UNECE WCO Facilitating Trade in a Secure Environment

UNECE - WCO Facilitating Trade in a Secure Environment 13 -14 November 2003 Global Security Standards 14 th November 2003 1

Innovative Trade Framework Agenda • • Who is Innovative Trade Network (ITN) ITN proposed solution Point of origin Trusted third party agent End-to-end supply chain security Operation Safe Commerce (OSC) Moving towards standards 14 th November 2003 2

Innovative Trade Network (ITN) • • BV Solutions Group Calspan UB Research Center / General Dynamics Cargill Cotecna Freight. Desk Technologies Honeywell Lockheed Martin Trans. Core 14 th November 2003 3

ITN R&D by The CBRTA, World-Class Expertise Johns Hopkins University Applied Physics Laboratory 14 th November 2003 4

The ITN Proposed Solution Sensing, Sealing, Tracking, Custody • Physical verification of location, contents, and people • Visibility network Security achieved through Risk Mgt. data and information • Fusion, sort, organize, prioritize, harvest • Anomaly identification for logistics and security • Contraband discovery • Commercial and Government Security achieved through understanding 14 th November 2003 Data Clearinghouse • Near real time accurate data • Global business model for acceptance, savings, and security • Global crisis response platform • National Non-Profit Security achieved through knowledge 5

Global Information Requirements • WCO – 27 data elements – Customs to Customs • US Customs – 14 data elements – Freight forwarders; carriers to Customs • ITN – 250+ data elements and growing – All stakeholders 14 th November 2003 6

The Point of Origin Ø A trade lane starts with the buyer. Ø The main security issues are with: • • • manufacturer container stuffing of cargo sealing of the container tracking to the port of loading port of embarkation Ø This leads to collecting accurate data on who, what and where at the point of origin. 14 th November 2003 7

Trusted Third Party Agents Independent inspectors that are: • the eyes and ears at the point of origin • thoroughly vetted • experts in inspection techniques of empty containers and of goods • experienced with Customs procedures 14 th November 2003 8

Container Inspection Container Stuffing At origin - Container Security Inspection during the loading of goods. This Inspection is documented with an Electronic Report and series of 5 digital photos. 14 th November 2003 9

Container Stuffing 1 Container Stuffing 4 Fourth picture is taken once the vehicle is closed and sealed. Firstly, a picture is taken of the empty container. 2 The second picture is taken half way though the loading process. 3 The third photo is taken once loading is complete. 14 th November 2003 Note: the container number is visible on all pictures 5 The final picture is a close-up of the seals. The seal ID also appears on the Inspection Report & the Bill of Lading 10

An end-to-end supply chain security solution • • Validation of content of the container prior to sealing 24 hour accurate advance manifest information Validation and monitor of containers in transit Detect and report tampering Integrate non-intrusive inspection Data clearinghouse accessible to all end users Accuracy and timeliness of cargo information Ultimately will save time and money 14 th November 2003 11

Operation Safe Commerce (OSC) • Public/private sector initiative funded by the US Federal Government • Pilot trade lanes for testing technologies and processes • Proof concept and best practices – Pilots to develop workable security measures – Influence new supply chain security standards – To facilitate trading for participating importers 14 th November 2003 12

Operation Safe Commerce • ITN has been awarded two pilot trade lanes: – HAZMATS from Japan – Food stuff from Germany • COTECNA is participating with other leads in: – Coffee from Brazil – Electronics from Singapore – Bathroom fixtures from Turkey 14 th November 2003 13

Moving towards standards • The experience gathered from the OSC pilots a good basis for developing standards • ITN has been nominated Category A Liaison with ISO/TC 8 14 th November 2003 14

Standards for what Security-management systems that include: – Personal credentialing and identification – Inspection of the empty container – Witnessing the stuffing of the container – Sealing of the container – Container seals – Reporting, content and data elements – Secured transmission of information – Confidentiality – Accreditation and audit of the trusted agent at origin – … 14 th November 2003 15