanding Incoterms – click here
- Documentation
- Record retention
- Audit Processes
- Classification – harmonized system (import / export) – HTS/Schedule B
Stay-tuned – we will provide more detailed information (near future blog posts ) for Trade Compliance Programs – first for Exporting and then for Importing.
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