Could your Business Benefit from Import Compliance Consulting?

Uncertainty about Import Compliance Common

If your business imports goods, you are probably aware of how complex import regulations are. It's not uncommon for even savvy business owners to be uncertain about exactly which regulations apply. All importers should be educated on import compliance, but with regulations that change frequently, keeping up can be a daunting task. The worst thing you can do is give up and hope for the best.

Serious Consequences of Non-Compliance

Failing to comply with import rules can result in consequences ranging from shipments sitting on a dock awaiting proper documentation to shipments being seized and fines being assessed to the importer. No business big or small can afford to ignore import regulations. Even a brief holdup at Customs can slow production and diminish profits. That's why ensuring your business complies with all import regulations is essential to success.

When Adding Staff is Not Feasible

Businesses today must be lean due to the realities of a tight economy. Often, adding a full-time staff member to ensure import compliance is just not realistic. Adding import compliance tasks to workers you already have is a recipe for mistakes and can lead to staff burnout. But you don't have to hire a full-time staffer to ensure your business follows import regulations.

What Import Compliance Services Do

Import compliance services are dedicated to understanding all import regulations, knowing when they change, and developing programs to ensure that businesses become compliant and remain compliant. These services are the best choice when hiring a full-time staff member to handle import compliance is not possible. Many of these services also provide in-house or online training, to raise all employees' awareness of import laws.

Import Compliance Consulting May be the Answer

If you're trying your best to comply with import regulations but are not 100% certain you're in full compliance, hiring an import compliance consultant is the quickest and best way to get your company on track to full compliance. Enlisting in the services of compliance specialists helps you avoid violating regulations and having to deal with the consequences that result. By knowing your company follows all import laws, you're free to concentrate on running your business successfully.

Renewed Emphasis on Customs Trade Compliance

After the 2001 terrorist attacks on the United States, supply chain security became a top priority of the U.S. government. Since 2001, major goals of U.S. Customs and Border Protection include knowledge and tracking of the following:

· Who is handling cargo at all points on the chain
· Where shipments are going
· Why it is being shipped
· Who receives the shipment

New security measures have represented a fundamental shift in logistics for international businesses that had been used to facing few if any questions about what products were going where.

The Supply Chain

Even small international businesses can have a complicated supply chain. The supply chain includes suppliers, manufacturers, and retailers, as a product transforms from raw material to finished product, with the final destination being the customer. Each point along a supply chain has its own unique security vulnerabilities. The corporate trade compliance specialist evaluates individual supply chains and makes recommendations about potential vulnerabilities and how to make the entire supply chain compliant with regulations.

Concerns of International Businesses

All international businesses must comply with regulations of U.S. Customs and Border Protection. Depending on the nature of the business, there may be several layers of regulations that must be met. That's the main reason why a corporate trade compliance specialist can be of tremendous help, regardless of the type of business. Penalties for violating regulations can be crippling to a business.

Timely, Secure Shipments

If you own a business that exports or imports product, you want your shipments to be secure and timely. Cutting corners on export compliance is a huge mistake and can lead to trouble all along the supply chain. Regulations are complex, and they change frequently. Consultants with expertise in trade compliance are there to help prevent problems with compliance, which have serious consequences.

Export Compliance Consulting

Compliance with international trade regulations can make the difference between success and failure of an exporter. Export compliance consulting is a growing sector, as exporters realize how many regulations apply to their products. No business, large or small, can withstand the risks of violating export regulations, and compliance consultants know how to eliminate these risks.

Corporate Trade Compliance: Critical to your Success

Complying with export regulations may seem like nothing more than an exercise in filling out complicated forms. However, knowing your business complies with all applicable export regulations gives your business a competitive edge. Overseas customers don't want to risk being involved with international trade violations, even indirectly. By assuring your international clients and customers of your corporate trade compliance, you help build your brand worldwide.

International Trade in a World Economy

The 21st century marketplace is global. For many sectors, healthy growth requires international trade. Countries like China and India are growing economic players on the world stage, and developing international trade helps you maintain your success even when markets at home are slower. From socks to tablet computers, international trade is a must for success today.

Ignorance is Not Bliss

Some businesses think they are unaffected by export regulations and only find out about them after unknowingly committing violations. Even if your business has little to do with technology or defense, it still may be subject to export regulations. One of the first things any business should do when going international is invest in corporate trade compliance consulting to determine which rules apply and how to comply with them.

Penalties for Non-Compliance

A corporate trade compliance consultant should be well-versed in penalties that apply when regulations are violated. The International Emergency Economic Powers Enhancement Act of 2007 enacted civil penalties of $250,000 or more and criminal penalties consisting of fines of up to $1 million plus the possibility of 20 years in prison. Furthermore, the Commerce Department publishes names of violating companies in Federal Register notices, and these are often used against non-complying companies by competitors.

Don't Be Afraid of Going International

Making your business international should be exciting and should make you feel proud. Investing in the services of a corporate trade compliance consultant early in the process will help you gain international success while avoiding trade violations. It simply isn't worth it to engage in international trade without knowing exactly which export regulations apply. Corporate trade compliance consulting should be part of your plan for a successful global enterprise.

The Role of the Customs Trade Compliance Consultant

Not only is trade compliance the only legal way to operate, it has also become a competitive advantage in today's world of international trade. It isn't just defense manufacturers and huge multinational businesses that have to worry about trade compliance, but any business that operates internationally. Proper trade compliance saves money, improves efficiency, and helps insure against incidents that cause negative publicity.

Agencies Involved in Trade Compliance

A competent export trade compliance consultant knows the regulations and practices of multiple government agencies such as:

· U.S. Department of State Directorate of Defense Trade Controls
· U.S. Customs and Border Protection
· U.S. Department of Treasury Office of Foreign Assets
· U.S. Census Bureau
· U.S. Department of Commerce Bureau of Industry and Security

Ensuring ongoing compliance is a big task. Regulations change frequently, and keeping on top of the latest developments is daunting, particularly for the smaller business.

Risks for Failure to Comply

Most failures of compliance with international trade regulations are due to simple ignorance of policies. All violations can result in serious criminal and civil penalties and loss of material goods. International trade is vital to today's businesses, and entrepreneurs should not avoid the international market out of fear of regulations. Knowledge of regulations, import compliance consulting, and export trade compliance consulting can save businesses a world of trouble by preventing violations of trade regulations.

Do You Need a Customs Trade Compliance Consultant?

If you answer "no" to any of these questions, then you may benefit from import compliance consulting or the services of an export trade compliance consultant:

· Has our CEO or President issued a formal trade compliance policy statement?
· Do we have a designated trade compliance officer?
· Are employees who process international transactions updated on trade regulations every six months?
· Do we classify exports with Export Control Classification Numbers or other required numbers?
· Do we have documented import / export compliance and auditing procedures?

The risks of failing to comply with trade regulations are too big to ignore. Give your business the best prospects internationally by ensuring it abides by all necessary international trade regulations.

Import Compliance Consulting Advice from the Pros

Any company that imports into the United States must comply with the Customs Modernization Act (1993). Also known as the “Mod Act,” this law forever altered the relationship between importers and exporters and the U.S. Customs and Border Protection (CBP) Agency. Before the act, importers relied upon the actions of Customs to declare value, classify and assess duties on imported merchandise. But after it, importers were made legally responsible for valuation, classification and rate of duty applied to entered merchandise.

What was the effect?

Like many new laws, the language in the Mod Act was ambiguous, perhaps deliberately so. It speaks of companies using “reasonable care” with regard to the merchandise they import. When importers do not abide by this “reasonable care” guideline, their transactions are often delayed due to incorrect, inaccurate, or missing documentation.

But dilatory tactics are not the only weapon the CBP has at its disposal. They can also assess fines and penalties at their discretion. In some cases, the imported merchandise is forfeited and sent back to the exporter. What are importers to do?

For huge, multinational corporations, the answer is easy. They simply hire a licensed customs broker of trade compliance consultant, or a team of them, and keep them on staff. But for small companies it is not that easy. Few of them can afford to hire a full-time broker trade compliance consultant.

Smaller firms can avail themselves of the services of an import trade compliance consultant, who will assess their current level of compliance and recommend the most effective and affordable practices that will ensure their compliance with the CBP. What are the benefits?

Import compliance consulting can help any firm reduce the cost of imported items, eliminate holds or delays on imported merchandise, and minimize fines and penalties associated with noncompliance on imports and exports.

James M. Anzalone is the president of a firm that provides global trade compliance solutions to businesses of all sizes. Compliance Assurance LLC focuses on import compliance consulting in the United States. With over 17 years of experience, Mr. Anzalone has personally developed a number of programs that have made attaining comprehensive compliance much easier and more affordable for his clients.

Addressing Your Company’s Supply Chain Security

In an era when supply chain security is as important as the contracts your company has secured for the export of product, choosing a supply chain security consultant to make sure the transport logistics and systems are compliant with the most current regulations and guidelines. With Compliance Assurance supply chain consulting, you can be sure that your company is implementing the best system, ensuring delivery of the exports as well as all the necessary training and tools needed to exercise the best possible practices suited for the individual needs of your company and clients throughout the world.

Recent years have seen an unprecedented effort on the part of the international community to establish supply chain security standards for the export of physical goods as well as technological data. Unfortunately, we are still some ways off from having one uniform set of regulations or even one organization with which to obtain guidance. In today’s international market, the supply chain security consultant must not only be able to establish export compliance programs that address the myriad of regulations and initiatives currently in effect, but also tailor compliance practices to suit each industry and company.

The effective supply chain consulting obtained from Compliance Assurance will not only ensure that a compliance program is established to adhere to the applicable regulations, but that each department and employee is trained and confident in their understanding of the program’s implementation. As your supply chain security consultant, Compliance Assurance can provide training to every level of management as well as every employee. Our supply chain security consulting services can include the production of a supply chain security manual to support the training and to serve as a reference for managers and employees as they implement the supply chain security program.

As the international business community strives to keep pace with increasing exports and our federal government strives to increase national security, it is important to remember that the role of supply chain security consulting is not finite. Compliance Assurance is the supply chain security consultant that will continue to serve your company’s needs through independent audits, seminars and workshops to keep your employees informed and confident in the implementation of the best supply chain security practices.

Keep Your Corporate Trade Compliance Policy Strong

In the last decade, the Federal laws and regulations regarding corporate import and export trade have become increasingly complex, and with a ramping up of the policing and enforcement of trade policy and restrictions, there is no room for error in this business. Under current Federal law, infringement of Federal trade compliance regulations can incur a hefty fine of between $500,000 and $1 million, and can carry a jail sentence of five to ten years per violation. Given that most companies can face over one hundred alleged violations within a single case of Federal trade compliance infringement, having a weak or risky trade compliance policy or strategy just isn’t worth the risk.

Staying Out Of Trouble

The best way to stay out of trouble is to have your corporate trade compliance policies periodically evaluated by an experienced compliance practices firm like Compliance Assurance LLC. Their assessment teams are highly skilled in executing an in-depth review of your company trade policies and strategies for dealing with Export Administration Regulations (EAR), International Traffic In Arms Regulations (ITAR), or compliance with the Office of Foreign Assets Control (OFAC). The comprehensive internal audit focuses on compliance risk analysis, written management and corporate compliance procedures, structure and control within the organization, customer transaction and screening processes, identification, handling, and tracking of regulated items, export and transfer procedures and screening, licensing, testing, and documentation procedures, record keeping, internal monitoring , control, violation report and corrective actions, as well as employee compliance awareness and training.

Once a thorough assessment of your current compliance policies and strategies is complete, their corporate trade compliance specialists will help your employees to recognize the areas of vulnerability or risk in your current compliance plan. They will assist your company in strengthening those areas of you compliance policy, develop and implement better strategies, and train your employees in recognizing and overcoming such weaknesses in the future. Their goal is not just to come in and reorganize your compliance structure, but to ensure that your employees will continue to successfully manage and troubleshoot your corporate compliance policy even after the experts have gone.