trade compliance
Trade compliance ensures that businesses and individuals adhere to the laws and regulations that govern the import, export, and trading of goods and services.
Our trade compliance policy guarantees we meet customer and supplier demands and maintain customer satisfaction. To effectively comply with trade regulations, we have embedded control systems across our organisation.
It affects a number of areas, including:
- assessing customers and suppliers
- managing import and export controls
- ensuring compliance with sanctions and embargoes
- scrutinising the goods being shipped, their destination, and their incoterms
- applying due diligence at every step of the trade
We employ a proactive approach to compliance work with dedicated trade compliance specialists who communicate with the relevant regulatory and other bodies and remain up-to-date on any changes.
In international trade specifically, there are a number of rules and regulations which control the flow of goods from one country to another. They can cover tariff classification, import licensing, accurate valuations and screening. These processes and others are vital for a company’s ability to move goods across borders. Some of the elements of trade compliance are purely at the discretion of the country into which the goods are moving, whereas others might refer to an agreement between the importing and exporting countries.
tariff classification
All our products are subject to tariff and commodity codes, even if they are not crossing international borders
These codes are used so we can determine whether VAT or duty applies to the goods and make sure we prepare the correct paperwork to comply with regulatory requirements.
Tariff classification is also necessary for other elements of compliance, such as rules of origin and Intrastat**.
commodity codes
Commodity codes are internationally recognised references that identify products for import and export. They are used to:
- Determine customs duty and import VAT
- Apply rules of origin
- Identify regulatory requirements
- Check if a licence is needed to move goods
- Identify preferential rates
- Identify prohibitions or restrictions
conclusion
Our trade compliance policy ensures that we comply to specific rules and regulations, either relating to local UK requirements or in terms of international agreements. Doing so decreases the risk of disputes between importers and exporters and helps companies avoid unnecessary fees, penalties and even unintentionally committing criminal offences.
*Incoterms: International Commercial terms are a set of standard contract terms that define the responsibilities of buyers and sellers in international trade:
They cover areas such as:
- Paying freight costs
- Insuring goods in transit
- Covering import/export duties
- Where the goods will be delivered
- Who will arrange transport
** Intrastat: Intrastat is the system for collecting information and producing statistics on the trade in goods between countries of the European Union.
