Reynold Martens, Executive VP, GHY International and author of the series of white papers on Trade Compliance Strategy development. Reynold describes the findings of leading traders that lead to identifying best practice #2.
“Best Practice #2 has to do with the fact that a champion or a team is in place to own compliance. It’s based on a principle that’s very basic: what is owned is managed. If it’s diffused, responsibility is often increased to the enterprise and there’s more risk because the risk either unknown or spread over a whole number of different individuals or functional areas within the company.
“It’s what I talked about earlier about the silo model where there are separate worlds for imports and exports. Companies we surveyed have direct responsibility at a senior level for compliance going right up to senior levels including the corporate controller, the compliance manager, and in some cases, the company president.”
“The common theme is that they have a strategy in place for compliance; compliance intersections are identified, they’re mapped and ‘owners’ are appointed for them under a ‘quarterback’ who owns all the consequences and manages all the reporting structures for those that are involved in the trade processes.”
My question to you is: is trade compliance responsibility diffused in your company or is it centralized somewhere under a quarterback?