Details of the Recently Adopted WCO "Framework of Standards" to Secure and Facilitate Global Trade (Part III - Final)

This is Part III, the final part of a multi-part series of summaries on the Framework, and highlights selected aspects of Section 3 (WCO Standards to Secure and Facilitate Global Trade).

Highlights of Section 3

The following are highlights of Section 3 (WCO Standards to Secure and Facilitate Global Trade) of the Framework:

Pillar 1 - Customs-to-Customs:

Advance electronic information to identify high-risk shipments as early as possible. The central tenet of the Customs-to-Customs Pillar is the use of advance electronic information to identify high-risk containers or cargo. Using automated targeting tools, Customs administrations identify shipments that are high-risk as early as possible in the supply chain, at or before the port of departure, in time for adequate risk assessment to take place.

Cargo inspection authority. The Customs administration should have the authority to inspect cargo originating, exiting, transiting (including remaining on board), or being transhipped through a country.

Modern technology to inspect high-risk shipments. Customs administrations should inspect high-risk shipments by using modern technology, such as large-scale X-ray and gamma-ray machines and radiation detection devices. The Framework notes that maintaining cargo and container integrity by facilitating the use of modern technology is also a vital component of the Customs-to-Customs Pillar.

Outbound inspections of high-risk containers/cargo. The Customs administration should conduct outbound security inspection of high-risk containers and cargo at the reasonable request of the importing country.

Pillar 2 - Customs-to-Business:

Customs should establish partnership programs with private sector. Each Customs administration will establish a partnership with the private sector in order to involve it in ensuring the safety and security of the international trade supply chain. The main focus of the Customs-to-Business Pillar is the creation of an international system for identifying private businesses that offer a high degree of security guarantees in respect of their role in the supply chain.

Partnership programs (such as the U.S.' Customs-Trade Partnership Against Terrorism (C-TPAT), Canada's Partners in Protection, etc.) push the security of cargo and containers further back into the supply chain by involving the private sector and by requiring increased security at the point of origin (e.g., the point of stuffing a container at a foreign manufacturer's loading docks, and as the container is moved from point to point through the supply chain).

Businesses can obtain status as Authorized Economic Operators. The Framework sets forth the criteria by which businesses in the supply chain can obtain authorized status as a security partner.

Authorized Economic Operators (AEOs) involved in the international trade supply chain will engage in a self-assessment process measured against pre-determined security standards and best practices to ensure that their internal policies and procedures provide adequate safeguards against the compromise of their shipments and containers until they are released from Customs control at destination.

The Customs administration, together with representatives from the trade community, will design validation processes or quality accreditation procedures that offer incentives to businesses through their status as AEOs.

Tangible benefits for AEOs. These business partners should receive tangible benefits such as quicker movement of low-risk cargo through Customs, improved security levels, optimized supply chain cost through security efficiencies, enhanced reputation for the organization, increased business opportunities, improved understanding of Customs requirements, and better communication between the AEO and the Customs administration.

Technical Specifications for Pillars 1 and 2:

The technical specifications for Pillars 1 and 2 are presented in Annex 1 (Customs-to-Customs Network Arrangements Technical Specifications to Pillar 1) and its Appendix (Seal Integrity Programme for Secure Container Shipments), and in Annex 2 (Customs-to-Business Partnerships Technical Specifications to Pillar 2).

(See ITT's Online Archives or 07/19/05 and 07/20/05 news, 05071910 and 05072010, for Parts I and II of this series of summaries.)

WCO Framework (dated June 2005) available at http://www.wcoomd.org/ie/En/en.html

WCO Framework alsoavailablefrom U.S. Customs and Border Protection (CBP) at http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/wco_framework.ctt/wco_framework.pdf