Question

Please explain your view of the most difficult aspect of Customs Compliance?

Answer 1

Customs compliance is a critical part of successful trade. Whether one is engaged in import/export, logistics or ancillary services, trade compliance should be one’s goal. In addition to facilitating the movement of goods from supplier to customer, customs compliance promotes standards and best practices that ensure a smooth operation of the supply chain. Compliance programs protect your business and bottom line.

Difficult aspects of customs compliance:

1. Gathering data from multiple parties and integrating it for filings;
2. Moving goods across borders without disruption;
3. Reducing the risks of penalties or fines;
4. Meeting a wide range of safety, security and commercial compliance mandates; and
5. Storing data for all filings and compliance agency responses to enable complete audit and reporting capabilities.

In my view, the most difficult aspect of customs compliance would be meeting a wide range of commercial compliance mandates and multi-jurisdictional regulatory compliance.

Multinational companies having the challenge of complying with the laws and trade control regimes of multiple countries.

Although this is a commonplace situation, it doesn’t mean it’s easy. Different countries and trading blocs have their own foreign policies and national interests which are reflected in their trade control regulations.

Companies conducting business abroad should be mindful not only of the laws and regulations of the country they are from, but also those of the country in which they wish to operate. For example, companies operating in the European Union must handle data derived from customer engagement and employee information in accordance with EU privacy laws. This may require separating European data from the other country's data as different laws and regulations come into play.

Multi-jurisdictional compliance issues may also arise when a company attempts to transfer an individual from one foreign office to another. Is this individual eligible to work in the destination country? Will a special work visa be possible? A company’s desire to transfer the best employee for the job may be upended by the rules and regulations of the particular country. Thus, every entity must understand the legal requirements for the entire employee workforce in each locale.