Guide to international shipping regulations in 2022

Each new year international shipping regulations tend to change. This is even more prevalent and true since the beginning of the Covid-19 pandemic. We can never know what is waiting behind the corner, but we should stay informed on the things we do know! As with any huge part of your business life, international shipping regulations in 2022 is something worth learning about. That’s why our movers Kuwait have decided to go over some of the news and predictions for the future.

Why do things constantly change?

With more than 220 countries in the world, changes are inevitable. Laws and regulations in each country change as the country sees fit. And the rest of the world needs to comply. The past few years have brought about many changes due to the new living situation. Another reason why international shipping regulations in 2022 will change is, of course, technological advancement. Whenever something new and revolutionary is discovered, people tend to include it in their new business plans. If something can be done easier with the help of new discoveries, why not do it that way? Just keep in mind that each country has different sets of laws and rules, and not everything will apply to everyone. But, many international shipping companies in Kuwait might be joining the bandwagon. We will just be going over some of the most influential changes.

Two cargo ships sailing into he sunset
Keep in mind that each country has different sets of laws and rules.

Technological advancements when it comes to addressing and routing logistics

The new advancements in technology are creating changes in addressing and routing logistics. The Geographic Information Systems (commonly known as the GIS) provide the link to a unique identifier for an individual and geographic locations for deliveries. Quite recently telephone numbers and numeric Personal Postal IDs are being used in sub-Saharan African countries. Many other countries are also interested in this development, so there is a high chance it could become the norm. The complete address an individual will provide you with will be their name and the town of the local post office.

Now, whether other countries will accept this new formula is still unknown. There are certain safety issues that need to be addressed and we can’t know for certain if there will be some privacy regulation issues. So, if you were planning on international car shipping, you might want to look into these changes a bit more thoroughly.

Well, what does this all mean?

Basically, the GIS-enabled database can be used for very precise and up-to-date routing of maps. This will allow for more dynamic routes when it comes to shipping as well as more time-efficient deliveries. As with all good things, there are certain disadvantages. The biggest one is that the routes aren’t familiar to the person making the deliveries. There are talks of autonomous vehicles in the future. These vehicles would be operating by AI and they could take the shortest route to your location. Something similar to this we’ve already seen is aerial drones. They have become more and more popular, so why not AI-controlled vehicles?

A picture of a drone
Drones are already a big part of shipping, AI vehicles are next in line.

Tracking and returns

International tracking and returns still stay problematic. Currently, both depend on people. Tracking is currently not fully automated and can depend on satellite access, battery power, and human scanning which can be faulty. When it comes to international returns they have all the problems associated with domestic in-country returns. The only difference is you will have to look out for is all the paperwork and regulations concerning crossing borders.

Increasing inbound and outbound scrutiny is affecting cross-border commerce, which means we constantly need more and more information. So, this increase could lead to some privacy issues and even more challenges for companies that store documents and information. The increased inbound and outbound scrutiny has two effects. Firstly, entry ports and customs officials have problems with storage space and sufficient staffing. This in turn causes delays. This issue, though, will sort itself out once everyone adjusts to the new state of matters. The second issue is that more scrutiny is demanding more tax assessments and more returns. Each country has the right to open items during customs inspection and more of these reassessments will likely be taking place. Which automatically means more returns.

What else can you expect?

Third-party logistic providers in Kuwait (3PLs) could help with the issues companies face with processing, paying, and tracking taxes. Even though they will provide assistance, the owner of the package or goods has the responsibility to provide all of the information needed to the government authorities. This would include customs, border protection, foreign customs, and tax agencies. If they fail to provide this information, they can face legal sanctions for non-compliance. But, carriers can also face these sanctions. So, it’s best to prepare all information in advance.

Another addition to international shipping regulations in 2022 that could cause problems is accepting non-banked payments. This could expose companies to legal problems. Banked payments are self-explanatory – payments that go through the bank like credit cards, bank transfers, etc. Non-banked payments include payment processing companies (Paypal for example), cryptocurrencies, and everything else that doesn’t go through a bank. Why is this? Non-banked payments have been used to avoid taxes, commit fraud, or even for money laundering. Until non-banked payments become regulated, it’s wise to avoid them.

Cryptocurrency is not regulated and accepting payments in these currencies could cause problems for you.

Outside influence

A lot of multilateral treaties and agreements influence international commerce. And the sea hasn’t been smooth sailing lately. The World Trade Organization hasn’t made successful trade negotiations in 20 years and the Universal Postal Union is still unable to implement some basic reforms. Another important element of international commerce i.e. trust between countries has also gone down in recent years. Covid-19 will also continue to pose problems all the way into 2024. 

 Now that we’ve covered some of the new international shipping regulations in 2022, we hope you can get a better understanding of the situation. Good luck with your international commerce!