BlueBlox is an international trade compliance consultancy firm founded in late 2014 with the vision of economically empowering markets in Africa, Middle East and Eastern Europe. With an in-depth understanding of the inner-workings of the local markets within these emerging regions, and their government authorities, BlueBox is able to streamline cross-border trade compliance. We spoke to founder and CEO Dorothy Diedericks to find out more.

How would you summarise the current global landscape for cross-border trade?

There have undeniably been multiple disruptions to international trade recently, ranging from the COVID-19 pandemic, to the ‘trade war’ between China and the United States, the collapse of the World Trade Organization (WTO) Appellate Body, the growing disillusionment with globalisation, and trends towards nationalism and trade protectionism in countries such as the United States, the United Kingdom, Brazil, Italy, and Poland.

However, these sorts of disruptions can actually help economic operators become more proactive and empower them to be more informed about international trade. The fact that legal frameworks governing international trade are unsettled emphasises the need for traders to take initiative and investigate what trade compliance requirements apply to them in markets they operate in. This is a good thing. Traders are becoming better and more confident at analysing whether a country’s trade regulations is likely to increase their appetite for innovation and exploring trade opportunities in new, unfamiliar jurisdictions.

We should also not ignore important positive developments for cross-border trade. Regional trade, for instance, has actually increased in some places. Chinese exports to Southeast Asia have increased tremendously, largely due to the Association of Southeast Asian Nations (ASEAN). In July, the World Bank estimated that the implementation of the African Continental Free Trade Area (AfCFTA) could increase income in the region by US$ 450 billion by reducing trade barriers, simplifying customs procedures, lowering compliance costs, and making it easier for businesses to integrate into global supply chains.

In summary, we believe the current global landscape for cross-border trade holds within it great opportunities for those who are hungry for knowledge and willing to learn and grow.

What are the benefits and challenges within the jurisdictions you specialise?

BlueBlox operates in Africa, the Middle East, and Eastern Europe. Many countries in these three regions are considered developing countries. We believe that cross-border trade is vital in helping developing countries to grow and overcome poverty.

Operating in these regions has multiple benefits. These markets are big and contain untapped opportunities for traders willing to venture into them.

One of the biggest advantages lies in the relative youth of the population. Countries in Africa, the Middle East and Eastern Europe typically have young populations who are eager for economic growth and opportunities to trade and learn about cross-border trading. We believe a confident, proactive, and innovative private sector is a key potential driver of cross-border trade, and we are excited for these markets, as the current young generation holds within them the potential to make these markets better than they have ever been.

As a trade compliance consulting firm, we also see opportunities to contribute towards increasing international trade (which itself creates growth and prosperity for all) by providing education and empowerment, both to the private sector and to government officials.

We are rich in practical experience that is both local and international. We value the opportunity to share our knowledge to contribute to solving a country’s systematic trade-related problems. We have seen first-hand how our technical help has assisted government officials improve their performance on their daily tasks, streamline their procedures and enabling them to become better servants of businesses and the public at large.

How important is it to have local expertise in both the inbound and outbound jurisdiction?

For every economic operator it is absolutely critical to have local expertise in both inbound and outbound jurisdictions. This is true even for big multinational organisations. It is equally critical to recognise that true expertise is hard to come by. We have come across many companies who have a local presence in a particular market, but who still need help to solve their compliance problems.

For trade-related problems in complex jurisdictions, true expertise involves going beyond what the data shows or what the specific issue dictates. It also involves an in-depth understanding of the inner-workings of the local markets, and their government authorities. It requires being able to engage in dialogue with the authorities, to bring about long-standing forward-facing solutions that serves not only their business, but also the country as a whole.

At BlueBlox, we have invested in building a broad network of experts in Africa and the Middle East. Our experts are purpose-driven and engaged. We take a holistic approach to everything we do and always work towards achieving results that benefit the whole community, rather than only the individual, the company or the government. Our trade lawyers and consultants are not only experts in the area of law and operations they specialise in, but also understand the culture, language, and way of working in a specific market.

We approach our clients’ challenges and problems based on an understanding of international standards and how other legal jurisdictions internationally operate. But we always translate this back into the local context and ensure it is consistent with the relevant local legislation. As a result, the solutions we develop provide our clients with sustainable, compliant and long standing solutions which considers both local and international legal obligations and standards.

What about industry-specific cross-border trade? To what extent do the challenges vary?

It is important to understand that when it comes to the actual process of trading, the challenges of cross-border trade do not vary greatly. When engaging in cross-border trade, all industries need to prepare documents, have the right importers, registrations, permits, approvals and licenses, comply with local and international laws and regulations, and so on. From a process perspective, the challenges of cross-border trade stay constant no matter the industry.

However, the devil is in the details. Exactly what documents, permits, approvals and licenses one needs, exactly which regulations and laws one is required to comply with, and which agencies one might need to deal with, varies dramatically from industry to industry.

That is one of the reasons it is so important to have access to a local expert, as mastering these details is not straightforward. Economic operators need someone who understands the industry they operate in, knows their business model intimately, and who is well aware of the relevant industry-specific laws and government agencies.

What other benefits do clients gain from the vast experience and network of contacts possessed by BlueBlox GmbH?

The big advantage of our vast network of field consultants consisting of operational and legal practitioners is that it eliminates the need for our clients to grow their own trade compliance arm.

Finding trade compliance experts that have knowledge about all countries in the EMEA emerging markets can be rather difficult. Hiring us means a client does not need to find in-house compliance experts capable of solving the multitude of trade-related problems that could potentially arise in these complex jurisdictions.

Instead, BlueBlox can do what we do best providing trade compliance support, advice and solutions – and allow our clients to do what they do best, which is focusing on their core business.

For clients with significant trade-related problems, we can provide compliance expertise, and also an in-depth understanding of the inner workings of the local markets, and their government authorities. We can act as their partner in the field, by engaging in dialogue with the authorities, by supporting them in understanding the local legislation and how it applies to their situation, and by bringing about long-standing forward-facing solutions that serve not only their business but also the country as a whole.

For clients with much smaller problems, like the need for a small piece of specific guidance or advice about their business, we can provide all the practical guidance they could possibly need about what to do next to grow their business.

Finding and developing the talent and expertise to do all these things is not easy. Hiring BlueBlox to do it for you saves you that considerable trouble.

What are the biggest compliance mistakes clients tends to make and how would you rectify this?

One of the biggest compliance mistakes that businesses can make, in our opinion, is to underestimate the level of expertise required to trade compliantly and smoothly in the highly complex developing markets of Africa, the Middle East and Eastern Europe.

In our experience, companies often believe that just because they have a local representative office, a distributor or an importer, they will receive sufficient information about the market. Unfortunately, some companies learn through penalties and fines that being present in a market does not mean that you have sufficient representation.

Just as you would not venture into an African savannah or the Arabian desert without an experienced guide to lead you to your destination, you also should not embark on trading in complex developing markets without a trusty and experienced guide to light your way and help you get to where you want to go.

For more information please visit www.blueblox.ch