ne of the most challenging issues of today’s international supply chain is the trade compliance. This broad definition can vary from document templates for standard documents to specific documents, required for cross-border movement of the goods.
Non-tariff barriers to trade also brings a variety of requirements from packing the goods separately to using language specific labelling, user manuals and marks on products or their packaging.
These chaotic requirements cause serious delays due to non-compliant international trade operations. At the very least, non-optimized international supply chain, in regard to these requirements, has significant effect on lead times, which increases the landed cost of the import or export products.
While trade compliance leads delays and from minor to severe penalties for businesses, it generates a remarkable risk control management for government authorities to enforce. Most of the time, the resources spent for these controls bring less financial advantage than the possible tax or duty loss for governments.
BTP is designed with the know-how, gained with more than 30 years of experience on international trade compliance requirements. As it is inevitable to implement the trade compliance requirements before the actual shipment of the products, BTP focuses on resolving every trade compliance issue to be managed at the purchase order level.
Once the purchase order is made available to platform, its robotic process automation, RPA, through trade compliance module, provided by expert participants, generates the country-specific trade compliance requirements to be fulfilled, so the suppliers are made aware of what is to be done before shipping the goods. Provided documentation is controlled at the very early stages of the supply chain to eliminate the risks of non-compliance.
The blockchain technology behind BTP will have a significant effect on Customs’ operations. A real collaboration between the businesses and customs will now be possible due to the nature of the blockchain technology, which natively provides traceability of the international supply chain.
This aspect not only fits the trade facilitation vision of the World Trade Organisation but also fulfils the aspects of trusted trader programs of World Customs Organisation. BTP is going to be a tool, that will enable knowledge-based enforcement for risk controlling and compliance all together.
Customs authorities will have the benefit of optimizing their workforce on more risky areas rather than having to focus on transparent and trusted traders, who will soon be seen as partners of customs authorities.
BTP will also have an impact on trader’s risk management approaches as it will help them eliminate the trace compliance risks, saving them facing penalties and protect their valuable licenses on trusted trader programs.