CHAPTER 1
COMPLIANCE OBJECTIVES AND METHODS
This section discusses some of the benefits to F-M, which come from following an import compliance program, and how to use the program to our best advantage.
A. F-M’s Customs Policy
It is the express policy of F-M to comply with all applicable Customs laws and regulations as well as any other government agencies relating to or governing the importation and exportation of merchandise. Further, F-M seeks to monitor, on a regular basis, compliance with all applicable rules and regulations.
Customs is the primary agency charged with administering and enforcing these laws. Customs is responsible for providing easy access to information about import and export requirements and its expectations for importers and exporters. In turn, importers/exporters, such as F-M are responsible for being aware of those requirements and expectations and complying with them. Thus, Customs and importers/exporters are involved in shared responsibility. F-M personnel should be informed of the laws, regulations and procedures that are applicable to F-M’s import and export transactions. F-M is expected to know what it is importing and exporting, and to provide Customs with all pertinent information about its importations/exportations so that Customs can determine whether F-M has complied with all applicable requirements.
As an importer, F-M is committed to exercising “reasonable care” in all its import and export transactions. The term reasonable care means “that degree of care which a person of ordinary prudence would exercise in the same or similar circumstances.” Compliance with Customs and other federal regulations is NOT optional. Failure to exercise reasonable care can result in severe monetary penalties and damage to F-M’s reputation. Everyone involved in import and export transactions is responsible for ensuring compliance with the rules and regulations applicable to his or her aspect of the process.
F-M strives to cooperate fully with Customs and promptly report and seek full compliance with applicable rules and regulations. In pursuit of this goal, F-M provides all responsible employees with a copy of this Policy and with proper training to promote compliance with these requirements. Finally, F-M seeks technical guidance, when needed, from third party Customs consultants, authorized Customs brokers, and Customs.
B. Purpose of Policy
This Policy has been designed to aid F-M’s employees in ensuring Customs compliance and is not intended to be a substitute for specific knowledge of the Customs laws and regulations. This Policy outlines Customs policies to be used in conjunction with applicable laws and regulations. The policies outlined within this document are supported by all levels of management and are to be followed by all employees. Non-compliance with Customs laws and regulations may expose F-M to fines, penalties, and liquidated damages.
As an importer of merchandise, F-M is aware of the need to establish a strong compliance posture in its relationship with Customs.
If you have any suggestions for improving the contents of this Policy or find any inaccuracies, contact Wendy Himebaugh, the Global Trade Compliance Manager at (248) 354-7084. Any questions regarding the procedures described in this Policy should also be addressed to the Global Trade Compliance Manager at the aforementioned number.
C. Compliance Program Benefits
The purpose of this Policy is to educate employees about F-M’s import and export policies. Some of our policies are mandated by laws, while others have been adopted to prevent violations of laws. Certain policies represent efforts to achieve “good business practices.” Our policies are intended to assure compliance with Customs laws and regulations, clarify corporate policy and improve cooperation and efficiency.
F-M's goal is to use “reasonable care” in our importing and exporting transactions, and to maintain a record-keeping system. The laws governing import and export transactions also have substantial criminal penalties, violations of which can result in fines and possible imprisonment.
Having an effective customs compliance program may mitigate violations of law. Of equal importance, training employees regarding our customs policies should enhance understanding and cooperation within F-M, and enable us to perform with greater efficiency, resulting in greater productivity and enhanced service to our customers.
D. Confidentiality, Distribution and Updates of this Policy
This Policy is confidential and reflects F-M’s policies and practices. It may not be distributed by you (or by any other person in F-M) to any person who is not an employee of F-M, or who is not involved in the import or export operations of F-M. We are distributing this Policy to all employees involved in our import and export operations, and we want all personnel connected with such activities to have access to and training in our policies. The Global Trade Compliance Manager and/or Department Head will maintain a list of all personnel who receive this Policy and customs training.
From time to time, it may become necessary to update this Policy due to changing import and export laws or regulations, or to add, modify or clarify F-M's policies. The Global Trade Compliance Manager and/or Department Head will provide notification of any such updates and revisions.
E. F-M Loyalty and Conflicts of Interest
F-M’s goal of improving our performance in a highly competitive, global market requires adherence to our policies. Honoring such policies will prevent us from engaging in any practices that might undermine our reputation, and will assist us in fairly competing with competitors. It is against F-M policy for employees to engage in activities, which conflict, or may appear to conflict, with the interests of F-M. Prohibited conduct is more fully detailed in our separate policies regarding standards of business ethics.
F. Compliance Assessments
To assess compliance with F-M’s import policies, F-M intends to conduct compliance assessments. This may include interviews, reviews of files, electronic monitoring, and contacts with suppliers, customers and service providers, or internal reviews, assessments or audits. Compliance assessments may be conducted by outside consultants or counsel, department heads, internal audit and/or F-M attorneys. This will enable us to discover actual or potential violations of import laws, regulations, or F-M policies, and help us determine if new policies or procedures are needed.
G. Relationship to Other F-M Policies and Handbooks
Other F-M policies, included in handbooks or memoranda, have been distributed to you. This Policy and the F-M policies reflected herein are intended to be specific to F-M’s import operations and designed to be consistent with other F-M policies. If any policies appear to you to be in conflict with other F-M policies or handbooks, please notify F-M's Global Trade Compliance Manager and Department Head.