Author and Trade Compliance expert, Kyle Grobler has shared these Trade Compliance mistakes and ways to tackle them
Trade compliance mistakes are costly.
And they can ruin businesses.
Recent findings show:
→ Misclassifying goods leads to hefty fines
→ Not screening parties invites legal trouble
→ Poor recordkeeping incurs $10,000 fines per entry
Trade compliance mistakes are costly:
• Misclassified goods can trigger audits and penalties
• Transactions with sanctioned entities can halt operations
• Inadequate documentation can cause severe financial loss
And they can ruin businesses:
• Fines and penalties drain resources
• Legal issues damage reputation
• Non-compliance can lead to loss of export privileges
All of this is alarming to say the least.
So, what do we do about it?
Avoid these mistakes.
5 costly trade compliance mistakes to avoid:
→ Inaccurate classification of goods
→ Failing to screen parties involved in transactions
→ Neglecting documentation and recordkeeping
→ Lack of training and awareness
→ Ignoring changes in trade regulations
To avoid “inaccurate classification of goods”:
• Train your team in tariff classification.
• Regularly verify classifications from suppliers.
• Use reliable resources for commodity codes.
To avoid “failing to screen parties”:
• Implement robust screening processes.
• Keep denied party lists updated.
• Monitor transactions for compliance.
To avoid “neglecting documentation”:
• Maintain comprehensive records for at least five years.
• Include invoices, shipping documents, and correspondence.
• Conduct regular audits of documentation practices.
To avoid “lack of training”:
• Establish regular training sessions.
• Update staff on regulatory changes.
• Promote a culture of compliance.
To avoid “ignoring changes in regulations”:
• Monitor regulatory updates.
• Conduct periodic self-assessments.
• Stay informed about geopolitical events.
Trade compliance is not a small issue:
→ It’s threatening businesses,
→ And it’s threatening livelihoods.
Leaders, it’s time to step up and make things right.
Call to action:
Protect your business take these steps to avoid costly trade compliance mistakes and safeguard your operations.
Kyle can reached on LinkedIn: https://www.linkedin.com/in/kylegrobler/
