Trade functions are becoming more reliant on digital systems and data-driven processes. While technology offers opportunities to streamline operations, interviewees emphasized that it also introduces significant operational and strategic considerations. One of the most pressing challenges is the fragmented nature of both trade and compliance systems. Several interviewees noted that their organizations rely on multiple platforms to manage different regulatory domains – such as export controls, customs, EUDR and ESG reporting. These systems are often not integrated. Implementation timelines further complicate the picture. One company reported that deploying a global trade management (GTM) system across North America took three years, with each module – covering export, import and free-trade agreements – requiring six to nine months. Even after implementation, systems require continuous upgrades to remain aligned with regulatory changes. Around 50% of surveyed Trade Compliance Practitioners indicated that an ideal trade compliance technology solution would take at least two to three years to implement and 25% said that it could take five-plus years. Interviewees also highlighted difficulty in selecting the right technology tooling strategy. Off-the-shelf tooling may quickly become outdated, and legacy systems may lack the flexibility to adapt. Some questioned whether a comprehensive “one-stop- shop” solution is even feasible. Others noted that targeted tools may be more effective, though this approach can lead to further fragmentation. Data access and quality emerged as additional pain points. Interviewees also noted that while artificial intelligence (AI) tools are increasingly used for classification and screening, they often produce results that require manual validation due to inaccuracies. Classification not only determines applicable tariffs but also affects whether goods fall within the scope of new sustainability regulations. Some companies may rely heavily on third parties – such as suppliers or customs brokers – for classification at the point of import, which can lead to inconsistencies. Others noted that even when classification is managed internally, the correct information is not always reflected in the system’s master data or it is stored externally by brokers, making it difficult to access and verify.Additionally, many of the data points required for compliance originate outside the trade function – in procurement, production, finance, sustainability and logistics – making integration across business functions essential. Interviewees noted that improving integration between systems is costly and requires significant change management. Several emphasized the importance of communicating these needs to the C-suite. Customs and regulatory bodies are also using automated systems to monitor compliance in real time, flag anomalies and trigger audits.4 Authorities may equally implement new customs management systems – such as Canada’s CARM5 platform or the EU Data Hub that the European Commission has proposed as part of the EU Customs Reform – that require companies to overhaul internal processes and IT infrastructure. Risks and opportunities The growing reliance on technology and data in trade compliance introduces a range of operational and strategic risks. Fragmented systems, inconsistent data formats and limited integration can lead to inefficiencies, errors and compliance blind spots. Companies may struggle to maintain accurate and up-to-date product classifications, origin data or supplier information. Inaccurate or incomplete data can result in misdeclarations, missed duty savings or failure to meet regulatory reporting requirements. Companies without robust data governance or audit trails may come under greater scrutiny from customs authorities. The pace of regulatory and technological change also creates a risk of investing in tools that quickly become outdated. Yet for companies that embrace digital transformation strategically, technology and data offer powerful opportunities.6 Automating foundational compliance tasks – such as classification, screening and documentation – can reduce manual workload and improve consistency. Centralizing trade and sustainability data enables real-time insights, supports proactive risk management and enhances cross-functional collaboration. Companies that invest in digital supply-chain mapping tools can gain visibility into Tier-N suppliers. AI-enhanced tools can support anomaly detection, regulatory monitoring and predictive analytics.2.4 Technology and data International trade management needs to contend with growing data demand and technology use, without a one-stop-shop solution. Authorities’ enforcement and reporting demands are also evolving. Trade Compliance for Leadership: Navigating a Shifting Global Landscape 15

Trade Compliance for Leadership Navigating a Shifting Global Landscape 2025