International Trade Blog

Successful companies use metrics or key performance indicators (KPIs) to measure aspects of their performance. Often times, these metrics or KPIs apply to sales, marketing or manufacturing. But they can—and should—be used in import and export compliance functions, too.

When effectively applied, trade compliance metrics drive process efficiencies, provide better visibility, and promote the efforts of the trade compliance group to the executive team and throughout the entire organization.

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One of the most costly mishaps an exporter can face is to get their goods to the destination and realize that something was overlooked. Either they made a mistake, the deal was structured incorrectly, or responsibility was overlooked.

Often, this happens because sellers get seduced by the thought of a sale and put on blinders for the realities of it. Unfortunately, they end up in a difficult and costly situation because they didn’t think about what steps needed to be taken.

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“Keeping out the bugs” has become the worldwide mantra for exporters and importers. The bug that gained everyone’s attention in the United States was the Asian Long Horn Beetle, while other countries are concerned with the Pine Worm Nematode plus many other.

There are more than 85 countries that have adopted the International Standards for Phytosanitary Measures No. 15 (ISPM 15) regulation for wood packaging since its inception in 2001, according to the Pacific Lumber Inspection Bureau (PLIB). The regulation applies to wood packaging materials (WPM) made from softwood or hardwood.

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In my last article I discussed the importance of properly classifying products imported into the United States. As I stated, the Harmonized Tariff number determines the duty rate that U.S. Customs applies to imported products.

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In many companies the art of moving goods across international borders is viewed as black magic. In fact, I have a colleague who keeps a magic wand in his desk just for such emergencies.

When someone from the inventory or shipping department begins screaming about back orders and delays at customs, he simply produces the potent wand, whisks it mindlessly through the air, and presto-chango the consignment appears… sometimes.

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Dear Cathy:

I have a question regarding the use of Schedule B Codes relating to spare parts.

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We live in uncertain economic times. But I believe that we learn far more about how to grow stronger companies in lean times than in times of plenty.

That said, this month I am sharing some of my hard-won marketing advice that I often give to internationalizing clients in B2B markets.

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I sometimes get calls from exporters who have been asked by their international customers for their AEO number for import customs clearance.

The calls are all very similar:

What is an AEO code, and how do I find out what ours is?

My short answer:

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We all know intuitively what a part is. Nearly every company has a parts department. These are the areas of the company staffed by those magical people who never throw anything away and always seem to be able to find that one widget or what is needed to repair a product and satisfy a customer.

It comes as a surprise to some that the Harmonized Tariff Schedule (HTS) uses the word part with a much narrower and precise definition. What we call a part in industry is rarely what the HTS code refers to as a “part” or “parts thereof.” As examples, it is not uncommon to find headings in the tariff such as:

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Following is a bit of light fiction blended with, I’m afraid, a heavy dose of truth:

“Even a trained squirrel could do classification, John!” a product engineer at a manufacturing firm told me the other day when we were discussing the Harmonized Tariff Schedule (HTS) classification process at his company.

“What’s that you’re saying?” I had to restrain myself from reaching across the table and throttling him.

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