Why Have a Trade Compliance Team?

Is your enterprise meeting all of its compliance needs? The great paradox of global trade is that it is integral to growth, but few specialist understand the challenges of operating internationally. Every mid to large size company in business has a strategy in place for meeting their accounting, human resources, and facilities needs and the best among these have developed ways of making these areas value adders. However, compliance with the various laws and regulations that govern global trade is still viewed as an afterthought by many of these same organizations.

As global supply chains and the regulatory environment grow ever more complicated, great care must be paid to the details. There are several hundred trade agreements in effect across the globe and countless numbers of laws and regulations that govern the import and export of goods and services. In the United States, negligent violations can result in fines of either the domestic value of the merchandise, or two times the duties, taxes, and fees owed to the United States (whichever is less). Meaning, simple mistakes can and will harm a company’s bottom line and the same level of care that is given to tax or safety compliance must also be paid to trade compliance. However, time spent auditing invoices and customs entry documents is time spent away from core profit-generating activities.

Given these realities, it is prudent for businesses to rely on the expertise of Global Trade Specialists. Much in the same way, a company will use specialists for auditing financial statements or in managing their human resources to stay focused on their core competencies employing a global trade specialist will save an organization time and money and turn compliance into a value-added activity.

But what is a compliance specialist? At the top of this specialty are Licensed Customs Brokers (LCB), who, are defined by the United States Customs and Border Patrol as: Private individuals, partnerships, associations or corporations licensed, regulated and empowered by U.S. Customs and Border Protection (CBP) to assist importers and exporters in meeting Federal requirements governing imports and exports. Brokers submit necessary information and appropriate payments to CBP on behalf of their clients and charge them a fee for this service.

Brokers must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.

Through leveraging the knowledge and experience of an LCB, your organization will see fewer slowdowns at the port and find savings on fees and tariffs by making the rules work in your favor.

Contributor: Garry Powell

How can Allyn Help?

Allyn International has 25 years of experience in Global Trade compliance and our team of Licensed Customs Brokers are ready to provide solutions tailored to your company’s needs.

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.

References:

https://www.cbp.gov/trade/programs-administration/customs-brokers/becoming-customs-broker

https://www.law.cornell.edu/cfr/text/19/appendix-B_to_part_171

https://www.wto.org/english/tratop_e/region_e/regfac_e.htm

https://ustr.gov/trade-agreements/free-trade-agreements