As global trade environments grow increasingly complex with rising compliance risks, businesses face unprecedented challenges in 2024. New trade agreements, tariff policies, and geopolitical factors create a volatile landscape requiring strategic adaptation.
Trade War "Truce" and Retail Sector Implications
When the Trump administration announced a partial trade agreement with China, temporarily halting trade war escalation, U.S. retailers expressed cautious optimism. David French, Senior Vice President of Government Relations at the National Retail Federation (NRF), noted that while retailers welcomed the progress, significant uncertainty remains. "We urge both parties to continue negotiations with the goal of eliminating all tariffs and fundamentally resetting U.S.-China trade relations," French emphasized.
Three Key Compliance Challenges in Global Trade
Industry experts highlight mounting compliance pressures across sectors. Amy Magnus, President of the National Customs Brokers and Forwarders Association (NCBFAA), points to challenges in meeting evolving requirements under agreements like the revised USMCA. Beth Pride, President of BPE Global, advises shippers to maintain vigilance during Brexit transitions while tracking changes in automated commercial environments.
Pride stresses fundamental compliance practices regardless of trade agreements: understanding Incoterms updates, proper product classification (HTS, Schedule B, ECCN), and thorough review of Delivered Duty Paid (DDP) contracts. "These fundamentals prevent delays, additional costs, and compliance violations," she notes.
Antidumping and Countervailing Duties: Risks and Opportunities
Baker McKenzie attorneys warn that increased AD/CVD enforcement creates both challenges and opportunities. Kevin O'Brien, a partner at the firm, highlights heightened scrutiny of regulated imports, particularly when U.S. entities serve as importers. Christine Streatfeild, another Baker McKenzie partner, explains that customs now rigorously examines products potentially subject to AD/CVD orders, with penalties potentially exceeding the merchandise value for violations.
Tom Peele III recommends implementing robust trade remedy compliance programs, including monitoring AD/CVD rate changes, tracking transshipment routes, and conducting regular legal assessments of case scopes.
Customs Bonding Strategies
Albert Saphir of ABS Consulting advises against DDP shipments due to inherent complexities. He emphasizes proper customs bond management, noting that recent tariff changes require reassessment of bond amounts. "Most shippers underestimate future bond requirements by looking at past payments rather than projecting future liabilities," Saphir cautions.
Proactive Compliance Preparation
Tom Gould, former senior executive at Sandler, Travis & Rosenberg and current trade advisor at Flexport, stresses preparation. "CBP is scrutinizing shipments more closely than ever," he warns. Gould recommends analyzing Section 301 tariff impacts strategically, prioritizing products for supply chain adjustments, and understanding origin rules to qualify for tariff exemptions.
Essential Compliance Strategies for 2024
To navigate the evolving trade landscape, businesses should:
1. Establish comprehensive compliance systems with clear policies, audit mechanisms, and employee training
2. Monitor policy changes through dedicated teams and trade compliance software
3. Strengthen supplier vetting and diversify supply chains
4. Implement automation and data analytics for efficiency
5. Engage specialized legal and consulting support
In today's complex trade environment, robust compliance has transitioned from regulatory obligation to strategic imperative. Organizations that implement these measures position themselves for sustainable global operations amid ongoing uncertainty.