United States

Help for piecing together the trade compliance puzzle

Jul 21, 2017
From the KPMG TaxWatch

Global trade is a complex puzzle of ever-changing government regulations and rules, cross-border documentation, fluctuating currencies, diverse cultures, preferential benefits, and constantly changing trading partners. It is also risk-inherent and challenging, creating significant exposure and liability for multinational companies and their key decision makers.

To further complicate matters, a majority of multinational companies involved in international trade lack the technology and bandwidth necessary to protect their companies, reduce disruptions to supply chain, and meet customer demand while remaining compliant.

Yet, trade compliance is a critical element of conducting global business, and it has become increasingly difficult for multinational companies to manage trade compliance without the support of a qualified trade compliance managed services provider.

Some of the specific challenges include: day-to-day global trade compliance monitoring and support, managing free trade agreements, restricted and denied party screening, harmonized tariff schedule or export commodity classification number determinations, and pre- and post-merger and acquisition activities.

This article highlights four areas where managed services can offer significant benefits: tangible cost savings, proactive vs. reactive trade compliance management, access to technology, and improved trade compliance.