SCRLC

1
SCRLC

• Regulatory/Security Track

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Topics

• Proposed SOW for Regulatory/Security Track
• Summary report Annual Customs and Border
  Protection C-TPAT Seminar
• TSA briefing on supply chain threats
• TSA briefing on potential new air cargo security
  regulations

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Proposed Regulatory/Security Scope

• Included
• Understand existing supply chain security
  programs (C-TPAT), track proposed changes, and
  assess potential impacts to SCRLC members
• Understand emerging supply chain security
  programs (AEO, WCO) to identify potential impacts
  or benefits to SCRLC members
• Monitor proposed legislation and/or new agency
  policies related to supply chain security that
  could impact SCRLC members
• Track supply chain security best practices that
  may be shared with SCRLC members
• Monitor other regulatory initiatives (beyond
  supply chain security) that may impact SCRLC
  members
• Monitor open source intelligence reports to
  identify potential/emerging supply chain security
  risks
• Contingency planning/continued operations in
  post-incident scenarios
• Monitor latest technological solutions to supply
  chain security concerns (container security
  devices, Secure Freight Initiative, etc)
• International regulations and policies impacting
  supply chain security
• Excluded
• Tracking of import/export compliance regulations
  or policies (i.e. governance and customs
  compliance issues)
• Security/reliability risks to supply chains from
  non-human sources (i.e. pandemic flu, SARS, etc)

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C-TPAT Seminar SummaryNew Orleans, April 4-6,
700 attendees

• CBP has had to adapt to emerging threats,
  changing operational requirements, and new
  legislation.
• Advanced shipment data is essential to CBP's risk
  management approach New 102 data requirements
  coming
• CBP and US Coast Guard have business resumption
  plan.
• 6784 companies now C-TPAT certified only 248
  (3) are Tier 3. 240 suspensions/removals.
• CBP has conducted 4,060 validations will conduct
  3000 company validation visits in 2007.
  Revalidations will occur every 3 years.

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C-TPAT Seminar Summary cont.

• CBP is testing 100 screening (imaging and
  radiation) at 3 ports (Pakistan, Honduras, UK) in
  2007(SAFE Ports Act)
• CBP, WCO, and the EC are all working jointly to
  implement "mutually recognized" programs.
• The EC is implementing a new cargo security
  program ("AEO")
• Export shipments "are being addressed at a high
  level" and may be included in the future.
• No ocean container security technology performs
  as needed to date.

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Business Resumption (BR)

• Customs has linked BR to incident management
• Customs policy against automatically closing all
  ports of entry after an incident
• Customs will communicate to stakeholders early
  and often
• Unified Business Resumption Messaging
• Maritime Infrastructure Recovery Plan (MIRP)
• CPB has mobile assets to assist in the case of an
  incident

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Preliminary results from a U of VA survey of
C-TPAT Members

• Benefits (responses from Importers)
• Responding
• Increased Decreased
• Number of inspections 8.4 39.4
• Lead time 9.0 16.7
• Ability to predict lead time 25.5 4.8
• Ability to track orders 20.9 2.3
• Benefits (for all Businesses)
• Time to release cargo 12.5 27.2
• Will stay in C-TPAT? 76 Definitely
  19Probably
• Also 55 strongly agree that their company's
  ability to access manage risk has been
  strengthened.

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Proposed New Advance Data Elements

• For maritime cargo that is destined to remain in
  the U.S. the data elements listed below will be
  required to be transmitted by the importer or its
  agent 24 hours prior to loading the U.S. bound
  vessel.
• The following ten (10) data elements were
  selected because of their probative value and
  because of their ready availability in current
  logistics processes.
• Manufacturer name and address
• Seller name and address
• Container stuffing location
• Consolidator name and address
• Buyer name and address
• Ship to name and address
• Importer of record number
• Consignee number
• Country of origin of the goods
• Commodity Harmonized Tariff Schedule number (6
  digit)
• In addition to the data elements outlined above,
  CBP will require ocean carriers to provide two
  additional data sets to complete the security
  filing
• Vessel Stow Plan
• Container Status Messages