Bonner: WCO group aims for global approach to supply chain security
A small, high-level group of national customs directors recently formed by the World Customs Organization will work to galvanize international support for a common supply chain security regime based on two ongoing U.S. initiatives that can be quickly implemented around the world, said the man who is pushing other governments to follow the U.S. lead.
Robert Bonner, commissioner of Customs and Border Protection, said the WCO’s goal is to “internationalize” the Customs-Trade Partnership Against Terrorism and the Container Security Initiative to protect the global trading system from terrorists, and so importers and exporters don’t have to adapt logistics processes to meet different security standards in each country in which they do business.
“I think this process will permit the adoption of a common set of standards, or norms, that would be adopted ideally by every customs authority in the world,” Bonner said in a meeting with a handful of reporters.
In late June the WCO announced the formation of the group to provide leadership on an interoperable supply chain monitoring system that simultaneously promotes security and the movement of goods. Bonner’s comments are the clearest indication yet that such a system will follow the U.S. model championed by Bonner after the Sept. 11 attacks.
C-TPAT is a private-public partnership in which companies validate to Customs that they and their suppliers have established protocols for packing, shipping and monitoring containerized merchandise and those who handle it along the way in exchange for less time-consuming cargo inspections at the border. More than 6,500 U.S. importers, transportation providers, port terminals, as well as a handful of foreign manufacturers, have gained preliminary permission to participate in the program so far.
The Container Security Initiative is Customs' program designed to catch suspicious containers that might contain terrorists, equipment or mass destruction weapons before they arrive at a U.S. port. Eighteen governments, some fearing the United States might shut out imports from ports deemed unsafe, have agreed to help protect the United States by checking selected export containers identified by Customs as posing a potential threat. U.S. Customs officers stationed in foreign ports use shipping data filed by carriers prior to departure to alert the domestic customs administration about which containers to target for x-ray and radiation scans. The program is reciprocal and countries like Japan and Canada have similarly stationed inspectors at U.S. ports to pre-screen outbound shipments.
On July 1, a global port and vessel security regime adopted by the International Maritime Organization and enforced by domestic border agencies such as the U.S. Coast Guard went into effect. More than 150 countries signed the treaty to implement the regime. The WCO effort is designed to create a similar global security standard for the containers that move on vessels and through ports, but without going through the potentially time consuming treaty ratification process, Bonner said.
The WCO doesn’t have the authority to draft an international convention, but can leverage its leadership to convince member nations that they will cede economic advantage to those who do participate, Bonner said.
“As a critical mass of countries joins in on the (security) framework it will expand and grow to include most of the customs authorities around the world,” Bonner said.
“Going to the multilateral convention, treaty route would take five to 10 years and we don’t have that kind of time” when facing an immediate terrorist threat, he said.
The international security framework envisioned by Bonner and some of his fellow customs administrators would be based on the CSI principles of using advance information, risk management techniques and inspections of both outbound and inbound containers as a way to enhance mutual assistance.
Bonner said the group intends to get a framework for securing containers, and defining the role that customs administrations play in getting the private sector to improve security, approved by the WCO policy commission in December. The regime would also standardize the benefits companies would receive in the form of fast inspection lanes and other types of trade facilitation for following supply chain security best practices.
The mind-set of the WCO has drastically changed since 2002 when Bonner challenged other customs authorities to rethink their traditional mission to include border security. Today, the consensus among members is that customs administrations need to take responsibility for security and facilitating trade. The Madrid train bombing earlier this year reverberated widely throughout Europe and did a lot to change the focus of customs directors, according to Bonner.
“Everybody I talked to there agrees that for customs to be relevant it has to play a role that goes beyond revenue collection, and contraband and drug interdiction,” Bonner said. “Customs can and should play a big role in the security of what moves through the trading system.”
The WCO steering group is committed to helping less-developed nations build the staff, systems and infrastructure necessary to develop effective border forces, Bonner said. The group will define the prerequisites for modern customs administrations and then seek financial help from various sources for customs administrations to expand their mission.
Two preconditions for security collaboration between customs administrations are training and equipment, Bonner said. Customs forces will require “greater professionalism and integrity of inspectors” if nations are going to have faith in relying on each others’ ability to check outbound cargo on their behalf. High-tech equipment for scanning containers and computer systems for analyzing trade data for anomalies that might indicate a terrorist connection are also important “because you can’t facilitate trade if you do physical inspections,” Bonner said.
The WCO group hopes to create momentum to build political will in countries that realize that making security a top priority can also increase trade and make import/export procedures more efficient, Bonner explained.
“The United States and members of the European Union are going to make every effort to allow developing countries to participate,” Bonner said. “If you want to join and don’t have the funds for equipment we’d intercede with the World Bank and other lending institutions to assist in this effort.'
A bill in Congress also seeks to provide money from the State Department’s foreign assistance fund for customs capacity building efforts.
Customs is helping Greece, the latest country to join CSI, rapidly build its port security capacity. CSI participating countries have to provide their own technology to scan U.S.-bound containers, but Customs is loaning Greece two mobile container scanning machines to help the Mediterranean nation get the program off the ground before the start of the Olympics in August. One of the machines will be used for CSI and the other for Olympic security.
“This is like World War II lend lease,” he said.
After the Olympics, the United States will take back one of the machines and the other will be returned after Greece completes an order for a large machine of its own.