Our Changing - Tyler Search

1 1 | THE GLOBAL TRADE PROFESSIONAL | SUMMER 2007 Our Changing IndustryPROFILES OF THE GLOBAL TRADE PROFESSIONALT here are several common threads that run through the global trade compliance community: passion for the profession, a sense of purpose extending beyond simple allegiance to employers, excitement about being part of a profession in its infancy (or possibly adolescence) with new challenges every day, and an attitude that embraces an evolving cor-porate more thread connects all trade com-pliance professionals.

2 They never envi-sioned themselves in this role ten or even five years s trade compliance (TC) role has morphed from compliance monitor to trade facilitator to supply chain security chief to a combination of all three. A profile of today s TC executive will show an early career in logistics or transpor-tation. Some TC execs started out in the forwarder/broker industry and transi-tioned to a corporate logistics role. Most started out as junior members of cor-porate logistics or transportation team handling either traffic, classifications, analysis, distribution or inbound/out-bound the BeginningThe Customs Modernization Act, part of the North American Free Trade Agree-ment Implementation Act of 1993, shift-ed compliance responsibilities to the importer.

3 Up to that time few firms had an employee devoted strictly to trade compliance. Already overwhelmed import managers from larger firms began to des-ignate customs and compliance duties to their brightest and most diligent team members. The potential for penalties and embarrassing news coverage simply wasn t worth risking assigning to marginal managers from small and midsize companies that couldn t add head count or ran very lean departments had to TODAY S trade compliance role has morphed from compliance monitor to trade facilitator to supply chain security chief to a combination of all work keeps Changing , but in response to legislative, regulatory, political, and market transformation, a vital profession is BILL CONROY.

4 Tyler Search CONSULTANTS 17/4/07 11:22:43 AM7/4/07 11:22:43 AM2 | THE GLOBAL TRADE PROFESSIONAL | SUMMER 2007somehow manage the compliance func-tion themselves. (Many still do, but with today s complexities, how effective can they be?) In most cases, firms didn t see the value of having a standalone trade compliance role until the late 90s, when we saw highly publicized penalties and negative press connected to some of America s most recognized corporate names as well as many Asian and Euro-pean business units.

5 Customs was taking an aggressive posture, moving from informed compliance to enforced com-pliance of the of the new trade compliance roles came about as a result of strongly recommended customs advice. The result was the creation of positions whose pur-pose was almost one-dimensional com-pliance with customs regulations. In many companies the role also included export compliance, and then in more recent years global trade early reporting functions were almost always through supply chain, transportation or logistics.

6 Some early reporting structures were actually depen-dent on who championed the value and need for an in-house standalone trade compliance role the you want it, you own it Trade Compliance ProfessionalsThe career profile of today s trade com-pliance professional reveals a solid and stable resum and fewer company moves then their peers in supply chain manage-ment. Extended years of dedicated service to one firm is the norm. But this loyalty is a double-edged sword. On one hand it may help facilitate a successful program, but on the other it limits base salary growth.

7 Average annual salary increases among TC execs range from 2 to 4 seven or eight years to a firm or make two to three career moves in the same time frame to new firms with a 15 percent bump each time you do the trade compliance professionals are undervalued overachievers especially those with quiet programs that haven t had major customs issues. The company may place a high strategic value on its trade compliance program but compensa-tion levels haven t caught up yet. This is Changing .

8 The firm that needs to replace a trade compliance professional who has been employed more than five years is usually going to experience sticker shock when they bring in the new resource professionals have very little comprehension of the scope of the trade compliance function, and are even less informed on how to put a com-pensation value on the Trade Compliance Professionals Change JobsTurnover in the trade compliance com-munity is low. A typical career profile will reveal a stable resum with fewer com-pany moves than among peers in supply chain management.

9 Extended, dedicated service to one firm is the opportunities at top companies are always interesting to hear about, and 1. Lack of top-down support and muscle to implement and build an effective compliance program2. Compensation3. The arrival of the opportunity and challenge to join a bigger firm and have greater responsibility and a chance to put one s signature on a start-up4. Inability to add resources to build a team5. LocationFive Reasons Why Trade Compliance Professionals Change Jobs | 2most folks have an updated resum just in case, but there must be a compelling reason to consider a move.

10 Interesting note: we don t see trade compliance pro-fessionals exiting their roles to return to logistics or transportation. They enjoy their work. Once they re involved in global trade, they re StructuresReporting structures are definitely gravi-tating to legal, but in the majority of firms TC professionals still continue to report up through the supply chain, logis-tics and transportation departments. Some report through tax or seasoned global trade professional who had personal experience with sev-eral reporting structures said it best: The reporting structure reflects the company s priorities and its expectations of the com-pliance role.