By Karen A. Lobdell – Director, Product Management for Thomson Reuters

What is the value to your company of a robust corporate social responsibility program that holds foreign vendors accountable to global regulatory requirements? Can you afford to pay tens of millions of dollars in penalties over numerous years rather than implement a compliance program? Can your brand withstand the bad press that comes with violations? A good test case for these questions is to consider the most recent Department of Justice violation for Lumber Liquidators, Inc.

Those of us in the business of global trade compliance are well aware of the increased attention in recent years to the issue of forced labor. This is not a new problem, but incidents in recent years with well-known brands, coupled with new legislation designed to curb behavior of this type, has increased the importance of supplier due diligence for those operating in global markets.

On January 31, 2019, the U.S. Office of Foreign Assets Control (OFAC) issued its first fine to e.l.f. Cosmetics for violating the Countering America’s Adversaries Through Sanctions Act (CAATSA), as it applies to North Korean labor under the North Korean Sanctions Regulations (NKSR).  The initial statutory maximum civil monetary penalty amount for the apparent violations was US$40,833,633. This enforcement action indicates that government agencies are watching closely for violations of this nature.

In an increasingly uncertain global logistics arena, is your company ready for a new era of complexity and risk?

This Tuesday, November 13, our VP of Global Markets Kevin Shoemaker will be joining American Shipper’s Managing Editor Ben Meyer and MercuryGate International’s Carla Zubko to discuss “Managing Transportation Through Today’s Trade Uncertainty.”