Transcript CREATING A FRAMEWORK OF STANDARDS TO SECURE AND …

The WCO SAFE
Framework of Standards
CONCEPT, DEVELOPMENT, PROVISIONS
AND IMPLEMENTATION
Larry L. Burton
Technical Officer
World Customs Organization
THE VISION
“ International trade is the key to
successful and sustainable
development of the world’s nations. An
initiative that aims to secure this
environment globally while promoting
the flow of legitimate goods should
receive maximum support and
unconditional endorsement from all
quarters.”
Michel Danet, WCO Secretary General
THE IMPETUS
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Witnessing use of global transport system as a
terrorist attack delivery system;
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Realization of the Consequences of Major Attack on
the International Trade Supply Chain;
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Security Council Resolution 1373 of September
2001, requiring enhanced border security;
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WCO Council Resolution, June 2002, forming a Joint
Customs-Industry Task Force on Security and
Facilitation.
The Task Force:
Process and Outcomes
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Task Force met 6 Times (September
2002 to April 2004;
ISCM Guidelines;
Revised Data Model;
27 Essential Data Elements;
UCR (Electronic Staple Concept);
Johannesburg Convention;
Council Endorsed Task Force Work.
A 21st CENTURY VISION
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Need for International Standards;
Need to Link Security with Facilitation;
Standards Must Include Clear Benefits;
Include C-to-C & C-to-B Standards;
Need “Real-Time” Info. Sharing;
Use Intelligence and Risk-Based
Controls;
Utilize “Single Window” Concept;
Work with other Int’l. Organizations;
Springboard for Raised Customs
Profile.
HIGH LEVEL STRATEGIC
GROUP (HLSG)
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Formed by 2004 Council Resolution;
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Need to Establish Momentum for a Critical
Mass of Administrations;
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Membership of Directors General
Representing all 6 WCO Customs Regions;
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Six Meetings held thus far in June &
November 2004, April & Oct. 2005, and April
& October 2006.
MANDATES OF THE HLSG
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To Lead and Guide the WCO;
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Build Upon Task Force Work;
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Create Framework for the PC;
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Further Develop ISCM Concept;
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Define Sec. & Facilitation Standards;
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Capacity Building recommendations;
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Strategies for Implementation.
HLSG / WCO WORK
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Creation of Comprehensive FOS Incorporating
Several Components;
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Main Body of FOS with 2 Pillars;
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Pillar 1, Customs-to-Customs;
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Pillar 2, Customs-to-Business;
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AEO, Validation/Accreditation, Mutual Rec.;
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Letter of Intent to Implement.
CONSULTATIVE PROCESS
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HLSG Mandated to Involve Business;
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Written Comments Solicited by WCO;
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Joint Meetings to Consider Changes to Documents (Plenary
and Syndicates);
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Joint Members and Trade Editing Group Mutually Re-drafted
Documents;
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National and Regional Meetings Held;
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Creation of Private Sector Consultative Group (PSCG)
CRITICAL ELEMENTS FOR THE
FUTURE OF THE FRAMEWORK
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Customs Needs the Trade and Must Maintain a
Consultative Process;
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Benefits to Traditional Customs Roles (Revenue
Collection, Compliance Measurement, Fighting
Commercial Fraud) = Natural by-products of FOS.
Must be Fully Communicated;
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Capacity Building is a Cornerstone;
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Implementation is a Huge Challenge;
SAFE; FOUR CORE ELEMENTS
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Common risk-management approach;
27 Key data elements
Advance electronic manifest
information
Inspection of high-risk cargo at port of
origin; export controls
Enhanced trade facilitation for
legitimate trade; Authorized Economic
Operator (AEO) concept
FRAMEWORK STRUCTURE:
TWO PILLARS and 17 Standards
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Pillar 1: Customs-to-Customs
Cooperation; Using Commonly
Accepted Standards to both Secure
and Facilitate Trade (11 Standards).
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Pillar 2: Customs and Business
Partnership; Identify Secure Business
Partners and Offer Benefits (6
Standards).
Pillar 1, Standard 1:
Integrated Supply Chain
Management
The Customs administration should
follow integrated Customs control
procedures as outlined in the WCO
Customs Guidelines on Integrated
Supply Chain Management
(ISCM Guidelines).
Pillar 1, Standard 2:
Cargo Inspection Authority
The Customs administration should
have the authority to inspect cargo
originating, exiting, transiting
(including remaining on board), or
being transshipped through a country.
Pillar 1, Standard 3:
Modern Technology in
Inspection Equipment
Non-intrusive inspection (NII) equipment and
radiation detection equipment should be
available and used for conducting
inspections, where available and in
accordance with risk assessment. This
equipment is necessary to inspect high-risk
containers or cargo quickly, without
disrupting the flow of legitimate trade.
Pillar 1, Standard 4:
Risk-Management Systems
The Customs administration should
establish a risk-management system to
identify potentially high-risk shipments
and automate that system. The system
should include a mechanism for
validating threat assessments and
targeting decisions and identifying best
practices.
Pillar 1, Standard 5:
High-risk Cargo or Container
High-risk cargo and container
shipments are those for which there is
inadequate information to deem
shipments as low-risk, that tactical
intelligence indicates as high-risk, or
that a risk-scoring assessment
methodology based on security-related
data elements identifies the shipment
as high-risk.
Pillar 1, Standard 6:
Advance Electronic Information
The Customs administration should
require advance electronic information
on cargo and container shipments in
time for adequate risk assessment to
take place.
Pillar 1, Standard 7:
Targeting and Communication
Customs administrations should
provide for joint targeting and
screening, the use of standardized sets
of targeting criteria, and compatible
communication and/or information
exchange mechanisms; these elements
will assist in the future development of
a system of mutual recognition of
controls.
Pillar 1, Standard 8:
Performance Measures
The Customs administration should maintain
statistical reports that contain performance
measures including, but not limited to, the
number of shipments reviewed, the subset of
high-risk shipments, examinations of highrisk shipments conducted, examinations of
high-risk shipments by NII technology,
examinations of high-risk shipments by NII
and physical means, examinations of highrisk shipments by physical means only,
Customs clearance times and positive and
negative results. Those reports should be
consolidated by the WCO.
Pillar 1, Standard 9:
Security Assessments
The Customs administration should
work with other competent authorities
to conduct security assessments
involving the movement of goods in the
international supply chain and to
commit to resolving identified gaps
expeditiously.
Pillar 1, Standard 10:
Employee Integrity
The Customs administration and other
competent authorities should be
encouraged to require programs to
prevent lapses in employee integrity
and to identify and combat breaches in
integrity.
Pillar 1, Standard 11:
Outbound Security Inspections
The Customs administration should
conduct outbound security inspection
of high-risk containers and cargo at the
reasonable request of the importing
country.
Authorized Economic
Operator:
Defined in SAFE Framework
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, Standard 1:
Partnership
Authorized Economic Operators involved in
the international trade supply chain will
engage in a self-assessment process
measured against pre-determined security
standards and best practices to ensure that
their internal policies and procedures
provide adequate safeguards against the
compromise of their shipments and
containers until they are released from
Customs control at destination.
Pillar 2, Standard 2:
Security
Authorized Economic Operators will
incorporate pre-determined security
best practices into their existing
business practices.
Pillar 2, Standard 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.
Pillar 2, Standard 4:
Technology
All parties will maintain cargo and
container integrity by facilitating the
use of modern technology.
Pillar 2, Standard 5:
Communication
The Customs administration will
regularly update Customs-Business
partnership programs to promote
minimum security standards and
supply chain security best practices.
Pillar 2, Standard 6:
Facilitation
The Customs administration will work
co-operatively with Authorized
Economic Operators to maximize
security and facilitation of the
international trade supply chain
originating in or moving through its
Customs territory.
OUTCOMES FROM WCO
COUNCIL
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Adopted the SAFE Framework of
Standards;
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Extended the Term and Amended the
Mandate of the HLSG;
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Authorized a Business Committee
(PSCG) to have Access to and Advise
the HLSG on SAFE Framework Matters.
Consultation Process
Refined:
The PSCG
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WCO Perceived Need for more Long Term
and Distinct Trade Consultation Body;
Private Sector Consultative Group (PSCG)
Formed;
Regional and Sector Representation
Selected by Sec. Gen. /2-year terms
Advisory Role to HLSG
Editing and Comment Role-5th HLSG
HLSG & PSCG Interaction
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First PSCG Meeting Preceded 5th HLSG
(Organizational Meeting in Brussels)
Meeting of HLSG and PSCG
PSCG presents HLSG with edited
documents/ describes needs of
business
HLSG takes PSCG comments under
advisement
A New Look
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Fifth HLSG directed Consolidation of 3 Key
documents (AEO Conditions, Requirements
and Benefits; Validation and Authorization;
and, Mutual Recognition of Customs
Controls & AEO Status
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Sixth HLSG directed Consolidation of the
SAFE Framework and AEO documents (to be
presented to 2007 Council)
The Next Big Steps
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144 of 171 (Letters of Intent)
Recognition of Capacity Building
Needs and Process Aided by Self
Assessments
Diagnostic Missions
51 Countries between January 2006
and June 2007
2-Person Teams, WCO/Joint/Member
for 2 weeks in-country
NEXT STEPS (CONTINUED)
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HLSG to be Dissolved after 7th
and Final Session (April 2007)
Policy Commission and Council to
Decide on Future Management
Path
PSCG to Continue and Retain
Role
DIAGNOSTIC METHOD:
Measured against SAFE
Standards
A Top to Bottom Review of Customs:
 Strategic Management
 Budget Management, Procurement &
Logistics
 Legislation and Legal Policy
 Compliance Issues – Import/Export, C&V,
Overall
 Enforcement Posture and Readiness
DIAGNOSTIC METHOD
(Continued)
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Information Technology and
Communications
External cooperation and
Communication
Governance (Corruption, Recruitment,
Salary Structure, etc.)
FUTURE FOR THE SAFE
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Continuation of Consultation involving Customs,
Int’l Orgs. And Business;
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Consideration and Consultation regarding
Implementation and Administration of the FOS;
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Recommend Uniform Interpretation and Application
Measures for FOS;
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Recommended Future FOS Amendments;
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Consideration of any Other Relevant FOS Issues.
SUMMARY
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Goals are: Securing Supply Chain; Enhancing
Traditional Role Results; Facilitating Trade; and
Creating Standardized Requirements and
Expectations;
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Trade has had and Continues to Play Major Role, as
can be seen in creation of the Private Sector
Consultative Group;
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Success Ultimately Requires Commitment by
Members;
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Capacity Building is the Key to Globalizing Customs
Standards on Security and Facilitation.
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Mutual Recognition is the next big Frontier
WCO SAFE FRAMEWORK OF
STANDARDS
Larry L. Burton
Senior Technical Officer
WCO - Brussels