International trade is more complex than ever. Everyone is aware of the major events that disrupt global supply chains — the Red Sea crisis, Ukraine-Russia war, and labor strife at pivotal ports are but a few examples. But an equally daunting challenge for even the most experienced importers and exporters is getting their goods through customs at the destination country. Relying on manual processes to accomplish this is foolhardy. The right trade compliance software is their ticket to achieving the best outcomes.

Adhering to country-specific customs compliance is not easy. Shippers and BCOs are ultimately responsible for:

• Understanding the regulations and rulings
• Ensuring the appropriate classification of products
• Ensuring the capture of appropriate information
• Ensuring that required and supportive documentation is complete, on file, easily accessible, and sharable.
• Overseeing the the holistic customs process (including their brokers, too).

And they must ensure that the information filed with Customs is done timely, correctly, and explicitly, with each and every time. In other words, whether they’re moving 20 containers annually or thousands, shippers and BCOs must be consistent.

This article presents three reasons why international shippers and BCOs often struggle achieving that consistency, and how using the right trade compliance software can help them take unprecedented control over data and process.

Breaking Down the Many Challenges of Global Trade Compliance

As supply chain pressures increase, transportation costs ebb and flow, and disruptions threaten missed shipments and missing containers, shippers and BCOs must look to trade compliance software to streamline cumbersome trade compliance processes and, most importantly, avoid common regulatory missteps.

Trade compliance departments — whether one or two people or small teams — encounter many challenges that primarily fall into three categories:

• Operational process control
• Capturing and storing data
• Inadequate tTechnology

Compliance is Disconnected from Operational Processes

Historically, trade compliance has been handled as a separate process, siloed away from the day-to-day supply chain functions. This approach, which fosters a complete lack of visibility and transparency, increases trade compliance risk and can cause supply chain headaches. Handling compliance in line with other operational processes and creating real-time visibility into trade compliance ensures shippers can proactively identify potential trade compliance issues and mitigate risks. This results in increased control over processes and a reduced likelihood of regulatory violations and associated penalties. Trade compliance transparency is a hallmark of a well-functioning supply chain and gives shippers a comprehensive understanding of their international trade value chain.

Complete trade compliance visibility leads to correct, swift responses to regulatory changes, aiding in efficient decision-making. It also ensures transparent documentation, crucial for audits and appropriate oversight, by providing readily accessible and accurate records.

Capturing & Storing the Right Documentation

Every shipment generates millions of data points used to fill in crucial information on documentation required by customs authorities. As such, shippers and BCOs must ensure they are capturing and storing the appropriate documentation, which includes, but is not limited to:

• Commercial Invoice
• Bill of Lading
• Packing List

The figures and descriptions on these documents must match to the data. They must also match the 7501, a customs broker-supplied n Entry Summary that U.S. Customs and Border Protection relies on to determine, among other things, the appraisement, classification, and origin of the imported commodity.

Technology Falls Short

Trade Compliance pros need to also make sure that the trade data submitted to Customs matches the operational data from the aforementioned documentation...and ensure that the trade data is right (HTS code, duty rate, etc.). Failure to do so could result in shipment delays, fines, loss of business, and reputational damage.

Most Transportation Management Sytems only provide shipment-level data — and there’s a good chance that data is incomplete. Trade compliance software explicitly designed for international shippers and BCOs ingests and validates product-level data from multiple sources in various formats. This data is then shared electronically with the customs broker, who transforms, converts, and aggregates the data into the language of customs. When the broker is finished, the software verifies the work is complete, accurate and ready to go to customs.

Global Trade Compliance Software: The Key to Consistent Customs Clearance

Trade compliance technology from 3rdwave enables shippers to streamline their operations and ensure that the information filed with Customs is done timely, correctly, and explicitly, with each and every time.

Our automated customs management and platform enables global compliance teams with the automation enabling them to focus on critical tasks instead of data entry. The best part? Trade data is centralized, giving shippers a single repository of import, broker and ACE data for seamless control of trade compliance.  

Trade compliance software enables shippers to streamline compliance processes, enhance trade transparency and foster stakeholder collaboration. See how 3rdwave’s platform gives shippers complete control of the trade compliance process.

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