Reynold Martens, Executive VP, GHY International and author of the series of white papers on Integrated Trade Compliance Strategy development describes the foremost “best practice” shared by leading traders.
“The first best practice is that corporate leadership has identified trade compliance as a priority. Leading firms actually build compliance in as part of their corporate doctrine. Why is that? Well, because the consequences of non-compliance are very significant and the upside of compliance is very positive.
Some studies indicate that up to 40 percent of companies do not have senior management that is aware of trade compliance and that is a bit perplexing. The ones that do make it a priority do make that decision for a number of different reasons.”
“Number one is brand and reputation. People want to do the right things for the right reasons and brand reputation in a global environment is more important than ever today.
Secondly, financial risk mitigation… Who wants to have a surprise and a penalty or something that comes across their desk or on their balance sheet that’s not expected and compromises their profitability?
Thirdly, operational excellence is becoming the norm in businsses today. Lean business systems, lean processes, and cost management are mantras that are being used in most businesses today. Compliance is a part of that.
Fourthly, profitability. Compliance has a way of helping companies stay profitable and avoid unprofitable losses which gives them an edge in the marketplace.
Finally, it’s legally required; it’s part of due diligence. You can’t not be compliant and expect to ‘get away with it.’ Again, it is the right thing to do for all the right reasons.”
So, where does trade compliance fit in your leadership’s hierarchy of corporate priorities?