Global trade involves the exchange of goods and services between international borders. It allows countries to specialize on the activities they are best suited to do, resulting into low costs to consumers and increased revenue. Global trade help countries maximize revenue, production and efficiency by focusing on producing what it does best for export to other countries of the world, which results into economic growth. Regardless of all these benefits, there are some problems with
global trade which leads to much greater uncertainty in sales and revenues. The issue may be a result of the increased cost
of transport and trade restrictions in some countries.
GLOBAL TRADE COMPLIANCE
Manufactured goods are commonly transported from one country to another. Such type of trading activities play a very important role in the development of an economy and increase in its welfare. These trading activities are not left to the whims of the importer or exporter alone, rather there are guidelines that need to be followed to ensure compliance. The laws and regulations that govern these processes in global trade are known as trade compliance. Trade compliance is the process where those who engage in international trade, including importers and exporters strategize to comply with all trading laws and regulations of the countries they are either sending or receiving items from.
Global trade, otherwise known as international trade, can be very complicated, due to many different set of rules with a particular nation. Depending on the country one is dealing with, a particular product can be subjected to various trade agreements and regulations. These trade agreements are deals signed by two or more countries.
To be compliant, exporters are asked to provide detailed information about the products they are transferring to the
receiving country. This information varies depending on the country involved and the products that are being dealt with. Some of the information that either the importer or exporter will be required to provide include the value and details of the shipment as well as the reason why the product is being transferred. Not only does trade compliance guide one on the necessary steps to take when dealing with receiving or transferring of goods from one country to another, it also states the activities either of the parties should not engage themselves in, depending on the country. For instance, some countries allow the importation and exportation of certain items from specific countries, while some place restrictions on such items.
Failure to abide by the rules and regulations in export compliance as an exporter can result into a wide variety of negative consequences. In some instances, the items transferred to the other country may be seized or returned to the sender. While some countries with strict laws and regulations may charge the receiver to court. There is also every possibility that restrictions can be placed on trading activities with certain countries or products. Since export compliance can be such a serious issue, there are several sources online that exporters can turn to for assistance. In the US, for instance, there is a Trade Compliance Center within the Department of Commerce that help individuals and business provide solutions to foreign trade issues. Asides government establishments, there are also several private firms that also specialize in assisting both individuals and corporate bodies proffer solutions to their global trading issues. Carrying out a thorough research to get several useful information before engaging in any foreign trading activity can be a wise decision. Ignorance of trade guidleine is never considered an excuse and often not accepted as a defense when trade laws are violated.
Exporters have both moral and practical responsibilities when transferring goods to certain country. Export compliance should be duly followed in order to avoid unnecessary expenses. Some of the benefits of export compliance are that it can make you save more, get acquainted with the laws and regulations guiding trade of the country you are dealing with to avoid negative publicity and also help boost productivity and efficiency.
The differences in the requirements outlined by countries all over the world and inadequacy of infrastructural facilities among global supply chain stakeholders makes the dissemination of accurate information very difficult. In order to manage the challenges of global trade compliance, it is very important to find a reliable organization who offer a flexible and cost-efficient solution that proffer solutions to these issues and create an avenue where trading partners can meet up with updated global trade compliance mandates. Companies should research on a global filing solution that offers transparency in the filing process through automated electronic evidence collection and can easily make data exchange possible through their network anywhere in the world, irrespective of the modes of transport or location. In order to be more secured and get automatic updates on changes in regulation and trade compliance contents, find the most reliable company with the latest trade compliance software that ensures availability of regular updates with country trade regulatory programs.