Whether you believe it to be detrimental or beneficial, globalization continues to alter literal and figurative landscapes the world over; and many inherent characteristics of this sweeping transformation are readily apparent in everyday commerce. Though these activities have dramatically increased in frequency over the past thirty years, businesses often remark that the regulatory guidelines and support systems overseeing and accompanying such movements, respectively speaking, haven’t evolved as fast as necessary.
Two actions that occur interminably in ports across the U.S. are the importation and exportation of goods via shipping containers. Regardless of whether they are transported by water, land, or air, there are governmental requirements to follow, risks to mitigate, and assets to protect. Major ports leave little room for error. The Port Newark Container Terminal handles over 600,000 containers annually with plans to double that number by 2030. Goods can be lost during transfer or seized by U.S. Customs if lapses in cargo oversight or regulatory compliance occur.
Depending on which industry or industries a company operates within, the goods it imports and exports are subject to various and sometimes quite specific forms and levels of federal classification, regulation, and duties. The more accurate and responsive a firm is with information regarding a shipment, the faster exportation or importation can transpire; and similar to most other business processes, time equals money.
Export.gov is a helpful and thorough resource that guides firms through the often-intricate affair of exportation. The U.S. State Department, which implements and manages export controls, lists the following as the crux of its efforts:
The U.S. government controls exports of sensitive equipment, software and technology as a means to promote our national security interests and foreign policy objectives. Through our export control system, the U.S. government can effectively:
• Provide for national security by limiting access to the most sensitive U.S. technology and weapons
• Promote regional stability
• Take into account human rights considerations
• Prevent proliferation of weapons and technologies, including of weapons of mass destruction, to problem end-users and supporters of international terrorism
• Comply with international commitments, i.e. nonproliferation regimes and UN Security Council sanctions and UNSC resolution 1540
Regarding the inbound flow of containers and their contents, post 9/11 the U.S. Customs and Border Protection’s mission shifted away from its former charge of trade protection and tariff collection to a more pressing primary objective: detecting, deterring, and preventing terrorists and their weapons from entering the United States. The full guide, written in 2003 and revised in 2006, is available to importers here and addresses topics like free trade, origin marking, product classification, and small-business importation.
As you might have already deduced, April’s posts are dedicated to importing and exporting supply chain materials or goods. Moving beyond this broad overview, each of the next three weeks will take a closer look at specific industry regulations; large U.S. freight forwarders and the particular challenges of shipping by land, air or sea; and implementing a comprehensive asset protection solution that tracks and monitors containers traveling long, sometimes unfavorable distances. It should be a productive and intriguing month, so if you haven’t already, bookmark us.
Chris Monaco, Covert Content Creator
As a man of many achievements, Chris Monaco is Temperature@lert’s newest Covert Content Creator. Hailing from Beverly, MA, Chris is armed with a trifecta of degrees, from a BFA (Maine at Farmington), to an MFA (Lesley University), all the way up to his most recent achievement; the coveted MBA from Suffolk University. Outside of his academic travels, Chris has added many international stamps to his passport, including: Seoul, Korea and Prague, Czech Republic, wherein Chris taught English as a Second Language to dozens of international students. His hobbies include writing, skiing, traveling, reading, and the world of politics. His personal claims to fame include two cross-country car trips through the U.S. and a summer’s worth of courageously guiding whitewater rafting trips. Chris’ ideal temperature is 112°F, the optimal temperature for a crisp shave.