Overview of Setting Up Trade Compliance

Use Order Management with your trade management solution to create and manage trade transactions that comply with global import trade rules, export global trade rules, and other trade regulations that the country or region requires.

Some governments and companies impose rules and regulations on trade with different countries, people, companies, financial institutions, and so on. Use trade compliance to meet these rules.

• Trade compliance is a structure of rules that makes sure trade between countries or regions happens only according to the approved laws and guidelines that these countries or regions use.

• Manage legal, regulatory, and corporate requirements for each transaction that crosses a government border, such as across states, provinces, regions, or countries, according to the unique requirements of each country, region, company, and so on.

  For example, set up trade controls that apply United States rules and Chinese rules on each transaction that happens between a company that resides in the United States and another one that resides in China.

• Apply trade controls on various items, such as munitions, computer equipment, licenses, license exceptions, documents, registrations, and so on.

• Manage trade compliance policy, hold transactions until they clear trade compliance screening, and so on.

• Screen each sales order for restricted parties and sanctioned countries when submitting the sales order in Order Management.

• Don't screen sales order at submit, but do screen before shipping.

• Screen each sale order at different points during a long fulfillment cycle.

Here's an example flow that illustrates how you can use your trade management solution with Order Management.

This supply chain imports raw materials from more than one source into a factory in the United States, sends a partially finished assembly to a factory in Europe, then sends the final assembly to distribution centers in more than one country in Africa.

Each import and export point might require a different set of trade compliance rules for each transaction. For example, you can manage compliance according to trade compliance policies.

• Product classification, such as weapons or dangerous chemicals

• Export and import embargo

• Status on the Denied and Restricted Parties List

• Trade agreement, such as NAFTA (North American Free Trade Agreement)

• Restricted party

Your users can manage compliance in the Order Management work area.