“Think Security”

Supply Chain Security On the Southern Border

Wesccon 2004-San Diego, CA3 Agenda Introduction What is Supply Chain Security How the Government plans to achieve Supply Chain Security How Importers, Brokers and Carriers will achieve Supply Chain Security Questions

Wesccon 2004-San Diego, CA4 Securing the Supply Chain WarehouseImporter Manufacturer /Supplier Customs Broker Supply Chain Security Highway Carrier Freight Forwarder Rail Carrier Sea Carrier Air Carrier

What is the Supply Chain?

Wesccon 2004-San Diego, CA6 Supplier (exporter, seller, manufacturer…) Having contraband introduced into: The product The packaging The shipping container Using the documents to misrepresent or conceal: Identity Origin Merchandise Contents, weights, volume…

Wesccon 2004-San Diego, CA7 Forwarder (broker) Using the documents to misrepresent or conceal: Identity Origin Merchandise Contents, weights, volume…

Wesccon 2004-San Diego, CA8 Carrier Having contraband introduced into: The product The packaging The shipping container The conveyance

Wesccon 2004-San Diego, CA9 U.S. Customs Broker Using the documents to misrepresent or conceal: Identity Origin Merchandise Contents, weights, volume…

Wesccon 2004-San Diego, CA10 Importer (buyer) Using the documents to misrepresent or conceal: Identity Origin Merchandise Contents, weights, volume… Having contraband removed from: The product The packaging The shipping container The conveyance (trucks)

Wesccon 2004-San Diego, CA11 Why Supply Chain Security? New York before 9/11/01 New York after 9/11/01

Wesccon 2004-San Diego, CA12 Why Supply Chain Security? A false roof in a tractor-trailer is a common method of smuggling drugs. 61 kilos of cocaine were found in the roof of this particular vehicle.

Wesccon 2004-San Diego, CA13 Why Supply Chain Security? Mission:  Prevent terrorist attacks within the United States  Reduce America's vulnerability to terrorism  Minimize the damage from potential attacks and natural disasters

Wesccon 2004-San Diego, CA14 CBP Customs and Border Protection After March 1, 2003 “The priority mission of CBP is to prevent terrorists and terrorist weapons from entering the United States.This important mission calls for improved security at America's borders and ports of entry as well as for extending our zone of security beyond our physical borders - so that American borders are the last line of defense, not the first.” ?

Wesccon 2004-San Diego, CA15 Why Supply Chain Security? ALERT LEVEL GREEN ALERT LEVEL BLUE ALERT LEVEL YELLOW ALERT LEVEL ORANGE ALERT LEVEL RED LowGuarded Elevated SevereHigh

Wesccon 2004-San Diego, CA16 How will CBP Achieve Supply Chain Security Advanced Manifest Container Security Initiative (CSI) Free and Secure Trade (FAST) Customs – Trade Partnership Against Terrorism (C-TPAT)

Wesccon 2004-San Diego, CA17 Advanced Manifest Ocean- 24 hours before lading Air- 4 hours before arrival or 4 hours before wheels up in North and South America Truck- 1 hour prior to arrival or 30 minutes prior to arrival for FAST (0 minutes for Brass) (November 15) Rail- 2 hours before arrival

Wesccon 2004-San Diego, CA18 Container Security Initiative (CSI) Extend our zone of security outward so that American borders are the last line of defense Intelligence and automated information to identify and target high-risk containers Pre-screening containers identified as high- risk, at the port of departure, before they arrive at U.S. ports Detection technology to pre-screen high-risk containers Smarter, tamper evident containers

Wesccon 2004-San Diego, CA19 Free and Secure Trade (FAST) U.S. & Mexico Ports Opens today in Otay Mesa C-TPAT Importers C-TPAT Manufacturers FAST & C-TPAT Approved Carriers FAST Approved Commercial Drivers Cargo Release Methods Pre Arrival Processing System (PAPS)

Wesccon 2004-San Diego, CA20 Customs – Trade Partnership Against Terrorism (C-TPAT) What is it? Who is eligible? Importers Mexican Manufacturers Carriers U.S. Customs Brokers Forwarders Port Authorities Who is next (Warehouses…)

Wesccon 2004-San Diego, CA21 Customs – Trade Partnership Against Terrorism (C-TPAT) How to Enroll Memorandum of Understanding Assessment Manual (verifiable documented procedures) Questionnaire (executive summary) Communicating procedures (to vendors, suppliers, manufacturers, brokers, forwarders, carriers, ports…) Certification Verification (on site, by Customs)

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Wesccon 2004-San Diego, CA24 C-TPAT Benefits of Membership Quick cargo release Fewer cargo exams Access to the “Fast Lane” through Customs Eligibility for quick cargo release programs Priority exam treatment Priority use of US Customs new automation system, ACE Exceeding customer requirements for supply chain security Reduced cargo loss from theft and damage Protection of employees Maintain eligibility for new Customs import programs

Wesccon 2004-San Diego, CA25 C-TPAT Benefits of Membership Protect the future reputation and profits of the Company by avoiding disaster and the resulting bad press Reduced Customs inspections Reduced inspection fees Reduced handling, trucking, rental fees Reduced cargo demurrage Minimize cargo delays during peak shipping season Retain “Low Risk Importers” earned benefits Self-Policing emphasized vs. Customs scrutiny Continued eligibility for existing Customs programs

Wesccon 2004-San Diego, CA26 Security Requirements Facility Security Personnel Security Data Documentation Security Information System Security Warehouse, Shipping and Receiving Security Container & Trucking Security Vendor and Supply Chain Service Provider Security

Wesccon 2004-San Diego, CA27 Monitoring, Identifying & Correcting Security Weaknesses Monthly Audit/Monitoring Identification of Security Weaknesses Annual Audit Reporting

Wesccon 2004-San Diego, CA28 The Future New threats New Challenges New Technologies Worldwide Commitment to Supply Chain Security

For additional questions: Steven Zisser Zisser Group 2297 Niels Bohr Court Suite 114 San Diego, CA Phone