What would a global trade management (GTM) solution that took a lifecycle approach to trade compliance look like? John Wainwright, vice president of customs compliance at Leggett & Platt, has an insightful answer: Trade compliance processes should mirror a customs audit.
Leggett & Platt (L&P) is a global, diversified manufacturer of engineered components made mostly from steel. Even if you are not familiar with L&P, chances are you are sleeping on a bed made with L&P components (box spring, innerspring, etc.), or relaxing on a recliner with an L&P motion mechanism inside, or shopping in stores with shelving made by L&P.
Full-blown customs audits are conducted about once every 10 years, if there are no red flags, but a number of spot audits can occur in the interim. Customs auditors seek to verify all the information surrounding customs entries. They will review, for example, proof of payments and compare warehouse receipts with the information included in customs entries. John argues that many companies have trouble responding to these audits because their data resides in disparate systems, and the main users of these systems reside in various corporate operating groups, including purchasing, accounting, warehousing, and customs.
In many organizations, the customs compliance group is part of the global logistics or finance group. At L&P, customs compliance is part of the purchasing organization.
Banker is director of supply chain management at ARC.Read Full Article
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