A recent survey of 322 executives at U.S.-based global companies by trade management firm Amber Road found that over half (56%) of executives said their organizations aren’t investing in trade compliance training, even though almost one in three (28%) had been fined or warned by government agencies about their non-compliance.
Despite the vast majority (73%) indicating that their companies have an existing trade compliance plan, almost half (46%) of surveyed companies inexplicably didn’t require any training for employees and 28% require less than 11 hours of training – thereby leaving a significant performance gap between having a plan and the ability to act on it.
Furthermore, more than half (55%) of organizations hadn’t standardized their global compliance training and a third (33%) don’t have a budget for trade compliance training, which obviously increases the potential for noncompliance risks as a result of untrained staff.
Lack of awareness about the benefits of trade compliance is causing many companies to leave money on the table, Amber Road contends, citing the fact that many organizations are not taking advantage of numerous preferential trade programs, including duty drawback, free trade agreements (FTAs), and free trade zones which could save them millions of dollars.
“The benefits of globalization can only be achieved by complying with trade regulations and fully understanding how available trade programs can be implemented. Providing trade compliance training to employees is key to an international company’s success, and that starts with raising awareness in the boardroom,” said Suzanne Richer, trade advisory practice director at Amber Road’s Global Trade Academy.
Click here to download the Trade Compliance Training Survey white paper (registration required).