Think Security

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Think Security
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Supply Chain Security On the Southern Border
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Agenda

• Introduction
• What is Supply Chain Security
• How the Government plans to achieve Supply Chain
  Security
• How Importers, Brokers and Carriers will achieve
  Supply Chain Security
• Questions

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Securing the Supply Chain
Warehouse
Importer
Manufacturer /Supplier
Customs Broker
Supply Chain Security
Highway Carrier
Air Carrier
Sea Carrier
Rail Carrier
Freight Forwarder
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What is the Supply Chain?
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Supplier (exporter, seller, manufacturer)

• Having contraband introduced into
• The product
• The packaging
• The shipping container
• Using the documents to misrepresent or conceal
• Identity
• Origin
• Merchandise
• Contents, weights, volume

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Forwarder (broker)

• Using the documents to misrepresent or conceal
• Identity
• Origin
• Merchandise
• Contents, weights, volume

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Carrier

• Having contraband introduced into
• The product
• The packaging
• The shipping container
• The conveyance

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U.S. Customs Broker

• Using the documents to misrepresent or conceal
• Identity
• Origin
• Merchandise
• Contents, weights, volume

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Importer (buyer)

• Using the documents to misrepresent or conceal
• Identity
• Origin
• Merchandise
• Contents, weights, volume
• Having contraband removed from
• The product
• The packaging
• The shipping container
• The conveyance (trucks)

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Why Supply Chain Security?
New York after 9/11/01
New York before 9/11/01
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Why Supply Chain Security?
A false roof in a tractor-trailer is a common
method of smuggling drugs. 61 kilos of cocaine
were found in the roof of this particular vehicle.
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Why Supply Chain Security?

• Mission
• Prevent terrorist attacks within the United
  States
• Reduce America's vulnerability to terrorism
• Minimize the damage from potential attacks and
  natural disasters

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CBPCustoms and Border Protection
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• After March 1, 2003
• The priority mission of CBP is to prevent
  terrorists and terrorist weapons from entering
  the United States.This important mission calls
  for improved security at America's borders and
  ports of entry as well as for extending our zone
  of security beyond our physical borders - so that
  American borders are the last line of defense,
  not the first.

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Why Supply Chain Security?
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How will CBP AchieveSupply Chain Security

• Advanced Manifest
• Container Security Initiative (CSI)
• Free and Secure Trade (FAST)
• Customs Trade Partnership Against Terrorism
  (C-TPAT)

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Advanced Manifest

• Ocean- 24 hours before lading
• Air- 4 hours before arrival or 4 hours before
  wheels up in North and South America
• Truck- 1 hour prior to arrival or 30 minutes
  prior to arrival for FAST (0 minutes for Brass)
  (November 15)
• Rail- 2 hours before arrival

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Container Security Initiative (CSI)

• Extend our zone of security outward so that
  American borders are the last line of defense
• Intelligence and automated information to
  identify and target high-risk containers
• Pre-screening containers identified as high-risk,
  at the port of departure, before they arrive at
  U.S. ports
• Detection technology to pre-screen high-risk
  containers
• Smarter, tamper evident containers

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Free and Secure Trade (FAST)

• U.S. Mexico Ports
• Opens today in Otay Mesa
• C-TPAT Importers
• C-TPAT Manufacturers
• FAST C-TPAT Approved Carriers
• FAST Approved Commercial Drivers
• Cargo Release Methods
• Pre Arrival Processing System (PAPS)

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Customs Trade Partnership Against Terrorism
(C-TPAT)

• What is it?
• Who is eligible?
• Importers
• Mexican Manufacturers
• Carriers
• U.S. Customs Brokers
• Forwarders
• Port Authorities
• Who is next (Warehouses)

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Customs Trade Partnership Against Terrorism
(C-TPAT)

• How to Enroll
• Memorandum of Understanding
• Assessment
• Manual (verifiable documented procedures)
• Questionnaire (executive summary)
• Communicating procedures (to vendors, suppliers,
  manufacturers, brokers, forwarders, carriers,
  ports)
• Certification
• Verification (on site, by Customs)

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C-TPAT Benefits of Membership

• Quick cargo release
• Fewer cargo exams
• Access to the Fast Lane through Customs
• Eligibility for quick cargo release programs
• Priority exam treatment
• Priority use of US Customs new automation system,
  ACE
• Exceeding customer requirements for supply chain
  security
• Reduced cargo loss from theft and damage
• Protection of employees
• Maintain eligibility for new Customs import
  programs

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C-TPAT Benefits of Membership

• Protect the future reputation and profits of the
  Company by avoiding disaster and the resulting
  bad press
• Reduced Customs inspections
• Reduced inspection fees
• Reduced handling, trucking, rental fees
• Reduced cargo demurrage
• Minimize cargo delays during peak shipping season
• Retain Low Risk Importers earned benefits
• Self-Policing emphasized vs. Customs scrutiny
• Continued eligibility for existing Customs
  programs

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Security Requirements

• Facility Security
• Personnel Security
• Data Documentation Security
• Information System Security
• Warehouse, Shipping and Receiving Security
• Container Trucking Security
• Vendor and Supply Chain Service Provider Security

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Monitoring, Identifying Correcting Security
Weaknesses

• Monthly Audit/Monitoring
• Identification of Security Weaknesses
• Annual Audit
• Reporting

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The Future

• New threats
• New Challenges
• New Technologies
• Worldwide Commitment to Supply Chain Security

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For additional questions

• Steven Zisser
• Zisser Group
• 2297 Niels Bohr Court
• Suite 114
• San Diego, CA 92154
• Phone [phone]
• steve_at_zissergroup.com