Not every international business, shipping, logistics, or supply-chain product is a trade-compliance tool.

Compliance Stack focuses on products that help businesses meet, manage, monitor, document, or demonstrate compliance with international trade requirements.

This can include software for:

• Import compliance

• Export compliance

• Customs compliance

• Product classification

• HS and HTS classification

• ECCN and export-control classification

• Export controls

• Import and export licenses

• Sanctions screening

• Restricted-party and denied-party screening

• Embargo checks

• Tariff and duty management

• Rules of origin

• Free Trade Agreement qualification

• Country-of-origin determination

• Customs declarations

• Trade documentation

• Trade regulatory content

• Trade compliance audits

• Trade compliance reporting

• Foreign-trade zones

• Trade recordkeeping

General freight, shipping, transportation, warehouse, or supply-chain software is not included simply because it supports international commerce. To qualify for this category, a product should provide a meaningful customs, trade-compliance, export-control, sanctions, or regulatory function.

Trade compliance is the process of ensuring that a company's international trade activities follow the laws, regulations, and requirements that apply to its transactions.

Depending on the business, this can involve:

• Classifying products correctly

• Determining applicable tariffs and duties

• Screening customers and business partners

• Checking export-control requirements

• Obtaining required licenses

• Determining country of origin

• Managing customs declarations

• Maintaining trade documentation

• Monitoring sanctions and embargoes

• Maintaining records for audits

The specific requirements depend on the products, countries, trading partners, destinations, end users, and jurisdictions involved.

Trade & International Compliance FAQs

Trade compliance is the process of ensuring that a company's import and export activities comply with applicable customs, trade, sanctions, export-control, and other regulatory requirements.

Trade compliance can include:

• Customs requirements

• Import and export controls

• Sanctions and embargoes

• Restricted-party screening

• Product classification

• Import and export licenses

• Tariffs and duties

• Country-of-origin rules

• Trade agreements

• Customs documentation

• Recordkeeping

Requirements vary depending on the transaction, product, country, and applicable regulations.

Businesses that import, export, manufacture, distribute, or sell goods internationally may have trade-compliance obligations.

Requirements can depend on:

• What products the business handles

• Where goods are manufactured

• Where goods are shipped

• Who the customers and suppliers are

• Who ultimately uses the goods

• Which countries are involved

• Whether products are subject to export controls

• Which customs and trade regimes apply

A small business conducting international transactions can have trade-compliance responsibilities just as a multinational organization can.

Trade compliance software helps businesses meet legal and regulatory requirements associated with international trade.

Logistics software primarily manages the physical movement of goods, such as:

• Transportation

• Freight

• Routing

• Warehousing

• Shipment execution

• Delivery tracking

Some platforms cover both areas, but Compliance Stack focuses on the compliance functions rather than general logistics management.

Import compliance is the process of ensuring that goods entering a country meet the applicable customs and regulatory requirements.

This may include:

• Product classification

• Customs valuation

• Country of origin

• Import duties and tariffs

• Import permits

• Customs declarations

• Required documentation

• Product-specific regulations

• Recordkeeping

Businesses importing goods need to understand the requirements that apply in each destination country.

Export compliance is the process of ensuring that goods, technology, software, services, or other controlled items are exported according to applicable laws and regulations.

Depending on the transaction, this can involve:

• Export-control classification

• Destination restrictions

• End-user checks

• End-use restrictions

• Export licenses

• Sanctions

• Embargoes

• Restricted-party screening

• Export documentation

Export-control requirements can differ significantly depending on the product, destination, end user, and applicable jurisdiction.

Customs compliance involves meeting the requirements imposed by customs authorities when goods are imported or exported.

Common areas include:

• Product classification

• Customs valuation

• Country of origin

• Tariff calculations

• Customs declarations

• Import and export documentation

• Duty payments

• Recordkeeping

• Customs audits

Trade-compliance software can help organizations automate classification, documentation, customs calculations, and related compliance checks.

Product classification is the process of assigning the appropriate customs or regulatory classification to goods.

Depending on the jurisdiction and purpose, businesses may need classifications such as:

• HS codes

• HTS codes

• Commodity codes

• Schedule B numbers

• ECCNs

• Other export-control or regulatory classifications

Classification can affect customs duties, import requirements, export controls, licensing requirements, reporting, and other trade obligations.

What is an HS code?

An HS code, or Harmonized System code, is an internationally used classification system for goods traded across borders.

Businesses use HS classifications for customs and trade purposes, including determining applicable tariffs and reporting goods to customs authorities.

Countries and customs territories can extend the HS system with additional national or regional classifications, so the precise code used for a transaction can depend on the destination and applicable trade regime.

Export-control compliance involves determining whether a product, technology, software, service, destination, end user, or end use is subject to export restrictions.

Businesses may need to determine:

• Whether an item is controlled

• Its applicable export-control classification

• Whether a license is required

• Whether the destination is restricted

• Whether the end user is restricted

• Whether the intended end use is restricted

Export controls can apply to ordinary commercial products as well as specialized, military, dual-use, or advanced technologies.

Restricted-party screening is the process of checking customers, suppliers, intermediaries, or other parties against applicable government and regulatory lists.

Depending on the jurisdiction, businesses may need to screen against:

• Sanctions lists

• Denied-party lists

• Export-control lists

• Embargo-related restrictions

• Other government or regulatory lists

Screening software can automate checks, identify potential matches, manage alerts, and maintain records of screening activity.

Sanctions compliance involves ensuring that a business does not conduct prohibited transactions with restricted countries, entities, individuals, or other parties.

Trade-related sanctions can affect:

• Customers

• Suppliers

• Distributors

• Banks

• Countries

• Products

• Services

• End users

• Specific transactions

Businesses operating internationally may need screening and transaction controls appropriate to the sanctions regimes that apply to them.

Tariffs and customs duties are charges imposed on goods crossing international borders.

The amount owed can depend on factors such as:

• Product classification

• Customs value

• Country of origin

• Destination

• Trade agreements

• Applicable tariff measures

• Special customs programs

Trade software can help businesses calculate duties, analyze tariff exposure, and identify applicable trade-agreement benefits.

Rules of origin determine the country associated with a product for trade purposes.

Origin can affect:

• Applicable tariffs

• Trade-agreement eligibility

• Customs treatment

• Quotas

• Trade remedies

• Country-of-origin marking

• Reporting requirements

Determining origin can be complex when a product contains components or manufacturing activities from multiple countries.

Free Trade Agreement (FTA) compliance involves determining whether goods qualify for preferential treatment under a trade agreement and maintaining the documentation required to support that treatment.

Businesses may need to manage:

• Rules of origin

• Supplier declarations

• Certificates or origin statements

• Product eligibility

• Supporting documentation

• Recordkeeping

Trade-compliance software can help companies determine eligibility and maintain supporting information.

What should businesses look for in trade-compliance software?

The right features depend on the company's products, countries, transaction volume, and regulatory requirements.

Relevant capabilities can include:

• HS/HTS classification

• ECCN and export-control classification

• Restricted-party screening

• Sanctions screening

• Export-license management

• Import permits

• Customs management

• Tariff and duty calculation

• Rules-of-origin management

• FTA qualification

• Country-of-origin determination

• Customs documentation

• Regulatory content

• Trade-compliance workflows

• Audit trails

• Compliance reporting

• ERP integrations

• Automated regulatory updates

Businesses should evaluate software based on the specific trade laws and compliance obligations that apply to their operations.