Foreword Acknowledgments Introduction The Events of 9/11 and How They Affect Global Supply Chains Overview of Issues and Concerns 9/11: How Were Supply Lines Affected? It Costs More to Ship More Attention Had to Be Paid to Documentation and Logistics Detail Regulations Changed, Making It More Cumbersome to Import and Export Corporations Had to Modify Their Supply Lines Purchasing and Selling Decisions Were Altered Carriers’ Futures Were Uncertain Increase in Potential Fines and Penalties An Entirely New Corporate Responsibility Was Created in Security and Compliance The Mind-Set of the United States Government The Big Picture The Risks of Global Trade: Now, Add Compliance and Security The Security Concern in Our Transportation Infrastructure Operation Safe Commerce (OSC) Free and Secure Trade (FAST) What Is the FAST program? What Are the Benefits of the FAST Program? Who Is Eligible to Apply? Where Is FAST Available? Compliance and Security: Import Supply Chains Protecting our Borders Against Terrorism CBP’s “Twin Goals”: Anti-Terrorism and Facilitating Legitimate Trade and Travel Better Targeting Pushing Our “Zone of Security” Outward Partnering with Other Countries Partnering with the Private Sector (C-TPAT) Inspection Technology and Equipment Keeping Weapons and Money from Falling into Terrorist Hands: Outbound Inspections Protecting the Miles of Open Border Between Official Ports of Entry Basic Import Management Classification Valuation Origin Markings Record Keeping Importers Customs Brokers Records Storage Methods Customs Initiatives Since 9/11 Highlights of CBP’s Accomplishments Strengthening Our Control of U.S. Borders Improving Selectivity, Screening, and Targeting Private, Public Sector, and International Partnerships Importer Self Assessment (ISA) Food and Drug Administration (FDA) (Imports) New (Interim) Final Rules Require Registration of Facilities, Prior Notice Filing for Food Shipments Automated Commercial Environment (ACE) Managing Inbound Supply Chains: Purchasing Control Export Supply Chains Department of Commerce Census Bureau Department of Commerce Bureau of Industry and Security USPPI Export Licensing Denied Parties Screening Deemed Exports Anti-Boycott Compliance Department of Treasury Office of Foreign Asset Controls Department of State Implementing a Successful Export Compliance Program Designating Responsibility Senior Management Support Developing Standard Operating Procedures Best Practices Internal Assessment Developing a Compliance and Security Management Program Analysis of Risks Obtaining Senior Management Involvement Forming a Committee Structure Creating Standard Operating Procedures Infrastructure and Communication Systems Resource Development Risk Management Attitude Disaster and Contingency Planning Self-Assessment Managing Vendors, Suppliers, Freight Forwarders, Customhouse Brokers, and Service Providers for Compliance and Security Issues Overview of Global Service Providers Customhouse Brokers and Freight Forwarders Specific Compliance and Security Reference Points for Forwarders and Brokers Carriers: Air, Ocean, Truck, and Rail Warehouses and Consolidation/De-Consolidation Facilities Selling Distributors and Agents in Export Purchasing Distributors and Agents in Import Third-Party Providers Banks and Other Finance Houses Miscellaneous Companies and Services Cost-Effective Logistics Critical Issues in Compliance and Security Sarbanes–Oxley and the Interface with Global Supply Chain Management DOT Hazardous Material Regulations (49 CFR 100-179) Purpose Overview Shipping Papers Marking and Labeling Labeling Placarding Segregation of Hazardous Materials Packaging Selection of Proper Packaging Employee Training Materials of Trade Managing Hazardous Materials Transportation as Part of Compliance in Global Supply Chains Facility Security Checklist Security Checklist for Shipper Carrier Safety Assessment Employee Background Check Guidelines International Port Security Program The SAFE Port Act Technology Issues In Compliance and Security Department of Homeland Security (DHS): “Best Practices for Container Seals” Plan to Require Container Seals Motivates Adoption of 13 Cargo Security Best Practices Standards and Deadline to Come Getting Ahead of the Curve Best Practices Outlined Radio Frequency Identification (RFID): Smart and Secure SST Phase I Results SST Phase II Objectives SST Phase II Benefits SST Phase II Deliverables Required Shipper’s Resources Supply Chain Benefits Foreign Corrupt Practices Act Food and Drug Administration/Environmental Protection Agency Propose Security Restrictions Food and Drug Administration Environmental Protection Agency Ultimate Consignee INCO Terms Use of the Term “Ex Works” by Parties in International Contracts and Purchase Agreements Routed Export Transactions under the July 10, 2000, Federal Register Notice Responsibilities of Parties in a Routed Export Transaction Record Keeping: A Vital Issue Transfer Pricing: A Serious and Potentially Costly Compliance Issue IRS, CBP, SEC, and DOJ Involvement? What Business Travelers Need to Know Container Security Update 2007 Customs-Trade Partnership Against Terrorism Security Requirements for Validation of Participants Business Partner Requirements Security Procedures Security Training and Threat Awareness Information and Technology Security CBP Proposal for Advance Trade Data Elements Background Security Filing: Proposed Data Requirements Vessel Stow Plan: Container Status Messages Security Filing: Responsible Parties Notes Annex A: Proposed Data Definitions Annex B: Data Elements Comparison Customs Bonds Parties to a Bond Types of Bonds Amounts of Bonds Continuous Bond Breach of Bond Ten Steps to a Secure and Compliant Supply Chain Acknowledge the Issues Identify the Point Person Obtain Senior Management Authorization Develop an Initial Execution Strategy Obtain External Resources and Support Develop a Compliance and Security Committee Complete a Facilities Review Prioritize the Issues. Finalize an Action Plan. Implement the Program Training and Education Self-Audit Concluding Remarks The Challenges of Compliance and Security in our Global Supply Chains Appendix Legislation Related to the Attack of September 11, 2001 Bills and Joint Resolutions Signed into Law Other Resolutions Approved Legislation with Floor Action New Government Cargo Security Rules Call on Forwarders to Work with Agents on Securing the Supply Chain General Aviation Security: Increased Federal Oversight Is Needed, but Continued Partnership with the Private Sector Is Critical to Long-Term Success, GAO-05-144, November 10, 2004 Key Acronyms Glossary Index
