The reason they don’t use them is that complying with rules of origin and other requirements is so complicated and time-consuming that companies find it’s not worth the trouble or the risk of penalties for non-compliance.
“Not only can compliance with the regulations be burdensome and non-compliance result in costly penalties, but the fear of non-compliance can lead to savings opportunities not taken,” said James Carneiro, a Thomson Reuters trade expert. “The complexity for both importer and exporters in dealing with FTAs is already significant and bound to increase over time.”
Thomson Reuters and KPMG surveyed global trade management professionals from multiple manufacturing industries in 11 countries, including the United States, between March and June of 2015. The respondents were asked about many aspects of their work.
To read the full story, please click here.