Concern for the homeland will be an evolving focus throughout 2009, and it will impact international trade in a variety of ways as it at times butts heads with the economic downturn.
Anti-terrorism concern for the homeland will be manifested with the implementation of the advanced data requirements borne by carriers and importers and facilitated by licensed customs brokers and forwarders. Brokers, in particular, face both a challenge and opportunity to automate the Importer Security Filing, link the data to the entry and other regulated reporting requirements, and capture the information for client use in accessible databases. All parties face the challenge of creating an efficient business model while meeting the compliance obligations and protecting themselves from liquidated damages.
Consumer protection as a focus of concern for the homeland will be realized in 2009 with implementation of the Consumer Product Safety Improvement Act and ensuing regulations. Meeting the obligations regarding product standards and documentation makes it more important for importers to know their supply chains and for service providers to be schooled in the requirements to ensure their clients meet the obligations without unnecessary cargo delays. Here, too, traders and their service providers face the task of building business models that are compliant, insulate from penalties and are cost-effective.
Of course, it wouldn’t be 2009 without importance being placed on protecting the environment. The green movement will move into the arena of international trade. U.S. importers and exporters will have to comply with the 2008 Lacey Act Amendments requiring detailed tracing of plant and plant parts and detailed reporting on import shipments on a wide range of products. New processes and penalty exposure come with the package.
These examples illustrate the trend toward more knowledge about and control of the supply chain, increased and detailed regulatory and reporting requirements, and compliance expectations with penalty exposure. These come at a time when businesses worldwide are looking to cut costs. The temptation is to cut compliance corners as a way to save money. As one compliance manager for a large retail firm said, “Compliance becomes ‘nice to have’ not ‘need to have’ in bad times.” While this perspective is understandable, cutting compliance corners can ultimately cost more in the long run.