ARC Advisory Group
Global Trade Management Worldwide Outlook Study
Changing Trade Content
- Global Product Classification — Harmonized Schedule (HS) numbers that allow companies to determine how their products should be classified so that the correct duties can be applied.
- Tax Classification — Different types of taxes might be applied to different products depending upon which nations the goods travel between. These include no taxes — free trade zones might apply, regular duties, preferential duty rates, countervailing duties, VAT taxes, etc. Tax classification also affects when and how the taxes are paid.
- Regulatory Controls — Import and export regulations including licenses and visas, permits, inspection requirements, quota status (only a certain number of T-shirts can be imported into the US from Pakistan, for example), safety controls (toys from China were banned for a while because they contained lead paint), and other restrictions. These controls are applied not just by customs agencies around the world but by a variety of other agencies in the individual nations as well (Food & Drug, Transportation Security, Defense Departments, etc.).
- Restricted Party Screening (RPS) Lists — These lists are used to determine whether individuals, companies or organizations are sanctioned by a government or restricted from conducting trade.
- Documentation — Requirements for all trade lanes based on origin and destination, including those documents necessary to support the transportation of goods across borders, as well as the number of copies required, appropriate business rules, language requirements and authorities for each document identified. There is a global trend towards mandating sending certain types of documents electronically prior to shipment.