Module 13 | Safety & Security Presentation - FIATA Dip 2021

MODULE 13

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Disclaimer

This material is the property of GMLS. It should not be construed as
professional advice on any specific facts or circumstances. The contents
are intended for general educational and informational purposes only and
may not be quoted or referred to in any publications or proceedings
without the prior written consent of GMLS, to be given or withheld at our
discretion.
To request reprint permission for this training material, please contact the
GMLS office at Email [email protected]. The views set forth herein are the
personal views of the authors and do not necessarily reflect the views of
GMLS.

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Your Facilitator 4
Rialgo Barnard

• Facilitation & Instructional Designer, Freight
Industry and Customs Consultant, author of Learning
Guides / Study Guides since 2004
• Subject Matter Expert (SME):

• Freight Forwarding
• Customs Matters
• Supply Chain Management
• Business Administration
• Generic Management Development

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Lesson Plan 5

Main Topics:

• Session 1 – Introduction to Safety & Security
(S&S)

• Session 2 – The WCO SAFE Framework
• Session 3 – Security Measures and Initiatives
• Q&A Session

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Discussion Point per Topic

Discussion Points:
• Defining Security & Safety from a Global Customs perspective
• Background Information pre-911
• Shortcomings i.t.o. Global Customs S&S
• Result of the Global pre-911 Customs systems and procedures

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Discussion Point per Topic

Discussion Points:
• The “Old Order” vs. Disruptions to Trade
• A new perspective and global reform i.t.o. modernisation, Review, Revamp, Re-

inforce, End-to-End Safety & Security (S&S)
• Introduction to the WCO SAFE Framework of Standards
• The 3 SAFE Pillars
• The Kyoto Convention ITO of Customs Procedures
• The Kyoto Convention ICT Guidelines
• Synopsis of the SAFE Programme
• A Visualisation of SAFE

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Discussion Point per Topic

Discussion Points:
• Security Initiatives & Threats to the Supply Chain
• Basic Profile of Customs Programmes
• Security Organizations & Customs Security Measures
• International Security Initiatives
• 4 Core Elements to SAFE
• Other Securities & Specifications , C.S.I. | ISO | ITS(s)
• Impacts of Terrorism & Historical Highlights

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Discussion Point per Topic

Discussion Points (continued):
• Terrorism & Countering Terrorism
• Weapons of Mass Destruction (WMD)
• Security Designs & Other Security Issues (i.e. People)
• Documentation
• Cargo & Conveyance Security
• Business Partner Security
• Manage an Investigation & Vulnerability Assessment
• Incident Management, Emergency Management & Contingency Planning

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Backbone of the S&S Topic

Topics that MUST be Discussed:

• Session 1 – Introduction to Safety & Security (S&S)
• Session 2 – The WCO SAFE Framework
• Session 3 are concerned with Security Measures, Additional Security Providers,

Security Issues, Managing and Mitigating Security.

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Session 1

Discussion Points:
• Defining Security & Safety from a Global Customs perspective
• Background Information pre-911
• Shortcomings i.t.o. Global Customs S&S
• Result of the Global pre-911 Customs systems and procedures

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Defining S&S from a Customs perspective

What exactly is Safety & Security i.t.o. Global Trade as interpreted by Customs?

Security refers to a secure global operating environment, that is secure of threats,

terrorism, piracy and other pending or potential manmade disasters, in which
all concerned with global trade must work in. Advance information is the
driving force to LIMIT SECURITY RISKS.

Safety is defined as a condition in which the vast majority of risks associated with

the conducted activity have been identified, the probability of specific adverse
events have been defined, accepted and special measures have been put in
place to LIMIT the RISKS.

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Background Information Pre-911

Transport Leg 1 - Origin Transport Leg 2 – Int. Frt Transport Leg 3 – Dest.

Frt Fwd & POD Imp. IMP
Clearing &
EXP Exp. POL Delivery

Clearing

O- D-
POE POE

Basic Supply Chain

EXP = Exporter (Seller) | IMP = Importer (Buyer)
POL = Port / Place of Discharge | POD = Port / Place of Discharge

O-POE = Origin - Place of Exit | D-POE = Destination - Place of Entry
Int.= International | Frt = Freight
| Fwd = Forwarder (Freight Forwarder)

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Background Information Pre-911

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Background Information Pre-911

Transport Leg 1 - Origin Transport Leg 2 – Int. Frt Transport Leg 3 – Dest.

Frt Fwd & POD Imp. IMP
Clearing &
EXP Exp. POL Delivery

Clearing

O- 1.Carrier Exp. Manifest D-
2.Carrier Imp. Manifest
1.Customs-clear pre- POE 3.Acquit Imp. Entry via POE
carriage 1.Customs-clear pre-
Manifest discharge
2.Obtain Carrier Manifest 2.Acquit Imp. Entry via
3.Acquit Exp. Entry via Manifest
Manifest

Too much manual operations: Carrier Late Exp. & Imp. Manifest, Late acquittals
Lack in communication: End-to-End

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Result of the global pre-911 Customs systems

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Session 2 19

Discussion Points:
• The “Old Order” vs. Disruptions to Trade
• A new perspective and global reform i.t.o.

modernisation, Review, Revamp, Re-inforce, End-to-
End Safety & Security (S&S)
• Introduction to the WCO SAFE Framework of
Standards
• The 3 SAFE Pillars
• The Kyoto Convention ITO of Customs Procedures
• The Kyoto Convention ICT Guidelines
• Synopsis of the SAFE Programme
• A Visualisation of SAFE

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The Old Order: DISRUPTIONS TO TRADE

Unknown Government Responses
Closing down Borders
Shutting down Air Traffic
Restricting Cargo Conveyance
Evacuation of Buildings
Collapse of Financial markets

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OUR ECONOMIC WELLBEING & SURVIVAL DEPENDS HEAVILY
ON INTERNATIONAL TRADE
| |

TOTAL SUPPLY CHAIN SECURITY

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Pose the following Questions 22

What are the Security Issues to be
Addressed?
What are the Security Measures to
be implemented?

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A new order| End-to-end

End-to-End Safety & Security

Transport Leg 1 - Origin Transport Leg 2 – Int. Frt Transport Leg 3 – Dest.

Frt Fwd & POD Imp. IMP
Clearing &
EXP Exp. POL Delivery

Clearing

O- 1.Carrier Exp. Manifest D-
2.Carrier Imp. Manifest
1.Customs-clear pre- POE 3.Acquit Imp. Entry via POE
carriage 1.Customs-clear pre-
Manifest discharge
2.Obtain Carrier Manifest 2.Acquit Imp. Entry via
3.Acquit Exp. Entry via Manifest
Manifest

Modernise!
View Supply Chain as a whole, End-to-End | Implement ICT (data collection / intel, data
processing), obtain prior knowledge of cargo movement, ID who are involved, communicate

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THE GLOBAL SUPPLY CHAIN

Introducing:
The WCO

SAFE

Framework
of Standards

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Where to find the WCO SAFE Framework

• The latest 2018 edition of the SAFE Framework of Standards augments the
objectives of the SAFE Framework with respect to strengthening cooperation
between and among Customs administrations, for example through the
exchange of information, mutual recognition of controls, mutual recognition of
Authorized Economic Operators (AEOs), and mutual administrative assistance.
In addition, it calls for enhanced Customs cooperation with government
agencies entrusted with regulatory authority over certain goods (e.g., weapons,
hazardous materials) and passengers, as well as with entities responsible for
postal issues. The Framework now also includes a comprehensive list of AEO
benefits with certain minimum assured benefits

LINK: http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/frameworks-of-standards/safe_package

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Prior & On-going Focus

Theft etc.
Vulnerable Supply Chains
Different Threats
ISPS Code (Ships & Ports Certified)
ICAO (Aviation)
Intervention at Source – CSI
Entire Chain

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NEW THINKING…

3 Pillars of the SAFE Framework

i. Pillar 1: Customs-to-Customs network
arrangements,

ii. Pillar 2: Customs-to-Business partnerships, and
iii. Pillar 3: Customs-to-other Government Agencies

co-operation
The pillars involve a set of standards that are
consolidated to guarantee ease of understanding for
rapid international implementation by members.

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PILLAR 1

Customs-to-Customs network arrangements

¨ Calls for an endorsed strategy to secure the movement of global trade in a way that does
not impede but, on the contrary, facilitates the movement of that trade.

¨ To present them for adoption as a minimal threshold of what should be done by WCO
Members.

¨ Customs administrations require information about goods being imported, and often
require information about goods exported.

¨ Required information to be provided in advance and electronically.
¨ Customs should, therefore, be encouraged to develop co-operative arrangements with

other government agencies.
¨ Modernized Customs administrations should use automated systems to risk manage for a

variety of issues.
¨ There should be one set of international Customs standards developed by the WCO that do

not duplicate or contradict other intergovernmental requirements

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PILLAR 1 STANDARDS

• Standard 1 - Integrated Supply Chain Management
• Standard 2 - Cargo Inspection Authority
• Standard 3 - Modern Technology in Inspection Equipment
• Standard 4 - Risk Management Systems
• Standard 5 - High Risk Cargo or Containers
• Standard 6 - Advance Electronic Information
• Standard 7 - Targeting and Communication
• Standard 8 - Performance Measures
• Standard 9 - Security Assessment
• Standard 10 - Employee Integrity
• Standard 11 - Outbound Security Inspections

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PILLAR 2

Customs-to-Business partnerships
Defining Pillar 2:
Customs can rely on its partners and customers in the trade community…
• To Evaluate and address threats to their own supply chain
• Thus the risk confronting Customs is reduced.
Therefore, companies that demonstrate a verifiable willingness to enhance

supply chain security will benefit.
Minimizing risk in this way helps Customs in performing their security

functions, and in facilitating legitimate trade.

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PILLAR 2 STANDARDS

§ Standard 1 – Partnership
§ Standard 2 – Security
§ Standard 3 – Authorisation
§ Standard 4 – Technology
§ Standard 5 – Communication
§ Standard 6 – Facilitation
ITO RSA Customs, expected legislation amendments!
Where? New CUSTOMS CONTROL ACT (No. 31 of 2014), read with new

CUSTOMS DUTY ACT (No. 30 of 2014)

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PILLAR 3

Customs-to-other Government Agencies co-operation
¨ The importance of cooperation between Customs and other Government and

Inter-Government agencies involved in international trade and supply chain
security has increased.
¨ Key tools and instruments: Coordinated Border Management and Single Window
Compendiums.
¨ To ensure that the government response to the challenges of supply chain security
is both efficient and effective.
¨ Cooperation across various agencies is essential at the national level.

Continued on next slide…

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PILLAR 3 (CONTINUED FROM PREVIOUS SLIDE)

¨ Effective cooperation must also be promoted bilaterally and multilaterally
between and among organizations representing different sectors and regulatory
areas, in order to foster and establish international harmonization and reduce the
burden on both trade and governments.

¨ Members are referred to the tools and instruments of WCO including, but not
limited to:
◦ The Revised Kyoto Convention,
◦ Coordinated Border Management Compendium,
◦ Single Window Compendium,
◦ AEO Compendium, and
◦ Risk Management Compendium.

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PILLAR 3 STANDARDS

Standard 1 - Mutual cooperation between other authorities covering terminals,
depots, etc.

Standard 2 - Cooperative arrangements/procedures
Standard 3 - Alignment of security programmes
Standard 4 - Harmonization of national control measures
Standard 5 - Development of continuity and resumptions measures
Standard 6 - Harmonization of data filing requirements
Standard 7 - Mutual cooperation between Customs administrations and other

competent government agencies (i.e. Information sharing, training, technical
assistance, business hours)
Standard 8 - Development of Cooperative Arrangements or Protocols
Standard 9 - Harmonization of security programmes
Standard 10 - Harmonization of cross-border control measures
Standard 11 - Establishment of Mutual Cooperation
Standard 12 - Development of cooperative arrangements or protocols

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Let’s Visualise The Safe Framework

11 STDs 6 STDs 12 STDs

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LINK: 36
https://tfig.unece.
org/contents/revis
ed-kyoto-
convention.htm

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Customs End-to-End Safety and Security

• The Revised Kyoto Convention provides in the General Annex, Standard
6.1, that all goods, including means of transport, which leave or enter
the Customs territory, shall be subject to Customs control (CoE  CoI ).

Defining End-to-End Safety and Security:

• ◦CuPaslatrcoeemloofsaEsdxhietod(uOil-ndPtOotaEt)kheerecospnotanisniberil,itoyrfirfonmotthcoenttimaineetPrhliazeceegdoo,fooEdnnstt…roy t(Dh-ePOmEe) ans

◦ SEoduuxefnppsttprtoiaillnrinettasehrtprie/ooynrt,h, ave been reITnlretaa.nsCseapdrorifrerteor rm/ Customs contImBrouplyoaertrteF/rINAL

… in other words, from the start of the supply chain, through

internationalBcoarrdreiar,gCeo(usnhtirpyping), right upBtoorddeer,liCvoeurynttroy tohfe final place of
destination. of Export (CoE)
Import (CoI)

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ICT Guidelines

“Standards 7.1, 6.9, 3.21 and 3.18 of the General Annex to the Revised
Kyoto Convention require Customs to apply Information and
Communication Technologies (ICT) for Customs operations, including the
use of e-commerce technologies.

For this purpose, the WCO has prepared detailed Guidelines for the
application of automation for Customs.

These Kyoto ICT Guidelines should be referred to for the development of
new, or enhancement of existing, Customs ICT systems. In addition,
Customs administrations are recommended to refer to the WCO Customs
Compendium on Customs Computerization.”

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Synopsis of the SAFE Programme

1. Customs authorities are responsible for End-to-End Safety & Security
2. It aims to unify all global Customs Procedures via all WCO Members to promote and

streamline international trade (to facilitate trade and not become a barrier to trade)
3. The ultimate goal is to have a “ONE VIEW” or single view of all trade events as set out

in the AEO
4. The emphasis on Point 3 is advanced data (intelligence), (a) prior to exportation, (b)

prior to carriage, and (c) prior to importation,
5. ITO of Point 4, to make use of advanced ICT integrated systems, and
6. Data recovery (data storage, data security, and the speed of data retrieval)

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Session 3 40

Discussion Points:
Security Initiatives & Threats to the Supply Chain
Basic Profile of Customs Programmes
Security Organizations & Customs Security Measures
International Security Initiatives
4 Core Elements to SAFE
Other Securities & Specifications , C.S.I. | ISO | ITS(s)
Impacts of Terrorism & Historical Highlights

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Session 3 (Continued from Previous slide)

Discussion Points (Continued):

Terrorism & Countering Terrorism
Weapons of Mass Destruction (WMD)
Security Designs & Other Security Issues (i.e. People)
Documentation
Cargo & Conveyance Security
Business Partner Security
Manage an Investigation & Vulnerability Assessment
Incident Management, Emergency Management & Contingency Planning

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NEW AREAS OF INSIGHT

Global Security Initiatives Security Education
Nature of Terrorism Procedural Security
Private Sector Deterrence Cargo Security
Weapons of Mass Destruction Information Technology
Security Systems Business Partner Security
Policies & Procedures Investigations
Layered Defence Assessments
Access Control Response to Emergencies
Management Procedures for Emergencies

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GLOBAL TRADE SECURITY

WCO

NOTE: A comprehensive list of other international security programmes is located at the
end of this presentation, slide titled, “for additional research”

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SECURITY INITIATIVES

Paradigm Shift
Single intervention at Imports
Now Export intervention
CSI (Container Security Intervention)
End-to-End Security Measures

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THREATS TO THE SUPPLY CHAIN

Insertion
Removal
Illegal Use
Manipulation

Everybody is at Risk

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BASIC PROFILE OF
CUSTOMS
PROGRAMMES

• Voluntary
• Self-Assessment
• Key Criteria are set out (i.e. Customs Compliances)
• Customs Assessment & Certification
• Expected Benefits (i.e. AEO)

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SECURITY ORGANISATIONS

Sweden : StairSec
Canada : PIP
NZ : SEP
USA : CTPAT
Europe : AEO
RSA : Regional AEO

(R-AEO) Global
Security

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CUSTOMS SECURITY MEASURES

Protection of Assets Integrated into entire Supply
Personnel Chain (i.e. ICT Integration)
Process
Data Security Nothing in isolation (i.e. Open
Conveyance Policies)
Business Partners
Resilience State Intervention
Technology (RFD)
Customs Region-to-Region
Domestic & Other Statutory Body
Co-operations

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INTERNATIONAL • ISPS Code (Maritime Security & Ports by IMO: Vessels
SECURITY INITIATIVES of GT 500 tonnes & above)

• Ships & Ports Security Plans

• SAMSA (South African Maritime Safety Authority)

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