Trade compliance means following the rules and laws about importing and exporting goods between countries. Companies must follow these rules to ensure their international trade activities are legal in every country involved.

Many companies struggle to stay compliant with international trade laws. Often, this is because they simply don’t know what’s required. Not following the rules can result in serious consequences—such as fines, criminal charges, or even losing the right to trade internationally. Some businesses don’t have trained compliance staff and instead rely only on basic advice from their shipping or logistics providers.

In Europe, BREXIT has brought more attention to trade compliance. However, most of the focus has been on customs paperwork and getting goods across borders. Many companies still aren’t aware of their responsibilities under EU and U.S. trade laws, including rules about embargoes, sanctions, screening business partners, handling dangerous goods, and product licensing.

Examples of Trade Compliance Regulations

Some of the key rules businesses may need to follow include:

• EU Dual-Use Regulation
• U.S. Export Administration Regulations (EAR)
• German Foreign Trade and Payments Act (AWG)
• German Foreign Trade and Payments Regulation (AWV)
• U.S. Export Administration
• U.S. International Traffic in Arms Regulations (ITAR)

If your business is involved in global trade, these regulations matter—and you have legal responsibilities to meet.

Key Trade Compliance Practices

To manage trade compliance, you should:

• Identify which trade laws apply to your products and business.
• Make sure you have access to accurate information about your trade compliance obligations, and create formal procedures to meet them.
• Check your internal processes to ensure they meet EU and U.S. export control requirements—like needing an export license, or following sanctions and embargoes.
• Screen your business contacts (individuals or companies) to ensure they’re not on any denied or restricted party lists.
• Understand where your products come from and verify they are classified correctly under trade codes and preference rules.
• Check if your products fall under dual-use or dangerous goods regulations.
• Prepare the right paperwork for importing and exporting, and follow all customs and tax rules.
• Assign specific staff members to be responsible for compliance and give them proper training and resources.

How to Start a Trade Compliance Program

Setting up a full trade compliance program can be a big job—but it can be broken down into steps.

Start by:

1. Learning about your legal responsibilities as a business involved in international trade.
2. Assessing your current trade processes to find risks and gaps.
3. Understanding your operations, and documenting any areas of concern.
4. Creating a trade compliance manual that includes your company’s policies and can be updated as laws change.
5. Training staff who will handle trade compliance tasks.
6. Getting outside help if needed—from customs or trade consultants—to support your team and improve your processes.
7. Reviewing your trade compliance regularly, to stay on track and improve over time.

Common Trade Compliance Challenges

• Are you struggling with your company’s trade compliance processes?
• Do you already have a compliance system but need help with certain regulations?
• Or do you not yet have a system in place but think it might be important for your business?

If so, now is the time to take action.

Why Trade Compliance Matters

1. Following the Law

Trade compliance ensures your business follows all laws for exports and imports. This includes knowing about things like sanctions, embargoes, and paperwork. If you break the rules, you could face big fines, lose your export rights, or even face criminal charges. Staying compliant keeps your business legal and protected.

2. Reducing Risks

By following trade rules, your business can avoid serious problems—like goods being stopped at customs, shipping delays, or surprise inspections. Good compliance helps your supply chain run smoothly and reduces financial risks.

3. Protecting Your Reputation

If a company breaks trade laws, it can lose customers and damage its reputation. Strong compliance shows your company is ethical and responsible, helping build trust with customers and partners.

Why Trade Compliance Gives You an Advantage

1. Protection in Global Markets

Trade compliance helps you safely navigate complex rules in different countries and respond quickly to changes in laws or policies.

2. Saving Money

By avoiding penalties and delays, you save money. Also, using trade agreements and customs best practices can lower taxes and import duties—boosting your profits.

3. Improving Efficiency and Customer Service

A clear trade compliance strategy helps streamline customs and documentation processes. This means fewer delays, better supply chain performance, and more satisfied customers.

4. Staying Flexible and Innovative

Following trade laws encourages your business to stay informed and improve continuously. This makes you more flexible and able to compete in changing markets.