Compliance operations are an important part of a business with global trade connections. However, there is a surprising problem when it comes to these operations, and the problem exists within many companies. The issue is global trade compliance, or rather, the surprising lack thereof. Global trade compliance is a very important part of any business, and when it is handled correctly, it can even lead to more growth for the company – not to mention increased profit.
The issue is that compliance tends to get left behind. In fact, in an Import Benchmark Study, 70% of those asked stated that, in regards to global trade compliance, it was \”not a management priority.\” Another issue blocking compliance was stated as a \”lack of executive support/understanding.\” The simple fact is this: if global trade compliance is not considered important within the business, how exactly is the business conducting global trade? Some businesses are relying upon logistics personnel who don\’t have a full grasp of compliance and are doing what they can with what little they know. However, this is not enough.
When these mistakes and problems appear, it can then lead to an investigation by the Bureau of Industry and Security. If they find issues, it can mean penalties for the company and the individuals involved. This means problems that any company does not need or want. Sometimes a company will claim they\’ve already fired the offending employee in hopes of a lesser penalty, but the BIS is now aware of this practice. Instead, it may only lead to more problems.
Should you work at a company and have a hand in global trade compliance, you need to make sure everything is up to date and that you have protected yourself should a mistake be made somewhere. Whether you are the official compliance officer or not, you need to take steps to ensure that you are protected in case the BIS comes around and discovers problems. You don\’t need to have the actual title of compliance officer – if you have responsibilities that revolve around those of a compliance officer, it\’s time to take note.
Your first request should be about being added to your company\’s directors and officers insurance policy. The purpose of the D&O policy is to pay for any wrong decisions, whether they were actually wrong or only allegedly wrong. This can include any omissions, neglect, breach of duty, or misleading statements made regarding compliance. When you are covered by this insurance policy, a potential mistake will be covered and you will remain safe. Your company should not refuse you, especially if you are in charge of all the global trade compliance areas.
Once you are added, there are additional steps you can take to be protected. Make sure you have hard data like audit findings and document issues, notices, and other important findings. Include notes on things, such as when a recommendation was ignored or put into effect. Actual documents and real data will support you should the BIS ever look into the company. You can also provide this information to your executives. They can examine it and make recommendations or simply be more aware of their company\’s functions. You must also inform them of risks and opportunities so changes can be made in a timely fashion.
There are often key areas that should be watched carefully, such as classification and government declaration. Because you are only one person, try to provide company-wide training so others can spot problems that you may not have the chance to see. When more people are educated in global trade compliance, the company will run more smoothly and you won\’t be quite so overtaxed.
A successful business is one that uses compliance and seeks out technology and other methods that will help them succeed globally. You can use software that will help you keep track of business processes and make sure that your company\’s global trade compliance is always exactly where it needs to be and that you no longer have to worry about potential penalties from the BIS.
BPE Global is one of the finest trade compliance services provider which provides a full range of global trade services to its clients.