Skip to main content

Compliance with regulations requires visibility

In response to the growth of global trade, as our economy is more dependent on the global trade, it is more vulnerable to threats and disruptions caused by increasing terrorism and differing quality standards. As a result, customs, regulatory and public safety officials have imposed new and complex regulations on trade fulfilment; materials transit management, financial controls and stricter reporting (such as US customs introduced the 24 hour advance manifest rule). Compliance with these regulations requires end-to-end visibility, accurate and timely data capture, custody audit trails and effective control of traders’ global supply chain. As an example: Customs tariffs remain a critical revenue source. In the EU, Excise fraud for alcohol amounts to €1.5B yearly, or approximately 8% of total excise receipts on alcoholic beverages, and VAT fraud is estimated to be 10% of VAT receipts.With such a large exposure, customs around the globe are demanding real-time reliable end to end data. In June 2005, the 166 customs administrations of the World Customs Organization, representing 99 percent of international trade, all signed up to adopt the Framework of Standards to Secure and Facilitate Global Trade (SAFE), a comprehensive set of standards aimed at enhancing the efficiency and security of global trade. As an expected result of the implementation, fraud can be prevented by having real-time reliable data available or similar activities done by different Agencies mutually accepted, which therefore could be shared among trusted trading partners.

WCO SAFE Framework:
http://www.wcoomd.org/files/1.%20Public%20files/PDFandDocuments/SAFE%20Framework_EN_2007_for_publication.pdf

EU coherent strategy against fiscal fraud:
http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/06/221

Comments

I like your article and it really gives an outstanding idea that is very helpful for all the people on web.

Popular posts from this blog

Networked Supply Chains Require Better Visibility

As manufactures and retailers increasingly depend on extended rosters of sourcing companies, the resulting networked supply chain requires improved visibility. Importers are using multiple sourcing vendors to improve their ability to respond to market demand and opportunities. With this increased sourcing agility comes the increased risk of delivery failure due to a supply chain disruption and, concurrently, the increased importance of visibility into each step of the supply chain. The ability to in real time identify the location and status of the sourced goods gives the importer the ability to fine tune its distribution channels, its inventory management and its ability to fulfill commitments to its end users. The ability to real time monitor the status of goods requires a combination of container based technology, back-end business applications and an extended network of logistics fulfillment partners. In response to this emerging demand, many companies are offering RFID, GSM and si

The Vicious Cycle of Supply-Chain Innovation - Trapped Between Inflation and Interest Rates

  Although headline inflation has fallen in most economies in recent months, core inflation remains stubbornly high. During times of high inflation, the cost of goods and services often increases rapidly, putting a strain on a business's finances. As a result, many business leaders may focus on cost management strategies, such as reducing expenses and cutting back on investments, to maintain profitability. Unfortunately, this can make it challenging to prioritize supply chain optimization. Supply chain optimization can be a highly effective strategy to alleviate the impact of high inflation. However, it is crucial to understand that supply chain optimization can be a highly effective strategy, especially during times of high inflation, and can help alleviate the impact of high inflation on their finances. By streamlining and improving the efficiency of supply chain processes, businesses can achieve long-term cost savings and improved profitability. Optimizing the supply chain can h

Spurious Correlations in Supply Chain Management - sneakier than you think!

  The supply chain management landscape has undergone a massive transformation recently, rendering the traditional "fax" approach obsolete. In light of this, companies are gravitating towards digital solutions, which not only streamline the entire process but also help sustain market competitiveness. The old-school methods of communication channels were heavily reliant on paper, resulting in significant inefficiencies, errors, and time delays, which were avoided with the implementation of automated solutions such as email, EDI, and other digital communication channels. As the world of technology continues to evolve, more efficient and innovative solutions are constantly emerging, helping businesses remain competitive and future-proof in their respective industries. The realm of digitalization in supply chain management extends far beyond the realms of emails or EDI. Exploring the frontiers of predictive decision support is the key to unlocking immense potential and gaining a