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Increasing complexity of regulations...............................................

The explosion in global trade has resulted in an equally large increase in trade

regulations. A typical cross-border shipment can involve more than 25 parties

and create 35 documents. It gets even more staggering: There are more than

600 trade laws and 500 trade agreements to be considered when shipping

internationally. Keeping up with the document trail can be maddening.

According to a 2003 report from the Aberdeen Group, “Ensuring that ship-

ments comply with international shipping regulations is one of the most time-

consuming aspects of trade.” The situation hasn’t gotten any better since this

statement was made. Additionally, importers and exporters must frequently

deal with a variety of agencies in the same country to ensure that they are

in compliance with, for example, the U.S. State Department as well as the

Department of Commerce.

In addition, here are some terms that can help you through some of the

alphabet soup of security initiatives and regulations created by government

bureaucracy:

International Traffic in Arms Regulations (ITAR):A set of government

regulations that control the import and export of defense goods and

services, such as guns and munitions (and this can include military

146 Part II: Diving into GRC

Considering importing or exporting:

Points to ponder

Here are some basic questions for you to keep

in mind when setting up your importing and

exporting system:

Which laws and regulations do I have to

consider?

How do I classify products and calculate

duties?

How do I ensure electronic communica-

tions with customs authorities?

How do I ensure I have the right import and

export documents?

How can I keep track of inventory at a cus-

toms warehouse?

Can I take advantage of international trade

agreements?

Can I claim refunds on my exports?

How can I mitigate the financial risks of

importing and exporting?