REGULATION &
COMPLIANCE
impact on customers’ import
liability with their customs
department, but at the end
of the day, the customer is
responsible.”
Tariffs affect importers and
shippers, but forwarders and
brokers have a role to advise
them, notes Imbriani, adding
that this opens up some
commercial opportunities.
On the commercial and
operational side, forwarders
and carriers are faced with
increasing demands to comply
with performance standards.
While this is not a direct
compliance issue, at least the
growing array of demands is
requiring more effort to match
the expectations. Going for
fully fl edged certifi cation, such
as for any of the proliferating
CEIV schemes, calls for a
signifi cant investment in
time and money, even if
the requisite capabilities are
already in place.
At least these badges
open the door to commercial
opportunities that might
otherwise be unattainable.
Other programmes, such as the
US Customs-Trade Partnership
Against Terrorism, offer
virtually no tangible benefi ts.
C-TPAT is now regarded as an
insurance scheme that would
only come into play in the
aftermath of another dramatic
terrorist attack, putting
participants at the front of the
queue when traffi c resumes
after a shutdown.
The ever-mounting burden
of compliance, particularly
with security matters, is
taxing. According to Imbriani,
companies that have taken
a strategic approach to it are
now fi nding it easier to cope,
whereas those that adopted a
piecemeal stance, responding
to requirements as and when
they arose, are fi nding it harder
to deal with the heightened
complexity.
Speaking of the issues
around EU data security
regulations, he says: “Initially
these take some time, but
having a structure helps. There
was some analysing to do up
front, but the implementation
wasn’t bad. Once it’s in place,
after a while it’s how you do
business.”
However, having designated
staff to look after compliance
does not mean that the rest
of the employees need not
bother.
“You need to train
everybody. You have to make
sure everybody who handles
it has training,” stresses
Lawrence.
Team Worldwide has a
team of dedicated employees
who visit branch offi ces to
audit compliance and provide
training. In addition, the
company uses webinars and
online training to keep its staff
up to speed on compliance.
ASI uses a mix of in-house and
on-line training.
“Given the complexity
of the numerous regulatory
requirements, we think online
is the way to go for training.
It’s faster and more effective,”
comments Fried.
A digital future?
Digitisation is also rapidly
becoming an important tool
in the compliance-related
processes themselves, as
regulators look to automate
these. In the US the CBP has
made it clear that it wants
to rely increasingly on data
fl ows rather than physical
inspections. Over the past year
the agency has conducted trials
with rail, ocean and air carriers
to test advance electronic data
submission. There are some
misgivings about the extent of
data asked for in these Export
Manifest pilots, but nobody
doubts that this is the way
forward.
Fried wonders if the burden
is shifting more to forwarders
in the process. “I think
advance notifi cations are going
to change the goal posts for
forwarders. Now they leave it
to the airlines to make sure the
information is fi led, but CBP is
looking to get the information
earlier. The forwarder has
that information earlier,” he
refl ects.
Some players in the logistics
chain are also trying to leverage
technology for compliance
purposes. Amsterdam Airport
Schiphol has developed a
compliance checker for its
website, a digital tool to
facilitate Customs and border
security processes at the airport.
Given the way things are
going, it is crucial that the
electronic links are working.
If they are problematic, the
challenges escalate drastically.
The British International
Freight Association (BIFA) is
worried about a lack of progress
in the development of the
new computer system that UK
Customs is preparing. Coming
on top of concerns about
Brexit, BIFA reckons that the
new system should be delayed
and existing resources used
to navigate the choppy seas
ahead.
Ultimately, an electronic
stumble, let alone a meltdown,
in a new system is the last thing
anybody needs…
E-commerce
has defi nitely
changed the
business to a large
degree
Joe Lawrence, President, GSSA Airline
Services International
16 October 2019 www.airlogisticsinternational.com
/www.airlogisticsinternational.com