Trade Compliance for Leadership Navigating a Shifting Global Landscape 2025

Page 17 of 26 · WEF_Trade_Compliance_for_Leadership_Navigating_a_Shifting_Global_Landscape_2025.pdf

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 17
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