Administration Issues Global Supply Chain Security Strategy

Initial Global Strategy Was Issued in 2007

In July 2007, DHS issued the initial global supply chain security strategy on the flow of cargo through the supply chain, from point of origin to final destination. It provided the overall strategic structure in which U.S. cargo security programs and efforts operate, and clarified how those programs harmonize with similar international programs, such as the World Customs Organization’s “Framework of Standards to Secure and Facilitate Global Trade.”

COAC Twice Provided Feedback to DHS on Strategy

In 2007, COAC reviewed a draft version of the initial strategy and had concluded that it was not actionable, was too focused on the maritime environment, did not specify who is in charge at each level, did not provide trade with intelligence on port conditions, did not address programs such as C-TPAT, etc. (See ITT’s Online Archives 07072405 for summary on the initial report and COAC’s reactions to the draft May 2007 initial report.)

In 2010, COAC provided DHS with recommendations for the development of the final strategy, including (i) the strategy should focus more attention on air and surface transportation, (ii) timely sharing of actionable intelligence among government agencies and the private sector should be a strategic priority, (iii) the 100% scanning and screening mandates should be reevaluated in favor of risk-based measures, (iv) etc. (See ITT’s Online Archives 10072930 for summary of COAC’s recommendations.)

First Goal is to Promote the Secure and Efficient Movement of Goods

By linking security and efficiency under a single goal, the Administration seeks to emphasize that security is an essential element of an efficient and functioning supply chain system. To accomplish its goal, the Administration will seek to:

• Resolve threats early - Resolve threats early to expedite the flow of legitimate commerce. By integrating security processes into supply chain operations, the Administration can identify items of concern and seek to resolve them as early in the process as possible.
• Improve verification - Improve verification and detection capabilities to identify those goods that are not what they are represented to be, are contaminated, are not declared, or are prohibited; and to prevent cargo from being compromised or misdirected as it moves through the system.
• Enhance infrastructure, conveyance security - Enhance security of infrastructure and conveyances in order to protect the supply chain and critical nodes, through limiting access to cargo, infrastructure, conveyances, and information to those with legitimate and relevant roles and responsibilities.
• Maximize flow of legit trade - Maximize the flow of legitimate trade by modernizing supply chain infrastructure and processes to meet future market opportunities; developing new mechanisms to facilitate low risk cargo; simplifying trade compliance processes; and refining incentives to encourage enhanced stakeholder collaboration.

Second Goal is to Foster a Resilient Supply Chain

The Administration will seek to develop a global supply chain system that is prepared for and can withstand evolving threats and hazards and can recover rapidly from disruptions. Increased resilience and flexible, dynamic capabilities will improve the Nation’s ability to absorb shocks, save lives, and reduce the overall impact of a disruption. To accomplish its goal, the Administration will seek to:

• Mitigate vulnerability to disruption - Mitigate systemic vulnerability to a supply chain disruption prior to a potential event by using risk management principles to identify and protect key assets, infrastructure, and support systems; and promoting the implementation of sustainable operational processes and appropriate redundancy for those assets.
• Promote trade resumption - Promote trade resumption policies and practices that will provide for a coordinated restoration of the movement of goods following a potential disruption by developing and implementing national and global guidelines, standards, policies, and programs.

DHS and State to Lead Six Month Engagement Period with Stakeholders, Int'l Community

The Departments of State and Homeland Security (DHS) will lead a six month engagement period with the international community and industry stakeholders on this Strategy. The purpose of these engagements is to solicit feedback and specific recommendations on how to implement the Strategy in a cost effective and collaborative manner.

The Administration is particularly interested in receiving views and recommendations from stakeholders on a number of priority areas upon which it will focus its immediate implementation efforts. These priorities include:

• Refining its understanding of global supply chain threats and risks across air, land, and sea pathways;
• Improving threat detection and information analysis as well as sharing capabilities;
• Building resilient critical infrastructures and fostering a system that can absorb shocks and maintain continuity in the face of disruptions;
• Improving its capacity for commerce by modernizing and expanding domestic infrastructures, streamlining government processes, and creating innovative solutions to speed the movement of legitimate goods across U.S. borders; and
• Embracing and advancing global standards and encouraging collaboration with other stakeholders seeking to contribute to this collective mission.

¹The SAFE Port Act required that the Secretary of Homeland Security, in consultation with appropriate Federal, State, local, and tribal government agencies, the private sector, and the international community develop and implement a strategic plan to enhance the security of the international supply chain.

Strategy available here

Fact sheet on strategy available here

DHS press release available here