A panel discussion focusing on the latest changes in rules and regulations governing U.S. exports, both at origin and destination.
Tensions between the U.S. and China are continuing to rise, resulting in major changes to export laws governing trade between the two countries, according to Adrienne Braumiller, founding partner of Braumiller Law Group. Exporters now face a broader definition of what constitutes “military end use” for shipments to China, Russia and Venezuela. The change is impacting numerous industries that previously weren’t required to obtain export licenses for their products.
In recent years, there has been a blurring of the lines between trade and sanctions, says Devin Sefton, senior associate with Braumiller Law Group. Matters that once were relegated to concerns over national security are now being used as leverage in negotiations with China. Meanwhile, trade talks are on hold, “and it’s not clear what’s going to happen.”
Proper classification of goods is becoming even more critical, says Jules Kotrba, regional trade lead with AstraZeneca. Specifying country of origin and valuation are also crucial, “but you can’t get the other two without having classification correct.” Exporters must pay close attention to the General Rules of Interpretation of the Harmonized System.
Exports of hazardous materials carry even stricter requirements than those of other goods, notes Corey Rhodes, president of QAD Precision. It’s important to consider the rules of both origin and destination country. “There’s a person at the other end of the supply chain,” he says. “You need to think holistically.”
Mark McMonagle, senior solutions consultant with QAD Precision, stresses the need for companies to automate their export shipping and hazardous-goods documentation. Technology helps to ensure compliance and manage letters of credit. It also provides users with scalable, repeatable processes in the form of a “centralized global document cookbook.”
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