Your First 100 Days as a New Trade Compliance Manager
Congratulations! It’s your first day as the new trade compliance manager for your company. Your head is spinning. There is so much to do. Where should you start? This is what you should tackle in your first 100 days.
Review Data
As a new trade compliance manager, it is important to quickly get an overview of the company’s trade activity. Start by reviewing the company’s import and export data. If the company has an ACE account, request access. If not, apply for an account. Run the standard entry summary and automated export system reports and review the company’s basic trade statistics, such as volume, value, duty spend, brokers, top tariff codes and ECCNs, origins, destinations, and any special trade programs being claimed. The data may also alert you to potential risks that need addressing.
Talk to People
Start talking to people responsible for trade-related processes and shipping goods internationally, such as logistics, finance, warehousing, distribution, purchasing, or research and development. Who is responsible for what processes? What is the scope (domestic, regional, or global) of their responsibilities? Find out what they do and how they do it. These conversations will help you understand who you need to work with and start developing relationships that will make your work easier. Mostly likely, you will need to effectively influence other departments over which you have no direct authority.
Assess Current Processes
Understanding the current state of trade compliance at the company is the next important step. Are there processes for key trade areas such as classification, valuation, country of origin, broker management, export controls and recordkeeping? Which processes are working, and which are not working? Where do gaps exist, and where are processes completely missing? A good indication is to look at where people are spending the most time and fighting the most fires. Are there written procedures, or is all the knowledge in someone’s head? Based on what you discover, what risks are apparent?
Develop a Plan
Now that you know the company’s current state of trade compliance, develop a plan to build a compliance framework to fill gaps, implement improvements, and mitigate risks. What should the framework look like? Is a centralized or decentralized approach best? What processes, procedures, or structures need to be put in place to ensure compliance? For example, a shipping desk process might help R&D people ship research samples quickly and compliantly. A centralized classification process could ensure better accuracy and prevent duty overspend. Training may help finance better understand customs valuation methodologies, so the right values are submitted on declarations. Will you need additional resources to implement your framework, such as more trade staff or IT help? If you are a one-person compliance team, will you need external help from consultants or other experts to accomplish key projects quickly and efficiently to limit risk?
Communicate with Management
Request a meeting with your management to solicit their support to implement your plan. Explain what you have found from your review of trade data and your evaluation of current trade processes. Present the good as well as the bad. Then provide an overview of your plan and describe how it will address issues, ensure compliance, and mitigate risks. Be sure to illustrate how the company will benefit from improved trade compliance. Quantify the benefits if possible, such as a faster and more predictable supply chain, reduced risk of fines and penalties, or costs saved to capture their attention.
Ask for Needed Resources
During your conversation with management, ask for the additional resources you need to accomplish your plan and realize the benefits you described. Consider prioritizing tasks and asking for what you need to get started now while giving management an overview of what you will need later and when. Again, quantify it if you can. Find out the process for requesting and receiving approval for additional resources. For example, do funds need to be allocated to the department budget, or is there a capital appropriation request process?
Guided by these six steps, your first 100 days will be as productive as possible. You’re off to a great start!
