The Exciting World of Trade Compliance: Could it be the right career field for you?

Have you ever heard of trade compliance?

Lucky for you, you’re the majority who have no idea what the industry involves and that it even exists.

When I ask my trade compliance colleagues if they knew about the career field before they started their jobs it goes something like, “I never knew what trade compliance was until I started working here.”

Clearly, there needs to be a better job at marketing the trade compliance industry, what it involves and the career possibilities in trade. 

I’ll do my part in telling you what exactly trade compliance is and help you decide if it's a suitable career choice for you.

Modern American 21st century living 

Take a peek at your shirt or your shoes, find where your morning coffee came from, checkout where your toaster was made, look at what country your backpack or briefcase was made in, and notice the make and country of origin of your car in your driveway.

There’s a good chance that most if not all of your possessions, especially your clothing, comes from Vietnam, India or Bangladesh; electronics from China, Taiwan or South Korea; your coffee and avocado from Latin America and Mexico; and your vehicle from Japan, South Korea and, perhaps, one day from China.

And that’s just the first hour of your day.

Global trade has brought us American consumers unprecedented choice, quality, convenience, accessibility and satisfaction at lower prices. 

If you are like me, your house is full of made-in-Vietnam IKEA furniture, Taiwan-made flat screen TVs, Bangladesh-made t-shirts, and made-in China electronic devices, housewares, and LEDs.  

I challenge you to find any made-in-America item in your home.

Nearly impossible, right?

That means nearly all of our daily-use items were made overseas and were imported on our behalf. 

And to get those products into the United States, there are certain rules and regulations, enforced by Customs and Border Protection (CBP), that they need to abide by.

What is trade compliance?

Trade compliance is navigating the rules and regulations concerning the importation and exportation of goods into and out of the United States.

In the US, Customs and Border Protection (CBP) is a part of the Department of Homeland Security, a federal agency which administers these laws.

Any time there are products entering the United States for consumption (i.e., commercial resale), there are duties and fees pertaining to all shipments which need to be paid to the US government.

The duty on these goods is called a tariff, and is determined by the International Trade Commission, a federal agency that publishes the Harmonized Tariff Schedule, a reference book that assigns a 10-digit number to virtually every item imaginable.

Typical trade compliance roles

Many large importers, multinational corporations and logistics companies all have dedicated trade compliance departments.

These roles include:

• Global trade compliance specialist

• Import-export analyst

• Entry writer

• Export specialist

Trade compliance departments help their companies with their importation of merchandise and shipments, in effect helping clear Customs.

They ensure that partnering government agencies (PGAs) such as Department of Animal and Plant Health Inspection Service (APHIS), Food and Drug Administration (FDA), Environmental Protection Agency (EPA), and National Highway Traffic Safety Administration (NHTSA) rules are adhered to. 

A day in the life in trade compliance

Trade compliance careers are very much office work and clerical in nature.

Most likely you will be working behind a computer or laptop, communicating via email and Microsoft Teams, utilizing Excel sheets and presenting using Powerpoint slides.

The work itself includes searching and locating paper trails such as commercial invoices, analyzing CBP forms such as 7501s, and entering data into files systems such as ACE (Automated Commercial Environment), CBPs digital data hub. 

What skillsets are needed for success?

Computer, nalytical, communication, research, and data gathering and entry are key skill sets you’ll need to perform your job well.

But is that all? What else can I do to increase my success?

No, absolutely not!

You also need a good dose of soft skills and leadership ability, if you wish to increase in the ranks.

First you need to be a good communicator, both in writing  and spoken word.

In your daily emails, reports, and presentations you need to get your point across that is effective, short, and to the point.

Two, you need to be able to be a team player, meaning you work well with others, do what you say you’re going to do, and show up in support when you have to.

Doing so will get you noticed from your managers and keep you top-of-mind for future opportunities.

Finally, having good critical thinking and analytical skills will separate you from the rest.

Being able to see the big picture, drill down to the details, and using justification, logic and reasoning are all marks of a savvy employee who knows what she’s talking about.

While technical know-how and credentialing will get your foot in the door, having soft skills and displaying leadership through participation, showing initiation, and taking responsibility will get you noticed.

What about Customs brokers?

Customs brokers are individuals licensed by the US government to assist importers, companies or associations with the importation of their goods into the United States.

Licensed Customs brokers are able to open their own brokerages, if they wish, to serve clients who need assistance processing the necessary paperwork, calculating duties and fees, and submitting the correct forms to CBP.

However, many LCBs are employed by third-party logistics companies, freight forwarders, shipping and logistics companies.

Any organization that helps companies with their importation of goods needs to have a licensed Customs broker on staff.

Customs brokers must pass an exhaustive exam that tests their knowledge and expertise of federal import-export rules and regulations. 

In essence, Customs brokers act as an advocate on behalf of importers and help sign off on and submit official paperwork to the US government.  

They can also assist in helping clear Customs, help navigate the complex import laws and regulations, and help avoid potential penalties and fines. 

Customs brokers play an important role in trade compliance and being licensed is one of the highest and most sought after in the international trade profession.

Conclusion 

International trade, imports-exports, and helping clear Customs are the bedrock of trade compliance professionals.

There are a lot of moving parts, rules and regulations to navigate, and paperwork to process in order to enter items into the United States.

In order for us consumers to enjoy our standard of living, trade professionals are key behind-the-scenes players in helping facilitate the importation of products from overseas.

Next time you slide into your Vietnam-made office chair, put on your China-made headphones, turn on your Taiwan-made laptop, and take a sip of your Brazilian-made coffee, you can thank a trade professional for making it all possible! 

Do you have what it takes to become a trade compliance professional?

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