Integrated Trade Compliance Strategy Executive Overview

On December 14, 2011, in Strategy, by Reynold Martens

Directors and executive officers are ultimately responsible for corporate compliance with national and international regulators encountered in the course of their global sourcing and marketing endeavors.

6467674 s Integrated Trade Compliance Strategy Executive Overview


Directors and executive officers are ultimately responsible for corporate compliance with national and international regulators encountered in the course of their global sourcing and marketing endeavours.

Most companies tend to compartmentalize their trade activities into import and export functions, with separate groups working independently with outsourced providers of financial, legal, trade, and customs services.

This can create a “silo” affect that, while effective for the day-to-day execution of trade-related activities, reduces or even eliminates visibility to the areas of the enterprise impacted upstream or downstream. There can be significant consequences that will inevitably find their way into the corporate boardroom and executive offices.

Our intention is to build the case for why an integrated global trade strategy makes commercial sense, and is an essential component of a solid corporate approach to minimizing regulatory risks that may threaten the enterprise, and maximizing opportunities that may benefit it.

 

Link to download the white paper: A Case for an Integrated Trade Compliance Strategy

Video Link of Reynold Martens providing a summary of an Integrated Trade Compliance Strategy

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Uncertain economic times require better supply chain practices

On November 18, 2010, in Trade Compliance News, by Nigel Fortlage

Opportunities to use supply chain management to bolster overall company efficiencies are being missed in Canada because the discipline remains silo based and tactical as opposed to company wide and strategic

4741728 s 300x248 Uncertain economic times require better supply chain practicesSince I am constantly looking for articles that talk about International Trade Compliance Strategies, I was pleased when I opened the October 2010 issue of Canadian Transportation and Logistics magazine. I read with delight the story by Lou Smyrlis in which he reports on events from the 24th Annual Transportation Innovation and Cost Savings Conference.  Of interest to me was his opening report of a session lead by Mike Croza, managing partner, Supply Chain Alliance Partners, who said:

Opportunities to use supply chain management to bolster overall company efficiencies are being missed in Canada because the discipline remains silo based and tactical as opposed to company wide and strategic

How true that is, when compliance intersections are encountered because of actions that occurred between sourcing to selling, it is critical to consider an integrated trade compliance strategy in order to minimize risk and increase visibility to all stakeholders in an organization.

Lou Smyrlis goes on to share some thoughts of why this may be according to Mike Croza;

“In 2010 we still have a long way to go for supply chain management in Canada. I’m not sure why it hasn’t stuck,” Croza told
the well-attended annual gathering, held at the CNE grounds in September.

Croza believes the continuing lack of focus on improved supply chain practices is symptomatic of a corporate culture that has “rested on the laurels of having a low dollar for too long” and not yet made the adjustments necessary to be competitive in the new reality of a Canadian dollar that is at par with the US greenback. Croza criticized corporate Canada for not making the necessary investments in capital equipment, information technology and management practices to remain competitive.

You can read the full article here.

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Who’s who, introductions are in order

On November 17, 2010, in Resources, by Nigel Fortlage

we cant create a dialogue if we don’t know each other, in this post we introduce the key players behind tradecompliance.ghy.com

We can’t establish a relationship if we don’t know each other:

Nigel 300x225 Who’s who, introductions are in orderI am Nigel Fortlage, Vice President Information Technology at GHY International. I have been in this industry since 1988 and before that I worked for an importer/distributor/Manufacture as their in-house customs specialist. For the last 16 months I have had a second hat I have been wearing in partnership with our Executive VP, Reynold Martens working on understanding the social media space and how we can connect with you in a two-way conversation.  We will be specifically sharing details around the concept we have been introducing you to, an Integrated Trade Compliance Strategy. We believe by providing you good information, education and awareness that we hope to engage in a conversation that results in helping you solve problems, creating that Ah Ha moment for you, or addressing moments of truth in your international trade operations that adds value

Martin Rayner is an independent consultant with more than 27 years of diverse experience working in various operational facets of the customs brokerage and international trade logistics field. Martin has also held executive-level positions in the industry with a number of the leading trade service providers across Canada and during his career has acted in both professional advisory and advocacy capacities for companies seeking to leverage opportunities in the regulatory environment to their benefit.

Reynold4 Who’s who, introductions are in order

Reynold Martens is Executive Vice President and Corporate Secretary of GHY International, and he is the President and co-founder of the firm’s subsidiary, GHY USA, Inc. He is the Author of the white paper titled, a Case for an Integrated Trade Compliance Strategy. Reynold is also actively involved outside of GHY, he is active in various industry and community leadership roles, including directorships with the Canadian Manufactures and Exporters Association, current chair for IE Canada Manitoba Chapter and member of the National Board

rick riess Who’s who, introductions are in orderRick Riess, President & CEO, GHY International. We can not talk about our current president and 4th Generation owner of the firm without, acknowledging the background from which he comes,

GHY–over a century old and still “Young.”

Yes it’s true. Geo. H. Young & Co. Ltd. turns 110 in 2011, making the company one of the oldest and most established privately held enterprises in Canada that continues to grow and evolve as both a pioneer and innovator in the Customs brokerage industry.

In the late 1800’s, Canada was a work in progress, with only seven provinces (Alberta and Saskatchewan joined in 1905). The young nation was struggling to protect its development by means of high tariffs on goods that were manufactured—or could be—in Canada. Duty rates of 20 – 40 percent accounted for most of the government’s revenue of about $50 million, as income taxes weren’t initiated until 1917.

At the time, George Henry Young was the Chief Inspector of Customs Ports stationed in Winnipeg. In 1901, recognizing the opportunity when he saw it, he opened one of the first brokerage houses in Western Canada. This pre-dated the automobile era, and the majority of goods moved by rail. However, the winds of change were blowing, and in 1903, Wilbur and Orville Wright took their first flight, and by 1929 the first international commercial flight into Winnipeg arrived from Minneapolis. That was likely Northwest Airlines, one of the company’s longest standing international relationships. George led the company for its first 43 years until 1944, when the reins were turned over to his son George Donald Young, known as Don.

In 1950, under Don Young’s leadership, Geo. H. Young & Co. Ltd. formally incorporated, and so began an exciting era of growth in revenue and clients. News of those years is well documented in the formal corporate minute books, which include colourful details about the business of the day, the people and events, as well as the challenges and opportunities. There is reference to some of our long-term clients who have become pillars of the Manitoba business community, and indeed some of these relationships span more than eight decades and have contributed significantly to our success.

In 1968, GHY’s leadership transitioned to Charles Riess, son-in-law to Don Young. As the Prairie economy continued to expand and with it cross-border trade, so did the company, which opened an office at Emerson, Manitoba to accommodate the growing volume of truck traffic originating in the US bound for the Prairies. Charles’ son, Richard Riess, became President in 1992, and so began an unprecedented period of growth and expansion in products, services, locations, and strategic partnerships.

Today, GHY International as it is known, is recognized as a leader in the industry for its strategic focus on trade facilitation and regulatory risk management, use of innovative technologies, solid core values, and principled approach to working with clients, associates, Customs regimes of Canada and the US, supply chain partners in all modes of transportation, and yes, even competitors.

The scope of the enterprise has expanded to include locations in British Columbia (1994), Ontario (2005), a strategic partnership in Alberta (2005), a nationally licensed US subsidiary based in North Dakota (1995), and numerous strategic partnerships. It has grown to include over 100 employees serving a client base from a broad cross-section of industries, including many top 500 companies in Canada and the US.

Canada Border Services Agency (CBSA) ranks GHY Canada 13th out of 504 reporting entities; United States Customs Border Patrol (CBP) ranks GHY USA 39th out of 2523 reporting entities; GHY Canada is the largest prairie-based member of the Canadian Society of Customs Brokers (CSCB), which includes the vast majority of Brokers in Canada.

GHY has survived the calamities of two world wars, the Great Depression, dozens of economic cycles, fast-paced growth in trade and the regulatory environment, and a technology revolution, and through all those waves of change, has been an innovator, while staying true to its core values, and maintaining a relentless pursuit of creating value for our clients.

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Forgein Exchange a Strategic Issue?

On November 15, 2010, in Resources, Strategy, by Nigel Fortlage

While the author shares their thoughts why it is not time to get out of China it did raise an issue that is part of an Integrated Trade Compliance Strategy, that is managing international exchange and purchasing in local currencies.

3995454 s 300x300 Forgein Exchange a Strategic Issue?I was reading an Article in Supply Chain Brain about an opinion piece on whether or not it was time to bail out of China due to it’s increasing cost of doing business there. Read the whole article here.

While the author shares their thoughts why it is not time to get out of China it did raise an issue that is part of an Integrated Trade Compliance Strategy, that is managing international exchange and purchasing in local currencies.

While GHY International is not an expert in these areas, we do have someone who is. These are exactly the topics that Custom House Currency Exchange, now a Western Union company handles.

Here is a link to their white papers on these exact topics

Web address for Custom House Currency Exchange

Web address for Western Union Corporate Services

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Canada’s 1st Free Trade Zone (FTZ)

On November 10, 2010, in Resources, by Nigel Fortlage

CentrePort Canada is North America’s new 20,000-acre inland port that has been designated Canada’s first Foreign Trade Zone (FTZ). Located in Manitoba next to Winnipeg’s James Armstrong Richardson International Airport, CentrePort Canada offers greenfield investment opportunities for a wide variety of business operations including distribution, warehousing and manufacturing.

6 full Canada’s 1st Free Trade Zone (FTZ) CentrePort Canada – Better Faster Cheaper

CentrePort Canada is North America’s new 20,000-acre inland port that has been designated Canada’s first Foreign Trade Zone (FTZ). Located in Manitoba next to Winnipeg’s James Armstrong Richardson International Airport, CentrePort Canada offers greenfield investment opportunities for a wide variety of business operations including distribution, warehousing and manufacturing.

CentrePort Canada is strategically located in the central time zone in the heart of North America. It boasts a modern, well-established network of highways, railways, air and sea connections to important regional and international markets, including eastern and western Canada, the United States, Mexico and Latin America, as well as Europe and Asia.

As an FTZ, CentrePort Canada has significant tax and cost savings to offer foreign investors and businesses looking for new ways to bring their products to the North American marketplace. FTZ benefits include deferral of customs duties and a GST exemption on products imported to Canada for warehousing or processing before re-export out of country.

CentrePort Canada features an impressive collection of transportation assets that are unmatched anywhere in the region and provide businesses with real advantages such as:

    • Flying through Winnipeg is cheaper than flying into U.S. destinations; airlines landing in Winnipeg can cycle their aircraft faster and more time in the air increases revenue; and international cargo flights are exempt from provincial fuel tax.
    • Winnipeg is home to one of Canada’s top cargo airports, has more than 1,000 for-hire trucking companies, is at the junction of three major continental railways (CN, CP and BNSF), and is closer to European and Asian markets via the polar routes.
    • Winnipeg offers great road, rail and air connections to North America – in fact, many major U.S. and Canadian cities are less than 24 hours away by truck.
  • Winnipeg also boasts extremely competitive business costs including affordable office space and land, low construction costs and hydro-electric energy rates that are among the lowest in North America.  Winnipeg’s taxes are also lower than those of most major cities in Canada and the U.S.  In fact, Winnipeg has a lower effective Corporate Income Tax Rate and a lower Total Effective Tax Rate than 58 of 59 major U.S. cities, according to a recent KPMG study.

    All of these advantages mean that it is more efficient and cost-effective for international businesses to ship North American-bound goods through Winnipeg.

    To find out how CentrePort Canada can work for you, email us at busdev@centreportcanada.ca or telephone 1-204-784-1300.

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6 Tenets behind an Integrated Trade Compliance Strategy

On October 27, 2010, in Strategy, by Reynold Martens

Our underlying rationale for this perspective of needing an Integrated Trade Compliance Strategy is based on 6 tenets

7517624 s 6 Tenets behind an Integrated Trade Compliance StrategyLast post we shared a very high level overview of why we believe that an integrated trade compliance strategy is the right approach in today’s business environment. Last weeks posting was about the skeleton of an idea, today we add some vital content for you to consider and comment on.

Our underlying rationale for this perspective is based on 6 tenets:

1. Supply chains are more internationally integrated and diverse than ever before, creating a complex new mix of origins, currencies, manufacturing locations, and markets.

2. Regulators in the US, Canada, and globally are harmonizing their efforts to enforce international trade rules in pursuit of revenue, and to suppress terrorist threats, therefore increasing the risk of detection.
Effective management of international trade will only increase in importance as Canadian and US companies refocus their efforts on growth and expansion to take advantage of global opportunities.

3. It is the regulator’s responsibility to write the rules of trade, communicate expectations and consequences clearly to the trading community, and enforce compliance with those rules.

4. It is the corporation’s legal responsibility to be informed, compliant with the regulations, and prepared for the inevitability of verification audits or enforcement actions.

5. Directors, executives, and senior managers need to be discerning, and match their investment in risk mitigation to the potential magnitude of severity and commercial impact to the enterprise.

6. An intelligent trade risk mitigation strategy identifies desired outcomes, and proactively anticipates regulatory intersections at each stage of the business cycle from product development to contract fulfillment.

What do you think? Did we miss one? Which one can you relate to?

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Integrated Trade Compliance Strategy, sobering business!

On October 21, 2010, in Strategy, by Nigel Fortlage

We have already stated that we will share details behind our belief that an Integrated Trade Compliance Strategy is not only desirable but necessary in today’s world with Global supply Chain’s. Don’t take our word for it; “Trade regulation and compliance has become sobering business. The events of September 11, 2001 and the corporate corruption [...]

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19219 Integrated Trade Compliance Strategy,  sobering business!

We have already stated that we will share details behind our belief that an Integrated Trade Compliance Strategy is not only desirable but necessary in today’s world with Global supply Chain’s.

Don’t take our word for it;

“Trade regulation and compliance has become sobering business. The events of September 11, 2001 and the corporate corruption scandals of Enron and Worldcom changed forever the world of international trade. The U.S. government has responded aggressively by adding more complexity and more scrutiny to international trading standards and programs. It is also developing technology solutions and a National Targeting Center to increase its oversight and enforcement capability. In addition, the Sarbanes-Oxley Act of 2002 impose strict requirements on executives, has potent enforcement powers and a strong emphasis on internal controls.” (Matthew Gersper, Randell Carr, Creating a Competitive Advantage in Global Trade, Global Data Mining, 2006)

“In a nutshell, rapid globalization, supply chain complexity, and intensifying regulatory vigilance translates into escalating trade compliance risk for internationally active corporations and their leadership teams at the Director and Executive levels”, says Reynold W. Martens, Executive Vice President, GHY International and author of the white paper, The Case for an Integrated Trade Compliance Strategy.

pixel Integrated Trade Compliance Strategy,  sobering business!
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