Trade compliance means operating within the many global regulations that surround trading activities and the import and export of products, services and technology.
That means complying with international export, trade, and financial laws.
In today’s global marketplace, companies do business both within and outside the United States. Your supply chain depends on following various trade agreements, international trade regulations, and tariff classification. Large companies often have a trade compliance team or trade compliance manager.
Yet, even with these specialties, many companies unintentionally receive import and export violations, and these violations lead to hefty penalties and fines for failure with trade compliance functions.
International business is more complex than ever before, and this is why you need a clear understanding of the rules of export control, customs authorities, and export laws. As a result, exporting and importing has become an essential part of day-to-day operations. Since your business relies on global trade, your company needs to ensure that your operations have solid global trade compliance.
Trade compliance describes the terms and conditions for all trade between two or more countries, including training, lending, classification, trade risk determination, and duty or tax payments and reviews. In addition, a country may have different trade agreements for every other country it does business with. As a result, the number of potential trade agreements can be equal to every possible pairing of countries and subsequent organizations within a country.
To remain competitive, companies must have a comprehensive understanding of the laws and regulations which govern their imports and exports.