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
- Product Control
Many goods used in the industry are likely to require an export license such as marine vessels and their associated equipment.
- Destination Control
Many countries are targeted by sectorial sanctions (Iran, Russia, Syria, Ukraine, Venezuela, etc.)
- 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.)
- 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)
- 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.)