Trade and Customs Management: the Increasing Importance of Rules of Origin

Approaching imports, exports and outsourcing with a managerial approach is a growing necessity, primarily due to trade liberalization and the opening of markets that exposes national economies to the growing competitive pressure from emerging market economies. In fact, many countries enforce a variety of trade barriers, like antidumping duties, technical standards and origin marking requirements,1 among others, in order to defend their national production. The second reason is strictly connected to the current lack of harmonization of the rules applying to trade relations and customs procedures. In order to avoid both the competitiveness of exported products being affected and financial and legal consequences being applied for not being compliant, firms must understand and correctly apply trade and customs rules and procedures in force in each importing country. The first step in performing a managerial attitude towards international trade operations is becoming aware of the variety of conditions and costs that may affect traded goods each time they cross borders.2 Relying upon a specific and qualified knowledge of the complex trade legal framework is important in that it allows firms to take full advantage from the instruments with which they are provided by the international legal framework in order to enhance the competitiveness of their products.