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.
Smaller-sized companies don’t usually have the financial resources to employ an individual dedicated to trade compliance.
As an alternative in such cases, a cross-functional team is appointed to be the collective champion of the compliance cause, reporting to either the Vice President of Operations, or the CFO, who is ultimately responsible for enterprise risk mitigation.
The team places a heavy reliance on the expertise of third-party service providers for regulatory integrity, especially Canadian and U.S. customs brokers.
In smaller firms, there tends to be a more organic approach to managing regulatory issues on the fly, although the best practice we have observed is based on the cross-functional team taking a proactive approach to anticipating compliance issues at all stages of the business continuum.
This precautionary stance includes:
- Assessments of new international suppliers;
- Export contracts from the RFP stage through to fulfillment; and
- Strategic planning where international variables are in play.
From a pragmatic standpoint, the team works together via a combination of itinerant communication as needed, regularly scheduled meetings, and periodic strategic or business planning sessions.
Other posts in this series:
- Trade Compliance Models - Part III: Trade Compliance Champion
- Trade Compliance Models - Part II: International Trade Compliance Department
- Trade Compliance Models - Part I: Multi-Country Team
- Responsibilities of the Trade Champion: Tactical Perspective
- Responsibilities of the Trade Champion: Strategic Perspective (Part II)
- Responsibilities of the Trade Champion: Strategic Perspective (Part I)
- Why is a Trade Champion Necessary?
- The Role of a Trade Compliance Champion
Click here to download the white paper.