The benefits of small and medium-sized companies engaging in the export business cannot be underestimated. Exporting helps boost revenue for the company and the United States. Exporting also enables, a company attain longer and substantial sales patterns for their products. The United States government providing access to financing opportunities, online sells and free trade agreements are some of the factors that have made exporting easier for the companies (Cook 2012). The exporting process was previously viewed as a complex procedure but that has changed with the government agencies providing companies with the much needed resources. Given the numerous resources afforded by exporters, the companies should develop strategies for assessing capital needs, selecting potential markets, connecting with global markets and engaging qualified supply chain partners such as forwarders and distributors (Cook 2012). There are certain practices that should be observed for a company to conduct an exporting business that ensures secure trade.
A company should incorporate denied party screening in all processes of the supply chain. Exporters must include denied party screening into their shipping, marketing and finance departments. The best method to deal with screening is the use of an electronic solution. The solution is expensive but can save an entity from fines and loss of export rights. The programs primarily include documentation and compliance programs. Compliance with regulations is an important measure for all export companies (Cook 2012). There are risks involved in the shipping process therefore it is important to include a forwarded letter of instruction that specifies how the cargo should be handled. The simple and concise letter of instructions protects the shipment and compliance efforts by efficiently relaying information on the shipping and regulatory requirements. The instructions letter should include a clause that requires all shipping documentation be returned to the export company.
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It is vital for an export company to work with a forwarder who is invested in technology. Liaising with a forwarder who uses recent technology to access billing information, proof of delivery and shipment status will create time for the export company to manage exports by exceptions instead of managing each shipment individually. A technologically advanced forwarder could even let the exporter share their denied party screening and HTS/Schedule B search engines; if the forwarder does not have access to such technology then its worthy to look at what their competitors are offering (Cook 2012). It is essential for an export company to institute an audit and record keeping procedure. Export compliance is about creating a culture of regularly following the right procedure. An export company should therefore conduct self-audits and investigations for export documentation and denied party screening. The company should further evaluate its compliance efforts and ensure that its employees follow all the procedure (Cook 2012). If the audits reveal that the company’s systems are not working in their interest, clients’ and country then it needs to reevaluate its steps to make certain that their compliance levels are top notch.
It is vital that a company gets involved in the export processes early to ensure that they can comply before beginning businesses in new territories. The marketing team should map the new territory early to ascertain potential problems, licensing needs and logistic issues so they can deal with them proactively. Internal training of staff on compliance enables companies to develop their employees’ expertise and reduce losses resulting from non-compliance (Cook 2012). The responsibilities of compliance officers include spreading information concerning a compliance program and new rules for compliance. An appropriate program outlines the framework for training and includes senior management staff. The senior management is included since they are in the best position to understand the importance of compliance (Cook 2012). The middle management and other employees should also be included in the training process. All new staff members should require an export compliance overview within the first thirty days of services. All employees should attend the basic compliance courses. The sales, customer service and accounting staffs can train on topics ranging from Incoterms, risk of global trade, letters of credit and denied party screenings. Operations and shipping staff receive training on export documentation, North America Free Trade Agreement procedures, packing, labeling, marking and valuation (Cook 2012). Governmental agencies regulations such as U.S Department of agriculture, and Food and Drug Agency should also be included in the training process.
One of the main duties of the compliance officer is to collect key information and channel it to all stakeholders in the company. The Bureau of Industry and Security (BIS) website and U.S customs release daily updates on current post 9/11 environment (Cook 2012). The information is specifically important for an exporter considering that they could be used to ship items that aid terrorist attacks. There are lists of items that are subject to control to prevent the risk they may pose for global security. It is important for companies to have proper documentation to carry out safe trade to avoid the conversion of dual-use items to prohibited users. The export companies can attain secure trade goals through the correct export management practice. All companies should develop policies against allowing its exports to contribute to terrorism. The export company should also ensure that it categorizes its shipments according to the requirements of Export Administration Regulations (EAR) and should communicate the correct Export Control Classification Number for each shipment to the forwarder and end client involved in the transaction (Cook 2012). A company should investigate the people involved in a transaction and maintain the records in their possession. An exporter should pay close attention to any indicators that may signify suspicious activity, inquire further and attempt to resolve any issues.
References
Cook, T. (2012). Mastering Import and Export Management New York: AMACOM Div American Mgmt Assn
