1st Edition

Compliance in Today's Global Supply Chain

By Thomas A. Cook Copyright 2010
    286 Pages 51 B/W Illustrations
    by CRC Press

    One of the fastest growing corporate positions is that of global trade compliance manager. This position used to be an insignificant factor in most corporations, but the events surrounding 9/11 changed that forever. Compliance became a household word in businesses involved in importing and exporting. Unfortunately, when corporations begin setting up initiatives to become compliant, they often have to seek the support of outside counsel, consultants, and specialists, because there is no single resource that allows them to accomplish this work independently.

    Compliance in Today's Global Supply Chain is the definitive resource for the executive engaged in global supply chains seeking compliance with government regulations. It provides a step-by-step blueprint for developing a compliance program and making it cost-effective within a corporation’s supply chain operation. Offering the perspective of one the nation’s most respected and informed experts on global supply chains, it defines emerging regulations that impact global trade. Emphasizing the importance of training programs and continuing education, it also shows how to educate senior management to ensure and maintain success and includes a list of resources to keep up with the changing import/export landscape.

    Providing the company and the manager responsible for supply chain compliance with the necessary tools to initiate all the steps to secure a corporate compliance program in their global supply chain, Compliance in Today's Global Supply Chain is destined to be the "resident bible" for current and future managers of global supply chains

    The Importance of Trade Compliance Programs in Global Supply Chains
    The Global Supply Chain
    The Basics Steps of Structuring and Implementing
         Senior Management
         Analysis and Review
         Person(s) Responsible—Team Initiative
         Resource Development
         Action Plan
         Standard Operating Procedures (SOPs)
         Training and Education
    Global Contract Management
    Terms of Sale/INCO Terms
         Revenue Recognition (Exports Only)
         Insurance: Loss and Damage
    Resources Outline
         E-Mail Newsletters

    Export Logistics and Compliance Management
    Export Logistics, Freight Forwarding, and Shipping
    Export Freight Forwarding and Supply Chain Management
    Shipping Costs
         Shipping Cost Breakdown
    Value-Added Services
    Power of Attorney
    INCO Terms in Logistics
    Terms of Payment
    Export Packing
         Management Policy
         Set Packing Guidelines
         Packaging Resources
         Managing Compliance and Documentation
    Export Compliance
    Harmonized Tariff Schedule/Schedule B Number
    Bureau of Industry and Security (BIS)
    Export Control Classification Number (ECCN)
    Denied Party Screening
    Office of Foreign Asset Controls
    Export Documentation
    FCPA Awareness and Adherence
    Documentation and Letters of Credit

    Import Management and Inbound Logistics
    The Bureau of Customs and Border Protection (CBP)
    The Department of Homeland Security (DHS)
         Organizational Structure
    Import Regulatory Issues
    Import Management: Importer of Record vs. Ultimate Consignee
    Reasonable Care
         Meeting Reasonable Care Standards
    Best Practices: Ten Steps to Achieve Import Compliance
    C-TPAT: Customs-Trade Partnership Against Terrorism
    Importer Self-Assessment (ISA) Program
         Quick Response Audits
    Global Security Awareness
         Container Security Initiative
         Advanced Manifest Notification Programs
         Wheels Up or Four-Hour Advanced Notification
         Two-Hour Advanced Notification for Ground and Rail Shipments
         Flexibility of Filing
         Postloading Filing Privileges
         Foreign Cargo Remaining On Board
         Implementation Process of Final Rule
         Methods of Filing ISF Data
    Valuation Verification
         Methods of Valuation
    Customs Powers of Attorney
         Validating the Power of Attorney
    Certificate of Registration
    Foreign Shipper’s Repair/Manufacturer’s Affidavit
    Importation and Customs Clearance Process
    Record Keeping
         Recommendations of Compliance
         Methods of Storage of Records
    Customs Bonds
         Parties to a Bond
         Types of Bonds
         Amounts of Bonds
         Invoice Requirements
    Duty Drawback
    Harmonized Tariff System
         Techniques of Classification
    HTSUS Number Structure

    Government Agencies Controlling Supply Chain Issues
    Government Agencies Involved in Exporting
         Department of Commerce: Bureau of Industry and Security
         Department of Commerce: Office of Antiboycott Compliance
         Department of State: Directorate of Defense Trade Controls
         Department of Commerce: Bureau of Census,Foreign Trade Division
         Department of Justice: Drug Enforcement Administration, Office of  Diversion Control (Chemicals and Controlled Substances)
         Department of Health and Human Services: Food and Drug Administration (Drugs and Biologics, Investigational Drugs Permitted, Medical Devices)
         Department of Energy: Natural Gas and Electric Power Department of Energy: Nuclear Regulatory Commission: Office of International Programs (Nuclear Materials and Equipment, Technical Data for Nuclear Weapons)
         Department of Homeland Security: Customs and Border Protection (CBP)
    Federal Maritime Commission: Ocean Freight Forwarders
         Department of Commerce: Patent and Trademark Office
         Department of Homeland Security: Transportation Security Administration
         Department of the Treasury: Office of Foreign Asset Controls
         Department of Interior: Fish and Wildlife Services
    Government Agencies Involved in Importing
         U.S. Customs and Border Protection
         Food and Drug Administration
         Department of Agriculture, Animal Plant Health Inspection Service
         Consumer Products Safety Commission
         U.S. Fish and Wildlife Service
         Federal Communications Commission 

    Utilization of Technology Options
    Technology Advantages
    Service Providers and Technology
    RFID: Trade Compliance and Import-Export Management

    Personnel Deployment, Training, and Best Practices
    Where Should Trade Compliance Be Managed?
    Training and Education
         PACMAN Benefits
    U.S. Export Compliance.com: A Solution for U.S. Trade
    Compliance Education and Training
         Benchmarking and Best Practices
         Best Practices in Trade Compliance
    Organized and Formal Education and Training
    Putting Best Practices for Trade Compliance into an Action Plan

    Key Acronyms
    Key International Web Sites
         All About AES: The Automated Export System
         Supply Chain Security Best Practices Catalog
         Foreign Corrupt Practices Act Antibribery Provisions
         INCO Terms 2000
         Sample Documentation for an Export and Import Shipment


    Thomas A. Cook is a seasoned veteran of global supply chain management, with more than 35 years of experience specifically directed to the elements of transportation, importing, exporting, logistics, freight, and overall business management. Tom is a veteran author of over nine books, such as Post 9/11 Security and Compliance, Mastering Import and Export Trade, and Global Sourcing.He began his career as a NYS Maritime Academy graduate with numerous years serving our country in the Navy and in the Dutch and U.S. Merchant Marine.

    He has been directly involved in manufacturing, insurance, banking, trading, logistics vendor services, freight forwarding, customs brokerage, 3PL, and many other related services to global supply chains. He is considered a leader in education, training, and consulting to many of the Fortune 1,000 companies on an array of topics hosted by various government agencies, the World Trade Institute, the American Management Association, the World Academy, CCSMP, the Department of State, ISM, and NAPM, to name a few.

    He has been the recipient of numerous awards and accolades—more recently the International Partnership Award bestowed by former President Bill Clinton at the State University of New York in Westbury.

    Tom is currently on the New York District Export Council and is managing director of American River International (www.americanriverintl.com).

    I have read many of Tom Cook’s books. I have seen him lecture and run seminars and business meetings. There is no one more fully informed with practical advice and counsel on how best to manage a global supply chain successfully. Since the unfortunate events of 9/11, the global community, both in the United States and abroad, has realized the importance and relevance of introducing compliance and security in their global operations. Tom has taken a leadership position on this subject and has gained invaluable insight into corporations and just what it takes to raise the bar of compliance and security in their global operations. This book addresses these issues in a comprehensive, no-nonsense approach that keeps the reader interested and fully engaged. It is detailed, articulate, and full of contemporary as well as timeless recommendations to help supply chain executives manage their global responsibilities. As with all Tom’s books and the work he does, I am a supporter and can earnestly recommend this book as an important tool in combating the effects of terrorism in managing your global supply chain.
    Spencer Ross, President, World Trade Institute & Former Chairman, NY District Export Council

    Cook, who specializes in global supply chain management, provides a resource for supply chain managers and international executives wanting to set up a compliance program for their global supply chain and develop a cost-effective program that complies with government regulations. He outlines ten steps to structure and implement a new or existing program and discusses import management and inbound logistics, government agencies controlling supply chain issues, technology options, and personnel issues. Half the book is devoted to appendices on the Automated Export System, best practices, the Foreign Corrupt Practices Act, and sample documents.
    —In Research Book News, booknews.com, February 2011