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The first Annual SYNCHRO-NET meeting

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The SYNCHRO-NET project had its first annual project meeting in Barcelona in early June. I had a pleasure to take part in the three-day event and enjoy the welcoming atmosphere and sunny weather of the Catalonian capital.

For those who are not yet familiar with the project, SYNCHRO-NET is a three-and-half-year demonstration project on advanced logistics optimization. The project seeks to advance and promote new concepts of synchro-modality and slow steaming for more cost-efficient, less congested and greener intermodal supply chains. The project includes three demonstrations that test slow-steaming and synchro-modal solutions in real international logistics networks. The first demonstrator involves shipping of goods from the Far-East to the ports of Valencia, Algeciras and Barcelona, and subsequent movement by rail inland and final short truck movement. The second demonstrator focuses on regional logistics movements through the Port of Cork. The third demonstrator will address multimodal container movements in major European routes. The project is funded by the European Commission under the Horizon 2020 Programme.

During the two first days of the meeting, the Partner Forum discussed the SYNCHRO-NET work ahead: standardization, development of a tool for logistics optimization, real-world demonstrations, and exploitation and dissemination of the project’s results. The discussion produced some interesting findings and conclusions. The Partner Forum observed that, given the large number and variety of factors, the optimization of shipping and logistics in terms of cost (including CAPEX, crew cost, fuel), duration, environmental impact, reliability and various types of risks is nothing but an easy task. For example, weather, tide and state of the sea affect maritime logistics, its speed, reliability and cost-efficiency. There was also a great deal of discussion about the dimensions of risk in the meeting. The International Organization of Standardization (ISO) defines risk as the “effect of uncertainty on objectives.” In this light, the concept of risk in the SYNCHRO-NET context covers at least damage to cargo, lead time variability, variability of cost, and possibility of theft and piracy. The Forum concluded that cost-efficiency and quality of international logistics depend largely on real-time awareness and visibility over logistics operations: “the sooner you know, the lower the cost will be to solve the problem.”

The three days of SYNCHRO-NET meetings culminated in the International Logistics and Material Handling (SIL) conference, the primary annual industry fair and networking event for logistics professionals in Spain. In the conference, Mr. Santiago Blasco (DHL) introduced SYNCHRO-NET at the “Consumer & Goods” working session for a large audience. Later that day, a group of leading logistics experts from Spain and the rest of Europe debated on pressing topics at three SYNCHRO-NET roundtables. The roundtable sessions focused on the general theme “How to build win-win solutions synchro-modal logistics stakeholders.” Here are brief summaries of the roundtable sessions:

  • “Smart Steaming – how to build a win-win solution for all stakeholders.” The members of the roundtable raised concerns about organizational, technical and business challenges of future slow steaming. There are obvious draw-back in slow steaming such as longer lead times and lower capacity utilization. However, the panel concluded that smart rather than slow steaming is here to stay: “While maintaining high service level, we can make logistics more cost-efficient.”
  • ”Effective management of synchro-modal logistics.” The panelists of the second session argued that the concept of synchro-modality is not yet very established in the logistics sector. Even so, the panel agreed that synchro-modality builds on real-time optimization, risk analysis and advanced, ITC-enabled logistics planning. Synchro-modality requires visibility over the supply chain, so that logistics planers react to contingencies and can make effective decisions in real time. The panel concluded that collaboration across supply chain operators – especially among shippers, carriers, freight forwarders – is the key to synchronized international logistics.
  • “Synchro-modal IT tools: innovation and value added to the logistics industry.” The third panel focused on the rather technical topic of leveraging cloud-based IT architecture for advanced logistics planning. The panelists saw a great potential in modern ICT solutions to enable synchro-modality, smart steaming and other ways for optimizing international freight transport. There still remain challenges for bridging a broad array of different computer systems for higher degree of logistics interconnectedness and interoperability.

The SYNCHRO-NET project has had a strong start, and the project progresses on the right track and at the full speed after one year of work. There is still much hard work to do over the next six months, for CBRA and other partners. In autumn, CBRA researchers will be focusing on reviewing policies, legislations, and standards that have an effect on synchro-modality and slow steaming. The CBRA team will also continue promoting the SYNCHRO-NET project and its findings at various events and publications. Stay with SYNCHRO-NET and visit the project website www.synchro-net.org.

CBRA Blog by Dr. Toni Männistö

blogsynchronet

Figure 1 Santiago Bosco presenting SYNCHRO-NET at the the International Logistics and Material Handling (SIL) conference

Border Agency Cooperation, Part 2 of 3

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Our second blog on Border Agency Cooperation (BAC) focuses on a conceptual model developed by CBRA. We have crafted this “CBRA-BAC15” diagram to visualize a set of key BAC actions and primary beneficiaries, with contributions by Dr. Toni Männistö (supply chain security post-doc researcher at CBRA), Mr. Gerwin Zomer (TNO, technical manager for the FP7-CORE project) and by Ms. Susana Wong Chan (education and training materials developer at CBRA).BAC-1

The diagram is cut to three sectors: on left side, the supply chain companies are the primary beneficiaries of BAC actions; on the right side, the government agencies form the primary beneficiary group; and on the bottom area, both supply chain companies as well as government agencies benefit from BAC actions. Each of these three sectors contains five examples of concrete border agency cooperation actions – 15 in total – explained in a moment by using real examples, whenever available in the literature or by expert suggestions. In the center of the diagram lies a circle with the more generic “smart cross-border improvement actions”, applicable to virtually any work in global trade facilitation.

The diagram should not be considered exhaustive, when it comes to all optional actions to improve BAC in a given country or region or globally. Some of the 15 key actions may be strongly interconnected, or, partially overlapping. Some of them may apply mainly on national multi-agency environment, and some of them mainly on international e.g. customs-to-customs environment. Also, the division of the key actions into the three beneficiary groups can and should be challenged, by the interested audiences. But, let´s start now by listing and illustrating the key 15 BAC actions:

Supply chain companies as the primary beneficiary (left sector in the diagram). The following five BAC actions can bring immediate benefits to the companies operating in supply chains, in terms of saving administrative costs and speeding up the supply chain – less work dealing with various certifications and audit visits, less variation and IT costs with import/export data filing and less waiting times at the borders.

  • Harmonized ´trusted trader´ & other certification programs: In the European Union, the European Commission´s implementing regulation (No. 889/2014) updates the references to the aviation security legislation in force, including recognition of the Known Consignor (KC) status and its relevance to Authorized Economic Operator (AEO), and framing the scope of recognition of the common requirements between the respective programs.
  • Coordinated company visits & audits: Closely linked to the previous BAC-action, in the Netherlands, the Dutch Customs executes joint audits on AEO security (customs) and known consignor/regulated agent (air cargo) with the Dutch Immigration and air-police agency – during the application phase, as well as during periodical audits.
  • Harmonized data filing requirements: Despite a global, harmonized data model, harmonized tariff codes and standards on clearance procedures, there are many differences in operational import, export and transit procedures and information requirements between countries. This results in additional complexity of IT systems for globally operating traders and logistic service providers. An example is the pre-arrival security declarations, where harmonization would be most useful e.g. between the Importer Security Filing, “10+2” in the US and the Entry Summary Declaration in Europe – Multiple Filing, supported by Standard Trader Interface, under development within the Union Customs Code, UCC.
  • Synchronized border interventions & inspections: The Article 4 of the Greater Mekong Sub-region Cross Border Transport Agreement on Facilitation of Border Crossing Formalities calls upon the contracting parties to progressively adopt measures to simplify and expedite border formalities by carrying out joint and simultaneous inspection of goods and people by respective competent authorities of agencies such as customs, immigration, trade, agriculture, and health. It further provides for single-stop inspection and urges the national authorities of adjacent countries to carry out joint and simultaneous inspections.
  • Harmonized operating hours: This applies particularly in the context of two neighboring country customs offices – having same opening hours across the border helps to maximize the daily throughput volumes. As the Article 8 of the World Trade Organization´s Trade Facilitation Agreement puts it, “Each Member shall, to the extent possible and practicable, cooperate on mutually agreed terms with other Members with whom it shares a common border with a view to coordinating procedures at border crossings to facilitate cross-border trade. Such cooperation and coordination may include: … alignment of working days and hours … “. In the ASEAN region, the Article 7 of the ASEAN Framework Agreement on the Facilitation of Goods in Transit urges the contracting parties to “coordinate working hours of the adjacent border posts”.

Government agencies themselves as the primary beneficiary (right sector in the diagram). The following five BAC actions can provide instant benefits for the cooperating government agencies, in terms of cost savings and improved efficiency – in other words, identifying more violations and catching more bad guys with less total spending.

  • Sharing of agency intelligence, information & data: Customs Mutual Assistance Agreements (CMAAS), signed bilaterally by Canada Border Services Agency (CBSA) and eight counterparties during years 1979-2010 (European Community, France, Germany, Mexico, the Netherlands, South Africa, South Korea and the United States) provide Canada with a legal basis to share customs information to prevent, investigate and combat customs offences, particularly customs fraud, and to provide reciprocal mutual assistance to ensure the proper application of customs laws. Under CMAAs Canada may share customs information pertaining to: persons, goods and means of transport; activities planned, on-going, or completed, that constitute or appear to constitute a customs offence in the territory of the country requesting the data; proven law enforcement techniques; new and emerging trends, means or methods of committing customs offences; and facilitation of risk assessment activities, within the mandate and authority of the CBSA.
  • Joint investments in common resource pools (equipment, facilities etc.): In Finland the Customs Administration and the Border Guard share common premises and equipment. Each authority has a designated role in the servicing and maintenance of the equipment. X-ray machines are largely the responsibility of Customs. Road-testing equipment, such as lorry brake-testing pads, is also maintained by Customs. All equipment can be shared and operated by each agency upon request. Thus, although the equipment belongs to one agency, it can be easily relocated to the other agency, enabling smoother processing of the workflow without unnecessary and lengthy administrative procedures, thereby reducing costs.
  • Joint teams: In the Netherlands, “HARC” – Hit and Run Cargo Rotterdam team, is a joint operation of Dutch Maritime Police, Dutch Customs, the Fiscal and Economic Crime Agency and the Ministry of Justice collaborating operationally in narcotics enforcement. Joint teams differ from Joint operations below by being a long-term / permanent set-up; while Joint operations “come and go”.
  • Joint operations: A joint operation Meerkat, (23-27 July 2012) involving the World Customs Organization and INTERPOL against the illicit trafficking of cigarettes, tobacco and alcohol in East and Southern Africa, resulted in the seizure of tons of illicitly traded products in seven countries. Operation Meerkat saw Customs and police authorities carry out some 40 raids at seaports, inland border crossing points, markets and shops in Angola, Kenya, Mozambique, Namibia, South Africa, Tanzania and Zimbabwe. More than 32 million cigarettes – equivalent to 1.6 million packets, 134 tons of raw tobacco and almost 3,000 liters of alcohol were seized, resulting in national authorities initiating a number of administrative investigations into tax evasion and other potential criminal offences.
  • Collaborative criminal investigations & prosecutions: In the United States the Border Enforcement Security Task Force (BEST) units gather officers from more than 100 different law enforcement agencies under one roof. The objective is to identify, investigate, disrupt and dismantle transnational organizations posing the greatest threat to border security, public safety and national security, by employing the full range of federal, state, local, tribal and international law enforcement resources. Over the years, the BEST has become a successful interagency law enforcement collaboration model that’s keeping the US safer.

Both supply chain companies as well as government agencies as beneficiaries (bottom sector). The five BAC actions can bring instant benefits to all parties in cross-border supply chains, in terms of lowering costs and improving performance, from supply chain company and from governmental agency perspectives.

  • ‘Single window’ -type import/ export/ transit data submissions: In the Netherlands, the authorities have designed Digipoort, the government’s ‘electronic post office’ for businesses. It provides the communication infrastructure for the exchange of digital information between companies and government authorities. Digipoort enables companies to submit import and export information at a single entry point aimed at multiple government authorities.
  • Common risk indicators, risk profiles & targeting systems: In Finland, common databases are linked to the different agencies’ operational and risk management databases, leading to a common approach when a ‘signal’ is recorded. Some control and enforcement officers have access to each other’s systems on a need-to-know basis, with levels of restricted access determined by rank and functional responsibility.
  • Mutual recognition of supply chain inspection procedures & outcomes: As part of the European Union funded research and development project FP7-CORE ( http://www.coreproject.eu/ ), the phytosanitary and customs administrations in Kenya and the Netherlands are working towards mutual recognition of controls carried out by Kenyan authorities, as well as the exploitation of digital phytosanitary certificates and other trade documents, between the two countries. Outside of the research world, mutual recognitions (MR) of customs inspections are being explored in the context of EU MR Agreements, for example with Japan.
  • Cross-training and empowering manpower: In Finland, Customs officers have been trained by the Border Guard to inspect identification documents and visas, among other procedures. Border guards have, in turn, received basic Customs training, which includes the search of vehicles and the recognition of prohibited and restricted goods, such as drugs, alcohol, and counterfeit items.
  • Joint public-private partnership arrangements, training sessions etc.: In 2011 in Hong Kong, the Customs and Excise Department established a Joint Liaison Group with the representatives of shippers, freight forwarders and truck drivers for exchanging operational views and comments on the Road Cargo System “ROCARS”. Moreover, Customs also launched an extensive publicity program and established outreach teams to assist the industry stakeholders to get used to the ROCARS. Following other government departments are listed on the ROCARS web-site http://www.rocars.gov.hk/ : Commerce and Economic Development Bureau, Census and Statistics Department, and Transport Department.

Finally, the center circle of the CBRA-BAC15 diagram highlights the basic, classical principles of trade facilitation – naturally in the context of multiple agencies dealing with cross-border regulations, procedures, IT-systems and data requirements:

  • Simplification & Harmonization: agencies work together with the first aim to streamline certification requirements and procedures, to minimize the number of data elements required from traders etc.; and the second aim to unify the rules and requirements facing supply chain companies.
  • Interoperability & Synchronization: agencies invest in improving interoperability between their inspection technologies, IT-systems etc.; they also work together to better synchronize their supervision and control processes, particularly for the benefit of supply chain companies.
  • Transparency & Predictability: agencies keep each other well informed of their current regulations, procedures, operations etc., as well as planned future changes – such proactive approach helps to minimize surprises and related hassles.

This concludes the second of three parts of our Border Agency Cooperation (BAC) blog. In Part 3 – to be published sometime in February – we focus on the overarching institutional arrangements on Border Agency Cooperation, including establishment of single border agencies (e.g. in the US and Australia); creation of one-stop border posts, OSBPs (multiple examples across the world); carrying work permanently on behalf of other agencies etc. We also plan to discuss bit more on the benefits and costs of BAC, as well as the main challenges and obstacles in BAC-projects across the globe. Talk to you again in February, Juha Hintsa.

 

Bibliography / sources for the examples and cases attached to the 15 BAC key actions:

  • Harmonized ´trusted trader´ & other certification programs: Commission Implementing Regulation (EU) No 889/2014 of 14 August 2014 amending Regulation (EEC) No 2454/93, as regards recognition of the common security requirements under the regulated agent and known consignor programme and the Authorised Economic Operator programme.
  • Coordinated company visits & audits: Email exchange with a Dutch Customs expert
  • Harmonized data filing arrangements: Interview with a Dutch supply chain and trade facilitation expert (29 January 2016); and AnNa Master Plan Extended Collaboration Project Book, December 2015. Available for download at: http://www.annamsw.eu/
  • Synchronized border interventions & inspections: Jain, S.R. (2012), “Coordinated Border Management: The Experience of Asia and the Pacific Region”, World Customs Journal, Vol. 6 No.1. (CBM25).
  • Harmonized operating hours: Article 8 (Border Agency Cooperation) of the WTO Agreement on Trade Facilitation of 15 July 2014; and Jain, S.R. (2012), “Coordinated Border Management: The Experience of Asia and the Pacific Region”, World Customs Journal, Vol. 6 No.1.
  • Sharing of agency intelligence, information & data: “Customs Cooperation Case Study for Canada”, paper submitted by Canada (Canada Border Services Agency – CBSA) for the July 2012 WTO Symposium on Trade Facilitation.
  • Joint investments in common resource pools (equipment, facilities etc.): “Coordinated Border Management”, WCO News, February 2015, No. 76.
  • Joint teams: “Customs find cocaine buried in cocoa bean shipment”, NL Times 25.5.2015, Available online at: http://www.nltimes.nl/2015/05/25/customs-finds-cocaine-buried-in-cocoa-bean-shipment/ (accessed 28 January 2016).
  • Joint operations: “WCO and INTERPOL joint operation against illicit trafficking in Africa leads to tobacco and alcohol seizures”, WCO Press Release, 27 August 2012. Available online at:   http://www.wcoomd.org/en/media/newsroom/2012/august/operation-meerkat.aspx (accessed 28 January 2016).
  • Collaborative criminal investigations & prosecutions: “Coordinated Border Management”, WCO News, February 2015, No. 76
  • ‘Single window’ –type import/ export/ transit data submissions: “Coordinated Border Management”, WCO News, February 2015, No. 76.
  • Common risk indicators, risk profiles & targeting systems: “Coordinated Border Management”, WCO News, February 2015, No. 76.
  • Mutual recognition of supply chain inspection procedures & outcomes: The Consistently Optimised REsilient ecosystem, CORE FP7 project, EU. See online at: http://www.coreproject.eu/ (accessed 28 January 2016).
  • Cross-training and empowering manpower: “Coordinated Border Management”, WCO News, February 2015, No. 76.
  • Joint public-private partnership arrangements, training sessions etc.: “Road Cargo System (ROCARS) (Hong Kong China)”. Available online at: http://www.wcoomd.org/en/topics/wco-implementing-the-wto-atf/atf/border-agency-cooperation.aspx (accessed 28 January 2016).

CORE-Observatory

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

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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

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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

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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)

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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

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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

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

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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)

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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

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

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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)

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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

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

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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)

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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

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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)

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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.

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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

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TRANSPORTATION SECURITY – Action Needed to Strengthen TSA’s Security Threat Assessment Process, GAO, 2013 (CORE1015)

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Summary: The GAO report is about measuring the performance of the Adjudication Centre that is a department within the Transportation Security Administration (TSA) responsible for administering background checks for people who need access to secure facilities unescorted. The centre issues the access credentials based on a through vetting of the applicant’s criminal history, immigration status, and connections to terrorist groups, among other checks. The report argues that the Adjunction Centre could improve the efficiency of the background checks – the individual security threat assessment – by improving its performance measurement system through better data and indicators. Although this GAO report focuses on a rather narrow topic, management of the background checking process, the report’s insights could benefit the CORE’s risk management cluster and those demonstrations that deal with access control matters. The report is available at: http://gao.gov/assets/660/656051.pdf

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Full review: This GAO document is closely related to the work the CORE’s risk cluster. The report describes problems the TSA’s Adjudication Centre faces when it manages the background checking process of the US-based transportation worker identification credentials (TWIC), hazardous materials endorsements (HME) and Aviation Worker (AV) authorization programs. Moreover, since access control is a central security solution in nearly all CORE demonstrators, the demonstrations might benefit from tips and guidance this report offers. At the final stages of the project, this GAO report might prove a useful document when the project consortium produces training materials on how to manage access control systems and how to administer background checks.

Cross-references:

  • Port Risk Management: Additional Federal Guidance Would Aid Ports in Disaster Planning and Recovery. GAO-07-412. Washington, D.C.: March 28, 2007.
  • Critical Infrastructure Protection: An Implementation Strategy Could Advance DHS’s Coordination of Resilience Efforts across Ports and Other Infrastructure. GAO-13-11. Washington, D.C.: October 25, 2012.

CORE1015

Additional keywords: Terrorism, background checks

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SUPPLY CHAIN SECURITY – CBP Needs to Conduct Regular Assessments of Its Cargo Targeting System, GAO, October 2012 (CORE1014)

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Summary: The US maritime security strategy uses advance cargo information to assess risk levels of US-bound maritime shipping containers. This GAO report reviews how the Automated Targeting System, a web-based computer program that calculates risk scores for the containers, support the US Customs and Border Protection’s (CBP) targeting efforts. The report argues that CBP could improve its targeting program by establishing sound procedures and criteria for assessing the performance of the targeting activity. This GAO report contains information about the US risk-based shipment targeting solution that benefit the CORE’s risk and IT clusters. The US-related demonstrations may also find the report’s information useful. The report is available at: http://gao.gov/assets/650/649695.pdf

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Full review: The risk targeting systems are part of governments’ supply chain security programs worldwide. The GAO reports gives unparalleled, detailed information about the principles that the US authorities follow to collect and analyse data about cargo movements that allow them to calculate risk scores for US-bound maritime shipping containers. The CORE’s risk cluster should pay attention to this information and learn how risk-based screening and examination of maritime shipping containers has been organized in the US, in the leading country of supply chain security. The report reveals useful information about IT infrastructure that support the risk targeting system, therefore providing a sound reference material for the CORE’s IT cluster. Project partners engaged in the CORE’s demonstrations – logistics operators, authorities and technology providers – benefit from the report’s description of the US automated targeting system (ATS) that play an important security role in the US-bound maritime trade and logistics.

Cross-references:

  • Supply Chain Security: Container Security Programs Have Matured, but Uncertainty Persists over the Future of 100 Percent Scanning. GAO-12-422T. Washington, D.C.: February 7, 2012.
  • 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.
  • 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.

CORE1014

Additional keywords: Terrorism, automated targeting system (ATS), 24-hour rule, the importer security filing and additional carrier requirements (10 + 2 rule)

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Zambia and Zimbabwe’s single-stop solution to boosting intra-African trade, The Guardian 2012 (CORE2008)

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Summary

The Guardian news article summarizes benefits and challenges of the African first one-stop border post, located at the Chirundu border crossing across the Zambezi river between Zambia and Zimbabwe. At the border post, officials in both countries inspect only inbound traffic, for example Zambian authorities control only incoming traffic from Zimbabwe. Thanks to this one-stop arrangement, trucks and barges are obliged to stop only once and undergo only one set of border formalities. The one-stop system has accelerated border crossing times tremendously, from a two or three day wait down to a thirty-minute rest. Moreover, the faster border formalities have translated into higher traffic at the border post (from earlier 2000 to today’s 14000 trucks per month) and associated larger tax and duty revenues. But most importantly, the faster and simpler border formalities have facilitated trade of many small-scale merchants, who commonly trade small amounts of food, clothes, and other everyday commodities. Today, these small merchants face less delays, cumbersome formalities, and arbitrary duties and facilitation payments that dishonest customs officials may impose on their goods. This progress has brought many of the informal merchants, who used to smuggle their merchandise before, back into the sphere of the formal economy. Even so, the smuggling is still a major problem in Africa: the article suggests that there are smuggling routes so established that 30 tonne trucks use them to evade customs controls, and that this informal smuggling economy accounts for a staggering one-third of the African gross domestic product (GDP). The article implies that the share of the informal economy could be further reduced through consolidation of African trade blocks (there are several), harmonization and simplification of border formalities, and enhanced border agency cooperation. The news report is available at: http://www.theguardian.com/global-development/2012/may/29/zambia-zimbabwe-intra-african-trade

Review by Toni Männistö (CBRA)

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Full review

This Guardian article showcases a great example of successful border agency cooperation in Africa. The CORE WP12, the “demonstrator Schipol” focusing on shipping of fresh cut flowers from Kenya to the Netherlands, might choose to study this African one-stop border concept in more detail. Closer analysis may reveal key success factors and obstacles that characterize the border agency cooperation in Africa. Also CORE’s WP19, that produces material for training and education, may use this African one-stop border as an illustrative example of border agency cooperation in developing countries. The CORE’s risk and IT clusters might need to explore this case in more detail to understand technical aspects of this one-stop border post concept.

Reference

The Guardian, Zambia and Zimbabwe’s single-stop solution to boosting intra-African trade, the Guardian, 29. May, 2012. Retrieved from http://www.theguardian.com/global-development/2012/may/29/zambia-zimbabwe-intra-african-trade

CORE2008

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