Page 10 - World Trade Center - 2018

MAKING TRADE HAPPEN
COMPLIANCE WITH A CHANGING WORLD
Greg Pugh sees the future.
The day the Bureau of Industry and Security announced it was considering restrictions on exports of electronic waste, he foresaw a cell- phone disposal surcharge in his crystal ball. That’s because the United States exports 55 million tons of electronic waste a year. Greg Pugh knows that. If it can’t be exported, it
will have to be disposed of domestically. And that will cost more.
“That’s something I really enjoy understanding,” Pugh said. “And I had no idea until I got into this business that I love digging into the regulations of the Federal Register and the Code of Federal Regulations. I really enjoy doing that kind of research.”
That is why clients hire Pugh and his business, the U.S. Trade Compliance Alliance, a member of World Trade Center Delaware. Pugh opened USTCA in 2016 after years of working as a licensed customs broker and a certified customs specialist, and works with small and medium-sized companies to navigate the complexities of trade compliance and tariffs.
Tariffs that are the biggest issue in trade right now, he said. He said that he is hesitant to use the phrase “tariff war,” but admits that it is the conversation of the moment, and shifting tariffs raise concerns for both exporters and importers.
But the government, at its heart, wants to facilitate trade, Pugh said. It does so by having more than 20 free trade agreements and dozens of preferential programs – programs that larger companies pursue though robust compliance programs to legally reduce duties owned on goods.
Small and medium-sized companies can do the same, and the cost of compliance should not exceed your risk, Pugh said. A greeting card company with only one location and that exports only to Canada, for example, can have a compliance program that includes one monthly “checkup” to monitor any changes in their trade position and still be fine, Pugh said.
“But if you are exporting biomedical waste or something highly regulated, you know right out of the gate that you’re going to need a robust compliance program,” Pugh said. “There’s no getting around it,.”
Most companies fall somewhere in the middle. As a first step, Pugh says companies need to make sure their import/export classifications are accurate, so they’re not paying the wrong duties on goods. A good compliance program will monitor key indicators for changes that might affect business – and take proactive steps before something like a new tariff goes into effect, as they recently have with the Section 232 and Section 301 tariffs affecting trade with China.
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Pugh is keeping an eye on new trade agreements between the
United States, Canada and Mexico for changes on U.S. companies
and consumers. He also wonders about the effects of package an security in the wake increased measures around the world. If supply D chain security goes up, that will have an impact on business as well.
“The big corporations have programs in place that include constant monitoring, and they have their fingers on the pulse of what’s going on,” Pugh said. “But many small and medium-sized businesses don’t know all of the measures they can take to legally lower the duty that they owe.”
VALUED PARTNERS: COMPLIANCE, LOGISTICS & FINANCE
Export-Import Bank of the United States (EXIM)
World Trade Center Delaware is Delaware’s member of the Regional Export Promotion Program (REPP) of the Export-Import Bank of the United States. EXIM provides a variety of financing mechanisms, including working capital guarantees, borrowing against export-related assets, and export credit insurance, to promote the sale of U.S. goods and services abroad.
Overseas Private Investment Corporation (OPIC)
OPIC is a self-sustaining U.S. government agency that helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both
at home and abroad. It fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers. World Trade
Center Delaware hosted a comprehensive seminar with Sen. Chris Coons and representative from OPIC in May 2018 for companies throughout the region.
Securitas Global Risk Solutions
(www.securitasglobal.com)
Securitas is a Delaware-based specialty insurance broker focused on developing trade credit and political risk insurance programs. A member of World Trade Center Delaware, they see their primary focus as developing solutions to mitigate credit risk and will negotiate with multiple markets to ensure policies are competitively priced and meet coverage needs. The company was named an EXIM Broker of the Year and is an expert for Delaware State Bar Association and WTC Delaware programs.
BDP International (www.bdpinternational.com)
A member of World Trade Center Delaware, BDP draw upon over 50 years of industry knowledge and expertise to guide our clients through the complexities of international trade, including import and export management, education and training, transshipment advice and electronic port filings. Chief Compliance Office Michael Ford serves as chair of the Mid-Atlantic District Export Council and is a frequent speaker on compliance and logistics.
10 | WORLD TRADE CENTER 2018 | WTCDE.COM
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