Supply Chain Brain recently featured an article about companies that are investing in compliance because of the fear of fines and penalties as well as the promise of a strong return on investment.
Nathan Pieri, SVP Marketing & Product Management for Management Dynamics, describes how "leveraging FTAs is one of the biggest value propositions for trade compliance systems."
According to an Aberdeen report:
“A disturbing 71 percent of all companies surveyed complain that internal stakeholders outside of the compliance department do not understand the impact of their actions on trade compliance or the risks associated with non-compliance,” it reports.
To respond to growing demand for more trade-agreement support, Management Dynamics last year introduced a solution capable of managing multiple FTAs. “Today we support 10 free-trade agreements and by the end of the year we will support 20,” Pieri says.
How does ROI play into compliance?
According to Supply Chain Brain, time will tell whether there is ROI to be found in the Importer Security Filing, but there will be costs in failing to comply. Fines of $5,000 per incident will begin next January when U.S. Customs and Border Protection is set to begin enforcement of the 10+2 rule.
For more information about trade agreement and how to stay compliant, click here.
To read the full article, click here.
