Trade Compliance for Leadership Navigating a Shifting Global Landscape 2025
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Multidisciplinary groups bring together
representatives from relevant departments to
assess the impact of new requirements or priority
issues and coordinate implementation. For
example, some companies have created working
groups on sustainability regulations involving trade
compliance, sustainability, legal and procurement to
respond quickly to new supply chain due diligence
obligations. Others have formed task forces to
assess the impact of new tariffs.
From these first-responder groups, more detailed
processes can follow. In response to CBAM, for instance, some companies developed workflows
in which customs teams provide import data and
sustainability teams handle emissions calculations.
Similarly, some interviewees noted that their trade
compliance teams are now working closely with
sourcing to ensure accurate product data – such as
country of origin and classification of their products
in line with harmonized system (HS) codes – not
only for compliance but also to ensure the availability
and accessibility of the available data on country
of origin and HS codes. The move has also helped
these companies optimize the use of preferential
origin schemes.
To benefit from a more strategic trade function,
companies need to self-assess their existing
maturity, and to clearly define their short- and
long-term objectives, considering their current
international trade management maturity level. Senior
management involvement is then vital for progressing
the maturity of the trade function by providing
direction, budget and organization-wide alignment.
Trade professionals are frequently pulled into
firefighting, leaving little time or energy for strategic
work. To address this, companies must clearly
separate operational and strategic activities,
protecting the time and resources of those
tasked with strategic responsibilities. Without
this distinction, and without the right KPIs and
measurement tools, strategic roles risk being
undervalued or eliminated, as their impact may
not be visible.
Companies may need to choose between a
centralized and decentralized international trade
management structure. A centralized approach
can help ensure uniform compliance policies and
procedures across the organization, reducing
variability and enhancing control. It may also
improve efficiency by minimizing duplication of
efforts and enabling a more cohesive strategy.
However, due to local regulatory nuances, full
centralization is rarely feasible – up to approximately
80% centralization is often the practical limit. A
decentralized approach, on the other hand, allows
for the incorporation of local knowledge and
responsiveness to region-specific regulations. A hybrid model, combining centralized oversight with
local execution, typically offers the best balance of
consistency and agility for most trade teams.
Organizational positioning also plays a role
in enabling impact. Some companies place
international trade management within the
supply chain function, in close partnership with
legal, while others have aligned it with finance or
corporate compliance. Regardless of reporting
line, the goal is to ensure that the trade function
has the visibility and authority needed to influence
strategic decisions.
Beyond structure, a more strategic trade function
requires dedicated processes to monitor new
regulations, assess their internal impact and
coordinate cross-functional responses. Interviewees
noted that this shift can also ease the burden
of day-to-day operations. For example, one
interviewee developed standardized procedures for
operational tasks such as classification, third-party
screening and post-audit activities. These were then
outsourced to a shared service centre, supported
by internal controls to ensure compliance. This
freed up the core trade team from day-to-day
operational tasks, so they could focus instead on
strategic integration, regulatory interpretation and
forward-looking risk management.3.2 Making the trade management function
more strategic
Board-level engagement is essential for elevating the role of international trade management
and securing the resources needed to maintain alignment.
Trade Compliance for Leadership: Navigating a Shifting Global Landscape
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