icao wco joint workshop

ICAO – WCO JOINT WORKSHOP

AIR CARGO

SECURITY AND FACILITATION

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MODULE 4

SECURE SUPPLY CHAIN

CUSTOMS AND AVSEC PERSPECTIVES

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Module Objective

Introduce concept of customs supply and secure supply chains

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Exercise

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CUSTOMS PERSPECTIVE

SUPPLY CHAIN SECURITY

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Supply Chain Security

Supply chain security refers to efforts to enhance the security of the supply chain, the transport and logistics system for the world's cargo. It combines traditional practices of supply chain management with the security requirements driven by threats such as terrorism, piracy, and theft

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Supply Chain Security Goals

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Implement a more secure supply chain that yields greater trade efficiencies

Create Industry/Government Partnerships in the development of security and trade initiatives

Supply Chain Security Goals

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Achieve Global Commonality of Supply Chain Security Criteria, Customs Declarations Data and Processes

Promote voluntary industry participation that provides collateral benefits

Supply Chain Security – key entities Shippers/Exporters

Consignees/Importer

Origin/Destination Freight Forwarders

Consignor

Origin/Destination Postal Operators

Export / Import Customs

Carrier

Ground Handlers

Agent

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Authorized Economic Operator

The WCO adopted the Framework of Standards to Secure and Facilitate Global Trade in 2005, which consists of supply chain security standards for Customs administrations including Authorized Economic Operator(AEO) programs

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A party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards

Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, and distributors

Authorized Economic Operator

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Most Common Documents

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House air way

bill

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House Manifest

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Air Way Bill

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Flight Cargo Manifest

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Documentary process flow

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Consolidation process (example)

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Today’s advance electronic information

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AVIATION SECURITY PERSPECTIVE

SECURE SUPPLY CHAIN

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Air Cargo Secure Supply Chain

Set of interconnected security procedures that are applied to a cargo consignment to maintain the integrity of such a consignment from the point where screening or other security controls are applied until it arrives at its last airport of arrival, including through transit and/or transfer points

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Air Cargo Secure Supply Chain

Two choices: cargo can be secured from origin or it can be screened* and then kept secure

*Screening is the application of technical or other means which are intended to identify and/or detect weapons, explosives or controls that are accepted or required by the appropriate authority in respect of cargo or mail

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OriginTruckerHaulier

Freightforwarder

Onload airport

Offload airportorTransfer/Transit airport Trucker

HaulierDestination

ConsigneeConsignor*

Warehousehandling agent

Warehousehandling agent

Consolidate

shipments

and

deliver to

airport

Secure

shipment

Build/

reconfigure/

weigh

unit load

devices

Load

aircraft

Offload

aircraft

Breakdown/

reconfigureTransfer Deliver

Transfer/TransitMay be regulated agent(s)

Aircraftoperator (s)

* may be a known, unknown or an account consignor

Secure Supply Chain – key entities Aircraft Operator (AO)

Regulated Agent (RA)

Known Consignor (KC)

Account Consignor (AC)*

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Secure Supply Chain - Aircraft Operators Entity which provides commercial air transport services

Responsible for ensuring that 100% of cargo has been secured before loading

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Secure Supply Chain - Aircraft Operators

May accept cargo from a Regulated Agent

May be a Regulated Agent

May accept cargo from a known or account consignor*

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May accept and screen cargo from an unknown consignor and carry out screening

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Secure Supply Chain ─ Regulated Agent

Any entity that conducts business with the aircraft operator and provides security controls that are accepted or required by the appropriate authority in respect of cargo and/or mail

The security controls may include screening

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Secure Supply Chain ─ Regulated Agent Who can be a Regulated Agent?

A freight forwarder, handling agent or aircraft operator that can:

- render the cargo secure, and/or

- receive and handle cargo within a secure supply chain; and

- reach standards sufficient to be approved and listed by the appropriate authority as a Regulated Agent

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Secure Supply Chain ─ Known Consignor

“A consignor who originates cargo or mail for its own account and whose procedures meet common security rules and standards sufficient to allow the carriage of cargo or mail on any aircraft”

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A known consignor may not screen cargo

A known consignor cannot accept cargo from another entity as part of a secure supply chain

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Who can be a Known Consignor? Any consignor who originates the cargo or mail for its own account (manufacturer, assembler…) and who:

- Has developed a Known Consignor Security programme approved by the

appropriate authority, and

- Meets common security rules and standards after inspection by the appropriate authority

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Security Supply Chain – Account Consignor* Annex 17 defines RAs and KCs and requires the AA to approve them when

included in a secure supply chain. It does not define or even reference ACs

There are provisions for ACs in the Aviation Security Manual. These allow these entities to be approved by RAs and to implement security controls for carriage on all-cargo aircraft only

This situation has been reviewed by the AVSEC Panel and this concept will be phased out in next 5 years

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Security Supply Chain – Account Consignor*

Consignor who originates cargo or mail for its own account and who applies procedures that meet common security rules and standards set by the appropriate authority sufficient to allow the carriage of its cargo and mail on all cargo aircraft only (Security Manual, Chapter 13)

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Secure Supply Chain –Account Consignor*

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Consignment Security Declaration (CSD)

Each Contracting State shall ensure that cargo and mail that has been confirmed and accounted for shall then be issued with a security status which shall accompany, either in an electronic format or in writing, the cargo and mail throughout the secure supply chain

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Consignment Security Declaration (CSD)

Trace the Security Status of cargo within the secure supply chain

Identify the entities which were involved previously

Identify the Security controls already applied to cargo and mail

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Electronic Consignment Security Declaration

(e-CSD)

An electronic certificate comprised in a FWB message

Stakeholders exchange FWBs

Regulators pull out security information as requested

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CSD versus e-CSD

The CSD is the paper version of the e-CSD

Can be printed out from the electronic message

Can be used within stakeholders that do not have an IT system supporting the e-CSD

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e-CSD business process

Authority

Regulated Agent

(Freight Forwarder)

Carrier

(SLI)

Known Consignor

(Shipper)

FWB/FFM

Sec.

Dec.

Sec.

Dec.

Regulated Agent

(Handling Agent or

Carrier)

Sec.

Dec.

FWB/FFM

Sec.

Dec.

Regulated Agent

(Handling Agent or

Carrier)

FWB

Operators exchange and archive security information ensuring that only secure cargo is flown

Regulated Agents apply security controls which may include physical screening and assign a security status (SHR, SPX, SCO)

Authorities have an audit trail along the supply chain of who has secured what, how and when

Standard layout of the electronic consignment security declaration can be re-produced at any point and time in the supply chain

Standard paper layout can be used when the electronic one is not yet accepted or implemented

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e-C

SD e

xam

ple

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e-CSD Challenges IT Systems

Lack of compatibility or connectivity

Systems not updated (FWB9 vs FWB16)

No systems at all

Data Quality

Inaccurate or incomplete data submitted

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….. SPH/EAW/SPX OCI/ISS/RA/CH/RA00001-01 ED/0515 /CH/ISS/SN/MICHEL ROSSI /CH/ISS/SD/02JUL141020 /CH/ISS/SM/AOM-AS PER MANIFEST

e-CSD Challenges Paper AWB

Use of the paper AWB and manual stamps to include security information

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Module Summary

Introduced concepts of supply chain security and secure supply chain

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End of Module 4

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