Transcript The SAFE Framework of Standards

The SAFE Framework of Standards
Bob Struthers
World Customs Organization
Training on the New EU Implementations on Road Transport and
Foreign Trade: Istanbul Turkey 25-26 June 2009
The World Customs
Organization (WCO)
is the only
intergovernmental
organization with
competence in
Customs matters.
Facts and Figures

Established in 1952 as the Customs Cooperation Council

Renamed WCO as working title in 1994

Headquarters in Brussels

6 regional representatives

Currently representing 174 members from all
geographic regions and at different stages
of development

Members process > 98% of all international
trade
WCO SAFE Framework

Recognition of risks to
the security and
facilitation of the
international trade supply
chain led the WCO to
take bold action.

WCO Council Resolution,
June 2002, forming a
Joint Customs-Industry
Task Force on Security
and Facilitation.
SAFE Framework of Standards

Adoption at the Council in June 2005
 Framework
 Letter of Intent to implement the
Framework

156 WCO Members make commitment to
implement

Revised version published in 2007
Core Elements of SAFE
FOUR CORE PRINCIPLES
Advance
electronic
information
Risk
management
Harmonise the
advance
electronic
information
requirement on
inbound,
outbound and
transit
shipments.
Commit to
employing a
consistent risk
management
approach to
address security
threats.
Outbound
inspection
Business
partnerships
Outbound
inspection of highrisk consignments
being exported,
preferably using
non-intrusive
inspection
methods.
Customs will
provide benefits
to businesses
that meet minimal
supply chain
security
standards and
best practices.
Two pillars
The WCO Framework rests on two twin pillars:

Customs-to-Customs network arrangements.

Customs-to-Business partnerships.
(Authorised Economic Operator (AEO) concept)
Objectives of the Framework
Certainty and predictability at a global level
Integrated supply chain management for all
transport modes
Allow Customs to meet the challenges of the
21st Century
Closer cooperation among Customs
administrations
Stronger Customs-to-Business cooperation
Tangible benefits for businesses
Seamless movement of goods
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Pillar 1
Customs-to-Customs
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Pillar 1 covers the following:
1) Integrated Supply Chain Management
2) Cargo Inspection Authority
3) Modern Technology in Inspection Equipment
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Pillar 1 continued:
4) Risk Management
5) High-risk Cargo or Container
6) Advance Electronic Information
7) Targeting and Communication
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Pillar 1 continued:
8) Performance Measures
9) Security Assessments
10) Employee Integrity
11)Outbound Security Inspections
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US SAFE Port Act
H.R. 4954
All the containers bound to US
Starting from 1 July 2012
Possibility to extend the date of application for
4 additional years
Pilot projects in 3 ports:
 Port Qasim, Pakistan
 Port Cortes, Honduras
 Southampton, UK
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Pillar 2
Customs-to-Business
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Authorized Economic Operator
in the SAFE Program

“A party involved in the international movement of
goods in whatever function that has been
approved by or on behalf of a national Customs
administration as complying with WCO or
equivalent supply chain security standards.
Authorized Economic Operators include inter alia
manufacturers, importers, exporters, brokers,
carriers, consolidators, intermediaries, ports,
airports, terminal operators, integrated operators,
warehouses, and distributors.”
Pillar 2 covers the following:
1) Partnership
- ensure that their internal policies and
procedures provide adequate safeguards
against the compromise of their shipments
and containers
2) Security
- incorporate pre-determined security best
practices into their existing business
practices.
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Pillar 2 continued:
3) Authorization -The Customs administration, together
with representatives from the trade community, will
design validation processes or quality
accreditation procedures that offer incentives to
businesses through their status as Authorized
Economic Operators.
4) Technology
- maintain cargo and container integrity by
facilitating the use of modern technology.
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Pillar 2 continued:
5) Communication -The Customs administration will
regularly update Customs-Business partnership
programs to promote minimum security standards
and supply chain security best practices.
6) Facilitation - The Customs administration will work
co-operatively with Authorized Economic Operators
maximize security and facilitation
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Authorized Economic Operator
Requirements and benefits
2007 supplement introduced:

13 detailed AEO requirements sections (e.g. cargo,
conveyance, premises security)

Section listing possible benefits (eg reduced data
sets, minimum number of cargo inspections etc)

Validation and Authorization procedures
AEO and Mutual Recognition

A WCO Member Customs administration recognizes
the AEO authorization system in another WCO
Member Customs administration as equivalent to its
own

Standardized approach to AEO authorization in SAFE
provides a solid platform for the development of
international systems of mutual recognition of AEO
status - bilaterally, sub–regionally, regionally and, in
the long term, globally
AEO and Mutual Recognition

Will afford the foreign AEO the same benefits as a
national AEO

Improve predictability and efficiency of operations

Tangible benefits to trade a challenge: Mutual
Recognition widely regarded as the ‘holy grail' of
benefits.
Members’ AEO Programmes

EU AEO
 US Customs Trade Partnership Against Terrorism (CTPAT)
 Canada’s Partners in Protection
 Jordan’s Golden List
 Singapore’s Secure Trade Partnership
 Malaysia’s Customs Golden Client
 Japan’s AEO Programme
 New Zealand’s Secure Exports Scheme (SES) and
 China’s AEO Programme
 Korea’s AEO Programme
Members’ AEO Programmes

….but bear in mind that 156 WCO members have
committed to Implement SAFE!

Major , ongoing Capacity Building support
required (Columbus Programme)
Current Developments

Compendium of AEO programmes, including Mutual
Recognition Arrangements (MRA), to raise
awareness of other programmes

Guidance “How to set up an AEO Programme”

SMEs and AEO
Scope and Objectives of the Research
(AEO Compendium)

Since June 2005 156 Members have signed SAFE
Framework to Secure and Facilitate Trade;

Research Objective: to evaluate the progress in
Pillar II on AEO implementation;

Data used: in-house information (reports; previous
questionnaires, open search) and targeted requests
to Members;

Scope of study:
 40 programmes in 67 countries (due to EU-27 that
has a single programme) on all continents
 25 programmes identified for targeted approach

Information is being verified through the national
administrations (personalised requests)

Database of AEO contact persons is being formed
AEO Typology I (25 programmes)

Programme type:




Type of operator:


Security/customs compliance – 14
Security – 5
Customs compliance – 6
importers, exporters, logistic operators (carriers, forwarders,
shipping companies, airlines), customs brokers, warehouse
operators. Some countries (i.e. USA) included special
categories for ports and foreign manufacturers.
Legislation:



all programmes envisaged voluntary participation in the
programme.
most countries introduced amendments to their current
legislation (mainly Customs Codes) or passed new legislation
specifically for AEO;
some countries, like Canada, Singapore or Australia have not
introduced any specific legislation to provide for an AEO.
AEO Typology II (25 programmes)
Further plans:

Development of new electronic applications;

Improvement of procedures;

Enlarging the scope of programme (import/export) or
elaborating it to include more types of operators;

Adding a security component (for customs
compliance programmes)
Mutual Recognition Arrangements
Japan
NZ
AU
CN
CA
MY
USA
NZ
CA
JO
SN
JP
EU
CN
NO
CH
JP
US
Singapore
NZ
AU
JP
CA
Korea
NZ
US
JP
Argentina
BR
Concluded MRA
To be concluded
Studies/consultations
in place
And the future….?

Sustained Capacity Building Support

SAFE Survey

Case studies on AEO mutual recognition – best
practice

Mutual Recognition Standards?
WCO
SAFE Framework
Thank you very much
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