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SAFE Port Act. Signed into US law on October 13, 2006 Authorizes $3.4 B annually over 5 years to implement

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safe port act
SAFE Port Act
  • Signed into US law on October 13, 2006
  • Authorizes $3.4 B annually over 5 years to implement
  • Requires Customs and Border Protection (CBP) to institute new international supply chain security programs affecting foreign trading partners and the international trade and shipping industry
summary of safe port act major provisions
Summary of SAFE Port Act Major Provisions
  • Pilot International Container Scanning in foreign seaports
  • Require Additional Advance Shipment Data prior to export to US
  • Promote international standards for:
    • international container security strategy
    • cargo security devices
    • non-intrusive imaging and radiation systems
  • C-TPAT (Authorized Economic Operator)
secure freight initiative sfi
Secure Freight Initiative (SFI)
  • Secure Freight Initiative announced by DHS Secretary Chertoff on Dec 7, 2006
  • CBP has the lead for SFI which will combine:
      • International Container Security (ICS) pilots
      • Advance cargo data (called “security filing” or “10+2”)
      • Advance Trade Data Initiative (ATDI)
      • “Global Exchange” of data between governments and supply chain industry
international container scanning
International Container Scanning
  • Establish an International Container Scanning (ICS) Pilot
    • By January 2007, CBP must designate 3 foreign ports
    • Pilots must be implemented by October 13, 2007 and must:
      • Scan 100% of containers destined to US
      • Electronically transmit images and data to local CSI officers and to CBP in US
      • Resolve every radiation alarm
      • Electronically transmit advance trade data to CBP (ATS)
      • Electronically store data for retrieval and analysis
      • Conduct container exams upon request
cbp s plans for ics
CBP’s Plans for ICS
  • ICS goal: combine data from cargo scanning systems (NII and RPM) with automated risk analysis of advance cargo information
  • Six Locations designated vs. three required:

- Pakistan - Honduras - United Kingdom

- Korea - Singapore - Oman

  • Timeline: January – December 2007
  • ICS = 100% container scans with advance data, CBP targeting alerts shared with local authorities and US CSI officers, “load” or “do not load” message to carrier
advance trade data
Advance Trade Data
  • SAFE Port Act requires CBP to “identify and seek” additional advance trade data on containerized cargo shipments destined for US
  • 12 data elements required 24 hours prior to vessel load for Security Filing:
    • Name and address of Manufacturer, Seller, Buyer,

“Ship to” party, and Consolidator

    • Container stuffing location
    • Importer and Consignee numbers
    • Country of Origin
    • Commodity (6 digit HTS)
    • Vessel Stowage Plan
    • Container Status Messages
  • Advance Trade Data Initiative (ATDI) is the current CBP automation test bed to collect trade information from industry
  • 70 voluntary participants from variety of companies - importers, ports, freight forwarders, brokers, carriers, and network technology firms
  • ATDI now is accepting participants for proving the 10+2 data will work
global advance trade data initiatives
Global Advance Trade Data Initiatives
  • WCO SAFE Framework
  • EU, Canada, Australia and New Zealand have established advance ocean manifest requirements
  • Japan Customs introduced mandatory advance manifest rule requiring submission at least 24 hours before vessels arrive in Japan. 12 hour notice for cargo from China or South Korea to ports on Japan Sea
  • China-EU Customs project for Secure Trade Lanes model planned for 2007 (compares to SFI with e-seals)
international iso standards
International (ISO) Standards
  • CBP will promote “international cargo security standards” with IMO, ISO and WCO
    • ISO 28000 Series: best practices, AEO, business-government partnerships
  • E-seals and container security devices
    • ISO 18185: electronic seal and communications protocols
  • Scanning technologies
    • No standards
  • Security procedures for ocean container traffic
    • WCO SAFE framework
    • EU Customs set Jan 2008 target for AEO mutual recognition
customs trade partnership against terrorism c tpat
Customs-Trade Partnership Against Terrorism (C-TPAT)
  • SAFE Port Act officially recognizes C-TPAT
    • Tier I participants: 20 % reduction in ATS risk score
    • Tier 2 participants: benefits include -
      • reduced ATS scores
      • reduced exams
      • priority treatment for searches
    • Tier 3 participants: benefits for additionaldata and container security devices include -
      • expedited release regardless of threat level
      • fewer exams with priority treatment
      • further reduction in risk scores
resumption of trade
Resumption of Trade
  • CBP must develop a strategic plan for “resumption of trade” in the event of a security incident in the international supply chain
  • CBP’s priorities for “preferential treatment” will be for:
      • validated CTPAT participation
      • use of a CSI port
      • NII and radiation scans
      • additional measures (e.g., container security devices and e-seal tracking, more advance information)
issues for customs and trade with safe port act
Issues for Customs and Trade with SAFE Port Act
  • Does your Government and your industry want to participate in CBP’s Secure Freight and ICS program?
  • Will your Government establish an AEO program and seek mutual recognition with US?
  • Does your Government want to enable it’s manufacturers and ports to be part of Tier 3 C-TPAT with an e-seal or CSD program?
  • For CSI port, you should review and understand how the “local alarms”, response protocols and electronic data sharing work between your Customs, CBP (both CSI and in US), terminal operators, and others in the trade – is there a network to link the data?
how you benefit with safe port act
How you benefit with Safe Port Act
  • Competitive Advantages for your nation’s companies and industries for participating in
    • Container radiation scanning
    • SFI, C-TPAT, CSI, and AEO programs
    • Container track, trace, and visibility capabilities – more international businesses want their suppliers to have this capability
    • Protection against tampering, theft
    • Trade facilitation and benefits to industry
    • WCO and global initiatives going in same direction