Customs Regulatory Compliance Management Report - Business Development

This report provides a comprehensive analysis of customs regulatory compliance management. It begins by exploring the benefits of flexible procedures, such as rewarding compliant traders to encourage wider adherence. The report then delves into payment terms, specifically addressing the sele...Read More

CUSTOMS-REGULATORY
COMPLIANCE
MANAGEMENT

Table of contents
1. Flexibility in procedures so that compliant traders can be rewarded encourages
compliance amongst all traders...................................................................................................3
1. Type of payment terms.........................................................................................................3
2. National customs legislation.................................................................................................4
4.Identification of stakeholder and strategy for communicating with them................................4
5.SAD and its purpose:................................................................................................................5

INTRODUCTION
Regulatory compliance includes the objective which an organization wants to achieve by
following relevant laws, policies, and regulations. The companies follow harmonized sets of
compliance controls for keeping operational transparency (Oyewunmi and et al, 2017). The file
includes flexibility in procedures, type of payment terms, customs to demand duty and strategy
for communicating with stakeholders.
1. Flexibility in procedures so that that compliant traders can be rewarded, encourages
compliance amongst all traders.
Yes, I agree that by allowing flexibility in processes that complaint traders can be
rewarded encourages compliance amongst all traders. Authorized economic operator (AEO)
refers to the party which is involved in the international movement of products in whatever
function that has been approved by. These operators with large business use trusted trader
programs like authorized economic operator program (Arjoon, 2017). This program is organized
by the Australian Customs for offering various facilities to international trade of goods.
Small scale companies are unable to use TTP due to its high prices. By lowering prices of
entry requirements, small businesses will able to use this program. It will not only provide
benefits to the organization but will also enhance sales and profitability of the program. Along
with this, small scale firms will get an opportunity to expand their business by managing work
appropriately and effectively. The firm will get benefits like faster clearance of goods, less
interference by customs and high level of services. These features will help small scale
companies to conduct their trade properly and more efficiently. The security function of the
program will assist companies in securing their personnel, information and other business related
processes (Grainger, 2016). Increasing use of TTP in both small and large sector will increase its
popularity and profit worldwide.
2. Type of payment terms
As an exporter of tropical fruit, I am dealing with a new customer having the potential to
further large purchases. But the case is to provide excellent services and product in the first
shipment. For this kind of consignment, I will select cash in advance. Under this payment term,
the exporter will able to eliminate the risk of non-payment or credit risk. In this, I will able to
receive payment before the transport of good services and good products to the customer. There

are two options available for cash in advance: credit cards and wire transfer. The customer can
transfer money by using any of the both options (Komarov, 2016).
3. National customs legislation
Department of trade and customs (Australia) looks after the various functionalities of
trade. Along with this, the national customs legislation provides traders rights to perform trade
safely and properly. In the given case, warehouse license fails to keep warehoused goods safely.
Thus, Section 35A(1) of the Customs act 1901 will be used by the client (Barone, 2016). This
provision allows the owner to seek to have duty remitted under the particular circumstances like
stolen of products. The warehouse owner will able to get the particular amount in the form of
compensation for the stolen goods. Warehouse operator will be liable to pay the amount equal to
the duty which would have paid on stolen products as per the claimed.
4. Identification of stakeholder and strategy for communicating with them
As per the given case, IT team will upgrade the IT system for improving the automated
risk management and shorten the time to clear cargo. The stakeholders of the team will be:
 Application Engineer
 Database Administrator
 Network Architect
 Programmer
 Designer
 Programmer Analyst
 IT manager
 IT Leader
 Network system administrator
 Network Engineer
As a customs official in charge of a major international airport, it is necessary for me to
upgrade the system for improving the current situation. The communication strategy which will
be used for informing stakeholders about the system operation is as follows:
Statement of purpose: This will include purpose behind using communication strategy for
the stakeholders.

Current Situation: This will include information regarding the current situation of the
system and reason behind its upgrade (Afanasieva, Ivanov and Yanushkevych, 2017).
Organizational objective and communication objective: This step will include the link
between the goals of airport and communication.
Selection of communication method: In this, I will use Information and Communication
Technology (ICT) for communicating with the stakeholders. I will send all the needed
information through email. Along with this, I will conduct formal and informal meetings
with stakeholders for increasing understanding and relationship between them. All the ideas,
strategies, etc. will be discussed in these meetings (Arjoon, 2017).
Work plan: In the end, last concluded plan will be communicated to the stakeholders for
starting their work as per the plan.
5. SAD and its purpose:
Single Administrative Document (SAD) is also known as Form C88 which is used for
international trade to and from the European Union Customs. All traders and agents can take
advantages of SAD for declaring report, export, transit and community status declarations. This
document is segregated into 54 boxes, and its full version comes in 8 different parts. These parts
have various functions which are used by the traders as per their need. SAD was established in
1988, and its legislations help in conducting trade in secure and safe manner (Komarov, 2016).
This document covers the placement of any product or their services under any customs process
by using any mode of transport. The purpose of SAD is as follows:
 To ensure openness in national administrative requirements.
 To decrease the number of administrative documentation
 To minimize the amount of information requested by the traders
 To standardize and harmonize the data
 To provide proper safety and security to the private and confidential information.

References
Afanasieva, V., Ivanov, L., & Yanushkevych, D. (2017). Modern Approaches to Risk
Management and Their Use in Customs. Траектория науки, 3(4).
Arjoon, S. (2017). Virtues, Compliance, and Integrity: A Corporate Governance
Perspective. Handbook of Virtue Ethics in Business and Management, 995-1002.
Barone, A. (2016). Managing Global Logistics for Business Growth: A guide for small to
medium enterprises pursuing the global market growth through cross-border trade
(export/import). Buoyant Capital.
Grainger, A. (2016). Customs management in multinational companies. World Customs
Journal, 10(2), 17-35.
Komarov, О. V. (2016). Risk management systems in Customs: The Ukrainian context. World
Customs Journal, 10(1), 35-44.
Oyewunmi, O. A., Osibanjo, O. A., Falola, H. O., & Olujobi, O. J. (2017). Optimization by
Integration: A corporate governance and human resource management
dimension. International Review of Management and Marketing, 7(1).