The SAFE Framework of Standards

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The SAFE Framework of Standards
Bob Struthers World Customs Organization Training
on the New EU Implementations on Road Transport
and Foreign Trade Istanbul Turkey 25-26 June 2009
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The World Customs Organization (WCO) is the only
intergovernmental organization with competence in
Customs matters.
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Facts and Figures

• Established in 1952 as the Customs Co-operation
  Council
• Renamed WCO as working title in 1994
• Headquarters in Brussels
• 6 regional representatives
• Currently representing 174 members from all
  geographic regions and at different stages of
  development
• Members process gt 98 of all international trade

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WCO SAFE Framework

• Recognition of risks to the security and
  facilitation of the international trade supply
  chain led the WCO to take bold action.
• WCO Council Resolution, June 2002, forming a
  Joint Customs-Industry Task Force on Security and
  Facilitation.

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SAFE Framework of Standards

• Adoption at the Council in June 2005
• Framework
• Letter of Intent to implement the Framework
• 156 WCO Members make commitment to implement
• Revised version published in 2007

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Core Elements of SAFE
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Two pillars

• The WCO Framework rests on two twin pillars
• Customs-to-Customs network arrangements.
• Customs-to-Business partnerships.
• (Authorised Economic Operator (AEO) concept)

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Objectives of the Framework

• Certainty and predictability at a global level
• Integrated supply chain management for all
  transport modes
• Allow Customs to meet the challenges of the 21st
  Century
• Closer cooperation among Customs administrations
• Stronger Customs-to-Business cooperation
• Tangible benefits for businesses
• Seamless movement of goods

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Pillar 1Customs-to-Customs
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• Pillar 1 covers the following
• Integrated Supply Chain Management
• Cargo Inspection Authority
• Modern Technology in Inspection Equipment

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• Pillar 1 continued
• 4) Risk Management
• 5) High-risk Cargo or Container
• 6) Advance Electronic Information
• 7) Targeting and Communication

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• Pillar 1 continued
• 8) Performance Measures
• 9) Security Assessments
• 10) Employee Integrity
• 11)Outbound Security Inspections

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US SAFE Port Act H.R. 4954

• All the containers bound to US
• Starting from 1 July 2012
• Possibility to extend the date of application for
  4 additional years
• Pilot projects in 3 ports
• Port Qasim, Pakistan
• Port Cortes, Honduras
• Southampton, UK

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Pillar 2Customs-to-Business
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Authorized Economic Operator in the SAFE Program

• 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.

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• Pillar 2 covers the following
• Partnership- ensure that their internal policies
  and procedures provide adequate safeguards
  against the compromise of their shipments and
  containers
• Security
• - incorporate pre-determined security best
  practices into their existing business practices.

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• Pillar 2 continued
• 3) Authorization -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
  Authorized Economic Operators.
• 4) Technology- maintain cargo and container
  integrity by facilitating the use of modern
  technology.

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• Pillar 2 continued
• 5) Communication -The Customs administration will
  regularly update Customs-Business partnership
  programs to promote minimum security standards
  and supply chain security best practices.
• 6) Facilitation - The Customs administration will
  work co-operatively with Authorized Economic
  Operators maximize security and facilitation

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Authorized Economic Operator Requirements and
benefits

• 2007 supplement introduced
• 13 detailed AEO requirements sections (e.g.
  cargo, conveyance, premises security)
• Section listing possible benefits (eg reduced
  data sets, minimum number of cargo inspections
  etc)
• Validation and Authorization procedures

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AEO and Mutual Recognition

• A WCO Member Customs administration recognizes
  the AEO authorization system in another WCO
  Member Customs administration as equivalent to
  its own
• Standardized approach to AEO authorization in
  SAFE provides a solid platform for the
  development of international systems of mutual
  recognition of AEO status - bilaterally,
  subregionally, regionally and, in the long term,
  globally

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AEO and Mutual Recognition

• Will afford the foreign AEO the same benefits as
  a national AEO
• Improve predictability and efficiency of
  operations
• Tangible benefits to trade a challenge Mutual
  Recognition widely regarded as the holy grail'
  of benefits.

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Members AEO Programmes

• EU AEO
• US Customs Trade Partnership Against Terrorism
  (C-TPAT)
• Canadas Partners in Protection
• Jordans Golden List
• Singapores Secure Trade Partnership
• Malaysias Customs Golden Client
• Japans AEO Programme
• New Zealands Secure Exports Scheme (SES) and
• Chinas AEO Programme
• Koreas AEO Programme

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Members AEO Programmes

• .but bear in mind that 156 WCO members have
  committed to Implement SAFE!
• Major , ongoing Capacity Building support
  required (Columbus Programme)

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Current Developments

• Compendium of AEO programmes, including Mutual
  Recognition Arrangements (MRA), to raise
  awareness of other programmes
• Guidance How to set up an AEO Programme
• SMEs and AEO

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Scope and Objectives of the Research (AEO
Compendium)

• Since June 2005 156 Members have signed SAFE
  Framework to Secure and Facilitate Trade
• Research Objective to evaluate the progress in
  Pillar II on AEO implementation
• Data used in-house information (reports
  previous questionnaires, open search) and
  targeted requests to Members
• Scope of study
• 40 programmes in 67 countries (due to EU-27 that
  has a single programme) on all continents
• 25 programmes identified for targeted approach
• Information is being verified through the
  national administrations (personalised requests)
• Database of AEO contact persons is being formed

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AEO Typology I (25 programmes)

• Programme type
• Security/customs compliance 14
• Security 5
• Customs compliance 6
• Type of operator
• importers, exporters, logistic operators
  (carriers, forwarders, shipping companies,
  airlines), customs brokers, warehouse operators.
  Some countries (i.e. USA) included special
  categories for ports and foreign manufacturers.
• Legislation
• all programmes envisaged voluntary participation
  in the programme.
• most countries introduced amendments to their
  current legislation (mainly Customs Codes) or
  passed new legislation specifically for AEO
• some countries, like Canada, Singapore or
  Australia have not introduced any specific
  legislation to provide for an AEO.

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AEO Typology II (25 programmes)

• Further plans
• Development of new electronic applications
• Improvement of procedures
• Enlarging the scope of programme (import/export)
  or elaborating it to include more types of
  operators
• Adding a security component (for customs
  compliance programmes)

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Mutual Recognition Arrangements
Concluded MRA
To be concluded
Studies/consultations in place
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And the future.?

• Sustained Capacity Building Support
• SAFE Survey
• Case studies on AEO mutual recognition best
  practice
• Mutual Recognition Standards?

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Thank you very much
WCO SAFE Framework
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