Trade Compliance for Leadership Navigating a Shifting Global Landscape 2025

Self-assessing international trade management maturity BOX 2 1. Minimalist: At this stage, there are no formal controls or governance frameworks in place. Processes are highly manual, reporting is undertaken offline and data is fragmented across various sources and systems. The organization is heavily reliant on third parties, such as customs brokers, and faces a high risk of non-compliance, underpayment or overpayment of duties. 2. Evolving: Companies at this stage have begun to implement more consistent processes and information flows. Some reporting and monitoring tools may be in use, but data is still often managed through spreadsheets and addressed on an ad hoc basis. Awareness of compliance risks is growing, but exposure remains significant due to limited internal controls.3. Optimizing: Trade functions at this level have more structured policies and procedures, with increasing alignment across teams. Data is more defined, and tooling is in place, though not yet always centralized. Organizations begin to reduce costs through planning and have dedicated processes to manage compliance risks more effectively. 4. Leading: At the most advanced stage, international trade management is fully integrated into strategic decision-making. There is a centralized source of data, real-time reporting and analytics to support proactive risk management. Policies and governance structures are mature and enforced, and the function plays a vital role in enabling business growth through optimized operations and organization-wide alignment. Technology is a strategic enabler of modern international trade management. How best to navigate the transition towards digital systems and data-driven processes for international trade management depends on several factors, including the company’s international trade footprint, the maturity of its trade function, and the systems and tooling already in place. Companies with a more centralized structure and advanced data capabilities may be positioned to adopt integrated platforms and AI-driven tools, while others may benefit more from targeted solutions that address specific gaps. Nevertheless, the Trade Compliance Practitioners identified several good practices and provided input on what they expect from trade technology: Automating foundational processes Automating routine but critical compliance tasks, such as screening for sanctioned entities, managing HS code classification and generating standard customs documentation reduces manual workload, improves consistency and frees up resources for more strategic activities. However, it is important to note that not all aspects of these processes can be fully automated. For example, product classification cannot be entirely delegated to automation – while AI tools can assist with identifying potential classifications based on product descriptions or historical data, human validation is currently still required to ensure accuracy and regulatory compliance. Similarly, while AI solutions can support with screening and data analysis, important areas such as export control assessments and origin management currently require manual verification and expert judgement. Centralizing data storage and AI-enhanced tools Several interviewees mentioned that their trade teams developed centralized repositories for trade and sustainability data, often enhanced with AI tools to support regulatory monitoring, transaction auditing and anomaly detection. These systems allow for real-time insights and help ensure that compliance teams can respond quickly to regulatory changes. Establishing dedicated digital trade compliance functions Some organizations have created dedicated functions for digital trade compliance and risk mitigation tasked with providing rapid insights through trade data. Enhancing supply chain visibility through tooling To meet traceability requirements under regulations such as EUDR and UFLPA, some interviewees noted that they partner with external providers to digitally map their supply chains down to Tier-N suppliers. This improves transparency and supports compliance with sustainability and human rights obligations.3.3 Navigating new technologies 12 3 4 Trade Compliance for Leadership: Navigating a Shifting Global Landscape 18