Just a few years ago, it seemed as if cross-border trade was becoming easier. Tariff barriers were falling and politicians were inking regional trade agreements. Cheap international phone calls, affordable intercontinental flights, and the Internet all made the world seem much smaller.

Not any more. Talk to any U.S. exporter and you'll hear plenty of tales about border delays, unexpected holdups, and increased scrutiny. You'll be told about reams of paperwork, more controls over trade security, more attention to labels and documentation, and the need to keep up with government restrictions on what can be shipped where and to whom.

"The bar has been raised on exports as a direct result of the September 11 attacks. Lead times are longer and bureaucratic paperwork slows everything down," confirms Robert Douglass, director of contract manufacturing and logistics for Kos Pharmaceuticals.

With those challenges in mind, Logistics Management polled readers to find out what exporters can do to address some of these cross-border concerns. They had plenty to say about where problems commonly lie, and they offered sound advice on how to keep exports swiftly rolling along.

Today, exports are nothing like the arm's-length, ship-it-and-forget-it transactions of earlier times: More than one third of respondents to the Logistics Management reader survey said they are in daily contact with their customers abroad (see Figure 1). Gone are the days when hard-copy documents were faxed or sent overnight; almost everyone relies on e-mail, and most respondents speak regularly with their customers by telephone (see Figure 2). Importantly, most do not call all the shots when it comes to cross-border trade: Nearly 60 percent said that such decisions involve discussions with their customers (see Figure 3).

At the same time, the nature of supplier-customer relationships is changing. Customers are not only farther afield, they are also demanding more in terms of logistical support. "The new notch in the bar for us is the requests from our customers for additional services beyond the port of delivery," says Steve Balombini, materials manager at Seco/Warwick Corp., a manufacturer of heat-treating furnaces. "In previous years, I would be responsible for cost, insurance, and freight (CIF) to the port of import, but now I'm often tasked with all aspects of the delivery to the customer's plant location. Now we're often involved in the installation and startup of the equipment, so we have service engineers and cranes waiting for the on-time delivery. Turnkey operations are much more sensitive to the need for speed and communications."

All of which compels U.S. exporters to reexamine their own resources and capabilities as well as those of their trading partners. Where should they focus their efforts? Here are some recommendations from those in the know:

Don't live in the past. An unfortunate "that's how we've always done it" attitude still prevails in many export departments. But failing to keep up with fast-changing regulations is just part of the problem. Upper management may not make export compliance a priority, yet without the necessary resources to ensure compliance, companies could be subject to costly fines and delays.

Keep in touch. The quality of communications with overseas customers matters at least as much as the frequency. For example, a U.S. exporter might ask the foreign importer about infrastructure limitations or local conditions that might cause damage, such as poor roads, weather conditions, and so forth. One survey respondent noted that customers advise which ports of entry are unlikely to experience delays. Others cited communications with customers that helped them reduce damaged freight.

Do sweat the small stuff. Planning and cost control are undercut if export data is flawed. Many loss-and-damage challenges stem in part from the sizeable percentage of exporters that use incorrect Incoterms, says David Parks, senior manager of trade services at FedEx Trade Networks' Trade & Customs Advisory Services. (Incoterms— short for International Commercial Terms—are rules for the division of cost and risk in international sales transactions.) Proper Incoterms use helps exporters avoid disputes with their customers by clearly defining each party's responsibilities.

Parks points out that many exporters do not accurately classify their products according to the destination country's tariff schedule. For example, goods that arrive overseas with vague Commercial Invoice descriptions that don't match those in the importing country's tariff often end up classified under a catchall description, such as "machinery, other." A more precise description might incur a duty rate that is considerably lower than the rate for the catchall classification. Smart exporters communicate with their customers to agree on the most advantageous and accurate classifications.

Keep needed skills in house. Most companies are running very lean export departments, notes Carl Goetting, principal of CAG Export Management Co., a specialist in chemicals and minerals. Senior managers often don't make export compliance a priority because they don't fully understand the costs and risks of delays or violations. And it's not unusual for export personnel to wear several very different hats.

Respondents to Logistics Management's poll drew attention to the value of classification specialists. And several cited the importance of a dedicated export manager whose job is to stay on top of changes in the U.S. government's Export Administration Regulations, packing and sanitation rules, and AESDirect, the Census Bureau's automated export reporting system. "Change is constant in export shipping. Many companies need to know that if they hire a good export manager they'll end up saving all sorts of money on fees that the forwarders and third-party companies charge," says Traci Jensen, import-export manager at BS&B Safety Systems LLC.

Partner better. Although exporters must seek support from their supply chain partners, they should still be calling the shots. "Exporters are bullied too much by brokers who think they know everything and who'll try to change your Harmonized System classification number if they think they can. Don't fall for it!" warns Jensen.

Still, it's invaluable to have a partner that will regularly share industry information and best practices. "You must use a forwarder that is aware of what the potential penalties are. That will be the first line of defense for you," says Ann Ceschin, import/export manager at JohnsonDiversey Inc., a manufacturer of cleaning solutions. "If the forwarder sees something potentially wrong in your documents, they should push back and force you to look at your own internal methods and make sure they are up to par."

Either way, exporters must seek out top-notch international trade partners that understand their needs. One survey respondent cited the case of a warehouse operator that resisted requests for relabeling packages because its managers didn't understand the differences between packaging and labeling requirements issued by the U.S. Department of Transportation, the International Maritime Dangerous Goods code, and the International Air Transport Association.

Lean on your legislators. The U.S. government sometimes hinders as much as it helps. For example, Customs and Border Protection is taking longer than expected to complete Customs-Trade Partnership Against Terrorism (C-TPAT) validations, thus delaying many companies from acquiring such benefits as fewer inspections and faster customs clearance, notes Parks. And exporters can't take full advantage of radio frequency identification (RFID) to track shipments until they're clear about where CBP is going with the technology. Needed now: phone calls, letters, and e-mails to Congress, urging legislators to finalize rules so shippers can move forward.

Use the tools. In general, software that helps smooth the export flow is becoming faster, more capable, and more applicable to shippers of all sizes and levels of knowledge.

Large exporters often choose a combination of export compliance software and consulting to help them avoid penalties associated with export license violations, says FedEx's Parks. In addition to using a dedicated export management system, larger exporters also prefer to create and maintain a centralized database of commodities. This increases the likelihood of global compliance and ensures consistent use of accurate Harmonized System codes by all supply chain members.

On the face of it, U.S. exporters have no shortage of help. There are abundant information resources at the U.S. Commerce Department, Census Bureau, and Customs and Border Protection. There are finance groups such as the U.S. Export-Import Bank, along with a host of national, regional, and local organizations and legions of law firms and consultancies that advise on cross-border trade. Finally, Parks points out, overseas customers are working closely with exporters to achieve better visibility, faster transit times, and lower costs.

Yet the consequences of export snafus are very real, and exporters cannot afford to rely entirely on others to get it right. Shareholders are paying closer attention to costs while financial officers are focused on metrics that speak to supply chain efficiency and customer satisfaction—areas where export weaknesses become all too visible.

Today, there is far less room for error. Every piece of documentation must be in place and every one must be entirely accurate. In less competitive times, shortcuts were possible. But there certainly can be none now.