Policies & Procedures

Early on in my career when I was first introduced to product classification under the TSUSA (Tariff Schedule of the United States, the HTSUS’ predecessor), I understandably had many questions. In the beginning, I brought these questions to my immediate supervisor, who’s response was always, “What did it say in the SOP/DOP?.” I soon realized that I would in practically every case be able to find the answer to my question in either our organization’s Standard Operating Procedures (SOP) or Departmental Operating Procedures (DOP). The company I worked for at the time, C.J. Tower & Sons, had the most comprehensive SOP’s and DOP’s that – to this date almost forty years later – I have ever seen. All functions and operations were detailed in one of the two procedures documents (and I mean 1500-page manuals) that were maintained. I quickly recognized the importance and value of having documented procedures and because of that, I’ve always been an ardent supporter of the documentation and maintenance of company policies and procedures. Polices & Procedures (P&P) were the norm for decades, but in recent years, it seems organizations have relied more heavily on legacy or “tribal” knowledge that is passed on from employee to employee than on documenting and maintaining policies and procedures. This is a risky practice for any organization, but the risk exposure is magnified where an organization’s Custom’s business is concerned. If for whatever reason the employee or employees who hold this information were to be separated from the organization, the results could be catastrophic.

If you do not have documented procedures, constructing them can be a daunting task. As I’ve stated in a previous blog, executive level support is essential toward the establishment of a robust trade compliance program. The same goes for P&P. Since quantifying the value of P&P is difficult, getting executive support is a tough sell. But now more than ever, executives are keen on the importance of documenting and maintaining company policies and procedures. If your organization has been considering creating and implementing new or revitalizing existing Policies & Procedures, now might be the time to pull the trigger.

The benefits of maintaining P&P are numerous. Below are four benefits an organization can realize by adopting and following P&P, in no particular order of importance.

1. An organization with documented P&P will be better prepared for whatever comes their way, be it a financial audit, increased tariff rates due to an Executive Order, undergoing a Focused Assessment from US Customs or experiencing the sudden loss of an employee or employees. Maintaining P&P also forces specific critical issues to remain in view.
2. Documented P&P promote consistency across workstreams, as well as with employees. With properly documented procedures, different employees will manage similar work in an almost identical fashion. This has far peripheral benefits such as reduced customer inquiries and/or complaints, and expedited workflow.
3. Another benefit of well documented P&P is providing the “standard” that must be met with regard to an employee’s job responsibilities. Absent a set standard, it is virtually impossible to measure an employee’s performance and by extension, exceedingly difficult to enforce accountability. A well-maintained P&P remedies that situation.
4. Put simply, having a sound P&P program with a high level of employee engagement provides a solid foundation that will enable and promote business growth.

Contact TCP today for information on how we can help your organization establish and maintain sound Policies and Procedures.