Fourteen countries -- all part of the Indo-Pacific Economic Framework for Prosperity -- met recently to negotiate a first-of-its-kind international supply-chain agreement. The agreement reflects the reality that cooperation is imperative to address crises that may emerge from supply-chain bottlenecks -- including, for example, the prospect of bribery and corruption to secure expedited customs clearance. A nod to that risk, the agreement indicates that, during emergency supply-chain situations, signatory countries will coordinate to implement simpler customs-clearance processes.
Historically, a sizeable number of Foreign Corrupt Practices Act (FCPA) cases have involved illegal payments to secure customs clearance. In today's environment, customs clearance is the bottleneck within the supply-chain bottleneck. Customs has thus taken on heightened significance in the process -- and thereby presents heightened FCPA risk for companies.
Accordingly, companies should take a fresh look at their customs-clearance partners or third-party agents who operate in this space. Also, past FCPA enforcement actions involving customs clearance provide useful guidance. Being proactive and careful in following DOJ guidance can help companies redeem what came before.
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This article is presented for informational purposes only and is not intended to constitute legal advice.