How to Utilize Technology to Manage Global Trade Compliance

By Neil Lenok, Managing Director American River Int’l

Importers, exporters, carriers, and all other service providers can greatly benefit from using technology to manage their compliance programs.

Technology provides three primary benefits in trade compliance:

• Expedience
• Reduction in human errors
• Enhanced management control

Expedience
Technology allows the user to process various compliance responsibilities quickly.

The best example of this technology is used in screening the cumbersome Denied Parties Lists authorized by the Departments of Commerce, State, and Treasury.

These various lists contain more than 10,000 names of individuals and corporations, located in the United States and abroad, with whom U.S. companies are restricted from doing business.

In exercising due diligence and reasonable care in our supply chain, companies are encumbered to check these lists before engaging in an import or export transaction.

Checking this list manually is both arduous and time consuming — and certainly doesn’t afford a “Best Practices” procedure.
Screening can best be accomplished through automation, and the use of technology allows users to scrutinize electronically, assuring timeliness and accuracy.

Reduction in Human Errors
Operators in import and export activities must exercise judgment when it comes to various trade compliance responsibilities.
For example, operators must choose the correct HTSUS number for imports and the correct Schedule B number for exports. Choices exceed 100,000.

Human error is at its peak potential. Certain technology options allow supply chain personnel to access databases where the classifications are already provided and can be matched up to product codes or product SKUs.

Enhanced Management Control
Management must exercise supervision and control over the global supply chains in which they operate. Managers must assure that due diligence and reasonable care are being exercised by all personnel engaged in import and export activities.

Technology provides advantages to senior management as the opportunity for oversight can be best maintained.

An example might include export technologies that identify products, destinations, values, consignees, utilizations, etc. This is all pertinent information for an export shipment that might require an export license or some other form of government control.

Using technology with built-in control features, management can ensure personnel don’t move a shipment along until all the required government scrutiny and diligence has been accomplished.

Technology advancements provide great value to global supply chains managing trade compliance. It is typical that any expenditure in technology can easily be offset by all the benefits.

For more information, Neil invites readers to log on to www.americanriverintl.com.

In This Issue

News, Trends & Analysis
New Items

Inventory Investment and the Implications on GDP Growth

Supply Chain
Responding to Changes in the Supply Chain

Compliance Corner: How to Utilize Technology to Manage Global Trade Compliance

Overseas Opportunities for Exporters

Create a Strategy before Cutting Costs

Features
Gateway at a Glance – Great Lakes, St. Lawrence Seaway

2009 Ro-Ro Trend

Supply Chain product review
Automotive Supply Chain Software

Ports & infrastructure
Five Major Ports, Five Different Ways to Handle the Recession

Funding a National Freight Policy

Commentary
Will the Stimulus Package Help the Trade Conditions?

Casualties

Who, What, Where, When

Final Say