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Trade Compliance Models - Part I: Multi-Country Team

Posted April 13, 2016

Various organizational models are utilized to manage and monitor compliance based on size of the enterprise, scope and scale of international operations, global supply chain complexity, diversity of markets, and most importantly, the level of compliance awareness and focus.

In our white paper, we describe four general models spanning the trade landscape that would be considered best practice leaders in the effective management of global regulatory compliance.

Multi-Country Trade Compliance Team

(Global Corporation)

This approach is favoured by multinational and globally-active enterprises with decentralized operational entities, and in the case of public companies, linked to the overall corporate compliance mandate of their charter.

The global compliance quarterback is often a senior C-suite executive from Corporate Finance, Legal Department, or the Global Logistics group, heading up a team comprised of members from each country or major region the company operates in.

The team is responsible for successfully implementing the global compliance strategy with oversight and centralized reporting on key performance indicators (KPIs) that link directly to strategic objectives and targets.

At a strategic or macro level, the team responsibility for oversight of trade activity tracking between corporate entities:

  • Free trade agreement application;
  • Cost reduction opportunity maximization;
  • Oversight of a consistent contract framework for suppliers worldwide; and
  • Global oversight of third-party providers.

At a more tactical or micro level, team members own:

  • The oversight of regulatory compliance audits;
  • Cohesive application of critical trade information (e.g., tariff, origin, valuation) across all markets; and
  • Country-specific cross-border compliance provisions concerning the regulatory import requirements of customs and other government departments or agencies (e.g., permits, licenses, quota management, etc.).

Reporting to a common senior executive binds the team and cohesiveness is achieved by an intentional communication structure, which includes regular meetings, conference calls, and inter-company communication protocols designed to foster transparency and accountability.

Other posts in this series:

Click here to download the white paper.