1. 14 th November 2003 1 UNECE - WCO Facilitating Trade in a Secure Environment 13-14 November 2003 Global Security Standards

2. 14 th November 2003 2 Innovative Trade Framework Agenda Who is Innovative Trade Network (ITN) ITN proposed solution Point of origin Trusted third party agent End-to-end supply chain security Operation Safe Commerce (OSC) Moving towards standards

3. 14 th November 2003 3 Innovative Trade Network (ITN) BV Solutions Group Calspan UB Research Center / General Dynamics Cargill Cotecna FreightDesk Technologies Honeywell Lockheed Martin TransCore

4. 14 th November 2003 4 Johns Hopkins University Applied Physics Laboratory ITN R&D by The CBRTA, World-Class Expertise

5. 14 th November 2003 5 The ITN Proposed Solution Sensing, Sealing, Tracking, Custody Physical verification of location, contents, and people Visibility network Risk Mgt. Data Clearinghouse Near real time accurate data Global business model for acceptance, savings, and security Global crisis response platform National Non-Profit Fusion, sort, organize, prioritize, harvest Anomaly identification for logistics and security Contraband discovery Commercial and Government Security achieved through data and information Security achieved through understanding Security achieved through knowledge

6. 14 th November 2003 6 Global Information Requirements WCO –27 data elements –Customs to Customs US Customs –14 data elements –Freight forwarders; carriers to Customs ITN –250+ data elements and growing –All stakeholders

7. 14 th November 2003 7 The Point of Origin  A trade lane starts with the buyer.  The main security issues are with: manufacturer container stuffing of cargo sealing of the container tracking to the port of loading port of embarkation  This leads to collecting accurate data on who, what and where at the point of origin.

8. 14 th November 2003 8 Trusted Third Party Agents Independent inspectors that are: the eyes and ears at the point of origin thoroughly vetted experts in inspection techniques of empty containers and of goods experienced with Customs procedures

9. 14 th November 2003 9 Container Stuffing Container Inspection At origin - Container Security Inspection during the loading of goods. This Inspection is documented with an Electronic Report and series of 5 digital photos.

10. 14 th November 2003 10 Container Stuffing Fourth picture is taken once the vehicle is closed and sealed. The final picture is a close-up of the seals. The third photo is taken once loading is complete. 1 5 2 3 4 The second picture is taken half way though the loading process. Firstly, a picture is taken of the empty container. Note: the container number is visible on all pictures The seal ID also appears on the Inspection Report & the Bill of Lading

11. 14 th November 2003 11 An end-to-end supply chain security solution Validation of content of the container prior to sealing 24 hour accurate advance manifest information Validation and monitor of containers in transit Detect and report tampering Integrate non-intrusive inspection Data clearinghouse accessible to all end users Accuracy and timeliness of cargo information Ultimately will save time and money

12. 14 th November 2003 12 Operation Safe Commerce (OSC) Public/private sector initiative funded by the US Federal Government Pilot trade lanes for testing technologies and processes Proof concept and best practices –Pilots to develop workable security measures –Influence new supply chain security standards –To facilitate trading for participating importers

13. 14 th November 2003 13 Operation Safe Commerce ITN has been awarded two pilot trade lanes: –HAZMATS from Japan –Food stuff from Germany COTECNA is participating with other leads in: –Coffee from Brazil –Electronics from Singapore –Bathroom fixtures from Turkey

14. 14 th November 2003 14 Moving towards standards The experience gathered from the OSC pilots a good basis for developing standards ITN has been nominated Category A Liaison with ISO/TC8

15. 14 th November 2003 15 Standards for what Security-management systems that include: –Personal credentialing and identification –Inspection of the empty container –Witnessing the stuffing of the container –Sealing of the container –Container seals –Reporting, content and data elements –Secured transmission of information –Confidentiality –Accreditation and audit of the trusted agent at origin –…