Vision and Strategy 2020, U.S. Customs and Border Protection Strategic Plan – Delivering safety, security, and prosperity through collaboration, innovation, and integration 2015 (CORE2010)

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

Summary

This document sets a vision of the US Customs and Border Protection (CBP), the primary border control agency present at the US borders, for year 2020. The vision builds on four general goals and associated objectives that aim to improve safety, security and prosperity of the American people. Collaboration, risk management as well as exchange and exploitation of information and intelligence are in the heart of the vision document and integral elements of its goals and objectives. The vision document is available at: http://www.cbp.gov/sites/default/files/documents/CBP-Vision-Strategy-2020.pdf

Review by Toni Männistö (CBRA)

[s2If is_user_logged_in()]

Full review

The vision’s first goal is to counter transnational terrorism and crime at and beyond the US borders. Keys to effective counter-terrorism and anti-crime efforts are understanding of threat landscape as well as interagency and international coordination on border management. The second goal is about promoting a comprehensive, whole-of-government approach to border security and management, in order to exploit complementary capabilities of various border control agencies to the fullest extent. Specific objectives underpinning this goal are “situational awareness of the air, land and maritime borders”, “detection, interdiction and disruption of illegal border activities” and “strengthening comprehensive trade enforcement. Here the key is to collect information and intelligence about trade flows and carry out risk assessment to identify and target high-risk cargo movements and facilitate low-risk traffic. Other objectives are strengthening processes to conduct out-bound enforcement and interdiction of travelers and cargo as well as advance a comprehensive, predictive targeting strategy to identify threats as early as possible.

The third goal is about enhancing the US economic competitiveness by facilitating lawful trade and travel. The goal consists of objectives that seek to reduce cost of trade and travel by streamlining customs processes. Other objectives are to harmonize procedures throughout US government agencies and to develop risk-segmentation for better facilitation of low-risk trade and travel. Agility and adaptability of the CBP organization is the fourth goal. Sub-goals, or objectives, include optimization of CBP’s organizational structure, strengthening organizational structure and advance CBP’s effectiveness through technologies and business innovations. The vision document concludes with a presentation of principles and process of risk management in the customs context.

This vision document contains lots of relevant information for many CORE work packages, especially for those that deal with US-bound supply chains (WP9, WP14 and WP17. Certainly, also work packages dealing with risk assessment and educational material benefit from this material. Altogether, revealing strategic priorities of the CBP, the document reflects the trends of customs-centric supply chain security worldwide, and this information is very valuable for CORE and its work packages.

Reference

US CBP, 2015. Vision and Strategy 2020, U.S. Customs and Border Protection Strategic Plan – Delivering safety, security, and prosperity through collaboration, innovation, and integration

CORE2010

 [/s2If]

Border Posts, Checkpoints, and Intra-African Trade: Challenges and Solutions. Barka, H., B., 2012 (CORE2009)

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , /by

Summary

Pan-African economic integration has progressed over past years, producing a broad range of regional trade agreements and economic communities that seek to harmonise policies, develop common infrastructure and remove barriers to intra-African trade. Against expectations, however, this increased integration has not translated into strong economic growth in Africa. This article discusses how sub-Saharan countries can overcome trade barriers that undermine the African economic integration. The article’s focus is on border posts and customs procedures that play a key role in facilitating cross-border traffic.

According to the article, the problems of international trade in Africa are largely explained by inadequate infrastructure that creates congestion and limits connectivity, delays that stem from complex and manual customs procedures, corruption and by illicit trade. One-stop-border-posts are a promising approach to streamline customs procedures and curb corruption. The joint border post may bring trade facilitation benefits as significant as costly investments on roads, ports, bridges and other transport infrastructure. The articles highlights the Chirundu One-Stop Border Post between Zambia and Zimbabwe as a successful case of border agency cooperation. Previous Observatory review (CORE2008, 20 January 2016) describes the Chirundu border crossing in more detail.

The paper concludes by suggesting One-Stop-Border-Post as a promising way towards higher trade facilitation and African integration. To organise one-stop-border-post, the first thing to do is to analyse roles and procedures of different border control agencies. The task of high-level governance is to define how responsibilities across the various border control agencies are harmonised, coordinated and delegated. Metrics and statistics should underpin the design, as numerical data into traffic flows and clearance times are likely to reveal the major bottlenecks in the cross-border traffic. Finally, the article proposes extended exchange of information and data across government agencies, domestically and internationally. The article is available at http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/INTRA%20AFRICAN%20TRADE_INTRA%20AFRICAN%20TRADE.pdf

Review by Toni Männistö (CBRA)

[s2If is_user_logged_in()]

Full review

The discussion on one-stop-border-posts in the African context is closely related to the CORE project and its many work packages. Especially the WP12, the demonstrator Schipol, that deals with imports of fresh cut flowers from Kenya to the Netherlands, benefits from the insights into African bureaucratic practices at many African borders. The demonstrator should consider the set of recommendations for higher border agency cooperation that the article proposes. Besides the demonstrators, the article provides a concise and informative outlook on international in Africa. At least CORE’s WP19, should consider the African perspective on cross-border trade when developing training material.

Reference

Barka, H., B., 2012. Border Posts, Checkpoints, and Intra-African Trade: Challenges and Solutions. African Development Bank

CORE2009

[/s2If]

Criminalization of global supply chains, by Mr. Hamon

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

Hi David, and thanks for joining a CBRA Interview – can you first tell a bit who are you and what you do?

I served in the US Army as a logistician, served with the United Nations Peacekeeping Department as well as work with the UN humanitarian organizations.  I recently retired from a not-for-profit government contractor to pursue more creative work.  Whilst at the latter position I was seconded to the US Defense Department, first in African Affairs, and then as Research and Studies Director for a strategic studies office within a US Defense Agency.  I currently work, mostly independently, on a great many things related to future threats and re-defining of security/stability as it pertains and impacts diplomacy, development, defense, society, and economics/finance.

We met first time in Lausanne, Switzerland, around 2005 – what was that roundtable event again about?

Many years before cyber based terror threats were on the radar, we launched an inquiry into what we termed “Economic/Financial Terrorism” and whether security threats emanating from terrorism in the future would take the form of attacks on the Western system of finance and the economy.  We brought in a host of experts from the US and Europe to debate the changing face of terrorism and likely goals of future terror groups.  We examined everything from evolving ideology, motivation and intent, culture and identity to strategy, tactics, targets, weapons, and groups.  It was an extremely interesting event with industry admitting – at the time – they were not prepared for this phenomenon and governments largely split on the issue.  Additionally, experts and think tanks disagreed on whether economic terrorism was tangible.  It was very forward-looking for its time.  All participants came away with greater awareness on the subject as we went above and beyond what is currently called “financial crimes,” exploring potential kinetic based threats terror groups would use against the economic and financial machinery that included physical attacks on the supply chain, tourist industry, psychological undermining of the Western economic system to disrupt the normal provision of goods and services.

Can you tell more about your views on ´criminalization of global supply chains´?

I take similar views on the subject as Dr. Moisés Naim, in his 2005 book ‘Illicit: How smugglers, traffickers, and copycats are hijacking the global economy.’ He addresses several tenants that remain true today including the role of governments, technology, the Illicit traders mimicking licit trade and logistics actors – while simultaneously collaborating with many of them, and criminal groups seek high-profit opportunities as opposed to any other attribution (see CBRA Blog 21 October 2014).  Terror groups care less about profit but when thinking about logistics networks, what if the two groups collaborated?  Today logistics systems are more complex and move faster than ever in history, have less margin to fail, are far less ‘hands-on’ and offer many ways and places to hide illegal activity.  Detection and interdiction of this activity isn’t exclusively in the realm of governments. Industry has a role to play if it wishes to minimize new regulations, taxes, deter corruption, and other drains on efficiency and profit.  Experts, both public and private, rarely take a systems approach to detecting criminal activity with much throughput going undetected.  Both parties want to specialize on one aspect and miss the big picture.  A good example was the AQ Khan network.  How long has it been since industry has undertaken an assessment of whether there is a new “Khan” network out there?  Do trade organizations war-game with governments on criminality within supply chains?

Interesting! What are your views on ‘multi-commodity trafficking / crime portfolios’?

At the last corporate organization where I worked my team did some analysis on unregulated, illegal fishing as a security threat to Pacific Island nations.  In the course of this analysis, we discovered it was the same actors doing the illegal fishing as doing illegal dumping, illegal smuggling, illegal trafficking, among other illicit activities.  The criminality was only one aspect of the supply chain as the “demand” side as well as the delivery side was entirely legal and within businesses who conduct practically all business legally.  The same boats as platforms – and their crews – were used to conduct all activity legal and illegal and to the local authorities – as well as donor nations attempting to help – it was impossible to project accurately when the activity would switch between licit and illicit.  We couldn’t analyze if this was a regional or global phenomena but I guess it was a widely copied practice.  As Anthony Barone has pointed out, border management and controls are not the panacea of containment but need to be part of a larger practice (see CBRA Interview 18 December 2015). Criminals use technology just as effectively!  His idea of assembling a group of independent experts to rethink new approaches to border management – and I might add, redefining the meaning of borders and how thinking differently about borders per se – is a good start.   Using strategic foresight come up with several alternative futures to present to a dedicated [supply chain] private-public partnership empowered to make changes would be my overarching recommendation

Sounds that the global supply chain community is facing increasingly more threats and risks! Any other suggestions on how to improve the situation, both short term and long term?

In the short term, as I mentioned, conduct a public-private-partnership exercise to rethink the concept supply chain surveillance for illicit activity and anticipating new and emerging illicit activity.  In the long run, we don’t give enough thought to knowledge as a part of the supply chain.  Using the supply chain for illicit activity begins with motivation and intent getting out in front of those who may do harm.  To address alternative futures will take some innovation and creativity, but the stakes are high.  The next AQ Khan Network may bring very bad things into Europe (and beyond!) compliments of ISIS.  We don’t know what knowledge the current refugee population possesses that may be part of some future attack on the financial and economic system of the EU or if some refugees worked on chemical or biological programs in their countries of origin.

Thanks David for this interview – and let´s start working towards a joint project on these topics of common professional and research interest!

Web-links:

https://www.cross-border.org/2014/10/21/dr-naim-on-illicit-trade/

https://www.cross-border.org/interviews/new-approaches-to-border-management/

Updates on Customs brokers, by Ms. Carol West

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

int-300116-1Hi Carol, and thanks for joining a CBRA Interview – can you first tell a bit who are you and what you do?

I am the President of the Canadian Society of Customs Brokers and the Secretary of the International Federation of Customs Brokers Associations, IFCBA. My office is in Ottawa, Canada. I have spent my professional life in the world of Customs, border management and trade facilitation. I am an advocate for the value and importance of customs brokers and I am passionate about the possibilities of Customs-business partnership, in Canada and worldwide. I believe strongly that building knowledge, investing in technology and managing relationships are critical to effective border management.

IFCBA and CBRA produced jointly the first survey study on future roles of customs brokers around 2004-2005. Looking now, in 2016, at the study outcomes: do you see that anything has changed or evolved in the “world of customs brokers” the way we anticipated a decade ago?

It is difficult to generalize as the role of a customs broker still differs so much between countries. The regulatory framework for licensing customs brokers and their scope of practice may be different, and the level of automation of a country’s Customs administration may influence the role of customs brokers in effective border management. Having said that, I believe that in the last decade the role of a customs broker as a trade facilitator has been even more effective than we had anticipated. Both importers and Customs recognize that knowledgeable, regulated customs brokers not only provide expedited navigation through and compliance with complex Customs requirements, they are widely used by businesses looking to reach new markets, with a minimum of cost and delay.

With Customs administrations automating their systems for risk management and implementing coordinated border management processes, there is also more focus on gathering information on the goods being imported prior to arrival, for admissibility and security purposes. In this context, the automation of carrier and cargo information is more important than it was ten years ago. With that in mind, the role of a customs broker is even more crucial today as the broker acts as a hub for all the data relating to a client’s transaction, ensuring its accuracy and compliance with Customs requirements.

Ten years ago, we thought that, by now, we would have made more progress with consistency of data requirements globally. There has been great work done by the World Customs Organization with its data model, but we still find that data requirements are not as harmonized or standardized as they could or should be.

From a business process standpoint, where licensed customs brokers exist they are used by the majority of importers – large multinational companies as well as small to medium enterprises. In a competitive marketplace, customs brokers are seeing more emphasis on performance measurement and key performance indications during the procurement process as well as in standard operations. Today, there is greater uncertainty in the business environment and increased complexity of the global supply chain. We think this also reflects the maturation of the brokerage industry where business managers focus on continuing improvements to their processes to reach maximum efficiencies in delivering value to clients.

By the way, are you aware of any recent research focusing on customs brokers, either on global or on national level?

The World Customs Organization, WCO conducted a survey of its members in 2015 on the subject of customs broker regulation and had an outstanding response rate. With many models of customs broker regulatory regimes among the WCO members, from no regulation to the mandatory use of a licensed customs broker, the results of the survey point to some opportunities for cooperation between Customs administrations and customs brokers, and, based on existing best practices, suggests considerations for a model for establishing a broker licensing system, particularly valuable where none exists today. It also offers ideas on engagement with customs brokers and other private sector players to enhance compliance and trade facilitation. We see this as a positive indicator of interest in issues that are of critical importance to the international customs broker community, and a sign that there is value in doing some additional work in this area.

From a customs broker’s perspective, which areas of global trade facilitation and supply chain security do you see as most important in 2016? What about the most difficult or challenging ones?

A very important development that might impact global trade is the Trans-Pacific Partnership, TTP. I say might because coming into force depends on the US Congress ratification of the agreement, and currently the rhetoric coming from Washington shows little support for it. I guess we’ll have to wait and see what happens. But assuming the TPP is ratified by the 12 signatories, even though it means elimination of tariffs and tariff barriers, it also means a more complex environment to navigate the multiple free trade agreements for the multi-national importers. Customs brokers as experts in rules of origin and compliance, in general will continue playing a very important role in the trade chain.

Looking a bit further out, one of the most challenging issues of the next 5 years will be the immense growth in e-commerce globally, and the pressure put on governments world-wide by online retailers to increase the de-minimis thresholds. It is projected that the online sales will reach US $3.5 trillion by 2020. That represents a lot of import duties that may not be collected and remitted if the de-minimis thresholds are increased or standardized. We expect that the impact of this will be seen differently depending on positions taken by national administrations given their own economic situations and pressures for competitiveness. Customs brokers will no doubt integrate any such changes into their compliance models and service offerings, keeping their clients’ interests and obligations foremost.

We can’t speak of challenges without mentioning the global trade slowdown we’ve experienced since the 2008 global financial crisis. Many factors seem to be contributing to the continued sluggishness which some consider cyclical others structural in nature. Regardless, governments have to remember that trade can be a powerful tool in their policy toolkit and customs brokers are natural allies in promoting its growth.

Any other greetings you would like to send to the CBRA Interview and Blog readers?

IFCBA will be holding its next World Conference in Shanghai 17-21 May, 2016, and the theme is “Facilitating Trade Through the Customs-Business Connection”. Hundreds of delegates from all regions of the world will be in attendance representing national customs brokers associations, international customs organizations such as the WCO, freight forwarding firms, shipping companies, cross-border e-commerce associations, world logistics enterprises, and many more. Our conferences are held only every two years, and we are very excited about sharing ideas and strategies for success with business and government colleagues from around the world.

Thanks a lot Carol for this concluding note – we just added the IFCBA World Conference to CBRA´s Events calendar – and thanks for the whole interview; maybe we can explore bit later this year on joint research, training or other project opportunities…!

 

Web-resources:

http://ifcba.org/

http://www.wcoomd.org/en/topics/facilitation/resources/~/~/media/234D5143B2344B918496C93F24B48586.ashx

https://www.internetretailer.com/2015/07/29/global-e-commerce-set-grow-25-2015

http://bruegel.org/2015/08/the-global-trade-slowdown-puzzle/

https://www.wto.org/english/news_e/pres15_e/pr752_e.htm

https://globalconnections.hsbc.com/global/en/tools-data/trade-forecasts/global

https://www.imf.org/external/pubs/ft/weo/2016/update/01/pdf/0116.pdf 

Related CBRA studies:  

Gutierrez, X., Hintsa, J., Wieser, P. and Hameri, A.P. (2005), “New roles for customs brokers in international supply chain”, Proceedings of First International Conference on Transportation Logistics (T-LOG), July 27-29, 2005, Singapore.

Hintsa, J., Mohanty, S., Tsikolenko, V., Ivens, B., Leischnig, A., Kähäri, P., Hameri, A.P., and Cadot, O. (2014), The import VAT and duty de-minimis in the European Union – Where should they be and what will be the impact? Final Report, Brussels, Belgium.

Dr. Federico Magalini on waste logistics crime

/0 Comments/in , , , , , , , , , , , , , , , /by

Hi Federico, and thanks for agreeing to join a CBRA Interview, as the first expert in year 2016 – can you first tell a bit who are you and what you do?

Thank you for the opportunity of sharing some of the past experiences and projects done, including those with CBRA and looking ahead into the next years. I’m a mechanical engineer as background, with a PhD in Management, Economical and Industrial Engineers and I am working as Associate Programme Officer at United Nations University – Vice-Rectorate in Europe. I’m in particular working for SCYCLE, SCYCLE operating unit of the UN University Institute for the Advanced Study of Sustainability.

Can you explain more on what is the United Nations University, UNU?

UNU is, despite the name, not a classical university as many might think. The United Nations University (UNU) is a global think tank and postgraduate teaching organization headquartered in Japan. The mission of the UN University is to contribute, through collaborative research and education, to efforts to resolve the pressing global problems of human survival, development and welfare that are the concern of the United Nations, its Peoples and Member States. We work a lot with leading universities and research institutes in various countries, functioning as a bridge between the international academic community and the United Nations system. Our operating unit SYCLE is particularly devoted to research in the field of electronic waste.

UNU, INTERPOL, CBRA and other partners finished few months ago a 2-year research project on electronic waste crime and non-compliance, the FP7-CWIT –project. From your perspective, what were the most important outcomes of that project?

The CWIT project contributed in my opinion to increase the general understanding of volumes of electronic waste annually arising in different EU Member States and the fate of the disposed equipment. Knowing the baseline of products annually discarded by EU citizens is a first, fundamental step to allow policymakers and stakeholders at large to develop a strategy to ensure proper collection and treatment. In addition to that the project described the main drivers behind the flows diverted from the actual take back and recycling systems across the EU.

A second important outcome of the project is the analysis and identification of the main crime patterns that are typical of such an Industry: in the illegal trade of WEEE, there is a varying degree of compliance and criminality that spans across a continuum ranging from minor unintentional violations or non-compliance by individuals to deliberate illegal activities following a criminal business model. The organisational structure differs by country and region, from individual traders to structured criminal groups.

The combination of those two elements – knowledge of the market and understanding of criminal behaviours – allowed drawing a roadmap for future improvement in compliance and enforcement.

Do you believe that some of the CWIT outcomes will have practical positive impacts to reduce future crime and non-compliance, in the broader context of e-waste handling and management?

I sincerely hope so. And I am sure this will happen. To which extent is hard to predict but in the second part of the project we really focused on how to derive practical recommendations for the various actors involved along the entire value chain. And we broadly discussed the ideas, in many cases deriving from real cases and best practices, with various stakeholders; I hope this will increase the likelihood of having some of the recommendations actually implemented.

We committed ourselves to disseminate the recommendations beyond the project duration and we have seen already some results, with the project findings being discussed in various fora, conferences and public events, including some internal meeting with EC officials. And we have seen official request from some Members of the EU Parliament, who quizzed the EC on the consequences of the CWIT project, challenging here to take concrete actions.

Now we are launching a new project called DOT.COM WASTE – with several CWIT partners, and few new partners. You are the project manager for this “CWIT follow-up” –project, congratulations on that. Can you please explain what this new project aims to achieve?

I am really happy of the DOT.COM waste project as combines some of the results of the CWIT project, particularly the recommendation on the need of better training of enforcement and prosecutors in one of the main areas of my personal interest and work at UNU: capacity building. The DOT.COM WASTE project seeks to increase the capabilities of law enforcement agencies, customs and port authorities, environmental agencies and prosecutors to fight cross-border waste crime more cost-effectively. To achieve this objective, the project aims to increase the stakeholders’ understanding of current waste crime trends and to identify and share good practices for detecting, investigating and prosecuting waste crime activities.

Which aspect of the DOT.COM WASTE project you see as the most challenging one?

I see two main challenges ahead for the DOT.COM WASTE project. The first one is related to the scope of the project itself: there are many waste streams and the challenges of different streams are different. As a consequence also the tools to tackle illegal activities might vary: we will have to identify the priorities in order to be effective.

The second one is related to the duration of the project; the project will translate the knowledge gained into training material and tools and will promote training sessions to help key stakeholders integrate good practices into their day-to-day operations. The project’s underlying objective is to intensify international collaboration through development and implementation of new mechanisms for information exchange, technology transfer and operational coordination. But I really hope that all those efforts will produce effects that will last longer than the two years of the project itself.

I sincerely hope that we will be able to make the difference here!

Thanks a lot Federico for this interview – and talk to you soon at the DOT.COM WASTE kick-off meeting.

Introduction to Supply Chain Management (CASSANDRA Compendium Chapter 2, CORE2007a)

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

Summary

The second chapter of the CASSANDRA compendium gives a general outlook on the theory and practice of modern supply chain management. Written in lay-man’s language, the text explains a broad range of strategies for managing supply chains, from lean management to agile and responsive logistics. The chapter also defines fundamental supply chain terminology and discusses current trends in the logistics, including synchromodality, use of 4PL logistics service providers, and green logistics. The chapter introduces several supply chain reference frameworks that illustrate a series of interdependent activities and stakeholders involved in the international transport of cargo. The CASSANDRA compendium is available for download here.

Review by Toni Männistö (CBRA)

[s2If is_user_logged_in()]

Full review

The compendium summarizes the SCOR and UN/CEFACT supply chain models, that may be the two most used logistics reference frameworks in the world. The document also discusses less known academic conceptual models that seek to simplify the complexity of supply chain management by categorizing and explaining management strategies, activities, stakeholders and their roles and responsibilities. The section on the future trends in logistics offers a great outlook on the most likely changes and driving forces in the logistics industry. The outlook suggests that for example synchromodality (increased flexibility in transport mode selection), green logistics (less emissions), use of 4PL logistics service providers (outsourced supply chain management), and continuously increasing ship and port sizes will reshape the cross-border logistics over the years. The document also explains key CASSANDRA concepts and their impacts on international supply chain management. For instance, the Data Pipeline, a pivotal CASSANDRA concept, seeks to enhance sharing of information across supply chain stakeholders, in particularly from business operators to customs and other border control authorities. Most importantly, the Data Pipeline would allow customs officers to access commercial information, that normally is exchanged only between buyers and sellers, early in the upstream supply chain at the consignment completion point (CCP). This accurate, early commercial information would enable the customs and other border control agencies to assess security and other risks of cargo early on.

All in all, the document provides a crash refresher course on basic and advanced logistics terminology that would be beneficial for many the CORE consortium, especially for those partners whose expertise is mainly outside the logistics industry. The CORE demonstrators benefit from descriptions of CASSANDRA innovations that support information exchange and improve visibility across the supply chain. The demos might choose to reuse some of these CASSANDRA innovations or their components. The CASSANDRA compendium also contains a great deal of material that could be reused for education and training purposes in CORE (WP19). Finally, the chapter concludes with recommendations that are relevant also for CORE. The chapter recommends, for example, that because of broad variety of international supply chains, CASSANDRA solutions should be adaptable for different contexts.

Reference

Hintsa, J. and Uronen, K. (Eds.) (2012), “Common assessment and analysis of risk in global supply chains “, Compendium of FP7-project CASSANDRA, Chapter 2

CORE2007

[/s2If]

Chemical Security in Istanbul

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

2015-12-15 09.02.08I had the most interesting week in Istanbul with the Iraqi government representatives, chemical sector companies and the US State Department Chemical Security Program, CSP.

Security in the chemical supply chain is a major challenge for government agencies and chemical supply chain companies across the globe, including those in the Middle-East and North African (MENA) region. Theft, diversion, trafficking, export violations, counterfeit chemicals, sabotage and terrorism – among other criminal threats – keep the agencies and companies constantly on their toes when considering how to best tackle the vulnerabilities and threats in their respective chemical supply chains.

This was my second time to join as an external expert in a Chemical Security Program (CSP) event in the MENA region. The first time was in Hurghada, Egypt, in March 2015 – thanks again to Professor Andrew Thomas, the Chief Editor of the Journal of Transportation Security, for hooking me up with CRDF Global and the US State Department on this. Now the four day event targeted for the relevant Iraqi government agencies as well as the Iraqi chemical sector companies was held in Istanbul, Turkey, on 14-17 December 2015.

We had a fully packed agenda: Day 1 consisted of several introductory and state-of-play speeches by the workshop facilitators and by Iraqi experts, the latter group sharing key governmental, industry and academic perspectives to the chemical security progress in Iraq.  Day 2 started with a case study presentation on “Post-2001 supply chain security developments at Dow Chemicals”, followed by private-public partnership considerations in chemical supply chain security. During the afternoon of day 2, two more presentations were given on potential threats to materials of interest, as well as on site-physical security. Day 3 started with presentations on international transport of dangerous goods and security rules, followed later by presentations on export control and border security issues, as well as risk assessment methodological aspects.

Interactive sessions, group exercises and other discussions were vivid throughout the four days. On day 1, the main interactive session was about government-industry coordination. On day 2, the focus shifted to identifying key players in Iraqi chemical supply chain security, as well as exploring private sector specific chemical security issues. On day 3, a major interactive session took place to recognize existing vulnerabilities and threats in the chemical supply chain, as well as to identify appropriate countermeasures and other possible means of improvement. And finally, on day 4, a draft table of content for a potential “Iraqi chemical supply chain security master plan and implementation roadmap” was produced in a highly interactive manner, followed ultimately by drafting some actual planning content in areas including chemical transport security and raising security awareness.

The actual workshop outcomes and possible follow-up actions will be worked upon later by the organizing team and some key participants. In the meanwhile, I want to express my warmest thanks for this opportunity and great on-site collaboration in Istanbul to: Ms. Shawn Garcia from the U.S. Department of State, Chemical Security Program (DOS/CSP); Ms. Pelin Kavak and Mr. Nidal Abu Sammour from CRDF Global, US / Jordan; and Dr. Caner Zanbak and Mr. Mustafa Bagan from the Turkish Chemical Manufacturers Association (TCMA). Hope to meet you again in 2016 in Iraq, Algeria and possibly other locations in the MENA region!

 

Cheers, Juha Hintsa

P.S. We also tested two CBRA frameworks / models – CBRA SCS15/16, and CBRA-BAC-Actions and beneficiaries – with the audience during the Istanbul week. Both of them were well perceived, and will be topics for CBRA Blog during the coming couple of months. (SCS = Supply Chain Security, and BAC = Border Agency Cooperation).

PPS. Last but not least I would like to thank Ms. Antonella Di Fazio of Telespazio, Italy, and FP7-project CORE, for excellent inputs on transport of dangerous goods, traceability and monitoring solutions, demonstrators, and practical experiences.

Trade and money laundering uncontained (the Economist, May 2014, CORE2006)

/0 Comments/in , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , /by

Summary

International trade is becoming one of the main instruments for cross-border money laundering aside common bank transfers, remittances and cash smuggling. The ”trade-based money laundering” disguises illegal trading as seemingly legitimate commercial transactions. The most common technique is mis-invoicing in which fraudsters undervalue imports or overvalue exports to repatriate ill-gotten money from abroad. For example, official records show that Mexican exports to US are much higher than the US imports from Mexico, a discrepancy that signs fraud by Mexican criminals, most likely drug cartels. In general, the trade-based money laundering offers new financial tools for a broad range of drug traffickers, arms smugglers, corrupt politicians, terrorists and evaders of taxes, duties and capital controls. Review by Toni Männistö (CBRA)

[s2If is_user_logged_in()]

Full review

International trade is becoming one of the main instruments for cross-border money laundering aside common bank transfers, remittances and cash smuggling. The ”trade-based money laundering” disguises illegal trading as seemingly legitimate commercial transactions. The most common technique is mis-invoicing in which fraudsters undervalue imports or overvalue exports to repatriate ill-gotten money from abroad. For example, official records show that Mexican exports to US are much higher than the US imports from Mexico, a discrepancy that signs fraud by Mexican criminals, most likely drug cartels. In general, the trade-based money laundering offers new financial tools for a broad range of drug traffickers, arms smugglers, corrupt politicians, terrorists and evaders of taxes, duties and capital controls.

The new methods for cross-border money laundering and tax evasion concern most CORE demonstrations, especially those involving international cargo movements. The emerging risk of trade-based money laundering calls for new and more effective enforcement of trade transactions. CORE is developing new solutions (e.g., data pipeline and system-based supervision) for capturing and sharing trade information across logistics operators and law enforcement agencies. The new solutions likely improve law enforcement’s capability to detect suspicious trade transactions that may have something to do with the trade-based money laundering. However, building such capability requires IT integration (e.g., interoperability), risk awareness and education and training. CORE consortium addresses these complementary activities in work carried out in risk, IT and educational clusters.

Reference

Trade and money laundering uncontained, the Economist, May 3rd 2014

CORE2006

[/s2If]

Drug trafficking in the Caribbean – the Full circle (the Economist May 2014, CORE2005)

/0 Comments/in , , , , , , , , , , , , , , , , /by

Summary

Anti-drug officials report rising cocaine imports into the US through the Caribbean islands. The officials ascribe the increasing popularity of the Caribbean route to the strengthened enforcement of alternative trafficking routes. The South American cocaine smuggling routes have displaced several times over the years due, and now again the Caribbean route is the same one than traffickers used two decades ago. The new wave of trafficking through is expected to increase violence and undermine anti-corruption efforts in the Caribbean.

The drug traffickers move significant amounts of their cocaine from Colombian coca farms and laboratories to Venezuela by jungle trails, riverboats and small aircraft. From the Venezuelan coast, the contraband is smuggled to Caribbean islands by speedboats, planes, sometimes hidden inside commercial cargo. The cocaine traffickers use then yachts, mules, cruise ships, fast boats and commercial cargo vessels to smuggle the illegal drugs into the US and Europe. The new wave of trafficking through is expected to increase violence and undermine anti-corruption efforts in the Caribbean. Review by Toni Männistö (CBRA)

[s2If is_user_logged_in()]

Full review

Anti-drug officials report rising cocaine imports into the US through the Caribbean islands. The officials ascribe the increasing popularity of the Caribbean route strengthened law enforcement of alternative trafficking routes. Because traffickers prefer smuggling routes that offer the highest profit-to-risk ratios, the South American cocaine smuggling networks are evolving constantly. Routes have displaced several times over the years, and now the route is again the same than two decades ago.

Today, traffickers move again significant amounts of their cocaine from Colombian coca farms and laboratories to Venezuela by jungle trails, riverboats and small aircraft. From the Venezuelan coast, the contraband is smuggled to Caribbean islands by speedboats, planes and sometimes hidden inside commercial cargo. The cocaine traffickers use then yachts, mules, cruise ships, fast boats and commercial cargo vessels to smuggle the illegal drugs into the US and Europe.  The new wave of trafficking through is expected to increase violence and undermine anti-corruption efforts in the Caribbean. The new wave of trafficking through is expected to increase violence and undermine anti-corruption efforts in the Caribbean.

Trends of international drug trafficking often influence intensity of law enforcement efforts in global supply chains. Thus, changes in South American drug trafficking may affect also the two CORE trade lanes that import goods from the region into Europe, (1) imports of fresh cut flowers from Colombia to the Netherlands (WP11) and (2) imports of coffee and cocoa beans from South America to Europe (WP13). These trade lanes may become subject to more intense anti-drug controls over the following years. Besides the CORE demo cluster, also the CORE risk cluster benefit from the insight this article provides on the recent trends in routes, volumes and methods of the South American drug trafficking. This information may be useful for CORE’s activities that are developing educational and training material.

Reference

Drug trafficking in the Caribbean – the Full circle, the Economist, May 24th 2014

CORE2005

[/s2If]

CORE Information Observatory

/0 Comments/in , , , , , , , , , , , , , , , /by

cbra_blog_post_040116Please visit FP7-CORE Information Observatory . If you find it useful for your work, please consider registering to become a regular CORE Observatory user and to receive the CBRA Monthly Newsletter!

On behalf of the whole CBRA-team – Sangeeta, Susana, Susan, Phan Hien, Toni, Vladlen, Duayner, Perttu, Matti, Ari-Pekka, Ninoslav, Peter, Andrew, Harri x 2, and David x 2 (https://www.cross-border.org/team/ ) – I would like to wish you the best of success for the year 2016, in your professional as well as private life. In the context of global supply chains, we are ready to work with you towards faster and more predictable global logistics, naturally combined with low crime rates and with high compliance rates. One great tool to support such “common industry-government-academia global supply chain mission” is our new media platform – the recently launched FP7-CORE Information Observatory, which you can find at: https://www.cross-border.org/core-observatory/core-observatory-full-list/

CORE Observatory gives you 10-20 regular reviews and updates per month on supply chain security and trade facilitation policies, regulations, standards, good practices, roadmaps, research papers etc. – for the benefit of FP7-CORE partners, and beyond. Our primary focus is currently on European Union and its main trading partners – global expansion is possible later, depending on user needs and priorities. Each CORE Observatory entry has a title and a summary, visible to every user. At the end of the summary we provide a URL for the source document, whenever an electronic version is available in public domain. Starting 1 January 2016, the title and summary are also translated to Spanish. New languages (e.g. French, Arabic or Russian) may be offered later in 2016 depending on user preferences. The full review text is available only for the registered users, who will also receive the CBRA Monthly Newsletter, tailored to their personal information needs and interests. The CORE Observatory entries are listed in chronological order, the latest entry appearing on the top of the list. Any user – registered or not – can search CORE Observatory entries either via pre-defined keywords and tags (most common ones listed on the right side of the web page), or via free text search.

Again, Happy New Year 2016 everyone – and looking forward to having many new visitors at the FP7-CORE Information Observatory!

Yours, Juha