A majority of executives are not investing in trade compliance training, despite potential fines, substantial penalties, and jail time, according to survey results released today from Amber Road's Global Trade Academy.

The survey of 300 U.S.-based global companies across a range of revenues and industries found that 56 percent of executives at the companies surveyed are not investing in trade compliance training, even though 28 percent of those companies had already been fined or warned by government agencies for noncompliance.

And while the vast majority (73 percent) have a stated trade compliance plan, 46 percent of surveyed companies didn’t require any training for employees and 28 percent require less than 11 hours of training – leaving a gap between having a plan and the ability to act on it. Furthermore, 55 percent had not standardized their global compliance training and 33 percent do not have a budget for trade compliance training, which opens the door to noncompliance risks as a result of untrained staff.

Customs organizations around the world are finally modernizing their systems. Importers will be able to eliminate manual processes, improve visibility to trade flows, and more easily comply with applicable laws and regulations. The WCO (World Customs Organization) labels this type of system as a “Single Window” where Customs effectively centralizes the collection of data and distributes it to all required agencies to realize a coordinated and more efficient border control.

This year’s Sourcing, Customs and Logistics Conference, hosted in New Orleans by the American Apparel and Footwear Association, was all about innovation – so go ahead and add “innovate” to your to-do list. But what does that mean, exactly? How do you ensure that a multi-national organization outwits, out-produces, and outsells nimble newcomers to the apparel and footwear marketplace?

Luckily, a fantastic lineup of retailers, wholesalers, shippers, service providers and brands shared their strategies for driving innovation, especially in the areas of product development, global sourcing, logistics and trade compliance. Here are our top 5 takeaways:

1. Be a master of supply chain, not retail

Take UNIQLO for example. They have mastered the supply chain, with limited, well-researched SKUs, quick time-to-market, and almost no duties – and have seen double-digit growth. Rick Helfenbein, CEO of AAFA, stressed that the “how” outweighs the “what.” 62% of all logistics cost is transportation, a number that only grows with increasing East Coast demand for Asian goods. Also remember that productivity rates matter more than outright cost – while Bangalore suppliers may be cheaper per item than China’s, for example, they may not match in efficiency and output.

2. Be a sourcing pioneer

Asia isn’t the only place to source goods. Africa is one of the world’s biggest untapped resources. By 2035, the working-age population in the region is expected to be as large as China’s is today – more than 900 million people.  While it’s caught the attention of the apparel industry, the continent presents numerous challenges. For example, the area has vast water resources, but lacks the infrastructure to store it. Security in the region also poses a huge threat, as ISIS, Boko Haram, and Somalian pirates add significant risk to many ports.

As the price of oil drops, companies need to reconsider their cost-saving strategies and how to manage global supply chains for bottom line impact. Typically, companies focus their efforts only on how they can drive costs down within their supply chain, without considering how their import/export compliance team can improve value.

Customs–Trade Partnership Against Terrorism (C-TPAT) is a voluntary, joint government-business initiative to help add to supply chain visibility and increase border security. Although generally C-TPAT focuses on imports into the United States, it has more recently opened up to U.S. exporters since they are too exposed to considerable risk. In order to accommodate the requests and expanding parameters, a framework for the C-TPAT program and requirements has been deployed.

Africa is considered uncharted territory for many companies seeking to diversify their supplier base. The African Growth and Opportunity Act (AGOA) legislation significantly enhances market access to the U.S. for qualifying Sub-Saharan African (SSA) countries. To take advantage of these new sourcing opportunities, you’ll need to come prepared.

Join me and a group of industry leaders as we discuss sourcing opportunities, challenges, and logistics in Africa at the AAFA Sourcing Conference on April 13-15 in New Orleans.  I’ll be joined by Maristella Iacobello, Vice President Customs Compliance and Government Relations at PVH Corp, and Brian Moore, Director of Apparel Sales at Maersk.

If you’re having trouble keeping pace with the rollout of U.S. Customs and Border Protection’s single window initiative rollout, you’re not alone. In early February, CBP announced a new implementation schedule for its Automated Commercial Environment (ACE), another delay in a program that is guaranteed to impact every U.S. importer.

Let’s say you’ve just imported a shipment of hoverboards to sell in the United States. You have screened all trading partners, tracked your shipment, ensured import compliance, and minimized your duty payments. However, your hoverboard isn’t legal to sell in the US just yet – it needs a label, and the guidelines surrounding packaging can be just as complicated as all the other steps you just completed.

Consumer Product Safety regulations and other OGAs exist to prevent customer deception (or facilitate value comparisons) about package contents, ingredients, size, manufacturer, and other concerns.  Any deception or non-compliance can result in heavy fines, revoked license to sell, and unflattering brand attention. So how does a company ensure that it remains compliant?

The Union Customs Code (UCC) will finally be applied and enforced on May 1st of this year – with three major caveats: the administrative transitional rules in combination with the IT transitional rules and analysis of the UCC’s 2000+ legal rulebook. Customs’ departments do not need to worry about other bedtime reading for the foreseeable future!

On February 11, 2016, the Customs Reauthorization bill was passed by the Senate and will now go to the President for authorization. This means that the 227 year old Duty Drawback program is set to undergo a dramatic change.