Driven by the rapid digitalization of customs processes, global trade functions are seeing a fundamental shift in how authorities assess compliance.

Across jurisdictions, regulators are moving away from traditional document-based reviews toward transaction-level data analytics, real-time reporting and cross-border data sharing. This transformation is reshaping the nature of customs audits and disputes, with implications that extend well beyond technical compliance.

Historically, customs controversy has focused on discrete issues such as classification, valuation or origin. While these continue to remain relevant, the increasing reliance on electronic reporting and system-based compliance is shifting the focus toward data integrity and governance.

EY TradeWatch Issue 1, 2026 highlights that organizations must operate with “audit-ready” trade functions, reflecting a broader expectation that compliance is embedded in systems and processes rather than addressed retrospectively. In this environment, controversy management becomes a continuous process, rather than a reactive response to audit activity.

The evolution of global trade compliance is fundamentally changing the controversy landscape. As enforcement becomes increasingly data-driven and interconnected, organizations that rely solely on traditional, reactive approaches to audit defense may face heightened exposure. Preparing for this new environment requires a strategic focus on data, systems and governance, as well as a more proactive and 
integrated approach to managing controversy risk across the trade function.

For more information about the new era of controversy risk for global trade functions, read EY TradeWatch Issue 1, 2026. 

Additional information and links to past newsletters can be found in the attached PDF. 

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Flash Newsletter attachment (Issue 94)