TRANSPORTATION SECURITY INFORMATION SHARING – Stakeholder Satisfaction Varies; TSA Could Take Additional Actions to Strengthen Efforts, GAO, June 2014 (CORE1020)

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Summary: This report presents and discuses findings of a survey on stakeholders’ satisfaction to the US Transportation Security Administration’s security-related activities and to the way the TSA disseminates information about its activities. The survey’s scope is the overall US transportation system, covering aviation, rail, and highway modalities and transport of passengers and freight. Given the broad scope and the US-centricity of the survey, this report is not very relevant for CORE. The education and training cluster could anyhow learn how security-related user satisfaction surveys are done and how to establish a mechanism for collecting regular user feedback. The report is available for download at: http://gao.gov/assets/670/664350.pdf.

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Full review: The scope of the report is very broad and the information about cargo security is limited, so the CORE project cannot much benefit from this report. However, the project’s educational and training cluster might use the report’s information to design ways administer end-user surveys: what questions to ask, which stakeholders to survey and how to report the findings. Some demonstrations adopt some of the report’s ideas and methods to collect high-quality user requirements.

Additional keywords: Transportation security, aviation security

 

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MARITIME SECURITY – Progress and Challenges with Selected Port Security Programs, GAO, June 2014 (CORE1019)

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Summary: The report provides a comprehensive review of progress and challenges of various port security activities and programs the Department of Homeland Security (DHS) has carried out since 9/11. In essence, the report is a summary and an update of a number of more detailed GAO reports on maritime supply chain security. The report states that needs to strengthen further its efforts on maritime domain awareness through intensified communication among maritime stakeholders. Regarding the US domestic port security, the report recommends DHS to reassess its Port Security Grant Program (PSGP) that allows ports to request funds for security projects and to improve quality of vulnerability assessment in US ports. The report also urges DHS to overcome challenges of risk-based targeting and scanning of US-bound shipping containers.  The findings and recommendations of this report help CORE consortium understand the current state of the US maritime security regime. This understanding benefits particularly the demonstrations of WP9 and WP14. Also educational and training as well as risk clusters of CORE may find the report’s information useful. The report is available for download at: www.gao.gov/assets/670/663784.pdf.

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Full review: This GAO document summarizes the US maritime supply chain security and provides useful information for the CORE project across its work packages. This information most obviously benefits WP9 and WP14 that involve US-bound maritime trade lanes. However, also the CORE’s risk cluster can find useful insight in the report, for example about challenges and opportunities of risk-based container targeting and screening approaches. This summary GAO document caters the needs of state-of-the-art work packages and the CORE’s educational and training cluster that aims to produce relevant and up-to-date material about supply chain security for a variety of stakeholders.

Cross-references:

  • Combating Nuclear Smuggling: Additional Actions Needed to Ensure Adequate Testing of Next Generation Radiation Detection Equipment. GAO-07-1247T. Washington, D.C.: September 18,
  • Supply Chain Security: CBP Has Made Progress in Assisting the Trade Industry in Implementing the New Importer Security Filing Requirements, but Some Challenges Remain. GAO-10-841. Washington, D.C.: September 10, 2010.
  • Supply Chain Security: CBP Needs to Conduct Regular Assessments of Its Cargo Targeting System, GAO-13-9. October 25, 2012.

Additional keywords: Maritime security, Port Security Grant Program (PSGP), risk-based controls, targeting, container scanning

 

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MARITIME SECURITY – Progress and Challenges in Key DHS Programs to Secure the Maritime Borders, GAO, November 2013 (CORE1018)

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Summary: This report is a summary of previous GAO reports on US maritime supply chain security and border controls. The report focuses on progress and challenges in four main areas of the Department of Homeland Security’s (DHS) activity on the maritime security. The report highlights that DHS and its component Coast Guard agency could improve its maritime domain awareness through increased information sharing and more advanced vessel-tracking systems. The Customs and Border Protection (CBP) in turn could step up its role in securing US-bound container traffic by conducting more frequent risk assessment audits in key foreign ports that ship cargo into the US and by fostering more close relationship with foreign authorities. The GAO report also recommends the Coast Guard to rethink its maritime surveillance, interdiction and security operations because current protection and support is not adequate in high priority locations. The report also calls for more collaboration and coordination among maritime authorities, port operators and ocean carriers. Finally, the report encourages the DHS to develop performance metrics and data collection procedures the agency uses to assess and monitor its maritime security programs and activities. This report gives a recent update on the US maritime security activities that might be helpful for CORE demonstrations and clusters. The report is available for download at: www.gao.gov/assets/660/659087.pdf.

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Full review: This summary GAO documents provides detailed background material about the US maritime security programs. This information is very relevant for the CORE demonstrations WP9 and WP14 that involve shipping cargo from and into the US. The information this document offers also help the CORE’s risk and IT clusters to learn lessons from the US approach to risk-based maritime security and security-related IT integration.

Cross-references:

  • Maritime Security: Ferry Security Measures Have Been Implemented, but Evaluating Existing Studies Could Further Enhance Security. GAO-11-207. Washington, D.C.: December 3, 2010.
  • Supply Chain Security: DHS Could Improve Cargo Security by Periodically Assessing Risks from Foreign Ports. GAO-13-764. Washington, D.C.: September 16, 2013.

Additional keywords: Maritime security, maritime surveillance, risk-based controls, targeting, container scanning

 

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MARITIME SECURITY – Ongoing U.S. Counterpiracy Efforts Would Benefit From Agency Assessments, GAO, June 2014 (CORE1017)

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Summary: This GAO report explains how the US government agencies have fought sea piracy around the Horn of Africa and at the Gulf of Guinea since 2010. The report also describes the current state of sea piracy threats in these two areas, and it urges US government agencies to reconsider their resource allocations, strategies and tactics related to the counterpiracy efforts. The report points out that the number of annual piracy incidents at the Gulf of Guinea has surpassed the yearly incidents off the Horn of Africa. This shift in pirate attacks prompt changes in the US counterpiracy operations. However, as the report points out, the US government agencies responsible for the counterpiracy activities have not recently conducted reassessments of their actions, despite the changing conditions. The report therefore recommends the US government agencies to re-evaluate the counterpiracy efforts, especially at the Gulf of Guinea that is becoming the most important hotspot of the international sea piracy. This GAO report provides information about modern sea piracy from which CORE’s maritime demonstrations might benefit. The report is available for download at: www.gao.gov/assets/670/664268.pdf.

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Full review: This GAO report delivers a comprehensive analysis of the current state of sea piracy at the two African hotspots and the US government’s counterpiracy efforts. This information benefits those CORE demonstrations that involve maritime shipping. The detailed description of the US counterpiracy efforts might also inspire the risk cluster to find effective and efficient risk-based solutions to protect maritime logistics and transport from sea piracy.

Cross-references:

  • Maritime Security: Federal Efforts Needed to Address Challenges in Preventing and Responding to Terrorist Attacks on Energy Commodity Tankers. GAO-08-141. Washington, D.C.: December 10, 2007.
  • Maritime Security: Actions Needed to Assess and Update Plan and Enhance Collaboration among Partners Involved in Countering Piracy off the Horn of Africa. GAO-10-856. Washington, D.C.: September 24, 2010.

Additional keywords: Maritime security, sea piracy

 

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EU logistics security – an interesting decade

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I had a great pleasure to work intensively on the European surface transport security standardization efforts, some years ago – this CBRA Blog aims to summarize the main work done, and the key objectives achieved.

 

Couple of years after the US 9/11, 2001 terrorist attacks, the European Commission Directorate General of Transport and Energy, EC DG TREN, started to prepare a proposal for a regulation of the European Parliament and of the Council on enhancing cargo surface transport security. In the meanwhile, 9/11 was already triggering an avalanche of new customs, aviation and maritime supply chain security regulations, programs and standards, in the US, Europe and across the globe. But when it came specifically to surface transport security for road and rail cargo (and inland waterways, to that matter) in Europe, nothing was cooking before the DG TREN initiative “Secure Operator”, first announced in 2004. By 2006, the main goal of the EC proposal for a regulation on enhancing supply chain security (SCS) in the EU was shaped as to achieve greater protection of the European freight transport system against possible terrorist attacks. The specific objectives of the draft regulation were defined as: (i) to increase the level of security along the supply chain without impeding the free flow of trade; (ii) to establish a common framework for a systematic European approach without jeopardizing the common transport market and existing security measures; and (iii) to avoid unnecessary administrative procedures and burdens at European and national levels. In addition, the draft regulation related to the need to prevent a patchwork of various supply chain security standards and solutions across EU.

blog2105162However, it quickly became clear that there was no common sense of urgency in supply chain security regulations across EU Member States, particularly in the context of threat of terrorism to surface (cargo) transport. One was lacking a commitment towards an integrated approach, which would urge everybody to look at the holistic supply chain picture. The countries and especially stakeholder (or, lobby) organizations clearly focused on their specific interests on a part of the supply chain, thus appearing uncomfortable when trying to identify the “big picture”. Ultimately, the draft regulation was blocked in the European legislative process and finally officially withdrawn by the Commission, in 2010.

 

 

In the meanwhile, already in 2005, an expert group in supply chain security was formed under the umbrella of European Committee for Standardization (CEN) – and that’s when Cross-border Research Association started to play a role in the “EU land transport security regulations and standards play”, first as the rapporteur for the expert group, and later as the research party for the technical committee in supply chain security. The expert group was formed technically under the CEN working group “Protection and Security of the Citizen” (CEN/BT/WG161), and the (pre)standardization work was partly based on the Logistics Action Plan of the EC that indicated the need for standardization in the transport security domain for the whole logistic chain.

blog2105163Following the conclusions and recommendations by the expert group, the CEN Technical Committee in Supply Chain Security (CEN/TC 379) was established in 2008, producing ultimately three tangible outputs: Supply Chain Security Feasibility Study (in 2010); CEN Technical Report “Supply Chain Security — Good Practice Guide for Small and Medium Sized Operators” (in 2012, CEN/TR 16412:2012); and, a European Standard: Logistics – Specifications for reporting crime incidents (in 2013, EN 16352:2013-06). The first of the outcomes is available for free (ask by email:  cbra@cross-border.org ), and the latter two you can purchase e.g. from your national standardization institute web shop. All in all, great project experience behind us, couple of good publications, and many new contacts and even few friends for lifetime – thus, no regrets, and if asked, would become rapporteur and lead researcher on these important topics, again and again!

 

 

 

 

And finally, when it comes to the future of SCS regulation and standardization work in Europe – in particular in the land transport security sector (e.g. the LANDSEC expert group, Commission Decision 2012/286/EU): do not be shy in exploiting the tangible outcomes of a decade of our joint work, in particular the Euronorm EN 16352:2013-06, “Logistics: specifications for reporting crime incidents” – no reason to reinvent the wheel!

 

CBRA Blog by Dr. Juha Hintsa on 21.5.2016

 

Summarizing the main milestones of the surface transport security 2004-2014 regulatory and standardization process tracks:

A) Regulatory process -track was largely driven by the European Commission Directorate General for Transport and Energy (EC DG TREN), comprising of the following five sequential steps:
A1. Preparation of the Secure Operator legislation at EC DG TREN (2004-2006)
A2. Publication of the legislative proposal (EC, 2006a)
A3. Publication of an impact assessment study (EC, 2006b)
A4. Announcements and debates at European Parliament and Council (2006-2009)
A5. Withdrawal of the proposal by the Commission, (18.9.2010)

B) Standardization process -track – for which the European Committee for Standardization (CEN) was responsible – consisting of the following seven, chronologically ordered steps:
B1. Establishment of an Expert group in supply chain security, under CEN/BT/WG161, “Protection and Security of the Citizen” (2005)
B2. Publication of the final report of the Expert group, approved by CEN/BT/WG161 (14.11.2006)
B3. Establishment of the CEN Technical Committee in Supply Chain Security, CEN/TC 379 (2008)
B4. Publication of Supply Chain Security Feasibility Study (15.1.2010)
B5. Publication of the CEN Technical Report, CEN/TR 16412:2012 “Supply Chain Security — Good Practice Guide for Small and Medium Sized Operators” (2012)
B6. Publication of a European Standard: Logistics – Specifications for reporting crime incidents, EN 16352:2013-06 (2013)
B7. Closure of the CEN Technical Committee in Supply Chain Security, CEN/TC 379 (2014).

 

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Main references / bibliography:

  • CEN (2013), “Logistics: specifications for reporting crime incidents”, EN 16352:2013-06
  • CEN (2012), “Supply chain security (SCS): Good practice guide for small and medium sized operators”, CEN/TR 16412:2012
  • CEN (2006), “Expert group: Supply chain security”, approved by CEN/BT/WG161, 14.1.2006
  • EC (2012), “Commission Staff Working Document on Transport Security”, SWD(2012), 143 final.
  • EC (2006a), COM(2006)79 final, 2006/0025(COD), COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on enhancing supply chain security Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on enhancing supply chain security, (SEC(2006)251)
  • EC (2006b), SEC(2006)251 COMMISSION STAFF WORKING DOCUMENT. Annex to the COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on enhancing supply chain security and Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on enhancing supply chain security – IMPACT ASSESSMENT – {COM(2006)79 final}
  • Hintsa, J., Ahokas, J., Männistö, T. and Sahlstedt, J. (2010), “CEN supply chain security (SCS) feasibility study”, CEN/TC 379 Supply Chain Security, Final report, 15.12010

 

 

Interview with Mr. Warwick on global security profession

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20.5.2016: CBRA had the pleasure to interview Mr. Roger Warwick, who has over 40 years of hands on experience in the European and global security industry.

Hi Roger, and thanks for joining a CBRA interview. Can you first tell a bit about yourself, and your professional background?

I have been active in corporate security for over forty years with a background in both fraud investigations and security consulting.  I studied economic crime investigative techniques at Jesus College, Cambridge annual workshops from 1990 to 1995 and certified CPP – protecting people, property and information – in 1999. I am British but for most of my career I have been based in Italy providing services to international corporations with business interests in Italy and Italian organisations operating in other countries.   I am a frequent speaker at international security conferences on security and investigations topics.

We first met around 2005 in a CEN, European Committee for Standardization, supply chain security expert group – under CEN/BT/WG161, Protection and Security of the Citizen. I think you joined as the representative of UNI, the Italian Organization for Standardization – do you recall the good old days?

I certainly do. We were discussing a European response to the US C-TPAT and similar supply chain security programs in an attempt to find a unifying, user friendly system, for the secure international flow of goods – beyond the Customs driven EU AEO program.  Following that I did more work regarding standards and qualified with RabQsa, now trading as Exemplar Global, as a Lead Auditor for security management systems, including ISO28000 and then as a certified Skill Examiner. By the way I audited, for ISO 28000, the DP World port in Peru. In 2013, on behalf of the Italian Government I developed a Critical Infrastructure Organisational Resilience standard that was later published by UNI.

You are also active in international security organizations and associations, including ASIS International. Can you tell bit more about them?

ASIS is a worldwide association of security professionals, first launched in the US in 1955. It has today over 38,000 members around the globe of which 3,000 in Europe.  I put in a lot of work with the ASIS to get the association on the quality management standards track. I am a member of the Standards and Guidelines Commission which has already developed a number of security and organisational resilience standards, which are ISO compliant, including PSC1, Management System for Quality of Private Security Company Operations, which has been adopted by ICoCA, the International Code of Conduct Association for private security operations. We will soon begin to work on a Security Awareness -standard. My role in ASIS in Europe, is to the Chair of the EC Liaison Sub Committee, our aim being the promotion and consolidation of the voice of the security profession and security professionals within the EU.

Your main day job is with Pyramid International and with the TEMI Group, is that correct? Can you tell more about these companies, and the services you offer to your clients?

I am the CEO of Pyramid International ( www.pyramid.it ) which has been based in Italy for over 30 years. It is a corporate security and investigations organisation, which caters mainly for multinational corporations. We have grown to become the security point of reference for corporations trading in southern Europe. In 2008 I formed, together with long term colleagues and friends, each operating in their own jurisdiction around the world, Temi Group ( www.temigroup.com ), which has grown to be what we call the World’s furthest reaching security partnership.  Recently we set up TGI, the Temi Group International Verein in Geneva, of which I am proud to be the Chairman.  Our individual companies are each members of TGI and each is specialised in various security sectors and geographical areas.  Pyramid International, together with Temi Group partners, is the coordinator of our Travel Risk Management services which are now active across the world, in particular Africa and Asia.  We provide both management assistance and protective services.  Our motto is “Safety for staff abroad means peace of mind for management at home.” We are founder members of ICoCA and have rapidly become a market leader for European companies; our customers are amongst Europe’s largest engineering corporations.  They are well aware of the importance of duty of care and operating with organisations, such as ours, that not only are experienced and competent but are also certified and appropriately insured.

Well, good catching up with you Roger, and thanks a lot for the interview. Maybe we could start looking for opportunities regarding joint projects in the future, what do you think?

Thank you Juha very much for the opportunity.  That would be great.  Although we have moved on from protecting goods in the supply chain to the protection of people travelling and working abroad there are many affinities and I am sure that there are many projects we could work on together, in our usual productive manner!

 

Web resources:

CPP: https://www.asisonline.org

Exemplar Global: www.exemplarglobal.org

UNI Critical Infrastructure Organisational Resilience standard: http://catalogo.uni.com

ICoCA, the International Code of Conduct Association for private security operations: http://icoca.ch/

Pyramid International: www.pyramid.it

Temi Group: www.temigroup.com

Interview with Mr. Bautista on PICARD2016

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10.5.2016: CBRA Interview with Mr. Samuel Bautista from the Philippines

Hi Sam, and thanks for joining CBRA interview – and stopping by here in Geneva. Can you please first tell a bit of you and what you do in the Philippines?

First of all, let me thank you for inviting me for this interview with CBRA today. I am a customs broker in the Philippines, focusing my work mostly in the academia, teaching in the university and managing the Academy of Developmental Logistics that offers training for customs and logistics professionals. In October 2015, I was asked to join the technical team of the Customs Commissioner to help in the modernization and reform programs, as well as in the preparation for the Philippines’ hosting of the WCO PICARD 2016 Conference in Manila.

We know each other since many years from the WCO PICARD – customs-academia partnership program – conferences. Would you recall in which conference we met the first time?

I learned about the WCO PICARD conferences through my academic associations, although I registered but missed the 2010 Conference in Abu Dhabi. Luckily, my paper on customs-academia partnership was selected for presentation during the 2011 PICARD in Geneva, where I first met you and the CBRA team. Since then – except for the 2012 Conference in Morocco – I have been regularly attending the annual conference. I also remember that it was in Geneva when we first expressed our invitation for the participants to come to the Philippines.

That’s correct, you did mention in Geneva about your interest to organize the PICARD conference one day – and now, five years later, you are in the organizing team of the 11th PICARD conference, to be held in Manilla, the Philippines, September this year – congratulations on that! Where do you stand with the conference organizations at the moment?

Thank you for supporting our bid to host the conference. We are putting everything in place and took preliminary steps for the preparation. For this reason, we visited the WCO in Brussels few weeks ago and met with the team of Mr. Robert Ireland to discuss and firm up important details for the Conference. We also had the opportunity to sit down briefly with the Secretary General Kunio Mikuriya for some key points he stressed about the Conference.  I know that it would be a great challenge for us but we are also reviewing and following the best practices taken in the past PICARD conferences. With the guidance of the WCO Research team, the Scientific Committee for WCO and the PICARD Advisory Group, we are confident about the steps we are taking.

Yes, I know from the experience that incredible number of details must be properly managed, starting from 12 months before the conference, all the way to the opening day – and, beyond… But, you think you will manage to take all steps on time?

As I personally experienced in 2011, despite the limited number of CBRA staff you had, I believe that you did a great job then!  Every year is an exciting experience for all of us – PICARD attendees, and we would like to pick up from there. We are following a very strict timeline in coordination with Mr. Ireland of WCO and our team in the Philippine Customs. We also tapped the support and expertise of our colleagues in the academia and the business community and we believe that working together could help us deliver our commitment in hosting the PICARD conference.

Great! And what are your main expectations regarding the outcomes of the 11th PICARD conference?

When we first expressed our intention to host the conference, we would like to show to the global customs community not just the rich history of our culture and heritage, but also the progress that the academia, the business community and customs have initiated and put together in moving forward to a modern and efficient customs management. It is also very important to note that the Philippine legislature recently passed the Customs Modernization and Tariff Act and we are expecting the President to sign this into law very soon.

Excellent! Please let me and my colleagues know if we can be of any further help… And looking forward to seeing you again – by the way, this will be my first time in the Philippines! Thanks again Sam for the interview!  Juha.

I feel excited seeing all of you in the Philippines and for first-time visitors like you Juha, we would make sure that you will surely be afforded the Filipino hospitality we are known of! Let me thank you again for the warm welcome you gave in 2011 and today. Mabuhay!

AEO benefits, or, no benefits, that’s the?

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“To be, or not be – that is the question”, was Prince Hamlet wondering already some 412 years ago. 400 years later, the CBRA research team started to raise the question of “AEO benefits, or no AEO benefits – that is the ?”…

 

Around year 2004, we first started to study the emerging AEO-types of programs in Europe and globally, working intensively with multinational companies (clothing, cigarettes, machinery etc.), and with multiple governments. Initially, we reviewed any data available from C-TPAT, StairSec, BASC and TAPA programs, and later we concentrated on EU AEO and all other AEO programs across the globe. After 12 years of research our intention is to publish an academic journal paper summarizing all the knowledge from the literature as well as from our own research on AEO benefits for Customs administrations and for supply chain companies – focusing on the tangible, realized benefits, instead of “paper tiger / lip service” types of benefit checklists.

As the last step of data collection, we are now launching the study: “Customs Supply Chain Security Programs (AEO, C-TPAT etc.) – Survey on Supply Chain and Government Benefits – WCO 3rd Global AEO Conference, Cancun, Mexico, 11-13 May 2016 – Research project by CBRA, ZLC, UCR, HEC UNIL and FP7-CORE”. This survey is a direct follow-up with the one CBRA did in the 2nd Global AEO Conference in Madrid two years ago. Ms. Susana Wong Chan from the University of Costa Rica and Cross-border Research Association is presenting the survey in Cancun next week, and collecting as many replies as possible, in person during the conference (and by email after).

We have three main questions in the Cancun AEO survey, each one with multiple sub-questions (all questions are presented with a five-point Likert scale, plus one option for “cannot say”):

  • Question for Customs administrations, supply chain companies, and all other experts in cross-border supply chains and Customs supply chain security programs: How often are the supply chain security program certified companies in your country benefiting from the following Customs granted incentives?
  • Question for Customs administrations only: What are the benefits for the Customs administration in your country arising from the supply chain security program?
  • Question for supply chain companies only: What are the additional benefits for the supply chain companies in your country, arising from the supply chain security program participations / certifications?

blog 08.05.20162The full list of questions and sub-questions is shared at the end of this blog. In addition, you can download the questionnaire in word-format, in English and in Spanish, at:  https://www.cross-border.org/downloads/

 

 

 

 

 

 

 

 

Why don’t (near) perfect AEO benefit -papers exist yet in the literature? One would think that the topic attracts lots of academics to carry out such research, and to publish their exciting findings, rather sooner than later… Well, it is quite challenging topic to study: where is the objective, non-biased data located, and how do you get access to it? How to deal with all the politics linked to the topic, as maybe many countries would like to be perceived as “leading edge AEO program holders, with a set of fantastic, innovative benefits delivered to the trade and logistics…”? How to differentiate between all the AEO marketing materials and incentive promises from what is actually implemented on the ground, for the real benefit of supply chain companies; and so forth..? To expand on these thoughts, one could revisit our article on the WCO News No 74 of June 2014. The table on page 45 includes a row on challenges and peculiarities with different categories of possible AEO benefits, sharing following observations and notes:

  • As some of the Customs granted benefits existed in many countries before the AEO era, companies which have enjoyed “such pre-AEO benefits” may fear a potential reduction in existing trade facilitation measures – instead of the introduction of truly new benefits.
  • Due to the dynamics in the cross-border flow of goods, outcomes might vary considerably over time – ‘seeing is believing’; in particular, the benefits linked to ‘elevated threat’ and ‘post-incident recovery’, may appear quite theoretical until such situations actually emerge (and the benefits materialize – or, not).
  • Some could also consider that the AEO system may become a technical trade barrier – the ´become an AEO or die´ scenario.
  • Some might think that an AEO program deters crime, as criminals would rather choose an easy target (i.e. a non-AEO target), for example in the case of warehouse theft; and, alternatively, other might think that an AEO program attracts criminals, as they know there are likely to be fewer Customs interventions – the smuggling of narcotics, for example.

 

Blog_080520163Dear CBRA Blog reader: although this is very challenging research topic, and one should not dream of reaching “one ultimate truth out there” – we kindly ask that if you are in Cancun 11-13 May for the 3rd Global AEO Conference, please take 10 minutes to reply the questionnaire..! Next to the good vibrations gained from participation in this highly important study, you will join a lucky drawing of a nice Costa Rican souvenir! In Lausanne, 9 May 2016, Juha Hintsa.

 

 

 

 

 

 

 

PS. List of benefit survey questions, for the CBRA Blog readers:

Customs Supply Chain Security Programs (AEO, C-TPAT etc.) – Survey on Supply Chain and Government Benefits – WCO 3rd Global AEO Conference, Cancun, Mexico, 11-13 May 2016 – Research project by CBRA, ZLC, UCR, HEC UNIL and FP7-CORE

 

Question for Customs administrations, supply chain companies, and all other experts in cross-border supply chains and Customs supply chain security programs: How often are the supply chain security program (AEO, C-TPAT etc.) certified companies in your country benefiting from the following Customs granted incentives?

Use the following scale: Very frequently – Frequently – Occasionally – Rarely – Never / Not applicable in our country (or, this is nothing specific for certified companies) – Cannot say

  • Are companies submitting entry/exit summary declarations with reduced data sets?
  • Are companies benefiting from reduced number of data elements in their final declaration?
  • Are companies benefiting from increased paperless processing of import/export shipments?
  • Are companies offered the option of audit-based / account-based controls (versus only transaction-based controls)?
  • Are companies having access to / pre-qualification with various simplified customs procedures?
  • Are companies self-managing their bonded warehouses?
  • Are companies benefiting from tax privileges, such as speedier tax refunds and compensation?
  • Are companies benefiting from financial guarantee waivers, reductions or rebates?
  • Are companies benefiting from reduction of any Customs fees or charges?
  • Are companies benefiting from access to self-audit or reduced audit programs?
  • Are companies allowed to conduct self-assessments when Customs automated systems are not functioning?
  • Are companies benefiting from designated Customs contact points / assistance by Customs supply chain security experts?
  • Are companies benefiting from training provided by Customs experts?
  • Are companies enjoying easier access to other governmental certification in the supply chain, e.g. in aviation security?
  • Are companies benefiting from the option to manage clearance formalities, inspections etc. at the business site?
  • Are companies benefiting from a minimum number of cargo security inspections?
  • Are companies being notified of the intention to release goods prior to their arrival? (“pre-clearance”)
  • Are companies benefiting from “extended Customs office opening hours”, during high peak / congestion times?
  • Are companies benefiting from choice of place of controls, if selected for control?
  • Are companies benefiting from priority treatment of consignments if selected for control?
  • Are companies benefiting from priority use of non-intrusive inspection techniques when examination is required?
  • Are companies guaranteed a priority Customs processing during a period of elevated threat conditions?
  • Are companies guaranteed preferential treatment at border crossings in post-disaster/post-attack situations?
  • Are companies guaranteed a priority in exporting to affected countries after a security incident?
  • Are companies benefiting from expedited processes to resolve post-entry or post-clearance inquiries?
  • Are companies benefiting from priority response to requests for ruling from Customs?
  • Are companies benefiting from privileges in any kind of non-criminal legal cases?
  • Are companies enjoying tangible benefits due to mutual recognition agreements / arrangements (MRAs) with 3rd countries?

blog 08.05.20164

 

Question for Customs administrations only: What are the benefits for the Customs administration in your country arising from the supply chain security program (AEO, C-TPAT etc.)?

Use the following scale: Strongly Agree – Agree – Neither Agree nor Disagree – Disagree – Strongly Disagree – Cannot say

  • Better overall allocation of governmental resources
  • Improved indirect tax revenue collection
  • Improved prevention of trafficking and illicit trade
  • Improved detection and/or seizures in trafficking and illicit trade
  • Improved prosecution to judgements -ratio (= higher percentage of successful prosecutions)
  • Increased confiscations of criminal assets and/or proceeds of crime
  • Improved collaboration with supply chain companies
  • Improved collaboration with other national government agencies
  • Improved international collaboration with Customs administrations in other countries

 

Question for supply chain companies only: What are the additional benefits for the supply chain companies in your country, arising from the supply chain security program participations / certifications (AEO, C-TPAT etc.)?

Use the following scale: Strongly Agree – Agree – Neither Agree nor Disagree – Disagree – Strongly Disagree – Cannot say

  • Improved customer service
  • Improved customs loyalty
  • Increased market share/ gaining more new customers
  • Improved security commitment of employees
  • Improved company image and credibility
  • Reduced overall vulnerability of the supply chain
  • Improved supply chain resiliency
  • Reduced cargo theft incidents
  • Reduced tax fraud incidents
  • Reduced illicit trade / trafficking incidents
  • Reduced insurance fees
  • Improved inventory management
  • Fewer delayed cross-border shipments
  • Reduced lead time variability in the cross-border supply chain

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PPS. Related literature by the Cross-border Research Association team and key partners:

Most of these papers are available for download at ResearchGate, https://www.researchgate.net/profile/Juha_Hintsa/publications . And all of them can be naturally requested by email ( cbra@cross-border.org )

Hintsa, J., Mohanty, S., Rudzitis, N., Fossen, C. and Heijmann, F. (2014), “The role and value of customs administrations in minimization of socio-economic negative impacts related to illicit import flows in freight logistics systems- three preliminary cases in Europe – FP7-CORE”, Proceedings of the 9th WCO PICARD Conference, September 17-19, 2014, Puebla.

Hintsa, J. (2013), AEO – MRA Study for RTC- Thailand Europe Cooperation TEC-II, PDSC: Implementation of international standards on Supply Chain Security leading to a secure Trade Environment and to increased Trade Facilitation (Activity Code : TRA 4), Final Report, Bangkok.

Urciuoli, L. and Ekwall, D. (2012), “Possible impacts of supply chain security certifications on efficiency – a survey study about the possible impacts of AEO security certifications on supply chain efficiency”, Proceedings of Nofoma Conference, June 6-8, 2012, Naantali.

Hintsa, J., Männistö, T., Hameri, A.P., Thibedeau, C., Sahlstedt, J., Tsikolenko, V., Finger, M. and Granqvist, M. (2011), Customs Risk Management (CRiM): A Survey of 24 WCO Member Administrations, Study for World Customs Organization (WCO), February 28, 2011, Lausanne

Hintsa, J., Hameri, A.P., Männistö, T., Lazarescu, M., Ahokas, J. and Holmström, J. (2010), ”Conceptual model for measuring benefits of security in global supply chains”, Proceedings of the the 3rd International Conference on Transportation and Logistics (T-LOG), September 6-8, 2010, Fukuoka City.

Hintsa, J., Ahokas, J., Männistö, T. and Sahlstedt, J. (2010), “CEN supply chain security (SCS) feasibility study”, CEN/TC 379 Supply Chain Security, Final report, January 15, 2010

Review of TAPA TACSS – Air Cargo Security Standards, 2012 (CORE1045)

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Summary: TAPA TACSS – Air Cargo Security Standards (TACSS) is a certifiable security program for the air cargo industry to close down, as much as possible, all risks for high value freight whilst being handled and transported on the ground. Available to General Public at the TAPA Website, this standard is hyperlinked here: https://www.tapaemea.com

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Full review: The Transported Asset Protection Association (TAPA) is a self-funded industry group comprising of manufacturers, shippers, logistics providers and law enforcement agencies that share the objective to eliminate loss of product by criminal act. The theft of high value, high risk products moving in supply chains in Europe costs businesses in excess of € 8.2 billion a year.

Although the focus of TAPA is to stop the unauthorized removal of items from the logistics chain, many of the methods used by criminals to achieve this are entirely relevant to the other security threats seen within the industry. E.g. unauthorized entry, deception techniques, tampering of shipments etc.  TAPA has created a number of certifiable security standards:

  • FSR (Freight Security Requirements)
  • TSR (Trucking Security Requirements)
  • PSR (Parking Security Requirements)
  • TACSS (TAPA Air Cargo Security Standards)

The latter one, TACSS is a set of security standards designed specifically for Air Cargo Handling Facilities. It takes into account the mode of operation of such terminals often having open doors, and yet often operating inside a secure area within an airport, behind a fence. By providing comprehensive requirements and a certification scheme for the protection of air cargo whilst being transported on the ground, TAPA hopes to provide its own members and industry partners with viable options for improving and/or maintaining an effective air cargo security program.

There are two levels to the Standard. Level 1 & Level 2, with 1 being the higher level of security, and the decision of which Level to certify against is decided by risk assessment which takes into account the geographical location of the facility and crime levels in the area. Certification is by Independent Validator against a checklist and valid for 2 years.

Detailed analysis of relevance for CORE: The CORE implementation objectives, which specify what will be done and how to reach the vision, are all subject to the Policies, Regulations, and Standards that exist within the Security Domain of the Global Supply Chain. Among all Work Packages of the project, some are directly impacted by the project, while others are solely primarily or secondarily contributed. Among these Work Packages, the CORE demonstrators will validate the applicability and benefits of the CORE approach in representative operating scenarios characteristic of the global supply chain. They will specifically show the way towards a Global Secure Supply Chain. The overriding goal is to demonstrate substantial gains in security and facilitation covering every major facet of the supply chain security sector.

The following Work Packages are directly impacted by the TACSS initiative:

  • WP7: CORE Connectivity Infrastructure and Solutions Development Environment – provide an integrated set of tools for developing solutions for the Demonstrators in line with SCSRF utilizing results from reference projects particularly e-Freight and ICargo.
  • WP12: Demonstrator Schiphol – apply global data pipeline concept to air cargo supply chains, managing air freight specific trade compliance requirements, and offering supply chain visibility in dashboards. Trade lanes with e.g. Africa, involving multiple inspection authorities.
  • WP17: DHL Demonstrator – managing airfreight trade compliance requirements EU-US in the context of fast supplying of parts. In this demonstrator, TAPA TACSS and mutual recognition with the US will become evident.

The following Work Packages are primarily affected by TAPA TACSS, as airfreight is part of global supply chain:

  • WP14: Demonstrator FALACUS – FastLAne through CUStoms – implement an extensive supply chain of ceramics products along international corridors between Italy and USA.
  • WP15: Decathlon Demonstrator – operational and security related Key Performance Indicators (KPIs) within the CORE framework will be applied to monitor the overall level of security within the supply chain for different supply chain actors Taiwan to retail shop destinations across Europe implementation of this new transit modality and the impact it would have on the overall performance of the supply chain.
  • WP19: Stakeholder Engagement – Knowledge Diffusion and Sustainable Development – Specify and apply an inclusive Stakeholder Engagement Strategy emphasizing international co-operation to promote harmonization of regulations, and to support further development and implementation of international standards.

The TACSS Initiative could also help with the following Work Packages, with the following secondary effects:

  • WP3: Multi-method Threat and Vulnerability Analysis (MTVA) Suite
  • WP4: SC Situational Awareness Tools & Maps
  • WP5: Real-time Lean Agile Resilient Green Optimized (LARG+O) SC
  • WP16: ENI Demonstrator
  • WP22: Analysis and Testing of a Secure Hybrid Composite Container

CORE Impact anticipation: CORE seeks to give consolidated solutions and develop the resilience, optimization and interoperability of the global supply chain, including Port, Container, Post, Truck, Rail, Maritime and Air. Air freight is thence a part of the global vision of CORE. TAPA TACCS contributes thence directly to CORE vision. Impact?

Cross-references: Air Cargo World on TAPA TACSS and air cargo crimes: www.aircargoworld.com

Full citation: TAPA EMEA Website, TACSS Page, accessed 23 September 2014: https://www.tapaemea.com

 

CORE1045

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Review of TRANSPark truck parking service (CORE1041)

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Summary: As a response to the increasing security concerns surrounding goods transport by road, the IRU Membership has been providing information on safe and secure truck parking areas to road hauliers and truck drivers for more than two decades. Since the early 1990s, this information was disseminated in the form of a printed handbook. In 2007 the online website was launched.  In 2013 a smartphone app was launched. Currently initiatives are taken to encourage the use of TRANSPark globally. It does not have much documentation available, except promotional fliers and the website and the app themselves. Available to the General Public at: http://www.iru.org and through the Android and iPhone TRANSPark app, which can be downloaded from the stores. Overall relevance to CORE is high, as truck transports constantly risk being attacked by organised crime with the aim to either steal fuel, cargo or potentially even to use a truck for terrorist purposes. Therefore, ensuring that trucks are parked at safe and secure truck parking areas is essential for drivers, road hauliers, shippers and other stakeholders involved in supply chain security.

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Full review: The current strengths include: Bringing information on safe and secure truck parking areas to drivers and road hauliers; Offering a driver-haulier-shipper-enforcement social network, enabling info sharing on latest road cargo related security threats; and providing flexible platform with expected future expansions to further ensure information sharing between key road haulage actors. Future opportunity is: Using this established communication channel for two-way information sharing with truck drivers, road hauliers, shippers and enforcement. And future threat is: The success of this community, as any other, depends strongly on the uptake by users.

Detailed analysis and relevance for CORE: The CORE implementation objectives depend on securing every element of the supply chain, and ensuring swift information sharing between different actors. TRANSPark could be relevant to following Work Packages:

  • Research and Analysis: TRANSPark-relevant information could contribute to understanding the amount of crime against road hauliers on roads, such as fuel theft and cargo theft.
  • Demonstrators: TRANSPark webservice and app(s) could be made available to the CORE demonstrators. Certain TRANSPark functionalities could be amended to suit CORE developments better, in all demonstrators where trucks need to take a rest or stay at truck parking areas.

CORE Impact anticipation: CORE could have a strong impact on future developments of the TRANSPark webservice and the app. The service is constantly evolving and is looking for new ways to improve security of the road haulage for drivers, hauliers, and other relevant stakeholders.

App and video:

Available to General Public at: http://www.iru.org  and through the Android and iPhone TRANSPark app, which can be downloaded from the stores.

Youtube video on TRANSPark: https://www.youtube.com

 

CORE 1041

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