WCO aims for global approach to supply chain security
Source: American Shipper On-Line
July 14, 2004
A small, high-level
group of national customs directors recently formed by the World
Customs Organization will work to galvanize international support
for a common supply chain security regime based on two ongoing
U.S. initiatives that can be quickly implemented around the
world, said the man who is pushing other governments to follow
the U.S. lead.
Robert Bonner, commissioner of Customs and Border Protection,
said the WCO's goal is to "internationalize" the Customs-Trade
Partnership Against Terrorism (C-TPAT) and the Container Security
Initiative (CSI) to protect the global trading system from terrorists,
and so importers and exporters don't have to adapt logistics
processes to meet different security standards in each country
in which they do business.
"I think this process will permit the adoption of a common
set of standards, or norms, that would be adopted ideally by
every customs authority in the world," Bonner said in a
meeting with a handful of reporters.
In late June the WCO announced the formation of the group to
provide leadership on an interoperable supply chain monitoring
system that simultaneously promotes security and the movement
of goods. Bonner's comments are the clearest indication yet
that such a system will follow the U.S. model championed by
Bonner after the Sept. 11 attacks.
C-TPAT is a private-public partnership in which companies validate
to Customs that they and their suppliers have established protocols
for packing, shipping and monitoring containerized merchandise
and those who handle it along the way in exchange for less time-consuming
cargo inspections at the border. More than 6,500 U.S. importers,
transportation providers, port terminals, as well as a handful
of foreign manufacturers, have gained preliminary permission
to participate in the program so far.
The Container Security Initiative (CSI) is Customs’ program
designed to catch suspicious containers that might contain terrorists,
equipment or mass destruction weapons before they arrive at
a U.S. port. Eighteen governments, some fearing the United States
might shut out imports from ports deemed unsafe, have agreed
to help protect the United States by checking selected export
containers identified by Customs as posing a potential threat.
U.S. Customs officers stationed in foreign ports use shipping
data filed by carriers prior to departure to alert the domestic
customs administration about which containers to target for
x-ray and radiation scans. The program is reciprocal and countries
like Japan and Canada have similarly stationed inspectors at
U.S. ports to pre-screen outbound shipments.
On July 1, a global port and vessel security regime adopted
by the
International Maritime Organization and enforced by domestic
border agencies such as the U.S. Coast Guard went into effect.
More than 150 countries signed the treaty to implement the regime.
The WCO effort is designed to create a similar global security
standard for the containers that move on vessels and through
ports, but without going through the potentially time
consuming treaty ratification process, Bonner said.
The WCO doesn't have the authority to draft an international
convention, but can leverage its leadership to convince member
nations that they will cede economic advantage to those who
do participate, Bonner said.
"As a critical mass of countries joins in on the (security)
framework it will expand and grow to include most of the customs
authorities around the world," Bonner said.
The international security framework envisioned by Bonner and
some of his fellow customs administrators would be based on
the CSI principles of using advance information, risk management
techniques and inspections of both outbound and inbound containers
as a way to enhance mutual assistance.
Bonner said the group intends to get a framework for securing
containers, and defining the role that customs administrations
play in getting the private sector to improve security, approved
by the WCO policy commission in December. The regime would also
standardize the benefits companies would receive in the form
of fast inspection lanes and other types of trade facilitation
for following supply chain security best practices.
The mind-set of the WCO has drastically changed since 2002 when
Bonner challenged other customs authorities to rethink their
traditional mission to include border security. Today, the consensus
among members is that customs administrations need to take responsibility
for security and facilitating trade. The Madrid train bombing
earlier this year reverberated widely
throughout Europe and did a lot to change the focus of customs
directors, according to Bonner.
"Everybody I talked to there agrees that for customs to
be relevant it has to play a role that goes beyond revenue collection,
and contraband and drug interdiction," Bonner said. "Customs
can and should play a big role in the security of what moves
through the trading system."
Two preconditions for security collaboration between customs
administrations are training and equipment, Bonner said. Customs
forces will require "greater professionalism and integrity
of inspectors" if nations are going to have faith in relying
on each others' ability to check outbound cargo on their behalf.
High-tech equipment for scanning containers and computer systems
for analyzing trade data for anomalies that might indicate a
terrorist connection are also important "because you can't
facilitate trade
if you do physical inspections," Bonner said.
The WCO group hopes to create momentum to build political will
in countries that realize that making security a top priority
can also increase trade and make import/export procedures more
efficient, Bonner explained.
"The United States and members of the European Union are
going to make every effort to allow developing countries to
participate," Bonner said. "If you want to join and
don't have the funds for equipment we'd intercede with the World
Bank and other lending institutions to assist in this effort.”
Customs is helping Greece, the latest country to join CSI, rapidly
build its port security capacity. CSI participating countries
have to provide their own technology to scan U.S.-bound containers,
but Customs is loaning Greece two mobile container scanning
machines to help the Mediterranean nation get the program off
the ground before the start of the Olympics in August. One of
the machines will be used for CSI and the other for Olympic
security.
"This is like World War II lend lease," he said.
After the Olympics, the United States will take back one of
the machines and the other will be returned after Greece completes



