technology, such as encryption or night vision goggles). It requires that
defense-related items only be shared with U.S. citizens, unless special
approval is given by the State Department.
Customs Trade Partnership Against Terrorism (C-TPAT):A voluntary
U.S. Customs regulatory program that aims to keep terrorists from
infiltrating the supply chain in the United States. The program requires
important import/export businesses such as importers, rail lines,
airlines, cargo companies, and others to certify their supply chain
security procedures and share their security guidelines with their
business partners.Export Administration Regulations (EAR):Part of the US Commerce
Department, the Bureau of Industry and Security (BIS) implements
and enforces the EAR regulations. Commercial products as well as
“dual use” items that have both commercial and military use fall
under EAR regulations.
Sarbanes-Oxley Act:It may not seem like an act that was passed to
ensure greater corporate accountability in the wake of Enron and
other scandals would impact global trade regulation, but it does. The
act requires company officials to verify the accuracy of financial state-
ments including the values of imports and exports. It is also important
to maintain a paper trail in case of an audit.Container Security Initiative (CSI):No, it’s not a TV show. CSI is a US
Customs and Border Patrol initiative passed in 2002 and is focused on
ensuring that terrorists are not able to deliver goods by ship.
REACH:Passed in June 2007 and coming into effect in phases, the EU’s
Registration, Evaluation, Authorization and Restriction of Chemical sub-
stances (REACH) legislation will impact many companies who export
products to the EU. For more information on REACH compliance, see
Chapter 12.Harmonized Tariff Schedules:The HTS comprises a hierarchical struc-
ture for describing all goods in trade for duty, quota, and statistical
purposes. This structure is based upon the international Harmonized
Commodity Description and Coding System (HS), administered by the
World Customs Organization in Brussels. Accurately classifying your
goods according to the HTS is one of the most tedious and important
steps when exporting or importing products.Now that you have an idea of some of the challenges facing companies that
want to trade internationally, let’s look at some best practices for setting up
a global trade process on both the import and the export side.