Meeting the Challenges of the Ever-Evolving Compliance Environment
Q: Even though developing markets are growing rapidly, many companies are reluctant to expand operations overseas because they do not have relationships there, are unsure of the infrastructure, or are not familiar with local demands and requirements. What options are open to them?
A: Looking for the right place to expand overseas is more important today than ever, and understanding compliance regulations fully and correctly is a driving factor in determining whether a company is successful in a foreign market.
Companies also need to be careful making large investments in a global economy that is still very much in recovery mode. The return on investment today could take much longer than expected. Due diligence is therefore critical.
The more companies can learn about global markets—such as compliance standards, local regulations, import laws, information on products that are favorably imported, and trade agreements currently in place—the better prepared they will be to enter those markets. Here again, collaborating with a global logistics provider and tapping into that knowledge and expertise may provide companies a significant leg-up on the competition.
The more information a company can surmise before diving into a new market, the better its chances of success.
Q: With the increasing complexity of compliance regulations and oversight, how can small and medium-sized businesses ensure they are fully compliant?
A: Given the tight economy, most organizations’ resources are strained. Many companies are not in a position to employ subject matter experts. For many small and medium-sized businesses, it makes sense to collaborate with a global logistics provider to help stay on top of market changes.
Collaborating with a logistics company that has compliance experts on staff can help companies avoid some of the risks that could potentially affect their business and their bottom line. Such services may give them a competitive advantage over companies attempting to tackle market changes and challenges alone.
An example of this practice in action is the U.S. Customs and Border Protection plan to initiate liquidated damages for Importer Security Filing non-compliance effective July 9, 2013. The penalties of this regulation can make a significant impact to the bottom line of small and medium-sized businesses. This means it is more important than ever for importers to adhere to compliance regulations, and partner with a global logistics provider that will keep them fully informed.