As the international supply chain adapts to an ever-changing geopolitical landscape, one priority remains constant: customs compliance. For importers and exporters, this is not just a box to check—it’s a critical safeguard against delays, fines, and even the seizure of goods. In a world where products often pass through multiple hands, cross oceans, and traverse diverse jurisdictions, ensuring compliance is essential for smooth and efficient trade.
Exporters depend on the timely movement of goods to meet buyer expectations. Any disruption at the border can derail months of planning, damage reputations, and result in costly penalties. That’s why WRAP’s Principle 11: Customs Compliance plays such a vital role. It ensures that exported goods are accurately marked and labeled in accordance with all applicable laws, providing confidence that what is shipped is exactly what is received.
Why Accurate Documentation Matters
Once cargo reaches its destination, it falls under the customs laws and regulations of the importing country. Proper markings and labels are crucial for transparency, but compliance goes far beyond that. Authorities scrutinize:
- Category designation of goods
- Traceability of materials used in production
- Consistency of names and numbers across all documentation
Even minor discrepancies can trigger investigations, fines, or confiscation of goods. For businesses, these risks underscore the importance of robust compliance systems.
How Principle 11 Helps
WRAP-certified facilities take a proactive approach to customs compliance by:
- Maintaining comprehensive document control for all production records (e.g., shipping and receiving documents, raw material invoices, worker records)
- Complying with all customs and trade laws, including those related to illegal transshipment
- Staying informed about potential transshipment risks in their host country
- Verifying and documenting production in any subcontracted facilities
These measures, reinforced through social compliance audits, give facilities a competitive edge by reducing the likelihood of border issues and ensuring predictable supply chain operations
WRAP’s Systems-Based Approach
WRAP’s Certification Program requires adherence to all 12 Principles, creating a holistic compliance framework. For customs compliance, this systems-based approach empowers facilities to develop processes tailored to their operations and workforce to ensure they deliver finished goods to buyers efficiently and reliably. In today’s global marketplace, assurance that shipments will clear customs smoothly, regardless of destination is invaluable.
Customs compliance isn’t just about avoiding penalties, it’s about building trust, protecting reputations, and keeping the supply chain moving. By prioritizing customs compliance through WRAP’s Principle 11, facilities position themselves for success in an increasingly complex trade environment. Predictability and efficiency aren’t luxuries—they’re necessities.
Al’lyienah has worked with WRAP for two years and is the Senior Coordinator of Compliance Administration at WRAP headquarters in the USA.
