Thriving or just surviving? Why your business can’t afford to ignore compliance regulations

The government is always quick to point out why compliance regulations in the customs brokerage industry are so important: they allow Canadian businesses to negotiate profitable trade deals with other countries. What’s more, they give these companies a competitive edge in international commerce by maintaining a level playing field. In other words:

If Canadian firms want to participate in global trade agreements, they need to comply with international trade regulations to give themselves the best chance of success.

And, oh yeah, it doesn’t hurt that the many permits and licenses required to engage in trade with foreign companies generate millions of dollars of revenue for government coffers!

From deregulation to reregulation

Throughout the 1970s and into the 2000s, “deregulation” had a hugely negative impact on the global economy, culminating in the financial crisis of 2008.

Since then, governments have been busy coming up with countless hoops that companies must jump through in the name of environmental protection, consumer safety and health, to list a few.

Question: So what’s the cost of not complying with these many, multi-layered regulations and why should I bother?

Answer: Fines and penalties that can be financially devastating—or at the very least delay your shipments at the border, which in turn could also cost you a small fortune.

The consequences of non-compliance: now vs. then

Importers and exporters are especially hard pressed to keep up with the ever-changing trade regulations “reregulation.” But make no mistake: these days the government carries a BIG STICK and is right behind anyone who accidently steps out of line.

In contrast, three or four decades ago, the government gladly walked your company through the necessary steps to operate legally. Sadly, those days are long gone.
Today, the new trend is based on self-regulation and voluntary compliance, which places the burden squarely on the shoulders of importers and exporters.

All aboard the gravy train!

The very mention of import and export regulations instantly conjures up the Canada Border Services Agency (CBSA), also known as Customs. However, many other government departments (OGD) are now jumping on the bandwagon when they see the potential revenue that can be collected from lucrative penalties, fines, permits and license fees.

With so many new regulations expected over the next couple of years, the way you conduct business today will be completely different than in the near future.

Don’t get left behind

“But that’s how we’ve done it for the last 20 years. Why the sudden change?” Companies stuck in this mindset will get left behind because changes are coming fast and furious in the customs brokerage industry. The bottom line is this:

Staying on top of this compliance whirlwind is the difference between thriving or just surviving.

What should companies do to ensure compliance?

Many firms are investing heavily and creating new executive positions such as Chief Compliance Officer (CCO) or even compliance management teams.

Unless you are a big corporation with deep pockets that can afford to have your people constantly scouring government regulatory procedures in order to stay up to date and avoid sanctions, you should consider other solutions.

Why a customs broker could be the answer

Customs brokers are required to take frequent refresher courses, attend seminars and conferences. They must also read all the latest government and industry trade publications if they want to stay relevant in such a rapidly evolving field.

As such, outsourcing compliance needs is a perfect option for companies that don’t have an in-house compliance team or compliance manager.
Even companies with on-site compliance expertise can complement their team by adding the extra layer of protection a certified Customs Broker can provide.

With this in mind, why not arrange some training sessions for your compliance team? It’s well worth the investment and in the end could be much better than the alternative!