Trade compliance should never be an afterthought. And it won’t happen on its own. In most cases, you ought to consider outsourcing this function in order that experts can put the pieces of the compliance puzzle together for you. Compliance experts can advise you what your obligations are as an importer and/or exporter and show you ways to suits them.
By understanding the regulatory risks your company faces, you'll put into place the required policies and procedures. this could be the inspiration of any compliance program. the sole thanks to know if your compliance program is functioning is to assess it and evaluate it. Lowering your risks and ultimately lowering your costs are going to be the top result.
Unfortunately, some importers and exporters don’t even consider hiring outside assistance with their compliance program. Why? While it’s hard for us, compliance fanatics, to know, here’s a compilation of what we’ve heard over the years – and here are the explanations why these are myths and not facts:
- It takes too much time. I know we just said this, but you ought to also know that a Customs audit, referred to as a Focused Assessment, takes about six months when no issues are found. If you are doing not have a compliance program in situ, expect that audit to require much, for much longer with Customs auditors spending many times in your office. But don’t take our word for it. If you’d wish to understand how painful a Focused Assessment really is, ask an importer that has been through it. We promise you’ll be terrified. Don’t let that be you.
- Take too much of your time. There is a time investment to establishing a compliance program, but once in place, your shipments will move more quickly and that’s where you will see the time savings. Once the program is implemented, you’ll just need to maintain it.
- Customs don’t bother us. You can’t fly under the radar forever. Customs features a program of Quick Response Audits which will target any size importer on one issue. And it’s surprising to ascertain what percentage penalties are issued to long-established importers.
- Our broker takes care of everything. As the importer of record, under 19 USC 1484, you hold the liability for all aspects of the entry. The broker is merely a conduit to Customs on your behalf. you can't outsource the responsibility.
- It’s too expensive. The cost of penalty actions will far outweigh the prices of putting a compliance program into place. Remember that ISF penalty we just talked about? We’re sorry to allow you to know that level of penalty is on the (very) low side. Penalties for negligence and gross negligence are issued within the many dollars. Export penalties easily reach 7 or more figures.
So, if you are looking for an export consulting services with a great experience on this field, you may want to consider the FD Associates. They are in this business for so many years and they can definitely help you in your trading business.