Global Trade Compliance INB 3305–Global Business Baylor Business School November 15, 2017 Daniel Mark Ogden, Esq. Attorney and Counselor at Law Licensed Customs Broker International Trade Consultant

Overview of Presentation What is global trade compliance? What are the subjects of global trade compliance? Why is global trade compliance important? Career opportunities in global trade compliance List of global trade compliance resources

What is Global Trade Compliance Global grade compliance involves requirements that a firm engaged in international business and trade must comply with in order to successfully engage in such business and trade Global trade compliance requirements are primarily created by governmental regulation A failure to comply with such regulatory requirements may lead to a disruption of business, penalties, and even criminal prosecution

What is Global Trade Compliance Overall Approach- Risk Management Global trade compliance creates legal risks All legal risks, including global trade compliance, need to be proactively managed in the same manner as any other business risk The management of global trade compliance risks should be an integral component of an international business strategy

Subjects of Global Trade Compliance Export Controls & Regulations Import Regulations Foreign Trade Regulations Anti-Bribery Regulations

Export Controls & Regulation What- requires controlled products & technology listed on the Commerce Control List (commercial items) or the U.S. Munitions List (military items) to be licensed for export under certain conditions Who- Commerce Dept. Bureau of Industry & Security (Export Administration Regulations, aka EAR) and State Dept. Defense Directorate for Trade Controls (International Traffic in Arms Regulations, aka ITAR) Why- designed to prevent certain goods, services and technology from being acquired by countries and persons which are deemed to be detrimental to national security and foreign policy objectives

Import Regulations What- requires imported goods to classified by type and country of origin in order to determine duties owed on goods and specifies procedures for goods to be cleared through Customs Who- Customs & Border Protection and Immigration & Customs Enforcement (Title 19 CFR Customs Duties) Why- designed to raise revenue by imposing duties on imports, protect domestic industry from foreign competition, and provide consumer protection

Foreign Trade Regulations What- import licenses/quotas/special duties; labeling/packaging/marking requirements; consumer product health & safety requirements; product & quality standards requirements; product warranty & specification requirements; agent/distributor requirements; intellectual property protection requirements Who- foreign governmental agencies Why- designed to protect domestic industry from foreign competition and provide consumer protection

Anti-Bribery Regulations What- prohibits payments to foreign governmental officials, agencies, or enterprises in order to obtain business in that country or elsewhere Who- enforced by the Justice Department and the Securities and Exchange Commission in the case of publicly traded corporations (Foreign Corrupt Practices Act aka FCPA) Why- designed to promote a level playing field among international firms competing for business

Why is Global Trade Compliance Important Penalties range for violations of global trade compliance laws and regulations range from civil penalties and criminal fines and imprisonment to denial of export privileges or seizures of imports Global trade compliance can provide a competitive advantage in international business Global trade compliance indicates a standard of business ethics that can lead to business goodwill

Career Opportunities in Global Trade Compliance Global trade compliance is receiving an increasing emphasis in U.S. international firms Global trade compliance is also increasingly being understood as a management function This increasing emphasis and understanding is leasing to more opportunities for business school graduates, particularly for those who have training and education in this field

Career Opportunities in Global Trade Compliance Managers in any functional area of international business (finance, marketing, logistics, accounting, production, etc.) need to have a general awareness of global trade compliance Small international firms often will add global trade compliance responsibilities to various management positions as an additional role Medium and large international firms will usually have specific positions for global trade compliance management

Career Opportunities in Global Trade Compliance Baylor Business School will offer a course in Global Trade Compliance in the Spring, 2018 Semester- Tuesdays, 3:30-6:00 PM Licensed Customs Broker- www.cbp.gov/sites/default/files/documents/icp048_3.pdf

Global Trade Compliance Resources U.S. Export Controls- www.bis.doc.gov Foreign trade barriers- tsapps.nist.gov/notifyus/data/index/index.cfm U.S. Customs- www.cbp.gov World Trade Organization- www.wto.org World Customs Organization- www.wcoomd.org World Intellectual Property Organization-www.wipo.org Resources- internationaltradeattorney.com:8008/Links.htm Articles- internationaltradeattorney.com:8008/Articles.htm

Global Trade Compliance Contact Information Daniel Mark Ogden, Esq. Attorney and Counselor at Law Licensed Customs Broker International Trade Consultant 1000 E. Belt Line Rd., Suite 206 Carrollton, Texas 75006 972.417.1916 (voice) 972.674.8300 (fax) www.internationaltradeattorney.com daniel.ogden@internationaltradeattorney.com Twitter: tradeattorney © 2017 Daniel Mark Ogden. All Rights Reserved.