Hosts: Renee Chiuchiarelli & Julie Parks
Length: ~15 minutes
Format: Simply Trade Tips
Episode Summary
Welcome to Series 6 of Simply Trade Tips.
This series tackles a foundational — and often overlooked — issue in global trade:
Where does Customs actually sit inside your organization?
In this opening episode, Renee and Julie lay the groundwork by breaking down the three most common organizational structures and how each one impacts customs operations, compliance authority, budgeting, and risk management.
Because here’s the truth:
Customs rarely fails because people don’t care.
It fails because it’s structurally misaligned.
This episode sets the foundation for understanding how org structure dictates decision-making, funding, escalation paths, and ultimately — compliance outcomes.
Why Org Structure Matters for Customs
Customs sits in the middle of everything:
Yet it rarely “owns” all the decisions that affect it.
That misalignment can create compliance gaps, conflicting priorities, and operational tension between speed and governance.
Follow the money. Follow the reporting lines. That’s where risk lives.
The Three Core Organizational Structures
1️⃣ Centralized (Functional) Structure
Departments operate in defined lanes (Supply Chain, Finance, Legal, Sales), each with its own leadership.
Where Customs Usually Sits:
Occasionally under a dedicated Trade Compliance function
Upside:
Often its own budget (if structured well)
Downside:
Under Supply Chain → can become overly execution-focused (velocity & cost driven)
Under Legal → can become overly compliance-focused and disconnected from operations
If no independent budget → strategy becomes fragmented
Key theme: Budget authority drives strategic control.
2️⃣ Decentralized (Divisional) Structure
Trade responsibilities are spread across business units, regions, or product lines.
Each division may manage its own customs activity.
Upside:
Direct access to business leaders
Downside:
Inconsistent processes across divisions
Requires corporate oversight or council to maintain standards
Heavy reliance on influence rather than authority
This model works — but it requires strong coordination and governance discipline.
3️⃣ Matrix (Hybrid) Structure
Dual reporting lines — often operationally to Supply Chain, dotted line to Legal, Tax, or Finance.
This is where many global organizations land.
Reality of the Matrix:
Consensus-driven decisions
Speed vs. compliance tension
Performance reviews may not align with dotted-line accountability
Success in a matrix requires:
Strong consensus-building skills
Mature leadership alignment
Without alignment, it becomes a tug-of-war between execution and governance.
Customs Operations vs. Customs Compliance
A critical distinction discussed in this episode:
Customs Operations:
Day-to-day problem solving
Customs Compliance:
Classification governance
Julie and Renee strongly advocate for structural separation of these roles — even in small teams.
Compliance fixes root causes.
Both must cross-communicate consistently.
When they don’t align, friction, inefficiency, and risk increase.
Real-World Red Flags
Renee and Julie call out four common structural warning signs:
🚩 1. Customs buried too deep
Under logistics, contracts, or sales without escalation authority.
🚩 2. Broker “owns” compliance
Brokers file entries — they do not own your risk.
🚩 3. No executive sponsor
A sponsor is not a cheerleader — it’s a leader who clears roadblocks and escalates risk appropriately.
🚩 4. Customs is not the budget holder
If you don’t control funding, you don’t control strategy.
The Big Takeaway
There is no “perfect” structure.
Centralized, decentralized, and matrix models can all work.
But maturity shows up in:
Alignment between operations and compliance
Structure doesn’t eliminate risk.
This Episode’s FIO (Figure It Out)
Take a hard look at your organization:
Which structure are you operating in — centralized, decentralized, or matrix?
Where are the structural gaps?
Who holds the budget and escalation authority?
Because you can’t fix what you haven’t identified.
Future episodes in this series will focus on how to modernize or optimize each model — whether through small tweaks or major reorgs.
Join the Conversation
Where does Customs sit in your organization?
And more importantly — is it positioned for influence or just paperwork?
Let us know inside the Trade Geeks Community or connect with us on LinkedIn.
Credits
Renee Chiuchiarelli
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New Simply Trade Tips episodes every Tuesday.
Presented by Global Training Center — providing education, consulting, and compliance resources for trade professionals worldwide.
