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Risk Management How to help balance security and efficiency Mercosur Customs Workshop Montevideo August, 2011 - PowerPoint PPT Presentation

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Risk Management How to help balance security and efficiency Mercosur Customs Workshop Montevideo August, 2011. Cargo and Port Program Experience. Los Angeles/ Long Beach New York/ New Jersey Seattle/ Tacoma Santos Vitoria Consulting Advisory Services USTDA/ SEP

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Risk ManagementHow to help balance security and efficiencyMercosur Customs WorkshopMontevideo August, 2011

Cargo and Port Program Experience

  • Los Angeles/ Long Beach

  • New York/ New Jersey

  • Seattle/ Tacoma

  • Santos

  • Vitoria

  • Consulting Advisory Services


  • Asia-Pacific Economic Co-operation

  • Port of New York/ New Jersey

  • Port of Los Angeles

  • Govt. of Mexico - SCT

  • Aqaba Special Economic Zone

  • Australian Customs Service

  • GE Maritime Security

  • Cargo and Supply Chain Security

  • Hong Kong

  • Singapore

  • Kaohsiung

  • Tokyo

  • Karachi

  • Aqaba

  • Rotterdam

  • Antwerp

  • Bremerhaven

  • Hamburg

  • System Deployment & Integration

  • Philippine Ports Authority (e-Port Initiative)

  • US CBP Automated Targeting System

  • US CBP Free and Secure Trade

  • US CBP SFI Pilot Program

  • DHS Secure Freight Initiative

  • Port of Halifax Access Control

  • US Army RF-ITV Program

Five forces of globalization

Compliance, Communications, Collaboration, Competition, Complexity

Governments are looking for better ways to protect national assets, critical infrastructure and citizens

Responding to asymmetric threats is a priority

Acts of Cybercrime, Acts of Nature and Terrorism

Balancing trade agility, security and assurance is the GOAL

Responding to laws and mandates WILL impact operations if not properly planned, designed and deployed

World Bank Logistics Performance Index – Mercosur Overview


Page 3

Challenges for Customs Agencies

  • Role

    • Facilitate Trade

    • Ensure Security of Operations

    • Collect Revenue

  • International Jurisdiction Limitations

    • Limited visibility into operations outside of the ports – domestic or international

    • Limited enforcement capability unless data or cargo is available

  • Acceptance of standardized policies & procedures (e.g. affixing of seals)

  • Reciprocity with other Customs Agencies

    • Import

    • Export

    • Transshipment

  • Limited Risk management & Targeting

    • Information Sharing limitations

    • Availability and Quality of Data

    • Applicability across Modes (Air / Sea)

    • Supplier / Service Provider Technical capabilities

    • Data format standards

How to Manage Risk and Balance Security



  • In-transit visibility/ RFID

  • Supply chain management systems

  • Asset tracking

  • Secure commerce roadmaps

  • Open-I risk intelligence

  • Managed security solutions

    • Remote managed security

    • Endpoint security

    • Vulnerability & risk management

  • Application security solutions

  • Secure info sharing

Strategic Integrated Response



  • Intelligent video surveillance

  • Facility management and access control (physical and IT security)

  • Border security systems

  • Integrated port security

  • Command and perimeter security

  • ID and credentialing systems

  • Traveler security

  • Access and border control

  • Biometrics systems (e.g., CODIS)

  • Identity and access management solutions (IT systems access)

Integration within and across the domains is the only way to strike the delicate balance between SUCCESS and RISK

  • Mission Critical support for over 10 years

  • Office of Information Technology

  • Office of International Affairs

  • Office of Strategic Trade

  • Program Involvement

  • National Targeting Center (NTC)

  • Automated Targeting System (ATS)

  • Secure Freight Initiative (SFI)

  • Western Hemisphere Travel Initiative (WHTI)

  • Program Roles

  • ATS System life-cycle support - Cargo, Passenger and Land border

  • Identifying gaps in targeting methodologies

  • Developing Rules and Assessing rule effectiveness

  • Developing Risk Models

  • Risk Management & Targeting Innovations

  • Pattern Discovery/ Machine Learning algorithm to assist NTC analysts

  • Integrated Open Source Intelligence

  • Image analysis on radiographic images to find anomalies

  • Packaging and transmitting near real time data from port of embarkation

  • Cargo & Stakeholder Trend analysis

  • Benefits

  • Revenue collection

  • Security (Terrorism, Weapons, Interdiction of illicit drugs and contraband)

  • Integrity Assurance and Identification of Corruption

  • Dynamic Border Management

  • Intellectual Property Rights Infringement and Counterfeiting

  • Overview

  • Enhanced Risk Management and Targeting capabilities based on:

    • Current and planned information availability

    • Threat/Risk Priorities

    • Critical sources of information - Federal Agencies and Commercial Enterprises

    • Individual demographics







Customs Platform



  • Pattern

  • Recognition

  • Discovery

  • Recognition

  • Anomalous

  • Behavior

  • - Current Trade Data

  • Historical Data


  • Watch List

  • Screening

  • Watch Lists

  • SSN, EIN, Other

  • UCR

  • Rules

  • Engine/

  • Profiling

  • Shipments

  • Actors

Shipment Risk Score Totals



Hold /


Threshold Adjustment / Manual Overrides

  • Historical

  • & Current Data

  • Entry, Manifest,

  • Actions,

  • Decisions,

  • Findings

  • Commercial

  • Database

  • Lloyds Lists

  • etc.

  • Watch listed

  • Entities


  • One-time shippers




- Classified,

- Open Source

  • Benefits

  • Monitor threats and incidents around the world, 24x7

  • Dynamically impact risk management and targeting capabilities

  • Instantly ascertain how a global threat or incident impacts your facilities, supply chains and operations

  • Access mission-critical asset information and documentation instantly

  • Facilitate an appropriate response in terms of Continuity of Operations Planning (COOP)

  • Overview

  • Integration of Open Intelligence sources into existing Risk Assessment Model and Risk Management posture

  • Benefits

  • Facilitate faster cargo clearance using data-driven modeling and analysis

  • Enhanced decision making

  • Provide Common operating picture

  • Allow users to drill down to specific people, cargo details, or risks

  • Provide capability to record decisions, actions, exams and relevant dispositions

  • Dynamically collect machine generated scans and images

  • Establish agency interface layer

  • Overview

  • Enhancement of current Customs Environment by integration of multiple data sources (enforcement, seizure, manifest, bookings, export documentation, examination events and findings

WHTI/ Border Integration

  • Sensor pair #1 detects vehicle, system prepares for transaction

  • Sensor pair #2 detects vehicle, front LPR, scene camera, & driver camera capture images and RFID starts scanning

  • Vehicle clears sensor pair #1, rear LPR camera captures image, RFID stops

  • Results and images are transmitted over network to US Customs

  • Vehicle reaches booth and Secondary information is transmitted to US Customs

Rear LPR

Driver Cam

Scene Cam

Front LPR


Page 10

WHTI/ Border Integration




License Plate Query Screen shot

If a license plate needs to be fixed

Images captured can be viewed for visual verification

All vehicles plates scanned are reviewed and sent to Customs






WHTI/ Border Integration

  • Benefits

  • Reduced wait times through RFID and License Plate Reader technology

  • Provides information to Officer prior to the vehicle arriving at booth

  • Facilitated processing – FROM 20 mins to 2mins

  • Reduced handling of paper documentation

  • Overall

  • Fully integrated with on-site Customs and National Targeting Center Customs system

  • Allows flexible deployment based on gate and lane operations

  • Provides a tool to execute pre-clearance of vehicles, with a POSITIVE impact on EFFECIENCY

  • Enables US Customs to conduct REAL TIME vehicle and driver background checks

  • System provides DASHBOARD to US Customs

Page 12

USTDA funded grant to Brasil’s Secretaria Especial do Portos (SEP)

Project Focus:

Analyze current Port/ Supply Chain Operations, Cargo and Information Flow – Import, Export & Cabotage

Develop To-Be Supply Chain solution utilizing Best Practices, Procedures and Technologies

Recommend Technologies and Solutions to Reduce Risks, Facilitate Trade & Improve Cargo Security


Port of Philadelphia

Port of Houston

Export Logistics Chain

Import Logistics Chain

Cabotage Logistics Chain

Page 13

Projeto Portos (SEP) Carga Inteligente - Design

Business Process Enhancements

Container Monitoring Mechanisms

Systems Integration Information Exchange


Projeto Portos (SEP) Carga Inteligente - Vision

Business Process Enhancements

Intelligent Cargo & Logistics Interface (API)

Sistema Porto Sem Papel (PSP)



Container Monitoring Mechanisms

Export Logistics Operations

Vessel Operations

Container Demand



Systems Integration Information Exchange

Container Discharge & Export Declaration


  • Projeto Portos (SEP) Carga Inteligente - Risk Management

SEP & Receita Federal

Other Brasilian Agencies

Logistics Industry


End Users

Risk Management and Integrated Supply Chain Visibility

Cargo Risk Management & Analytics

Shipment Tracking

Alerts & Notifications

Cargo/ People Verification




Customs Broker


Empty Depot

Vessel Carrier

Information Integration

Intelligent Cargo – Secure Integrated Data Messaging

Info Exchange - Repository - Image database - Documentation

Container Tech.- RFID/ GPS - eSeals - Tapes

Data Sources- Electronic Forms - Handheld devices - EDI/ XML -

As-is Baseline - Paper forms/ Fax - Communication - Processes

Business Process- Procedures - Protocols - Photos

Information Sources

Container Demand



Container Stuffing

Container Movement


Logistics Chain - Import - Export - Cabotage



ACE / ITDS / EFM Initiative / Secure Freight / SISCOMEX

Global Laws, Mandates, Standards

WCO SAFE Framework / AEO / LinhaAzul / 10+2

Projeto Portos (SEP) Carga Inteligente - Benefits

Page 17

  • WCO SAFE Framework and lessons learned from other Customs initiatives

  • Deploy an Integrated Risk Management and Targeting approach that includes:

    • Training & Communication

    • Enhanced Policies & Procedures

    • Technology – as an enabler

  • Enhance current systems to more effectively capture, store and analyze manifest and entry data

  • Overall such an approach will:

    • Facilitate free flow of legitimate goods

    • Streamline Information Exchange with government entities and trade community

    • Identify organizations that are most vulnerable in the supply chain

    • Provide actionable information to make decisions to mitigate risks

    • Allow you to extend its borders

    • Enable strategic utilization of limited resources to focus on high risk cargo/ people

    • Assist in revenue collection and reduce duty evasion practices

Thank you nishant pillai email nishant pillai@unisys com tel 1 916 802 8950

Thank You Portos (SEP)Nishant PillaiEmail – [email protected] - +1 916 802 8950