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.

BIS Update 2011

Well true to this year's BIS Update 2011 namesake - Implementing Export Control Reform - attendees were shown proof of real progress made in reforming America's outdated system of export controls. Quick to dismiss previous year's skeptics, Under Secretary of the Bureau of Industry and Security, Eric L. Hirschhorn, in his opening remarks, commended the agency for its tremendous efforts over the past 16 months and pledged that there is more to come.

Mr. Hirschhorn's remarks echoed the familiar origins of export control reforms (ECR) with the early meetings with President Obama, then National Security Advisor General James Jones, and former Defense Secretary Gates charge for changes to the existing export control system. He also pointed out the obvious flaws in a system that requires the same level of government scrutiny to the export of every nut, bolt and screw for a F-18 fighter aircraft that is applied to the entire aircraft. But this year's remarks had much more to report than just words. Under Secretary Hirschhorn reported on several recent (and well timed) changes and proposed changed to our current system of export control reforms.

The most touted of reforms, echoed by other speakers throughout the day, was last Friday's Notice of Proposed Rule that moves certain items from the U.S. Munitions List (USML) to the Commerce Control List (CCL) and creates the framework to move additional items from Department of State (defense articles) to Department of Commerce (dual-use) jurisdiction. This proposed rule fulfills several objectives of export control reforms. First, to allow our government to focus its efforts on the most critical items to destinations of concern. Secondly, this move would eliminate the Dept. of State registration requirement for many manufacturers as their lower-level components would no longer be subject to their jurisdiction. Additionally, this would eliminate the "see through rule" which makes items manufactured offshore subject to U.S. reexport control if they contain any U.S.-origin ITAR parts or components, regardless of the value or significance of those U.S.-origin items.

Under Secretary Hirschhorn also spoke about the recently implemented license exception, Strategic Trade Authorization (STA), which allows for the license free export of many dual-use commodities to 36 (mostly European) countries and an additional 8 countries for items controlled for NS-only reasons. According to Hirschhorn, the STA exception would have potentially will eliminated 3000 of the 22,000 licenses BIS issued last year. He also stressed that the STA does not "decontrol" these items but will reduce the level of control so as to facilitate trade with U.S. allies. An important aspect of STA is that it will pave the way for future license exceptions for items moving from the USML into the proposed "600" series ECCN classifications.

Mr. Hirschhorn was quick to point out that the U.S. government will continue its comprehensive sanctions against Cuba, Iran, North Korea, Syria, and Northern Sudan. Additionally, there are no plans to alter the U.S. prohibitions on exporting Munitions List items to China or dual-use items for military end use in China.

These key proposed and implemented controls were not the only highlights of Mr. Hirschhorn's speech. He also addressed continuing efforts of the BIS to increase its education and outreach by addressing the DHS Form I-129 export control certification, consolidated end-user screening list, and items to be added to the agency's export compliance tool kit including industry practices. Finally, he addressed the importance of export enforcement activities and the President's executive order to increase coordination among export control enforcement agencies and the expectation for companies to self-police and file voluntary self-disclosures when required.

This year's BIS Update is certainly not short on substantive regulatory changes. As with all things, the devil is in the details and it remains to be seen how the export community will deal with these significant changes now, or soon to be, in play. The breakout sessions that followed brought up a number of very good questions that will need to be addressed in order for these reforms to work in the real world. Stay tuned for future posts on how exporters can put these export control reforms to work at their companies.

A full transcript of Under Secretary Hirschhorn's remarks can be found on the BIS website or at the following link: http://www.bis.doc.gov/news/2011/hirschhorn_update.htm.

Protect Your Business by Hiring A Corporate Trade Compliance Specialist

If your company deals regularly with international import or export trade, you know that compliance with international trade regulations is a serious business. A few decades ago, the regulatory process may have been simple enough for your assistant to keep track of your corporation’s trade compliance, but with the added complexities and strict regulatory crackdowns brought on by today’s political and economic climate, more and more companies are using professional means of tracking their trade compliance. Mega-corporations have taken to setting up their own trade compliance departments, but smaller companies may not have that option, or it may be too cost-prohibitive. Corporate trade compliance consultants like Compliance Assurance LLC can keep your company compliant without sending your books into the red.

Developing a Corporate Compliance Policy

These days, obscure and newly interpreted regulations are giving today’s international trade companies a workout, and there’s no lenience for errors. One simple slip in international trade compliance can result in exorbitant fines, penalties, and interest fees- even possible criminal charges and jail time. It’s vital for the continued success of your company and its ranking members that you have a corporate compliance policy in place, and that it is up to date and rigorously implemented. Corporate trade compliance specialists are adept at assessing a company’s needs and developing a sound corporate compliance policy, or auditing and revising policies that are already in place.

At Compliance Assurance LLC, expert consultants don’t just evaluate your current compliance strategy and develop new procedures, they will work hand in hand with your employees to ensure they have the training and knowledge they require in order to understand and implement your corporate trade compliance policy. Their specialists are skilled at managing the project so you don’t have to, and as an added bonus, they will educate your employees on identifying regulatory compliance issues, implementing solutions, and working out strategies to avoid or deal with future compliance issues. Effective, experienced compliance assistance will help your company maintain safe and legal trade practices, and stay competitive in today’s ever-hardening market.

The Importance of Export Compliance Training

The United States government has some of the world’s strictest export regulations. Failure to comply with those regulations can result in fines, restrictions in your ability to export your products and even prison sentences for your company’s officers and parties responsible for ITAR compliance. To make things even worse, the ITAR regulations are subject to frequent updates and changes, making it difficult for employees to keep up with the intricacies of export compliance and export compliance documentation. Comprehensive export compliance training is your best defense against being hit with stiff fines and penalties for unwittingly falling afoul of the many regulations that U.S. exporters must follow.

Sources of Export Compliance Training

While the U.S. government regularly offers seminars on the intricacies of export regulations, developing in-house export compliance training and programs can be tricky without expert advice. Engaging an export compliance consultant can help you create the framework for a comprehensive ITAR compliance program, starting with an export compliance audit to determine where your business stands on compliance and an export compliance checklist to help your company create a plan for following compliance regulations and the documentation trail you need to maintain to prove that you’re following all the rules.

The Basics of an Export Compliance Program

There are many companies that provide compliance training of various sorts. When
choosing among them, look for a consultant that will help your company develop its own internal expertise on compliance. The best compliance consultants understand that a good export compliance program starts with the senior management and is disseminated downward until it becomes part of the base of company procedure and culture.

The first steps in compliance training include reinforcing the importance of compliance, explaining the necessity for a compliance manager and soliciting support for the in-house compliance manager.

Degrees of Training for Middle Management and Support Staff

Every employee who is part of the export supply chain should be trained in not only the techniques and procedures required to remain in compliance, but the reasoning behind the regulations. New employees should be required to take the training early in their orientation and undergo export compliance evaluation within 30 days of their hire. A competent export compliance consultant will work with your company to develop the appropriate levels of training for each level of your staff.

Don’t take chances with export compliance training. Be certain that the consultant you hire understands both the regulations to which your company must adhere and the best ways to train your employees about the importance of following the rules to the letter.

Ros-Lehtinen throws cold water on export control reform - The Hill's On The Money

Ros-Lehtinen throws cold water on export control reform - The Hill's On The Money

Why You Need a Corporate Trade Compliance Specialist

Whether your business is involved in export or import trade, there are specific regulations with which you must comply. Once upon a time, it may have been enough for your office admin assistant to track your corporation’s compliance with international regulations, but that’s no longer true. Many larger corporations have their own corporate trade compliance departments, but that’s not always a cost effective means for smaller companies. Hiring a corporate trade compliance specialist as a consultant can ensure that your export and import practices comply with all regulations without you devoting a full-time position to the task.

Advantages of Hiring a Corporate Trade Compliance Specialist

A corporate trade compliance specialist can perform an audit of your current corporate compliance policy – or help you develop one if you haven’t already. Without a corporate compliance policy, it’s far too easy for your company to slip up on obscure or newly interpreted regulations. Failure to comply with certain regulations can result in significant financial penalties, high interest fees and penalties that cost your company a lot of money. Engaging a trade compliance specialist to perform an audit and develop a trade compliance policy will save your company time and money in the long run.

The best trade compliance consultants will work hand in hand with your company to evaluate your current procedures, develop a trade compliance policy and create a training program to educate your employees about the new procedures and the importance of following them. By taking ownership of the entire process, a corporate trade compliance specialist can help your company identify issues with regulatory compliance, implement immediate solutions and develop a process to avoid any issues in the future.

Compliance with international customs and trade regulations seems to grow more complex with each day. If you’re doing business on a global scale, it’s vital that your company develop and implement an import and export trade compliance policy in order to remain competitive on the international marketplace. The first step in ensuring that your company stays on the right side of all regulatory agencies is hiring an effective, experienced corporate trade compliance specialist and following his recommendations.

Join Me at Tampa Bay Export Controls Seminar May 22, 2011

Join me at the Tampa Bay area Export Controls Seminar May 22, 2011. I will be presenting the fundamentals of the Export Administration Regulations (EAR) and Foreign Trade Regulations (FTR) along with Department of Commerce / BIS representatives, trade compliance attorneys, consultants and other industry experts in a information-packed full-day seminar.

The event will take place on Tuesday March 22, 2011 at the EpiCenter in Clearwater, FL. Registration will begin at 8:00 am and the program will run until 5:00 pm. Lunch will be provided courtesy of OCR Services, Inc.

Register at https://emenuapps.ita.doc.gov/ePublic/newWebinarRegistration.jsp?SmartCode=1Q5X or by contacting Sandra Campbell at the U.S. Department of Commerce at (727) 893-3738 or via email at Sandra.Campbell@Trade.gov.

America's hottest export: Weapons - Full version

America's hottest export: Weapons - Full version
An interesting Article from CNNMoney.

Plano woman pleads guilty to smuggling night-vision scopes | News for Dallas, Texas | Dallas Morning News | Headline | National News

Plano woman pleads guilty to smuggling night-vision scopes | News for Dallas, Texas | Dallas Morning News | Headline | National News

How Do You Report a Drop Shipment in AES?

http://blogs.census.gov/globalreach/