Businesses frequently conduct extensive international shipping. The growth of global eCommerce contributes to the rise of import and export trade volumes in many places. Along with this trend, the number and complexity of the laws governing this commercial activity massively grew.
Enterprises that engage in importing and/or exporting typically find plenty of benefits in reviewing their compliance programs frequently. In this article, we’ll analyze four reasons to review your trade compliance.
Trade Laws And Regulations Change Over The Course of Time
Developing geopolitical tensions or alliances may sometimes create new trade provisions. For example, one nation may impose a tariff on certain categories of products, and other governments may respond in return. These legal changes sometimes significantly impact a company’s import and export compliance requirements.
Maintaining an Effective Compliance Program Helps Risk Management
By establishing and maintaining compliance programs, companies demonstrate their good faith efforts to comply with applicable laws and regulations. Even innocent violations of this complex body of law sometimes carry hefty penalties. For example, the first failure to comply with an Importer Security Filing can cost up to $5,000 on a per Bill of Lading basis. Competitive businesses today simply cannot discount the importance of company compliance programs.
Compliance Programs Furnish Easy Access to Important Documentation
Today, international trade generates a wide variety of documents. From invoices and bills of lading to Country of Origin certificates and order confirmation emails, this material provides evidence of the unfolding of commercial transactions. Compliance officers may need to access this documentation quickly on short notice in order to verify details. Merchants who cannot locate essential documentation upon request may discover they attract the interest of regulators. Fairly or unfairly, government agencies sometimes presume an absence of essential documentation equates with a failure to comply with regulations.
Compliance Problems May Result in Significant Shipping Delays
If compliance issues arise at a Port of Entry, in addition to possible legal consequences the impacted importer and exporter may encounter costly delays in the shipping process. In some situations, these types of disruptions result in financial losses. For instance, if a shipment of cut flowers remains “on hold” for several days while officials wait to receive essential documentation about the origin of the plants, the potential time to market the perishable order declines. The importer may discover it cannot find customers for 90% of the shipment as a result of the unforeseen delay. Many types of cargo require expeditious handling in order to prevent business losses. A robust compliance program helps minimize unnecessary delays.
Commercial Activity at The Port of Savannah
During the past decade, the Port of Savannah experienced impressive growth. Established in 2001, our third-party logistics company assists numerous exporters and importers in this location. We maintain some two million square feet of clean, secure warehouse space. Our company provides seamless warehouse inventory management services, including real-time inventory tracking.
Business customers rely on us to furnish an array of services, including both long and short term storage. We also supply drayage services and comprehensive distribution assistance (such as picking and packing). Our fleet of well-maintained trucks furnishes valuable regional freight carrying capabilities throughout the Southeastern United States. We welcome inquiries from prospective customers.
Create a Leaner Supply Chain with PortCity
Whatever your logistics needs are, we’re here to create the best solution for you. We’ll handle the complexities of logistics while you tend to your business’s important day-to-day needs. PortCity can act as your liaison in the long import/export process. For more information on how we can do this, contact us below!
