WP22 - Cross-border Research Association

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

April 27, 2016/0 Comments/in CORE-Observatory, EU, High-value goods, NGO, Other-cluster, Risk management, Risk-cluster, Road, Standards, Supply chain security, TAPA, TAPA, Theft, WP12, WP14, WP15, WP16, WP17, WP19, WP22, WP3, WP4, WP5, WP7 /by Vladlen Tsikolenko

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

[s2If is_user_logged_in()]

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

[/s2If]

Review of IATA E-Freight – an air cargo industry initiative facilitated by IATA, to remove paper from the supply chain, 2014 (CORE1044)

April 27, 2016/0 Comments/in CORE-Observatory, Customs, Freight forwarder, Shipper, Transport carrier, WP12, WP14, WP15, WP16, WP17, WP19, WP22, WP3, WP4, WP5, WP7 /by Vladlen Tsikolenko

Summary: Launched by IATA in 2006 as part of the StB program, E-Freight became an industry-wide initiative involving carriers, freight forwarders, ground handlers, shippers and customs authorities. The roadmap to 100% E-Freight outlines a shared end-to-end industry approach with clear leadership roles, around three core components, or “pillars”:

Pillar I: Engaging regulators and governments worldwide to create an ‘e-freight route network’ with fully electronic customs procedures and where regulations support paperless shipments.
Pillar II: Working collaboratively within the cargo supply chain to digitize the core industry transport documents, starting with the air waybill.
Pillar III: Developing a plan to digitize the commercial and special cargo documents typically accompanying airfreight today, in or outside of the ‘Cargo pouch’ 2014 targets.

Year 2014 target was to grow global e-AWB penetration to 22%. Available to General Pubic at the IATA Website, this standard is hyperlinked here: http://www.iata.org

[s2If is_user_logged_in()]

Full review: Benefits: E-freight will bring following benefits to the air cargo industry:

Operational – shorter transit times, less paperwork (no copying/ printing/data-capturing)
Quality – improved transparency, reduced chance of data errors, no missing documents
Security – improved control of distribution of shipment details
Environmental – reduced paper consumption

Two key challenges of implementation: The first is that the ‘Contract of Carriage’ is printed on the reverse side of the paper Air Waybill. Without this, it is imperative that this ‘Contract’ is secured by other means. With this in mind, IATA has created a standard multilateral agreement that can be signed by Carrier and Agent / Forwarder as appropriate. The multi-lateral agreement was released in 2013, and will improve the numbers of e-freight shipments considerably. The second challenge is relevant to CORE and that is the electronic shipment data. This exists in two forms: FHL at House Air waybill level, and FWB at Master Air waybill level. Here the challenge is to get ‘first time right’ data. Without the correct data, any congruence checks made with the physical shipment will not align, and the shipment cannot be shipped. It is almost like turning up at the airport as a passenger with your brother’s passport.

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.

Data is relevant in the CORE project as it could be an enabler of some data screening, either to assess for cargo deemed to be more of a risk (like the ACAS trial running in North America), or even to specifically identify and target a specific shipment.

The following CORE Work Packages are directly impacted by the E-Freight 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, Cargo 2000 and mutual recognition with the US will become evident.

The following Work Packages are primarily contributed by E-Freight, 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 E-Freight Initiative could also help with the following Work Packages, which are secondarily affected:

WP3: Multi-method Threat and Vulnerability Analysis (MTVA) Suite
WP4: SC Situational Awareness Tools & Maps
WP5: Real-time Lean Agile Resilient Green Optimised (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. E-Freight contributes thence directly to the CORE vision.

Cross-references: WCO News Magazine: http://www.wcoomd.org

Full citation: IATA Website, E-Freight Page, accessed 23 September 2014: http://www.iata.org

CORE1044

[/s2If]

Review of Cargo 2000, C2K – an IATA interest group with the mission of creating and implementing quality standards for the worldwide air cargo industry, 2015 (CORE1043)

April 27, 2016/0 Comments/in Air, All-clusters, CBRA, CORE-Observatory, CPT, Demo-cluster, Express courier, Global, IATA, IT-cluster, Mail operator, NGO, Other-cluster, Risk-cluster, Standards, Transport carrier, WP12, WP14, WP15, WP16, WP17, WP19, WP22, WP3, WP4, WP5, WP7 /by Vladlen Tsikolenko

Summary: Cargo 2000 is the quality standard for the tracking, measuring general air cargo shipments. It is a project commenced in 1997 and is supported by a self-funded group of the world’s leading Airlines, Forwarders, Ground Handling Agents and specialist IT providers. IATA then provides oversight, administration and facilitation on behalf of the Membership. Cargo 2000 (C2K) uses standard recognized IATA Cargo-IMP (Interline Message Procedures) already used within the air cargo industry to provide reference points for measurement. These are known as FSU (Freight Status Update) messages. The key metrics under C2K are NFD (Notified for Delivery), in which case the destination has received both the physical cargo shipment and the information (paper or electronic) is available for collection by the Agent of the Consignee, and FAP, Flown as planned. In this case, the service delivered matches that which was promised to the customer in terms of timings and flights. In order to simplify and standardize the various processes that support C2K, as it is used by multiple stakeholders in a live environment, the C2K Master Operating Plan (MOP) was completely revised in 2012. The result is a very visual process description that allows every stakeholder to clearly see the part they play in the overall end-to-end routing of the shipment. The visual nature of the schematics, also allows the assessment of any new legislation, processes or procedures to be predicted both up and down the chain. Available to General Pubic at the IATA Website, this standard is hyperlinked here: http://www.iata.org

[s2If is_user_logged_in()]

Full review: 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 CORE Work Packages are directly impacted by the C2K Industry Standards:

WP7: CORE Connectivity Infrastructure and Solutions Development Environment – provide an integrated set of tools for developing solutions for the Demonstrators in line with SCSRF utilising 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, Cargo 2000 and mutual recognition with the US will become evident.

The following CORE Work Packages are primarily contributed by C2K:

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 emphasising international co-operation to promote harmonisation of regulations, and to support further development and implementation of international standards.

The C2K Standard will have the secondary effects on the following Work Packages:

WP3: Multi-method Threat and Vulnerability Analysis (MTVA) Suite
WP4: SC Situational Awareness Tools & Maps
WP5: Real-time Lean Agile Resilient Green Optimised (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, optimisation and interoperability of the global supply chain, including Port, Container, Post, Truck, Rail, Maritime and Air. Cargo 2000 contributes thence directly to CORE vision.

Cross References: Introduction to Cargo 2000 by IATA, http://www.iata.org/whatwedo/cargo/cargo2000/Documents/c2k-introduction.pdf

Full Citation: IATA Website, Cargo 2000 Page, accessed 22 September 2014: http://www.iata.org

CORE1043

[/s2If]

C-TPAT Program Benefits Reference Guide, 2014 (CORE1032)

March 6, 2016/0 Comments/in Air, Airport, All transport modes, All-clusters, C-TPAT, CBP, CBRA, Contraband, CORE-Observatory, Counter-terrorism, Demo-cluster, Exporter, Express courier, Freight forwarder, Government, Guidebook, Importer, Inland waterway, IT-cluster, Mail operator, Manufacturer, Maritime, Multi-modal, Other-cluster, Rail, Retailer, Risk-cluster, Road, Sea port, Shipper, Supply chain security, Trafficking, Transport carrier, Trusted Trader, USA, Warehouse keeper, WP1, WP10, WP11, WP12, WP13, WP14, WP15, WP16, WP17, WP18, WP19, WP2, WP20, WP21, WP22, WP3, WP4, WP5, WP6, WP7, WP8, WP9 /by Vladlen Tsikolenko

Summary: This guidebook outlines the key elements and benefits of the Customs-Trade Partnership Against Terrorism (C-TPAT) program that is designed to secure global supply chains and to improve United States border security. Document is available at: https://www.cbp.gov/sites/default/files/documents/C-TPAT%20Program%20Benefits%20Guide.pdf (link tested on 3 March 2016)

[s2If is_user_logged_in()]

Full review: C-TPAT partners receive a wide range of benefits listed below:

C-TPAT Partners are examined at a considerably lower rate than non-C-TPAT Partners.
C-TPAT certified/validated highway carrier Partners are granted expedited border crossing privileges. C-TPAT Partners at many Canada/Mexico land border ports of entry have access to Free and Secure Trade (FAST) Lanes.
Some categories of C-TPAT importer Partners are exempt from stratified exams.
C-TPAT shipments subject to examination are moved ahead of any non-C-TPAT shipments, to the extent possible.
In the event of a significant disruption/delay in cargo processing operations, actions are taken to maintain communication and coordination with C-TPAT Partners for business resumption.
C-TPAT Partners’ trade compliance issues are given priority over those issues related to non-C-TPAT Partners.
Each C-TPAT Partner is assigned a Supply Chain Security Specialist (SCSS) who coordinates between the C-TPAT Partner and the US Customs and Border Protection agency (CBP). The Specialist also assists the Partner with supply chain security issues.
Partners have access to the C-TPAT’s automated Portal system, to communicate with CBP and exchange program related information in a secure manner.
C-TPAT Partners are eligible to attend C-TPAT events like the annual Conference and other training seminars organized by the program.
C-TPAT importer Partners are eligible to participate in the Importer Self-Assessment (ISA) Program.
The Penalty Mitigation benefit is granted to sea carriers for late submission of data required under the Importer Security Filing requirements.
C-TPAT members are eligible to participate in other U.S. Government pilot programs, such as the Food and Drug Administration’s Secure Supply Chain program.

In addition, some benefits are associated with Mutual Recognition Arrangements (MRAs) when two customs authorities formally acknowledge the security requirements or standards of one program, as being equivalent to the other program. Some of the resulting benefits to the trade community are illustrated below:

C-TPAT importer Partners that also conduct export operations and Partners of the foreign Customs Administration programs (manufacturers and exporters of record) are granted a reduction in their overall cargo risk score, implying fewer examinations at export and import ports.
A C-TPAT validation for an overseas partner is not required if an MRA is in place because CBP recognizes the status of the Partner in the foreign partnership program.
Companies covered by MRAs need only to comply with a common set of security requirements, avoiding the hassle of following multiple sets of requirements from one partnership program to another.
MRAs lead to more transparency in international commerce. Mutual exchange of information between these partners facilitates trade across Mutual Recognition Partner nations.

CORE1032

[/s2If]

C-TPAT Best Practices Catalog Addendum, 2009 (CORE1031)

March 6, 2016/0 Comments/in Air, Airport, All transport modes, All-clusters, C-TPAT, CBP, CBRA, Contraband, CORE-Observatory, Counter-terrorism, Demo-cluster, Exporter, Express courier, Freight forwarder, Government, Guidebook, Importer, Inland waterway, IT-cluster, Mail operator, Manufacturer, Maritime, Multi-modal, Other-cluster, Rail, Retailer, Risk-cluster, Road, Sea port, Shipper, Supply chain security, Trafficking, Transport carrier, Trusted Trader, USA, Warehouse keeper, WP1, WP10, WP11, WP12, WP13, WP14, WP15, WP16, WP17, WP18, WP19, WP2, WP20, WP21, WP22, WP3, WP4, WP5, WP6, WP7, WP8, WP9 /by Vladlen Tsikolenko

Summary: This addendum document lists cargo security best practices with focus on prevention of weapons of mass effect, terrorists, and/or contraband from infiltrating into the international supply chain. Each best practice is linked to a specific business entity, such as a Manufacturing Company, a Highway Carrier, an Importer or a Foreign Consolidator but these may apply to other business types as well. The document is available at: https://www.cbp.gov/sites/default/files/documents/ctpat_bpa_2009_0.pdf (link tested on 3 March 2016)

[s2If is_user_logged_in()]

Full review: The best practices are outlined as follows:

Risk assessment: Programs are in place to enable the identification of the most vulnerable supply chain areas, to grade suppliers supply chain security criteria. Specific processes have been developed to manage the supplier’s products, software and services and internal monitoring systems to enhance the safety and security procedures.

Business partner requirements: Several security measures have been taken by entities. These include conducting supply chain security audits to ensure compliance of non-C-TPAT business partners; carrying out security audits of a foreign manufacturer; making security self-assessments, conducting onsite inspections to ensure freight security; shipping cargo only through accredited ports and steamship lines; monitoring compliance of manufacturing facilities; screening procurements to identify ineligible status of suppliers, and performing audits of business partners.

Conveyance/Container/Trailer Security: Examples of such security practices are: integrating special security features in the GPS (global positioning system); using laser beams to protect trailers; using colour codes for matching consignments; installing infrared sensors in docks to prevent unauthorized access; using special codes to identify correct shipments; documenting all seal changes for shipments in transit; ensuring delivery by authorized Company drivers; sealing containers; operating through C-TPAT carriers; using only “seaworthy” containers; installing in-transit temperature data sensors to ensure product quality; enclosing container storage area; conducting non-intrusive inspection prior to loading a vessel; establishing specific inspection points; using multiple security devices on each container; using automated container yards; instructing foreign suppliers to provide inspection checklists; using dock locking arms for container storage; installing motion sensors in a trailer; operating through contracted highway carriers and security services; documenting a seal destruction policy, and so forth.

Physical Access Controls: Some practices by Importers include establishing multiple security stations within the building; using metal detectors for employees; installing an electronic swipe card/ lock box systems for access control for sensitive documents; conducting electronic scanning of visitors’ drivers licenses; utilizing a third-party software system to manage key inventory; and providing panic buttons for company employees.

Physical Security: Several innovative solutions have been designed to ensure physical security, such as electronically closing gates and activating tire puncturing devices to prevent vehicle exits; using an electronic security information reporting system, installing invisible electronic fences; installing laser sensors; setting up optical light beams to detect intruders; fitting double locks on doors; Installing infrared sensors on fences; using body alarm functions for emergencies; appointing patrolling guards, using multiple glass meeting rooms; using multiple interior infrared security alarm beams to detect unauthorized access; and installing security guard view towers.

Personnel Security: An Importer requires business partners to provide a monthly master list of employees and immediately notify when their employees are hired or terminated, in order to ensure that only authorized business partner’s employees enter the manufacturing facilities.

Security Training/Threat Awareness/Outreach: Business entities have invested in a wide range of training programs. One such initiative is the four-tier C-TPAT training targeted for management and supervisors, shipping and receiving personnel, internal personnel dealing with contractors and hourly staff. Other businesses use different approaches, like establishing an online training portal;; offering general security training and of site-specific training for security guards; issuing security advisories; making regular security awareness assessments; establishing a situation matrix chart to address possible incidents; establishing a direct communication channel between the president of the company and employees; putting in place a toll free hotline for company personnel; conducting security drills and exercises; establishing a web-based security awareness training; documenting security incidents in a central database; and establishing a global communication system to contact all employees and contractors remotely.

Procedural Security: Instances of this type of security measures include a bio-thermal intrusion alarm system; a global SAP network to generate all written orders for import and export; automatic screening procedures of purchase orders for restricted parties; lock boxes for sensitive documentation; an automated loading module called the Automatic Truck Loading System (ATLS); a container seal number as the shipment tracking (invoice/bill of lading) number, and so forth.

Information Technology (IT) Security: Such security practices include a biometric fingerprint door lock; a remote data backup center; a retina scanning system for access to the computer system; requiring supervisory approval to copy data; use of electronic password protected purchase orders; establishing a daily “e-test” for employees to access computers, and so forth.

CORE1031

[/s2If]

CEN Supply Chain Security — Good Practice Guide for Small and Medium Sized Operators, 2012 (CORE1030)

March 5, 2016/0 Comments/in Air, Airport, All transport modes, All-clusters, Authorized Economic Operator, CBRA, CORE-Observatory, Corruption, Counterfeiting, Cybercrime, Demo-cluster, DG MOVE, DG TAXUD, Document forgery, EC, Environmental crime, EU, Exporter, Express courier, Fraud, Freight forwarder, Hijacking, Human trafficking, Identity theft, Importer, Inland waterway, ISO28000, IT-cluster, Known Consignor, Mail operator, Manufacturer, Maritime, Money laundry, Multi-modal, Other-cluster, Rail, Regulated Agent, Retailer, Risk-cluster, Road, Sea port, Shipper, Standard, Standardization, Supply chain security, TAPA, Tax evasion, Terrorism/destruction, Theft, Trafficking, Transport carrier, Violence, Warehouse keeper, WP1, WP10, WP11, WP12, WP13, WP14, WP15, WP16, WP17, WP18, WP19, WP2, WP20, WP21, WP22, WP3, WP4, WP5, WP6, WP7, WP8, WP9 /by Vladlen Tsikolenko

Summary: This is a guidance document for small and medium sized enterprises, SMEs. on how to apply a supply chain security approach to their operations in order to mitigate the risk of criminal activities. It gives an overview of the main crime types occurring in the supply chain along with some countermeasures, as well as the supply chain security initiatives, and the compliance requirements thereof. The document is available for purchase e.g. at: http://shop.bsigroup.com/ProductDetail/?pid=000000000030258778 (link tested on 3 March 2016)

[s2If is_user_logged_in()]

Full review: The recommended supply chain strategy rests on a six-step approach. The first step is to define a context for the supply chain, crime prevention and security management activities taking into consideration the security sensitiveness, the geography and transport modes, and the main stakeholders involved in the supply chain operation. The second step is to make a threat and vulnerability analysis with regard to terrorist and other criminal threats in the supply chain. The main criteria included are the gaps existing in enhanced security, the high-risk crime types, and the potential consequences of crime occurrences. The third step covers the regulatory framework, the major aspects being the regulations and programs required for successful business operations, expectations of customers and suppliers, requirements laid down by insurance providers, and relevant government authorities. The fourth step refers to an overall security plan, taking into account the physical security, data security, human resources security (including selection, training, and exit procedures), business partner security (including selection, and auditing), and process control and monitoring of deviations. The fifth step involves implementing into practice concrete security measures, investment in technologies, procurement of services, in-house solutions and so forth. The final step is to monitor and measure the security performance and take appropriate corrective actions.

Five supply chain crime types have been elucidated in this guide. These include: Property theft (cargo theft, intellectual property breaches); targeted damage (terrorism, sabotage); cross-border duty and tax fraud; illegitimate transporting, exporting and/or importing (smuggling of prohibited and restricted goods, people smuggling); and crime facilitation (document forgery, bogus companies, cybercrime). For each crime type, the main focus should be on the issue (main features and typical sectors/products involved), scope of the problem and actions to mitigate risks.

This guidebook has chosen eight security initiatives for illustration purposes. It explains the context of each initiative, whom it is meant for, and some basic requirements and the implications. These are as follows:

Import Control System (ICS) in the EU (a systems tool meant for the lodging and processing of Entry Summary Declarations, and for the exchange of messages across national customs agencies, economic operators and the European Commission).
Export Control System (ECS) in the EU (introduces EU procedures to computerize and control indirect exports and to implement the EU safety and security regulations);
Maritime Security Legislation, International Ship and Port Facility Security (ISPS) Code in the EU (International regulations to ensure the security of maritime transportation are being issued by the International Maritime Organization, IMO, in the International Ship and Port Facility Security Code);
Aviation Security Legislation, Air Cargo Supply Chains in the EU (three categories of aviation security legislation exist in the EU- Framework regulation, supplementing regulations, and implementing regulations-all targeted towards civil aviation security).
European Union Authorized Economic Operator, EU AEO (operators involved in international trade of goods certified as complying with WCO or equivalent supply chain security standards);
Regulated agent, Known consignor and Account consignor in the EU (Specific “trusted trader” status existing in the European air cargo supply chains);
ISO 28000 Series of Standards on Supply Chain Security Management Systems (address potential security issues at all stages of the supply process, e.g. terrorism, fraud and piracy);
Transported Asset Protection Association (TAPA) in Europe (fighting cargo crime using real-time intelligence and the latest preventative measures).

CORE1030

[/s2If]

SUPPLY CHAIN SECURITY – U.S. Customs and Border Protection Has Enhanced Its Partnership with Import Trade Sectors, but Challenges Remain in Verifying Security Practices, GAO, April 2008 (CORE1011)

February 23, 2016/0 Comments/in All transport modes, Analytic, CBRA, CORE-Observatory, Counter-terrorism, Customs, Customs risks, Demo-cluster, Exporter, Express courier, Freight forwarder, GAO, Government, Importer, Manufacturer, Other-cluster, Retailer, Risk management, Risk-cluster, Shipper, Supply chain security, Tax evasion, Terrorism/destruction, Trade facilitation, Trafficking, Transport carrier, Trusted Trader, USA, Warehouse keeper, WP17, WP2, WP22, WP3, WP7 /by Vladlen Tsikolenko

Summary: The GAO report discusses the progress the Customs and Border Protection (CPB), a component agency of the US Department of Homeland Security (DHS), has made since 2015 with its flagship business-private supply chain security program Customs-Trade Partnership Against Terrorism (C-TPAT). The report focuses on three main areas of the C-TPAT’s management and governance: (1) awarding benefits for the C-TPAT compliant companies, (2) validating the member companies’ security compliance and (3) addressing CBP’s staffing challenges that the increasing popularity of the C-TPAT program brings. The report recommends CPB to improve its C-TPAT validation processes and instruments and to establish performance criteria for assessing the program’s impact on supply chain security and trade facilitation. The C-TPAT program and this GAO report contain useful information for the CORE’s demonstrations that import goods into the US. Also the CORE’s risk cluster can learn about opportunities and challenges a voluntary, risk-based supply chain security entails. The report is available at http://www.gao.gov/assets/280/274773.pdf.

[s2If is_user_logged_in()]

Full review: This report contains information that is particularly useful for two CORE demonstrators that cover US imports. The first WP9 demonstration is about shipping automobile parts from the EU to the US via the port of Bremerhaven. In this demo, the General Motors (GM) is the importer. Because GM holds a C-TPAT certificate, most of the information this report offers about the status and challenges of the C-TPAT program must be of interest for the company and for its CORE demonstration. The same applies to the WP14 demonstration “FALACUS” that is about importing ceramic tiles from Italy to the US via the Port of La Spezia. The demonstration has to deal with the C-TPAT program, and therefore the demo partners’ might benefit from studying this GAO report. In addition to the demonstrations, this report might support the work of the CORE’s risk cluster because the document discusses in detail challenges and possibilities of a voluntary, risk-based supply chain security program, which builds on business-government collaboration.

Cross-references:

Supply Chain Security: Examinations of High-Risk Cargo at Foreign Seaports Have Increased, but Improved Data Collection and Performance Measures Are Needed. GAO-08-187. Washington, D.C.: January 25, 2008.

Maritime Security: The SAFE Port Act and Efforts to Secure Our Nation’s Seaports. GAO-08-86T. Washington, D.C.: October 4, 2007.

Maritime Security: Observations on Selected Aspects of the SAFE Port Act. GAO-07-754T. Washington, D.C.: April 26, 2007.

Combating Nuclear Smuggling: Additional Actions Needed to Ensure Adequate Testing of Next Generation Radiation Detection Equipment. GAO-07-1247T. Washington, D.C.: September 18, 2007.

Cargo Container Inspections: Preliminary Observations on the Status of Efforts to Improve the Automated Targeting System. GAO-06-591T. Washington, D.C.: March 30, 2006.

Additional keywords: Border security, customs-trade partnership against terrorism (C-TPAT), supply chain security, counter-terrorism

CORE1011

[/s2If]

Supply Chain Security: DHS Should Test and Evaluate Container Security Technologies Consistent with All Identified Operational Scenarios to Ensure the Technologies Will Function as Intended, GAO, 2010 (CORE1068)

January 21, 2016/0 Comments/in All-clusters, Analytic, CBRA, CORE-Observatory, Counter-terrorism, Customs, GAO, Government, IT, Maritime, Multi-modal, Risk management, Scanning, Screening, Sea port, Supply chain security, Terrorism/destruction, Theft, Tracking, Trade facilitation, Trafficking, Transport security agency, USA, WP10, WP11, WP13, WP14, WP15, WP19, WP2, WP22, WP6, WP9 /by Vladlen Tsikolenko

Summary: This report reviews container security technologies that the Science and Technology (S&T) Directorate of the US Department of Homeland Security (DHS) has evaluated and tested between 2004 and 2009. These container security technologies aim to (1) detect and report unauthorized intrusions into the shipping containers and (2) to track the movement of the containers through the supply chain. As of 2009, DHS has funded and tested four different container security technologies. So far, none of the candidate technologies meet all desired functional requirements: main problems are high false alarm rates, low detection probability, and difficult installation and calibration. Besides the unsatisfactory test results, the report points out problems of conducting the phase II practical “trade lane” testing in the context of the maritime transport only. The report recommends to test the technologies “across all operational scenarios,” considering contextual differences across different modes of transport. Once the technologies would pass this extended trade lane testing, the DHS should (1) obtain support from the trade industry and international partners, (2) develop a concept of operations (CONOPS) for using the technology, and (3) certify the container security technologies for use. The source document is available at: http://www.gao.gov/products/GAO-10-887.

[s2If is_user_logged_in()]

Full review: This GAO document describes in detail the four container security technologies that DHS has tested since 2004, and one of these technologies happens to be the very same “composite security container” that the WP22 CORE demonstration studies. The report discusses in details the problems that the previous tests and pilots of container security technologies have encountered. Being aware of the past problems help the CORE demonstrations to avoid past mistakes. In addition to the WP22 demonstration, the other demonstrations that involve tracking & tracing of intermodal containers benefit from the information of this GAO report. For instance, the GM demonstration on maritime shipping of automobile parts from the EU to the US via the port of Bremerhaven (WP9) might use this GAO document to evaluate available technical solutions for tracking the shipping containers. The demonstrations in work packages 14-17 involve tracking and tracing and therefore may use the detailed analysis this GAO report offers on available container security technologies.

Cross-references:

Homeland Security: Key Cargo Security Programs Can Be Improved. GAO-05-466T. Washington, D.C.: May 26, 2005.
Cargo Container Inspections: Preliminary Observations on the Status of Efforts to Improve the Automated Targeting System. GAO-06-591T. Washington, D.C.: March 30, 2006.
Supply Chain Security: Feasibility and Cost-Benefit Analysis Would Assist DHS and Congress in Assessing and Implementing the Requirement to Scan 100 Percent of U.S.-Bound Containers. GAO-10-12. Washington, D.C.: October 30, 2009.
Maritime Security: DHS Progress and Challenges in Key Areas of Port Security. GAO-10-940T. Washington, D.C.: July 21, 2010.

Full citation:

U.S. Government Accountability Office (GAO), 2008. Supply Chain Security: DHS Should Test and Evaluate Container Security Technologies Consistent with All Identified Operational Scenarios to Ensure the Technologies Will Function as Intended.

CORE1068

Additional keywords: Container security, maritime logistics, container security device, tracking & tracing
[/s2If]

SUPPLY CHAIN SECURITY: Feasibility and Cost-Benefit Analysis Would Assist DHS and Congress in Assessing and Implementing the Requirement to Scan 100 Percent of U.S.-Bound Containers, GAO (October 2009, CORE1066)

January 21, 2016/0 Comments/in Analytic, CBRA, CORE-Observatory, Counter-terrorism, Customs, Customs risks, Demo-cluster, Global, Government, Maritime, Other-cluster, Resilience, Risk management, Risk-cluster, Scanning, Screening, Sea port, Socio-economic impacts, Supply chain security, Terrorism/destruction, Trade facilitation, Transport security agency, USA, WP10, WP11, WP13, WP14, WP15, WP19, WP2, WP22, WP6, WP9 /by Vladlen Tsikolenko

Summary: The document provides a comprehensive outlook on the past and recent US initiatives on container security. The report focuses on the challenges that prevent global implementation of the 100% scanning of US-bound containers in foreign ports with both non-intrusive inspection (NII) technologies and radiation detection devices, as mandated by the SAFE Port Act and the 9/11 Acts. The 100% scanning is believed to deter and detect terrorist attempts of smuggling weapons of mass destruction (WMD) into the United States inside a cargo container. The reports dates back to late 2009, so the description of the current state of the US container security it provides is not necessarily no longer accurate. The report anticipates that the implementation of the 100% scanning requirement will be delayed due to various problems that were identified during the precursory Secure Freight Initiative (SFI) pilots. These problems are related mainly to port logistics (routing of containers through scanning sites), employee safety (radiation of screening equipment) and technical constraints (equipment failures and poor quality of scanning images). Today, we know that the US authorities have deferred the implementation already twice, first to 2014 and for the second time until 2016. Altogether, this GAO report describes in detail the challenges of the 100% scanning law and elaborates some ongoing alternative risk-based approaches to container security: (1) the strategic trade lane strategy that aims to establish 100% scanning only in high terrorist risk foreign sea ports and (2) the “10 + 2” data requirements that importers and ocean carriers must submit to the US Customs and Border Protection (CBP) prior to a container is loaded aboard a US-bound vessel so that the US authorities can calculate more precise risk for each shipping container. This report includes relevant information for all the CORE’s demonstrations that involve US-bound maritime transportation. The source document is available at: http://www.gao.gov/products/GAO-10-12.

[s2If is_user_logged_in()]

Full review: The GAO document provides interesting insights on the evolution of the US container security regulations over the years. This is useful supportive information for CORE demonstrations that involve maritime shipping of containers into the US. The GM demonstration of the WP9 for example covers exports of automobile parts from the EU into the US by transatlantic ocean transport. If the US Congress does not repeal or defer the 100% scanning requirement, the port of Felixstove that participates in the demonstration, need to start scanning also all GM’s US-bound containers. Likewise, the FALACUS demo (WP14), which is about shipping of ceramic tiles from Italy to the US, must take into consideration the possible effects of the 100% scanning requirement. This demonstration is particularly interesting from the 100% scanning requirement standpoint because some ceramic tiles are naturally radioactive, and thus they tend to trigger false alarms in the radiation controls. Also the P&G demonstrator in the WP17, that focuses on shipping of consumer goods into the US, the possible impact of the 100% scanning regulation.

Besides the demonstrations, the CORE’s risk cluster might benefit from the detailed analysis of the risk-based approaches to the US container security, such as the strategic trade lane strategy and the “10 + 2” data requirement. All demonstrations might benefit from lessons learnt how GAO has advises DHS and CBP to carry out cost-benefit analyses for the US container security programs (especially the Secure Freight Initiative).

Cross-references:

Combating Nuclear Smuggling: Efforts to Deploy Radiation Detection Equipment in the United States and in Other Countries. GAO-05-840T. Washington, D.C.: June 21, 2005.
Container Security: A Flexible Staffing Model and Minimum Equipment Requirements Would Improve Overseas Targeting and Inspection Efforts. GAO-05-557. Washington, D.C.: April 26, 2005.
Bakshi, N., Flynn, S. E., & Gans, N. (2011). Estimating the operational impact of container inspections at international ports. Management Science, 57(1), 1-.‐‑20.

Full citation:

U.S. Government Accountability Office (GAO), 2009. Supply Chain Security Feasibility and Cost-Benefit Analysis Would Assist DHS and Congress in Assessing and Implementing the Requirement to Scan 100 Percent of U.S.-Bound Containers.

CORE1066

Additional keywords: Ocean transportation, counter-terrorism, non-intrusive inspection

[/s2If]

Review on FP7-project IMCOSEC (CORE3001)

February 28, 2015/0 Comments/in CORE-Observatory /by Vladlen Tsikolenko

Summary: This is review on reference projects / specifying reusable outputs, on FP7-project IMCOSEC. The research in IMCOSEC (Integrated approach to improve the supply chain for container transport and integrated security simultaneously) was on following two conflicting trends in years before the project started: the elimination of trade barriers to ensure free trade, and increasing security demands to counter the threat of terrorism mainly. The author of the review is Marcus Engler, ISL. The original document can be found in CORE e-library coded as CORE3001. More information on the project at: http://cordis.europa.eu/search/result_en?q=IMCOSEC
Read more

CORE-Observatory

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

Review of IATA E-Freight – an air cargo industry initiative facilitated by IATA, to remove paper from the supply chain, 2014 (CORE1044)

Review of Cargo 2000, C2K – an IATA interest group with the mission of creating and implementing quality standards for the worldwide air cargo industry, 2015 (CORE1043)

SUPPLY CHAIN SECURITY – U.S. Customs and Border Protection Has Enhanced Its Partnership with Import Trade Sectors, but Challenges Remain in Verifying Security Practices, GAO, April 2008 (CORE1011)

SUPPLY CHAIN SECURITY: Feasibility and Cost-Benefit Analysis Would Assist DHS and Congress in Assessing and Implementing the Requirement to Scan 100 Percent of U.S.-Bound Containers, GAO (October 2009, CORE1066)

CONTACT US

INTERESTING LINKS

Search