13 July 2004

Bonner: WCO group aims for global approach to supply chain security

The following article is excerpted from the 13 July 2004 edition of “American Shipper”.

A small, high-level group of national customs directors recently formed by the World Customs Organization will work to galvanize international support for a common supply chain security regime based on two ongoing U.S. initiatives that can be quickly implemented around the world….

Robert Bonner, commissioner of Customs and Border Protection, said the WCO's goal is to "internationalize" the Customs-Trade Partnership Against Terrorism and the Container Security Initiative to protect the global trading system from terrorists, and so importers and exporters don't have to adapt logistics processes to meet different security standards in each country in which they do business.

"I think this process will permit the adoption of a common set of standards, or norms, that would be adopted ideally by every customs authority in the world," Bonner said in a meeting with a handful of reporters.

In late June the WCO announced the formation of the group to provide leadership on an interoperable supply chain monitoring system that simultaneously promotes security and the movement of goods. Bonner's comments are the clearest indication yet that such a system will follow the U.S. model championed by Bonner after the Sept. 11 attacks.

C-TPAT is a private-public partnership in which companies validate to Customs that they and their suppliers have established protocols for packing, shipping and monitoring containerized merchandise and those who handle it along the way in exchange for less time-consuming cargo inspections at the border. More than 6,500 U.S. importers, transportation providers, port terminals, as well as a handful of foreign manufacturers, have gained preliminary permission to participate in the program so far.

The Container Security Initiative is Customs’ program designed to catch suspicious containers that might contain terrorists, equipment or mass destruction weapons before they arrive at a U.S. port. Eighteen governments, some fearing the United States might shut out imports from ports deemed unsafe, have agreed to help protect the United States by checking selected export containers identified by Customs as posing a potential threat. U.S. Customs officers stationed in foreign ports use shipping data filed by carriers prior to departure to alert the domestic customs administration about which containers to target for x-ray and radiation scans. The program is reciprocal and countries like Japan and Canada have similarly stationed inspectors at U.S. ports to pre-screen outbound shipments.

On July 1, a global port and vessel security regime adopted by the International Maritime Organization and enforced by domestic border agencies such as the U.S. Coast Guard went into effect. More than 150 countries signed the treaty to implement the regime. The WCO effort is designed to create a similar global security standard for the containers that move on vessels and through ports, but without going through the potentially time consuming treaty ratification process, Bonner said.

The WCO doesn't have the authority to draft an international convention, but can leverage its leadership to convince member nations that they will cede economic advantage to those who do participate….

"As a critical mass of countries joins in on the (security) framework it will expand and grow to include most of the customs authorities around the world," Bonner said.

"Going to the multilateral convention, treaty route would take five to 10 years and we don't have that kind of time" when facing an immediate terrorist threat, he said.

The international security framework envisioned by Bonner and some of his fellow customs administrators would be based on the CSI principles of using advance information, risk management techniques and inspections of both outbound and inbound containers as a way to enhance mutual assistance.

Bonner said the group intends to get