SCRLCRegulatory/Security Track

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

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)

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 10+2 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.

C-TPAT Seminar Summary con’t.

• 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.

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

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

Benefits (responses from Importers)

%RespondingIncreased Decreased

Number of inspections: 8.4 39.4Lead time: 9.0 16.7Ability to predict lead time: 25.5 4.8Ability 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 19%Probably

• Also 55% strongly agree that their company's ability to access & manage risk has been strengthened.

Proposed New Advance Data ElementsFor 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