What is Global Trade Compliance?

What is Global Trade Compliance? 

Global trade compliance encompasses the way in which goods are imported and exported across country borders. Countries have unique and varied import and export laws and regulations. Trade compliance training is a critical need for international organizations. Successful employee awareness and guidance to cross-border interactions are key to avoiding costly compliance violations.

According to FlashGlobal, “a trade compliance violation occurs when a company, person or third-party entity knowingly or unknowingly commits an act that violates aspects of a recognized and established rule or regulation governing the movement of goods across a country’s border.”

Due to this broad definition, it’s important that global trade compliance correlates with company ethics communications. Together, they create a culture of integrity. This means a culture that is grounded in ethical decision-making and follows all applicable import and export regulations.

Create a global culture of integrity with trade compliance training.


Illegal Here, Legal There

Countries and cultures around the world have varying business practices. What may be illegal in one country, may be legal or perfectly acceptable in another country.

For example, a government-run healthcare organization is waiting on approvals to begin using a company’s drug formulary. The hospital operations manager suggests the company provide a facilitating fee to speed up approvals. Is this legal or illegal? Does providing a facilitation fee simply because it’s customary make it okay in the eyes of the U.S. government?

The answer may depend on the industry, the exports, the countries involved, and specific company policies. 

What may be illegal in one country, may be legal or perfectly acceptable in another country.


Navigating Change

Trade compliance rules and regulations often evolve over time. Assuming employees know trade compliance requirements may be a costly mistake. Reporting and periodic audits can and do occur. Claiming an unawareness of established regulations won’t be much of a defense to stand on.


Enhance Cross-Border Interactions

Correspondingly, employees who are directly and indirectly involved in global business decisions must have a clear understanding of U.S. rules and the rules of all countries worked with. Employees must be aware of trade certifications, timing regulations, customs requirements, necessary documentation, payment terms and conditions, and much more.

Whether managing a complex supply chain or organizing global speaker programs, small and large organizations must make careful decisions to minimize risk.

In addition to helping organizations remain in compliance, cross-border interactions are improved and enhanced through proper control of and guidance for international business decisions. An effective trade compliance program may encompass vendor screening procedures, appropriate licensing, document controls and retention, and sufficient training.


Global Trade Compliance Training

Effective learning programs must be able to accurately communicate the complexities of global trade compliance while simultaneously capturing the attention and relevance of employee’s varying day-to-day roles and responsibilities.

With this in mind, training teams must look for multi-faceted trade compliance training solutions to properly equip a workforce. Trade compliance training must demonstrate a global mindset through visual design and culturally relevant communication. In addition, consider native language translations to ensure content clarity and ease training intake.

Take time to assess global trade compliance risk. Think about how an effective compliance training solution may minimize that risk and enhance international business relations.

Look for multi-faceted trade compliance training solutions to properly equip your team.




By LHT Learning
| July 29, 2021