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    5 Trade Compliance Challenges in the Chemical Industry

    Nov 7, 2018 9:29:02 AM / by François Xavier Lanne

    In recent years, there has been an increase in world chemical production leading to increased international chemical trade. The chemical industry is facing a broad range of compliance challenges due to the global nature of the business, the diverse nature of equipment and technologies required to manage resources in increasingly challenging environments.

    5 Trade Compliance Challenges in the Chemical Industry

    1. Product Control

    Many goods used in the industry are likely to require an export license such as marine vessels and their associated equipment.

    1. Destination Control

    Many countries are targeted by sectorial sanctions (Iran, Russia, Syria, Ukraine, Venezuela, etc.)

    1. End Use Control

    The end-use is how the product will ultimately be used. Some goods are at risk of being used as parts for, or to manufacture military equipment in an embargoed country and therefore require a license. (e.g., robotic equipment, surveillance equipment, pumps and valves, etc.)

    1. End User Control

    The end-user is who will ultimately use the product. The industry is highly exposed to the risk of dealing with denied parties or government owned entities. (e.g., national military forces, or other national authorities such as police, customs or paramilitary forces)

    1. High Level of Risk

    Export control for the chemical industry is an area of concern due to the sensitiveness of the topic and the significant sanctions in case of non-compliance.

    Read our blog post 10 Reasons to Use a Logistics Company for Trade Compliance  to find out more.

    Leave it to the Experts

    GEODIS has demonstrated a long standing position in operational excellence in customs and global trade among multiple sectors, offering the capability to fully execute the customs management and trade compliance for our clients. We have dedicated experts to execute import and export operations to be the client’s eyes and ears in all things related to trade management and compliance activities.

    GEODIS continues to innovate and deploy process and technologies required to provide an information backbone for customs management and trade compliance. Partner with GEODIS to meet your regulatory requirements (security program, SPL screening, sanctions and embargo) while minimizing costs. We will look for opportunities to streamline processes (HS classification, 3rd party management, export classification) while achieving compliance (audits and investigations management) and for opportunities to minimize duty payments (duty management, duty drawback) and increase Trinseo Trade compliance business intelligence (Free Trade Agreements, preference determination, inter-company pricing, etc.)

     

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    Topics: export, customs broker, trade regulations, chemical, marine vessels, trade compliance, global, trade, import, customs

    François Xavier Lanne

    Written by François Xavier Lanne

    Francois has been in the industry for 12 years working in several countries becoming fluent in 3 languages (English, French, Spanish). He graduated with his Masters in Supply Chain & Project Management from Sorbonne University in Paris. He joins the Supply Chain Optimization line of business with expertise of industry trends and GEODIS’ services. Francois is the Business Development Director with over 4 years of experience in sales. Francois specializes in supply chain solution design, implementation, global supply chain operations, optimization and decision support tools and the 4PL/LLP business models.

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