Why understanding and applying rules is so important for a career in trade

Following trade rules and regulations, including the classification of goods, has been highlighted as one of the most important skills industry professionals can possess, according to a new whitepaper produced by the Chartered Institute of Export & International trade.

Touching all trade

‘Seven Skills for Success in Global Trade’ highlights the significance of correctly classifying goods before they’re exported.

Over 200 countries and 80% of the world’s trade is covered by the Harmonised System (HS), which assigns a unique, internationally recognised code to every product.

From this code, customs authorities will derive a host of other requirements, from sanitary and phytosanitary (SPS) paperwork for goods of plant or animal origin, to potential export licences for ‘dual-use’ goods deemed to have potential military applications.

A product’s classification code also determines key economic factors, such as the manufacturing requirements it must meeting to be considered “economically originating” from a given country and the amount of import tax due.

Business benefits

Garima Srivastava, international trade legislation senior advisor at the Chartered Institute, said that a strong understanding of trade rules has tangible business benefits.

She said that trade professionals who demonstrate this skill boost efficiency and save costs.

“Professionals who can accurately navigate these complex rules not only ensure compliance, but also streamline the clearance process, reduce delays and avoid costly fines.”

Chartered Institute support

Srivastava is responsible for providing the Chartered Institute’s training on how to classify your goods.

This includes a one-day training session, as well as the new interactive workshop which encourages participants to work collaboratively to solve scenario-based challenges on classification.

She also guides traders through the UK General Tariff, an online search tool which can be used to find the correct classification code and corresponding documentary requirements for a given product.

Chartered Institute members can view her video demonstration here.