TRADE COMPLIANCE: RISK ASSESSMENT
Risk Assessment is analyzing external threats against company procedures to identify where vulnerabilities exist and what procedures can be implemented or improved to reduce risk.
First thing to do is understanding your business:
What do you ship, how do you ship, where do you ship to, where to you ship from and to whom do you ship?
- Who & where are you customers, subcontractors, distributors?
- Are compliance safeguards integrated into your processes?
Prioritize – Focus on process gaps:
- That are most likely to result in violations – big fines, etc.
Some Risk Examples:
Importing ~
- Valuation–Price calculations, duty avoidance pressure, assists, research & development
- Classifications ~
- Unsettled issues
- Regular updates
- Mapping from one country to another
Exporting ~
- End use/end user screening for all third party transactions
- Lack of compliance integrated into shipping transactions
- Commodities or technology subject to import restrictions
- Re-export restrictions
Then the next steps include:
- Develop a formal set of Policy and Process Documentation
- Training & Awareness programs
- Recordkeeping – per the Regulations
- Auditing & Assessing plan
- Staying abreast of Regulations
Stay-tuned here for more posts about the ‘next step’ topics.
If questions, please contact us at superior@supfrt.com
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