Review of “Trade Compliance: a Burden or an Opportunity?” (CORE1054)

Summary: Review of “Trade Compliance: A Burden or an Opportunity?” This is a White Paper by DINALOG Dutch Institute for Advanced Logistics, VLM Vereining Logistiek Management. The information aims at Core Demo-WPs where the either trade compliance in general or single aspects of better cargo and data flow is to be demonstrated. This has an impact on the preceding WPs when defining rules and fixing systems. Coding CORE1054, in the CORE e-library. Available to General Public at: Coding CORE1054, in the CORE e-library.

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The document reads about the basics of Trade Compliance relevant for worldwide economy and movement of goods across borders and shows a quantification of the value for goods exported from the Netherlands. A discussion of administrative burdens conducting international trade follows. Main issues are diversity of applicable governmental laws including ex-, import and transshipped countries, increasing internationalization of trade and the obstacles of physical of goods. Different data sets partly with identical content have to be presented to various agencies and depending on goods, extra rules do apply sometimes. The electronic data transmission contains further obstacles and varies from agency to agency and from one commercial partner to another. Even already established rules on harmonization do not avoid constant update and adoption of ERP systems of traders. When following the physical movements of goods more obstacles unveil with governmental agencies resulting in delays. Certification is already established but does not lower burdens at the moment.

Innovations within compliance named and described then. These innovations are as follows:

  • Surveillance of the systems used for manufacturing and trade (System Based Control);
  • Physical and electronic coordination and interaction of all governmental agencies and data delivery systems (Single Window, One Stop Shop); and
  • Moving traditional border controls away from the border by Use of pre- and post-clearance in order not to disturb the physical movement; and by Disconnect data flows from cargo flow.

The document finalises by naming the challenges for national and international governments and trade companies with a brief review of the three innovations. The report contains very good ideas to follow in CORE Demo WPs but is very high level without giving details.

SWOT Analysis, with reference to CORE:

  • STRENGTHS: The focus on a few but high integrated measures applicable to countries organized in a supra-national organization is clearly an advantage for a research project than having many disconnected single improvements. Project results are easier to disseminate when a common direction is predetermined.
  • WEAKNESSES: The report is a brief one and names the innovations without telling too much detail or how to implement the theory. A balance of the single measures or different regional acceptance is not given. A discussion about trade when introducing these measures in one country and not in another is not given.
  • OPPORTUNITIES: Since no implementation details are given, measures are open for adoption in different regions or trade lanes where measures might be introduced. The list of measures is not exhaustive, additional rules might be implemented.
  • THREATS: When introducing all these measures the same time in a number of countries (e.g. the EU) might either fail due to national or regional established rules or lack of acceptance. By introducing these measures in different levels (ranging from full implementation to no implementation) might have an impact on trade flows, a further disconnection between first and third world might be worst case.

CORE impact anticipation:

  • To CORE: Re-reading of basic principles as shown in the document might open minds for different approaches or could start discussion and implementation from a different angle.
  • From CORE: The named threats and weaknesses of the report might be further evaluated and implementation ideas of named innovations should be evaluated as well as regional characteristics due to many trade lanes might be assessed.

Full Citation:

Trade Compliance: A Burden or an Opportunity? The quality of Dutch Trade Compliance Competences can strengthen our international position as a logistic control centre – Whitepaper Network Trade Compliance, Strategic Advisory Board, March 2012 – DINALOG Dutch Institute for Advanced Logistics , VLM Vereining Logistiek Management

Available to the general public at:

Accessed: 15/01/2015


Comentario de “Cumplimiento de la norma de Comercio: ¿una carga o una oportunidad?” (CORE1054)

Resumen: Comentario de “Cumplimiento de la norma de comercio: ¿Una carga o una Oportunidad?” Se trata de un White Paper por el Instituto Holandés para la logística avanzada (DINALOG, por sus siglas en inglés) y VLM Vereining Logistiek Management. La información tiene como objetivo el CORE Demo-WP en donde debe ser demostrado ya sea por el cumplimiento de la norma en general o un aspecto único para el mejoramiento de carga y flujos de datos. Esto tiene un impacto en las anteriores notas WP al establecer normas y sistemas de fijación. Codificación CORE1054, en la biblioteca electrónica CORE. Disponible para el público en general en: Codificación CORE1054, en la biblioteca-e CORE.

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