Keeping up with New Cargo Security Regulations
By Neil Shister,
Editor
“9/11
happened in 2001,” observes Kirsten Provence, Supply Chain Security Project
Manager for the Boeing Company, “and in the last eight years many security
programs have been developed and deployed.
Many are finally coming on line at the same time and soon.”
On January 26, 2010 the
twelve month ‘flexible’ enforcement implementation phase of Importer Security
Filing (ISF) requirements for ocean freight (10 +2) is scheduled to end, after
which U.S. Customs and Border Protection (CPB) may issue damages of $5000 per
filing violation. In addition, may
refuse to grant permission to unlade merchandise (or seize merchandise) for
goods without appropriate ISF documentation. It will also have the option to
issue “do not load” orders at origin for noncompliant cargo.
Six months later, in
August, the Transportation Security Administration (TSA) 100% Requirement goes
into effect, requiring screening of all
air cargo on passenger planes (as mandated by the 9/11 Commission Act of 2007).
The language says cargo must be screened “commensurate to that of passenger
baggage”, which means screening at the piece level (rather than at the
container or pallet level).
The imminence of
implementation of 10+2 has provoked objections from big shippers who contend
that its detailed filings duplicate the intent of Customs-Trade Partnership Against Terrorism (C-TPAT) certification. “It would be nice to have some
C-TPAT status with ISF,” notes Ms. Provence. “If we’ve done all the work for
C-TPAT, why submit all the same data elements in the same time-frame as
non-C-TPAT or lower tier C-TPAT companies?”
“The
problem is that some of the data elements are hard to get to,” says Ms.
Provence. “They’re buried deep in the
supply chain (e.g. where was the container stuffed?).” This challenge will be
compounded when other countries begin deploying their own security standards.
At present, Customs says there will be no effort at data coordination nor mutual recognition.
“It’s only going to get more complicated for our suppliers.”
Inconsistent
data reporting poses the major threat, according to Ms. Provence. “With huge
supply chains, the integrity of the data being entered is of considerable
concern. One misstep typing in the port
code, vessel name, importer etc. can subject a shipment to being held up.”
Remedies
being suggested in behalf of Tier 3 C-TPAT members include penalty reduction
(CBP has agreed to up to a 50% discount per violation), less data requirement
and later filing deadlines.
TSA’s
100% requirement poses a fundamental question about how to handle risk. “The safe standards framework of the World
Customs Forum is a risk management framework,” explains Ms. Provence. “When the U.S. goes forth with 100% screening
there’s no risk management being employed.
From a global viewpoint, a lot of non-US suppliers are pretty
frustrated.”
“A
lot of comments regarding upcoming security requirements are going through
committees,” notes Ms. Provence. “The question you always have with comments is
‘do they end up in some black hole?’” In many cases the regulatory agency lacks
the power to change rules, which requires Congressional action. “The issue isn’t whether comments fall on
deaf ears but rather whether the message never gets to the ears that need to
hear it.”
Regardless
of the ultimate form regulations take, stricter compliance requirements have
focused attention on establishing optimal organizational designs to integrate
supply chain security management into the enterprise. “Security compliance is a
new realm for a lot of organizations and keeping executives informed of new
threats, and requirements and why is increasingly difficult,” says Ms.
Provence.
FOR MORE
INFORMATION:
U.S. CUSTOMS AND
BORDER PROTECTION:
C-TPAT (Customs-Trade Partnership Against Terrorism): http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/
Importer Security Filing 10+2:
http://www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/
TRANSPORTATION
SECURITY ADMINISTRATION:
100% Requirement: Commonly Asked
Questions:
http://www.tsa.gov/what_we_do/tsnm/air_cargo/resources.shtm
WORLD CUSTOMS
ORGANIZATION
http://www.wcoomd.org/home.htm
Supply Chain Security Course:
http://e-learning.wcoomd.org/Hosting/demos/controle/formation/index_EN.html