The term “Informed Compliance” was formally introduced in the United States with the enactment of the Customs Modernization and Informed Compliance Act (the Mod Act) in 1993. The concept of Informed Compliance calls for trade compliance to be a shared responsibility between Customs and the trade community.
Customs must clearly and effectively communicate its requirements to the trade and, in return, the business community is obligated to conduct its regulated activities in accordance with US laws and regulations.
Outside the US, trade compliance is a shared responsibility and that Customs administrations have a responsibility to educate importers on what is expected of them. With that comes a responsibility for the business community to take concrete steps to ensure that they are complying with applicable laws and regulations.
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Other Thomson Reuters whitepapers available for your perusal are:
Advanced corporate income tax tech is the centrepiece of a high-performing tax department
Why top CFOs are transforming statutory reporting with technology
