The good old days when ships carrying loads of products, shipments and other materials sailed into territorial waters of a country and then were traded in the local markets have ended. This practice has been replaced by much more organized, regulated and monitored process popularly known as Trade Compliance.
What is Trade Compliance? The term Trade Compliance refers to the process of export and import regulation with the help of laws, rules and guidelines. In case a manufacturer or for that matter any business agency involved in Exim activities doesn't comply with these norms, they can be fined, punished or banned from conducting these activities for life.
Backgrounder The term Trade Compliance was introduced in the US to refer to core business process by which goods enter the United States in conformance with all U.S. laws and regulations. This encourages companies who do not have requisite skills to ensure compliance to the US Exim norms.
Why Trade Compliance? The domain of international trade is very complicated and involves numerous legal provisions and norms which change depending upon the countries involved. However, following a basic set of trade compliance rules such as disclosing information about the products being exported or imported or setting uniform quality, performance and other standards would help in better organization and smooth functioning of trade.
Check list to ensure complete compliance to trade laws
Therefore, in spite of Trade Compliance being a dominant concept in the west, it is still evolving in the Asian countries and especially in major economic giants such as India and China, and once fully functional will add to the Asian dominance in world trade.
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