The Journal of Commerce has a great article on Visibility into Compliance - New mandates have shippers and software providers thinking more strategically about trade compliance:
Importers and exporters are turning to a new generation of Web-based compliance platforms to help them navigate the complex world of global trade regulation as compliance matures into a core logistics function. Much of the action in recent months has come as the Importer Security Filing, or 10+2, mandate went into effect.
Indeed, ISF is one of many new rules in the increasingly regulated international trade environment around the world. Governments from all countries are looking to enhance trade security as a measure to counter terrorism, increase product safety, reduce risk, and shift accountability from the government agencies to the importers and exporters. Importer Security Filing compliance is also unique in that it represents a shift to all-electronic filing.
The ISF is part of Customs’ risk-based approach to trade regulation and is part of a broader push to automation to reduce the agency’s paperwork and free up time for targeted enforcement. “It allows us to do a much better job of determining which shipments should be looked at and how they should be looked at,” [Richard DiNucci, director of the Secure Freight Initiative] said.
Almost lost amid the attention to 10+2 was that it was the first all-electronic trade program promulgated by Customs, with no paper option, pointing the way, perhaps, to the paperless future the trade community and Customs both want. That wasn’t the intent at the outset, DiNucci said, but importers who had not previously automated their trade compliance processes have readily adapted.
ISF is a reminder to shippers that they need to exert close control their own supply chains. For importers already complying with numerous trade mandates and under pressure to reduce costs, the silver lining of 10+2 is that it allows them to identify inefficiencies and eliminate redundancies, resulting in lower risk and fewer problems with Customs.
Although the ISF initiative was initially seen as a costly burden upon importers, the new data can be leveraged into enhancing not just entries into the US but also increasing visibility into trade compliance at all points in the supply chain.
Importers are looking to integrate their trade compliance with transportation or procurement processes in order to increase the overall efficiency of their supply chain while making compliance a priority - not just a means to avoid penalties.
As both the cost and complexity of trade compliance rise, along with the risks of noncompliance, there’s a growing trend among importers to integrate it more closely with core logistics processes, said Nathan Pieri, senior vice president for marketing and product management at Management Dynamics, an East Rutherford, N.J., trade technology provider. The result, he said, is compliance capability that works seamlessly through the supply chain in a way that improves the way shippers meet regulatory mandates and their own information needs.
“Companies want compliance, but also visibility,” he said. “We are seeing that shift and are starting to market and position solutions for that.”
Importers and providers agree compliance is closely tied to supply chain visibility. From a trade compliance standpoint, visibility is needed not just to watch transactions occur, but to be able to gather and report all the relevant data elements.
For the complete read, visit the Journal of Commerce: Visibility into Compliance.
eBook: 10+2 Vital Facts about the Importer Security Filing
The data elements required for 10+2 compliance are part of a growing trend towards increased trade compliance visibility. How can your company turn ISF from a burden into an opportunity? You can start by arming yourself with knowledge!
The ISF eBook covers 12 vital facts that importers must be aware of to successfully comply with the ISF, including answers to the following frequently-asked questions:
- What are the basic elements of an ISF Filing?
- How does my company minimize the costs & risks of compliance?
- What problems are companies facing when dealing with their ISFs?
- How can my company leverage ISF requirements to improve trade compliance visibility?
Receive the ISF eBook to learn more about leveraging the data elements of your ISF to enhance trade compliance throughout your supply chain.
