The need for customs is inescapable, as it protects public safety and constitutes a key revenue collection device. Still, customs regulations undeniably comprise the most visible barrier to international trade. Penalties for noncompliance can be far-reaching, ranging from delayed goods to increased frequency of inspections to hefty monetary fines.
Not all barriers can be blamed on government entities, however. Banking requirements add another dimension to international trade, requiring firms to produce original paper documents before a letter of credit can be issued. Locating and transmitting these documents constitute other trade hurdles over which firms must navigate.
Together, banking and government requirements can effectively dissuade many companies from ever entering the global marketplace. However, the technology involved in global trade management helps expedite the logistics process and achieve compliance at each step in the supply chain. Better still, GTM technology can minimize organizations' costs of accomplishing this.
Source: Inside Supply Management, http://www.ism.ws
Timely, incisive articles delivered directly to your inbox.