Customs and Trade Compliance: Rising to New Challenges

Customs and trade have always been challenging fields, but in recent years, they’ve grown even more complex.

Never before has the customs and trade compliance profession been under such a spotlight as it has in the last five years. Amid a geopolitical cocktail of issues, the surge in customs and trade compliance recruitment comes as no surprise. This shift has been a reality check for both the business and political worlds, where the once unsung heroes are now celebrated for their critical role.

Learnings from the #ImportExportShow2024

Last week, I attended the Import Export Show, hosted by The Chartered Institute of Export & International Trade. The event offered invaluable insights into the challenges faced by the professionals I recruit for daily.

This year has been historic in terms of global elections, with over 1.6 billion people in 70+ countries casting their votes to shape their nations’ futures. Such political shifts inevitably ripple into global trade. One panel session stood out to me: “How a Year of Elections Is Reshaping International Trade.”

Here are my key takeaways:

• Can You Have Your Cake and Eat It Too? Labour leader Kier Starmer faces the delicate task of balancing relations with the US and the EU. A poll revealed that 68% of delegates believe prioritising EU relations is more beneficial than focusing on the US.
• A Perceived Lack of Urgency While Labour’s long-term vision is recognized, many feel it fails to address the immediate trade concerns of businesses. Striking trade deals remains a challenge, as concessions and protectionist policies complicate negotiations.
• The Impact on Small and Medium-Sized Enterprises (SMEs) While tariffs dominate trade discussions, SMEs are more impacted by domestic economic conditions and supply chain disruptions. Many are forced to either absorb rising costs or pass them onto consumers.
• Post-Brexit Realities Businesses have split into three groups post-Brexit:

1. Those who have ceased trading with the EU entirely.
2. Those pushed out due to insurmountable challenges.
3. Those persevering despite the hurdles.

• Tariffs vs. Non-Tariff Barriers Contrary to popular belief, non-tariff barriers are as significant as tariff barriers in complicating trade.
• Environmental Compliance Sustainability and traceability have become central to trade compliance. Meeting these standards remains a growing challenge for small businesses.

What Lies Ahead for 2025?

The panel offered intriguing predictions for the future:

• A potential return of Trump to the US presidency could bring chaos, though the UK may avoid being a direct target.
• Signs of a reset in UK-EU relations are emerging, though progress requires diplomatic finesse.
• The government faces a “wait-and-see” moment, with much at stake.

The Main Message

Trade compliance is tough. The complexity of regulations and shifting geopolitical landscapes demand resilience and adaptability. Fortunately, it was highlighted at the Import Export Show just how many excellent resources are available for businesses navigating this space.

And, of course, if you’re looking to strengthen your in-house customs and trade compliance team, feel free to reach out—I’d be happy to help.