Chapter 1 Flashcards
How did 9/11 effect Supply chain security?
Increased the concern over unmonitored container movements as potential implements of terrorism
What are the three phases of supply chain security development?
- (pre 9/11) Harmonizing divergent customs practices
- (2001-2004) 9/11 and port security
- (2004-current) origin to designation and a chain of custody
Who led the development in supply chain security?
- world wide organizations
- U.S. legislation
- European initiatives
Revised Kyoto Convention of 1999
-recognition of need for cooperation and modernization among customs authorities
What were the goals of the RKC?
- simplifying customs procedures with an emphasis on IT and risk management involving automated systems
- target high risk shipments based on pre-arrival info
World Customs Organization (WCO)
- leader of phase 3
- developed standards for automation of cargo movement
- adopted the RKC 1999 as the baseline for SAFE framework
SAFE Framework
- adopted in 2005
- pushed security back to the stuffing/loading point
- involved private sector
- required increased security at point of origin and as container is moved point to point
- advance electronic info on cargo and container shipments in time for adequate risk assessment
What are the four core elements of the SAFE Framework?
- Advance electronic manifest info requirements
- consistent risk management approach
- nonintrusive inspection of certain containers
- benefits to business for cooperation
What are some benefits to businesses for cooperation?
- better tracking for their products
- get through security faster
- will keep good publicity
What are some contributions made by the ICT Guidelines (Kyoto Convention)?
- guidelines on the electronic exchange of info at export and import
- creating a chain of electronic data and a single global schema linked electronically
-proposed advance electronic transmission of info to customs services’ computerized systems
UN’s Single Window policy
-approved in 2004; Europe’s Recommendation 33
- trade related info and/or documents need only be submitted once at a single entry point
- info goes ahead of the cargo through customs
- more efficient/accurate due to less paper work
- gives advanced notice of goods coming in
Trade Act of 2002
requires Customs and Border Protection promulgate regulations to being collecting all manifests electronically
What issues did the Trade Act of 2002 address?
- vessel ID systems
- Port security assessments (many ports around the US were not that secure)
- operational and efficiency matters (electronic transfer of data)
Safe Port Act of 2006
-codified US programs, the Customs-Trade Partnership Against Terrorism (C-TPAT) and Container Security Initiative (CSI)
What was the Safe Port Act designed for?
-to quickly obtain information
- scanning for radiation
- automated targeting
- container security standards
What did the Safe Port Act establish?
“Green Lanes” in the form of Tiers 1,2, and 3
- provide incentives for companies to cooperate
- their products will move faster through the supply chain
What was the main goal of the Implementing the 9/11 Commission Recommendations Act of 2007?
-to solely address security of containers
Details of the Implementing the 9/11 Commission Recommendations Act of 2007.
- breach protection and access prior to entering economic zone of US and electronic notification if so
- origin to destination for all truck, rail and vessel transit (international)
- Sec of DHS has to identify the place of breach, be notified before containers enter US, track time and location of container through transit
- requires 100% scanning of inbound containers, although rest of trading world does not accept
Core elements of the Container Security Initiative (CSI)
- identify high risk containers
- use technology to prescreen high-risk containers
- use smart containers or tamper-evident containers
What are some ways to identify a “high-risk” container?
- where its origin is
- where all it has been
- what is in it
- track record of distribution company
- company that is shipping product (if newer company, might need to take extra precautions since don’t know much about them)
What are the 5 U.S. Programs/Processes?
- Customs-Trade Partnership Agains Terrorism (C-TPAT)
- Container Security Initiative (CSI)
- Automated Commercial Environment (ACE)
- E-Manifest
- Secure Freight Initiative (SFI)
C-TPAT
Customs-Trade Partnership Against Terrorism
- voluntary program between industry and CBP
- members meet minimum security standards
- requires security starting at the origin all the way through to the destination
- rails singled out to have tracking info
- must use e-manifest
CSI
Container Security Initiative
- addresses potential for terrorist use of a maritime container to deliver WMD
- proposes a security regimen to ensure all containers that pose potential threat are identified at foreign ports
- reciprocating program where foreign officials can come to our ports
- 24 hour manifest rule
Core elements of the CSI
- identify high-risk containers (automated)
- use technology to pre-screen high-risk containers
- use smart containers or tamper evident containers (use nonintrusive scanning)
