Your gain from shared pain: The trade compliance blues

"Ask Ulrike" was a great live session at our "get connected" event. My colleagues Dr Ulrike Jasper and Nicole Mantei met with around 50 export controls experts from mainly manufacturing companies across several industry sectors. It was the live premier of Ulrike’s highly popular YouTube series. 

Participants were invited to ask our experts anything that came to mind in the area of sanctions law, export control regulations, best practices, and trade compliance solutions. So, in the span of 1.5 hours, Ulrike and Nicole delivered answers to a wide range of questions: from managing bans on indirect provisions under the OFAC 50% Rule (or EU and UK equivalents) to handling the “no re-export to Russia” clause under Article 12g of the EU Council Regulation 833/2014.

• Participant question: How “deeply” do we need to screen our business partners against sanctions lists? For example, do we need to check the suppliers of our suppliers and their customers?
• AEB response: You must check what you know. This means: If you ask your supplier who their suppliers and customers are and are aware of these, then you also need to check them. Once you have knowledge about business partners involved in your supply chain, you are obliged to ascertain compliance. If you are not aware of these business partners, then you do not have to check them.

In addition to posing questions, participants also engaged with each other and shared views and experiences on the trade compliance challenges they face and how they tackle them. As interested listeners from the marketing team, me and my colleague Max Zenk found one challenge especially interesting, as it was shared by many attendees:

The struggle to get top management support for trade compliance.

How do you get direly needed resources to ensure compliance in an ever more dynamic sanctions landscape? A lively exchange ensued within the group – many tips were given on internal compliance programs and the best approach to get stakeholder support. One comment that was shared really stuck with me and Max: 

Sometimes it has to hurt before things gets better.

Want to sing along? Here are the lyrics:

(Verse 1)

I wake up every morning, check the news at dawn,
Regulations changed again, my sanity is gone,
Boss man wants a shipment, says it can't be late,
But I’m drowning in these papers, can't catch a break.

(Chorus)
Trade compliance blues, got me feeling low,
Rules are always changing, just can't keep the flow,
Boss says "make it happen," but it's a losing game,
Trade compliance blues, driving me insane.

(Verse 2)
Export Control and ITAR list, acronyms galore,
Every time I think I’m done, they pile on some more,
Customs forms and tariffs, duties to declare,
If I mess up one small thing, it's fines everywhere.

(Chorus)
Trade compliance blues, got me feeling low,
Rules are always changing, just can't keep the flow,
Boss says "make it happen," but it's a losing game,
Trade compliance blues, driving me insane.

(Bridge)
I call up the hotline, get put on hold,
Just need some guidance, but I’m feeling cold,
Regulators laughing, they’re having fun,
While I’m stuck here battling paperwork till the day is done.

(Verse 3)
Boss man's in my office, tapping on my door,
Says "it's not that important," like I've heard before,
I point to the regulations, try to make him see,
He waves it off, says "leave it up to me."

(Chorus)
Trade compliance blues, got me feeling low,
Rules are always changing, just can't keep the flow,
Boss says "make it happen," but it's a losing game,
Trade compliance blues, driving me insane.

(Verse 4)
But when the audit comes, and things go awry,
Boss man's sweating bullets, looking to the sky,
He's the one responsible, for the mess we’re in,
Now he's facing jail time, for this compliance sin.

(Chorus)
Trade compliance blues, got me feeling low,
Rules are always changing, just can't keep the flow,
Boss said "it's not that important," but now he's to blame,
Trade compliance blues, it's a high-stakes game.

(Outro)
One day I’ll get it right, solve this crazy maze,
Until then I’ll keep on singing, through the paper haze,
Trade compliance blues, my never-ending song,
Trying to stay compliant, while the world moves on.