E-commerce continues to increase in material importance for U.S. companies as markets expand throughout North America and the globe. As global trade is increasing, vendor partners are sourced virtually from any geographic location, thereby expanding the supply chain’s reach into many foreign markets. As a result, managing global trade is certainly more complex and time-consuming than at any time in history. The rewards of doing business internationally can be exponentially positive, but only if risk is addressed and managed well.
The processes involved in global trade, from sourcing to payment, are built on an intricate myriad of ever-changing rules, regulations, relationships, requirements and documentation. Ensuring absolute visibility and seamless compliance as your products move around the globe is at the heart of successful e-commerce platform.
The safeguards developed domestically don’t necessarily translate outside of U.S. borders. In the ever- changing world of compliance, it’s easy for established regulatory processes to become outdated overnight. Violations could put you at risk of penalties and sanctions that devalue all of your hard work and market investments. And, the “I did not know about that change” answer no longer works when the Automated Commercial Environment sits alongside the Reasonable Care standard.
There is a tight connection between international compliance and global e-commerce businesses, especially when many e-commerce shipments are exempt from U.S. Customs and Border Protection (CBP) duty collection or entry examination under the current de Minimis rule of $800 per entry.