Note - above image is from Library of Congress, and is public domain[i].
If you’re anything like me, you know what I mean by “the
cubicle at the end of the hall”. Those responsible for or involved in Trade
Compliance often feel like the unwanted guest at the party. No one is too sure
what exactly we do, but they know it’s usually bad news when we get involved! I
think sometimes they place us as far as possible from the action, but maybe
that’s paranoia!
In all seriousness, most of us have had those conversations
over the years when asked “what do you do”. I’m sure I’m not the only one who’s
seen glassy eyes in response when I say “NAFTA”, or Customs Compliance. Cross
border trade compliance just hasn’t been a well known or understood topic
historically. Maybe this sounds familiar to you too:
“So, what do you do?”
“Oh, I look after customs and trade compliance, NAFTA, that
sort of thing”
“Hmmn?”
“You know the North American Free Trade Agreement?”
“…”
“Forget it, just pass the crackers please…”
Similarly, many companies that take “compliance” seriously, historically
haven’t considered “trade compliance” much. A recent survey by PWC showed that
only 32% of companies with a corporate compliance function, include “Export
compliance” under the umbrella of “Corporate Compliance”[ii].
(I’m proud to say I work for one of those 32%!).
Well, whether you consider it good news or bad news, I
believe things are changing, and changing quickly. Since the beginning of the
2016 Presidential race (which feels like it started in 1916!), I have heard
people comment on the benefits/costs of NAFTA that I swear had never heard of
it before. Similarly, in Canada right now, it is big news discussing whether or
not we will sign the CETA free trade deal with the EU. For those not following,
a province in Belgium called Wallonia is sticking to their guns and refusing to
ratify, which means the whole agreement may fail. As I write this, my Prime
Minister has cancelled his trip to Europe for the signing. I guess there must
be a ``Make Wallonia Great Again” movement going on[iii]…
A good article on it can be found here:
Returning to the US Presidential race, as anyone following
knows, deals like TPP and NAFTA have been front and center in the debates. I
haven`t seen this level of public discussion on free trade since NAFTA was
first debated in the Clinton campaign… (Oh, am I having déjà vu…)
Beyond free trade, several other high profile events have
affected trade compliance recently. From the activity in the Ukraine, to Syria,
to Cuba, foreign policy decisions seem to be affecting the rules we trade by
almost daily.
On the enforcement side, several significant court decisions
and US CBP announcements promise to bring trade compliance into the public
litigation sphere. For example, the recent court decision on False Claim Act
application to Marking Duties:
And the recent US CBP statement re: AD/CV duty enforcement:
Based on these developments, we may see a new cottage
industry for lawyers. I tried hard to think of an import/export equivalent to “ambulance
chasers” but came up empty – any ideas?
As I said earlier: all of this may be good or bad news for
you. If you liked your quiet cubicle at the end of the hall, maybe this is bad!
However, if you’ve been seeking more exposure in your company, and feel ready for
increased challenges, this can only be good for you. Best start catching up on
what’s going on: wouldn’t want to be unprepared the next time someone brings a
newspaper article to your cubicle and says “hey – isn’t this that stuff you do?”
[i] http://www.loc.gov/pictures/item/ne0108.photos.198654p
[ii] https://www.pwc.com/us/en/risk-management/state-of-compliance-survey/assets/pwc-soc-2015-chart-pack.pdf
[iii]
Fear not – I`m not making a judgement on the value of `Make American Great
Again`… just trying to point out how much our profession has been hitting the
news lately!
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